Not advice but just my theory…. I transferred $1.6m of my...

  1. 145 Posts.
    Not advice but just my theory….

    I transferred $1.6m of my Australian Super Accumulation account to a Retirement account last year.
    I read as much as I could about the various funds available and decided on 92% Balance Fund and 8% Cash Fund.
    My monthly income is set to be is paid from the cash fund, which I will top up some time soon by moving some funds from the Balanced Fund which has grown well above original value.

    Reasons:

    Australian Super have a team of finance boffins who manage all of the various funds.
    I learnt from one of the Australian Super info sessions that the great majority of these boffins work on managing the Balanced Fund.
    The remainder of the boffins look after all the other funds.

    The Balanced Fund is by far the most popular and largest fund, and therefore gets the most attention from the boffins.

    The theory of having a couple of years income in a stable fund is to avoid having to sell devalued stock each month to pay your income should there be a downturn in the markets. Allows time for the market to recover – hopefully.

    Other possible splits could be:
    60% Balanced and 40% Conservative Balanced
    70% Balanced and 30% Diversified Fixed Interest

    I suggest you read about the various funds, learn what they contain.

    When you can work out what Trump and Kim are going to do, make your choice.

    Regards,
    K
 
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