Q.
Several years ago I read your book 'More Money'. One chapter in
particular has stuck with me, that being 'The Fairy Godmother And
The Magic Train'.
In the next few weeks we are expecting the arrival of our first
child and I would like to jump on the Magic Train at the terminal!
In today's economic climate what is the inflation rate and what is
a reasonable return percentage to look for in a managed fund?
Do you have any suggestions on a suitable managed fund for the
purpose of the Magic Train?
A.
I believe 3% is a reasonable inflation rate and it is generally
accepted that inflation plus 6% is a reasonable long term return
for shares.
My preference would be share based insurance bonds, about which
I have written often in detail, because they free you from the tax
problems that can be created if you invest in your own names.
Each week financial advisor Noel Whittaker answers your
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