I'd agree that IP is usually an inefficient way of generating retirement income - I'm not sure if you've read this thread which asked the same question.
Yes, of course. I'm not saying anything new here. I've really just looked at it from a different perspective, which seems to have confused people!
keithj said:My asset alloc by Jan '08 will be -
IP & PPOR 33%
Shares 67%
Super < 0.5%
...and on an income basis
IP 5%
Shares 94%
Very impressive.
Fascinating to see how different people's asset allocations are here.
I recall that you are still relatively young, but do you think you would reduce your shares % down the track as a way of reducing risk/volatility?
I'd be wary of taking on board to much of Travis Morien (who I have a lot of respect for) - he's catering for the 'average' investor/retiree - anyone with multiple IPs will be way above that.
He's not much of a fan of residential property, that's for sure - or the 'Somersoft cult' as he has called it!
keithj said:So when it's time to retire, the portfolio is already diversified, balanced, and reasonably yielding and is likely to be generating a reasonable income, have reasonable growth, and also suitable for LOE. There's no transition period, it's already got good growth & yield.
Yes, as I've already suggested, it's just a matter of striking that balance, and working towards it sooner rather than later...
So something to keep in the back of your mind for all the accumulators/growth stage investors here.
And for those with retirement looming, time to check their asset allocations are optimised.
Interesting thread from just a quick question at the start!
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