Zero interest rates for 25 years
WHAT DO YOU DO ABOUT 25 YEARS OF NO INTEREST RATES
Perhaps the most important issue facing long-term investors, one which gets largely ignored because it will only manifest itself slowly, is this issue of what we all do if interest rates in Australia go down and stay down as they have done in most of the developed world.
The big issue is that if low or no interest rates translate to low returns from investment markets then we are all going to need a lot more money to retire, because our capital will earn less income in retirement. But the problem we will have in a low return investment environment is that it becomes a lot harder grow our capital in the years ahead of retirement.