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No problem Highlygeared. We have an offset account that covers our PPOR loan so it's paid off in practice. We have substantially more than 1M and the 4.8% that it generates allows the two of us to live quite comfortably. However for somebody with 1M and the same yield I assume they could feel...

Ha ha... where did you read that? :)

There have been hits and misses. Property The good: sold Brisbane in 2007 and 2010, Melbourne in 2010 and 2014. The ordinary: sold Adelaide 2005-14. The bad: sold Sydney 2010-12. The ugly: offloading a vacant CIP. Shares The good: switching to LICs as the main strategy, holding...

Mainly AFI (3.5% net yield), ALF (9.4%), ARG (3.6%), CDM (7.0%), DJW (5.7%), MIR (4.0%), MLT (3.9%), WAM (6.7%), WAX (6.2%). + MFF for international exposure - negligible yield but excellent growth. That was my line of thought 10 years ago, now completed.

Virgo and HiEquity, you have a valid point, a better balance needs to be found between capital growth and income, however the devil is in the detail. Look at these 3 scenarios: Scenario 1 (as above): one 310K unencumbered property producing a net yield of 3.2% or $9920 pa. Scenario 2: Leverage...

And another comment. With this particular mix you can probably increase the weight of shares to generate a better income. The rationale is that with 230K in cash you have more than enough to cover 3 years of living expenses and therefore you're well insured in case of a sharemarket slump.

Your figures are about right Terry, except that the yield I quoted for property is 3.2% net of all expenses. So yes, 1M would generate around 48K. In our case the income flow is quite stable regardless of asset prices going up or down. Resi rents and fixed interest are almost "guaranteed"...

Our future is firmly here in Oz. There's too much aggro with our Vietnam links due to the injustice we suffered and the depravity of the ruling class. We're still travelling there from time to time to do charity work despite their best efforts to obstruct us unless we grease their bottoms. :eek: :D

We're currently retired with > 1M of investible assets. 46% in shares yielding 7.1% (incl. franking) 31% in property yielding 3.2% net 23% in cash and fixed interest yielding 2.5% Overall yield approx 4.8%. That would be tight if we had only 1M. We'd have to eat into the assets or take...

True but only in part. Many retirees chase higher yields but on a smaller part of their assets. This being my case.

Too many issues with this strategy the 3 obvious ones being: - Too little income with a leveraged property - One single point of failure. Over a 30 year time frame it's almost certain your CIP will experience a prolonged vacancy period with nil income but still paying interest. - Over 30...

Be careful when planning your old age with the mind of a young person. For most people there's a change in risk acceptance around the time you go into retirement. When previously >6% investment income was the norm, at age 65 you'd be likely looking at 3-5%. Fixed interest nowadays earn only...