Question: I’m about two years out from retirement (even though I may continue on a two or three day a week basis). I recently read that, at my age, (69) my SMSF “really shouldn’t be in equities”. If that is the case, what are the alternatives to equities for an SMSF-er of my age? I am currently 55% cash, having brought that up from 30% over last few months.
Answer (By Paul Rickard): Thanks for the question. I don’t agree in general with the statement that “you shouldn’t be in equities”. Most people at 69 will live (statistically) for another 20 to 25 years – which is probably several economic cycles – I would be surprised if you don’t need some growth assets.
Obviously, I can’t make this statement about you because I don’t know anything about your personal financial situation, investment objectives or particular needs.
Some alternatives to equities are cash, term deposits, fixed interest securities, hybrid securities, mortgage funds, commercial property, infrastructure, collectables such as art etc
If you are interested in income opportunities, why not come along to the Switzer Income Conference – see details in the coming weeks in the Switzer Report.
Question: As an existing holder of SCA Property Group units, I’ve received an invitation to acquire additional units up to a value of $15,000. I’m trying to decide whether I should take up the offer or pass on it?
Answer (By Paul Rickard): Although I am not a huge fan of retail property trusts (such as SCA Property Group), because of the recent share price rally, the unit purchase plan is now at quite a discount to the market price (a max of $2.32, unit price approximately $2.57).
Under the plan, you can acquire units in parcels of $5,000, $10,000 or $15,000 – you won’t pay any more than $2.32. Closing date is 16 November.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regard to your circumstances.