When I last raised this about 12 months ago I incorrectly forecast that the ASX200 would reach close to 6000 by the end of 2014. Despite the doldrums of 2014, this now looks possible by the end of March 2015. My original plan was to steadily move more into cash as the ASX increased. This has progressed in 2015 although not quite as planned in 2014. Currently the fund is 40% cash, 54% shares, 6% other investments. Of the stocks, about 75% is in Australian blue chip stocks, mostly fully franked. The remainder is in international stocks. The confounding factor now is the low interest rates.
My fund is in pension mode and I have an indexed pension (not an Aged Pension) that provides a solid income meaning that I am comfortable holding shares in my smsf even though it is in pension mode and am not totally dependent upon my smsf.
My strategy is to take some more profit if the market continues to rise and offset this against some losses to some extent, reducing the proportion of stock investment by a further 5-10%. The return of my smsf over the last 12 months has been 9%. The long term target is 8%.
I would appreciate thoughts and comments on this strategy, understanding that there are some who think it should all be in cash!
