In a recent discussion on retirement funding with a friend who has retired, I was surprised to learn how much money was in cash. So I did a high level analysis of my own taking into account total wealth, making a few assumptions along the way. I am retired, own my own home, have my own SMSF, have an indexed pension (which more or less = cash until the Govt goes bankrupt) and have money in another industry superfund (for diversity).
The analysis is as follows
Cash and enhanced cash (takes pension into account) 42%
Australian stocks and funds 13%
International stocks and funds 7%
Real Estate (inc my home) 37%
Other 1%
My conclusion from this is to sell some real estate investments while they are still worth something (which I can do) and continue to sell down Australian stocks, increasing international stocks. I am happy with 42% in cash+. It does not feel like a high risk portfolio
