I find I think along the same lines as Sabbath. I would like to put a question forward for comment:
If retiring today, how would you invest $1 million?
You won’t get any government age pension, so will have to live on the proceeds or run down the capital.
Bank term deposits can yield 2% pa, while bank shares grossed up will yield up to 8 or 9%. However, shares in general seem to be overvalued and due for a crash, or at least a major correction, so I wouldn’t recommend anyone buying in at the moment.
My advice to anyone contemplating early retirement is to stay working as long as possible, at least until share prices correct.
Comments and ideas please.
(I am age 79, retired of course, and have moved to 60% cash, 40% shares) in anticipation of a major share correction. I intend to move to all cash should the ASX drop 10%.)
Cantankerous James
