I find I think along the same lines as Sabbath. I would like to...

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cantankerous

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21/08/19

13:32

Post #: 40076224
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Originally posted by Sabbath: ↑

I just think interest rates are far too low for them to be of value in managing an economy, allowing people to get into more debt because of artificial low rates is not good for any economy. There is a fine balance between what debt people can manage and people look for in investing.

Obviously there are many that think interest rates should be lower still, and they will most likely get their wish, it's a race to the bottom where everyone will pay one way or another regardless of where you fit into the demographic.

By the way 5% would get me about $40kpa, only modestly above pension including concessions, so it's not an unreasonable amount considering the lower level of risk. But I'm sure I will pay the price when the market tanks because most of my funds are in equities to get a similar return.

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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
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0 Great analysis

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