i seem to throw “total return” into every ips … when is a total return approach not advisable
When income from the portfolio is essential to the investor. OR, income is not desirable due to say, tax considerations and capital gains have a better tax rate.
Yeah if Cap gains aren’t taxed you cuodl always say Capital Appreciation or a Total Return with an emphasis on Cap Appreciation…
Use Realized Return instead of Total Retun when evaluating Insurance Companies & Banks.
I hate insurance companies and banks… i never ever get their return rqts right
Maybe when you have an individual investor with many years to retirement who earns a very sizeable salary more than adequate to meet living expenses. In that tcase, the focus could just be to grow the asset base.
Why even mention “total return”. I would stick to the basics ie: Required Return, Desired Return. The only time I’ll be mentioning “Total Return” approach is for Endowments and perhaps infinite time horizon Foundations.
I just know when person is planning to drain portfolio not to mention capital preservation