By: Dividend Sensei
Interest rates are at their lowest levels in history, creating major problems for retirees looking to the traditional 60/40 portfolio.
With a 1.8% yield, and 4.3% CAGR inflation-adjusted consensus total return forecast, retirees might be in for lean times in the coming years and decades.
Fortunately, three high-yield blue-chips combine to form the safest 7.6% yielding retirement portfolio in the world, that’s expected to deliver 11.5% CAGR long-term returns.
Combining these three high-yield, inflation and recession-resistant blue-chips with a 60/40 portfolio creates an 80/20 high-yield retirement portfolio with nearly 3x the income, 1.9% stronger return potential, and 135% more wealth over the next 50 years.
JPMorgan thinks that these portfolios would significantly outperform during high inflation conditions, as well as periods of strong economic growth, delivering superior and more dependable income, and well better returns no matter what happens with the economy, stock market, or inflation in the coming decades.