G'Day again,
Not actively investing means I get ants in my pants every so often. At the moment, as explained before, I have my money on deposit with various Aussie banks. Previous respondents (thank you kindly) have before given me what I take to be good advice: I don't NEED to invest in shares.
None-the-less, I think it prudent to re-test that conclusion every once in a while to see if I should change tack.
Here's my current hypothetical investment alternatives:
1. Bank deposits yielding 6.6% per year (effective).
2. 10% Bank deposits yielding 6.6%, 45% term deposit yielding 7.0%, 45% shares yielding dividends 4.7% + credits 1.6% + growth 5% (total return 11.2%. Portfolio is re-balanced each year in said percentages.
Below is a graph of the projected outcome for a retired person / couple (therefore paying no tax) with $5,000,000 invested in a pension/s withdrawing the mandatory minimum each year.
Notice that it does not make very much difference to the amount withdrawn for mant years. I take this to indicate that I cn continue to backslide on investing for several years, perhaps waiting for an obvious opportunity?
Not actively investing means I get ants in my pants every so often. At the moment, as explained before, I have my money on deposit with various Aussie banks. Previous respondents (thank you kindly) have before given me what I take to be good advice: I don't NEED to invest in shares.
None-the-less, I think it prudent to re-test that conclusion every once in a while to see if I should change tack.
Here's my current hypothetical investment alternatives:
1. Bank deposits yielding 6.6% per year (effective).
2. 10% Bank deposits yielding 6.6%, 45% term deposit yielding 7.0%, 45% shares yielding dividends 4.7% + credits 1.6% + growth 5% (total return 11.2%. Portfolio is re-balanced each year in said percentages.
Below is a graph of the projected outcome for a retired person / couple (therefore paying no tax) with $5,000,000 invested in a pension/s withdrawing the mandatory minimum each year.
Notice that it does not make very much difference to the amount withdrawn for mant years. I take this to indicate that I cn continue to backslide on investing for several years, perhaps waiting for an obvious opportunity?
