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

  1. Zaxon

    Zaxon The voice of reason

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    We're getting a lot of that is this thread! I was expecting some very conservative allocations full of bonds and big cash holdings, but apparently, this thread has been left to the "stock jockeys".
    I'm somewhat similar. Now, I do all my active stock holdings via the ASX, and as you say, the ASX has done well enough. My super is 100% in US ETFs.

    As Australians we're lucky. If you were going to pick one country and not invest outside it, historically, both the US and Australia have done very well.
    And one of the nice things about sticking with publicly traded assets, there's a lot more accountability, in theory. So they should be safer assets, on the whole.
    I've reached the same opinion. If shares have had the highest return historically of any asset class, why go anywhere else?
     
  2. BoNeZ

    BoNeZ

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    I haven't retired, I just changed jobs and now manage our investments full time.

    While the task expands to fill the time available some days the "job" takes 5 minutes to run the scans, 0 - 10 minutes to place the trades and 0 - 20 minutes to do all the administration (printing and filing the paperwork, updating spreadsheets and Amibroker etc). I then have the rest of the day for other activities and hobbies.

    The previous job also involved sitting in front of a PC so it wasn't a big change but I now have no commuting into the office and no regular salary.

    To answer the original question apart from a safety buffer of cash in a HISA I'm 100% invested in shares. I have international exposure through my super while my personal account is 100% Australian shares which I actively manage. When I fully retire my personal account will probably change to ETF's or be rolled into my super account but for now in addition to making money it's helping to fill my day and keep me sane.
     
  3. Sharkman

    Sharkman

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    all very true - but the thing is - the words that i highlighted above. over time as economies develop in theory they should slowly be shifting towards secondary and tertiary industries. i don't have the data readily available, so i'd be happy to be proven wrong if someone does have it, but to me it feels like that is happening with a lot of other advanced economies, whereas we seem to be slowly shifting back to primary. our sector distribution might have been roughly comparable in the past, but i'm not so sure we've been moving in the same direction since then.

    we are heavy in banks which technically are tertiary, but they're a bit of an oddity in that they're mostly there to service the rest of the economy, they don't really export anything (at least ours don't). in the past they were able to grow by utilising technology to improve profitability, but those gains are mostly realised now, future growth seems limited. they tried expanding overseas (NAB in the UK, ANZ in SE Asia) and that didn't go too well. they tried expanding by offering more "services" to squeeze more out of their customers, and that ended up disastrously as we all know. the way i see it, they're really only good for dividends now (well, that and short term trading, they do have nice liquid options that generally give good fills), dividends that at best will grow slowly and at worst will shrink (NAB's already did) as the compensation costs continue to bite.

    we do have a few tech names here and there (CSL is in fact the centrepiece of my Aust portfolio, i was lucky enough to get in at the IPO and still hold today... shame i only had barely over a grand to throw into it, i was just in my mid-teens at the time). but if one is looking at broad based, low MER, low risk indexes to form the foundation of a retirement plan, the sector isn't all that prominent.

    contrast that to the US - i can't see us ever having the sort of aerospace, robotics, software, semiconductor etc. sector concentration that they do. nor do i see us matching the engineering prowess of the Germans and Japanese any time soon. i'd rather have the bulk of my investments in economies where those sectors are more prominent, as sectors like that are where the growth of the future lies IMHO.

    i also don't see too much of a risk investing in Aust - but i don't see a lot of future growth potential either, compared to the world's leading economies because of the above. it's a YMMV type thing though, it's not for me to tell those who want a healthy dollop of dividends and/or those who sleep easier if they satisfy their home bias that they are wrong to invest locally. if it's the best fit for their objectives, nothing wrong with it at all. i just find S&P 500 and all-world ex-US are better aligned to mine.
     
  4. Sir Burr

    Sir Burr

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    Been delving into this topic too as I'm up for retirement soonish. Been researching assets, asset allocation and SWR. Hope no one minds posting these links to info I have found very helpful:

    https://passiveinvestingaustralia.com/
    https://www.doughroller.net/investing/an-awesome-and-free-investment-tracking-spreadsheet/
    *if you download this, delete row 20 on the Holdings sheet and all will come good :)
    https://earlyretirementnow.com/safe-withdrawal-rate-series/

    Australian Stocks (VAS) 15%
    International Stocks (VGS) 30%
    Short term system (ASX) 10%
    Bonds (VAF) 35%
    Cash 10%

    International into US & EM minus Australia. Bonds into mostly Government and small amount of corporate.

    Need to merge my "Balanced" super account numbers into the above and workout the allocation outside of super but the spreadsheet above should help.

    The Short term system I'd expect less risk to the the buy and hold "Australian Stocks" allocation as it exits on market downturns and I see a lot of people having low bond allocation here but on my balance, have a low tolerance of a big drawdown. I'd rather use my Short term system (beat the index) to bolster returns and more bonds.
     
  5. aus_trader

    aus_trader

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    I have been too cautious and have a very poor allocation, probably why I haven't reported :shifty:. But ASF is like family so I'll do the honest thing and report my current allocation and hopefully improve going forward...

    I am getting ideas from the fellow ASF members to allocate the significant cash component that is idle at the moment. I am not comfortable going heavy into individual stocks as I am also approaching retirement similar to quite a few members who have reported such as Sir Burr above. So will be looking into putting that into Index ETF's, Bonds and perhaps some LIC's. Will still do some trading of individual stocks with smaller positions and will only increase the sizes gradually when I feel more confident in my approach.

    This is my current pathetic allocation:

    Stocks and ETF's : 5 to 10%.
    Rate Setter Account: 5% (just got that idea set up after reading through all the ASF member allocations)
    A Big4 Bank HISA(Low Interest Savings Account): roughly 80%
    A Big4 Term Deposit (TD): The remaining, roughly 5%

    I'll take time with allocating the cash though, since it's costly (both investment returns wise as well as additional brokerage) to get things wrong and having to re-allocate. So I have to be comfortable staying in the markets through good and bad times, with the % allocations that I will decide on.
     
    barney, Zaxon, Iggy_Pop and 1 other person like this.