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Most liked posts in thread: What's your retirement asset allocation percentages?

  1. Bill M

    Bill M Self Funded Retiree

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    My Mother did all of the above. We had health care workers/cleaners coming in twice a week but things break down all the time. The staff get sick or get injured on the job or take holidays and sometimes there isn't anyone available to come by and help. So then Mum had to struggle to even have a shower. There were some government funded initiatives to help stay in your home longer but it wasn't enough. All family were interstate and she did not want to move out of her home. We were all married and could only come now and again.

    In the end she saw it for herself that it was impossible to stay on in her home and she made the decision to go. So we sold up the house and she went into a very lovely, well run private Aged Care Facility. The fee to get in was $500,000. For this she got a studio room on her own, I liked it and loved coming to visit Mum. The 500K (probably a lot more now) is a RAD (refundable accommodation deposit). This fee reduces the amount per week you have to pay for their services. Yes they took 85% of her pension but the RAD was still not enough to cover the service fee. Instead of the full $1,200 p/w cost she was up for around an extra $200 a Month. So her fees were a 500k RAD (with no interest) 85% of her pension plus $200 P/M of her own savings. It was manageable. This was the best and cheapest course of action we could do for Mum. We were happy that she lived in a nice place. Sorry for rambling but old age gets very expensive. If you have no money and no family then you will end up in a facility that is not so nice and sharing a room with other residents.
     
    aus_trader, Skate, qldfrog and 2 others like this.
  2. Belli

    Belli

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    Did a small exercise to assist my understanding at least why I am not overly focused on yields but income.

    Two companies, one a bank, the other not.

    The bank in 2009 paid dividends totaling $1.46. The non-bank $0.53. No franking taken into account.
    In 2019 the bank paid dividends totaling $1.98. The non-bank $2.48.

    Dividends for the bank have remained flat for five years. The non-bank has increased its dividends by over 200% in the same period.

    That's NAB v CSL.
     
  3. Value Collector

    Value Collector Have courage, and be kind.

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    I personally know some one that thought they could live off the interest forever of a lump sum the got when they sold a rental property in the 70’s for $4000.

    They are now dead, but as of 2015 they still had the $4000 Term Deposit, as you can imagine, it didn’t keep up with inflation.

    If they had kept the rental property, and just put 25% of the rent back into maintenance, they would have done a lot better.
     
  4. Value Collector

    Value Collector Have courage, and be kind.

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    Yeah, as I mentioned earlier I live of 50% of my investment cashflow (excluding rent)

    50% of dividends, p2p interest and options profits flows to my spending account, the other 50% gets reinvested.

    Property rental just goes to reducing property loans, however all the costs of maintaining home are fund from the property account Eg rates, insurance, maintenance etc, so it probably works out I am using some where around 50%-70% of net property cashflow for personal housing costs, while the remainder is building portfolio equity by reducing loans.
     
  5. systematic

    systematic

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    Practically 100% equities.

    International vs Australian allocation - undecided (still). I'm still 100% ASX. I've researched the topics and have different ideas (that have changed from time to time) about international, and never really settled on a decision. ASX has done well enough to make me lazy enough to not pursue the topic to a decision, though now you've reminded me, I must get back to it.
    But either way, equities it is.

    On the day of retirement I'll still be looking to achieve growth, same as current. I'm one of the 'public equities are one of the best assets for growth) people I guess. David Dreman (rather than Buffett) convinced me of that early on so I guess I was indoctrinated. I went through a phase of devouring all the asset allocation stuff (I thought it'd be cool to simply own a couple of ETF's or funds and rotate them around etc), along with my own research and never concluded anything other than equities are good enough for me (and probably better than any other option I looked at).