Retirees with SMSFs and Cash - Aussie Stock Forums

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  1. #1

    Default Retirees with SMSFs and Cash

    Just wondering what other retirees with SMSFs are doing, or thinking of doing, with the cash component of their fund.
    If you have cash in the tax free environment of a SMSF and anticipate staying in cash for quite some time, then I'd be interested on views on the best place to put those funds in term of earning capacity and safety.
    Comments appreciated. Thanks.

  2. #2

    Default Re: Retirees with SMSFs and Cash

    I went predominately cash in July 07 in my SMSF. Sold all my Aussie shares, except one small miner, but kept a Skandia International fund and a non Share market investment going. I'm getting 7.16% in a BoQ term deposit with the cash while I wait for this down leg to bottom. I will move back into the market for the upcoming multi month retracement and then head back to cash for the next (final?) down leg of the correction. I stayed with the International fund because, although it has lost capital, it still produces a nice income. Running at about -5% for the entire fund but when you take into account the small miner has lost about 80% then I think I'm weathering the storm relatively well


  3. #3

    Default Re: Retirees with SMSFs and Cash

    Thanks MS. I appreciate the comments. I am doing something similar in that our cash is in 2 at call bank accounts earning around 7%. I was wondering if I could do better than that without too much hassle.
    I'm interested in your reference to the "upcoming multi month retracement" and would like to know what you anticipate if you don't mind sharing your thoughts.
    Best wishes

  4. #4

    Default Re: Retirees with SMSFs and Cash

    All that follows is solely my opinion and is not meant as investment advice.

    I use Elliot wave as part of my trading analysis. As I see it we are currently in wave C or 3 of wave A down of an ABC correction.

    If the A wave forms an ABC zigzag then we are looking at a flat correction of some sort, which means the B wave up will come close to or possibly exceed (for an expanded fat) the start of Wave A. Currently that is my expectation.

    If this A wave turns into a 5 wave move we are instead looking at a zigzag correction and the the resulting B wave may not be a worthwhile rentry proposition.

    The other possibility is that we are currently in wave C of the full correction and once this wave down completes we start off a substantial bull market. At this time this scenario is lower in my expectation as the real issues facing world markets are mostly being ignored by the powers that be in the hope they can reinflate their way out of their problems. For our market to start a major Bull run in the near future we would have to completely disassociate ourselves from the US markets and again that is something that I don't see happening at this time.

    All that said there is always the very real possibility that my analysis and reasoning are incorrect and it could all head north at a great rate knots as of Monday morning


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