Investing

Self-funded retirees understand the capital risk in holding the ‘big four’. It’s one they’re prepared to take knowing their effective grossed-up yields are much higher than the nominal figure.

With many economists expecting the Reserve Bank to start cutting interest rates in early 2025, returns on term deposits could feel the pinch. Private credit is an alternative, but those pursuing this investment option will need to do their homework – thoroughly.

Gold stocks have long appealed to market aficionados, and there’s no shortage of choice with 185 miners publicly listed. To assess what’s value, and what’s not, there are some key metrics to help sort the wheat from the chaff.

Fixed interest investment by the SMSF sector has been akin to oil and water, comprising a miniscule one per cent of the sector’s net assets. But a growing cohort of these investors are slowly finding the fees, flexibility and returns can make debt a compelling investment story.

APRA is looking at the big picture – the stability of the banking system. So, while its proposal to phase out hybrids might make sense from that perspective, it’s going to deprive many of an investment option that has delivered healthy income streams.

For the past year, the banks have delivered to shareholders with income and capital gain. In the run-up to their next results, it might be time to consider taking some scrip off the table and pocketing a tidy profit.

With EY predicting a pick-up in the private credit market, the need to understand the risks inherent in this investment strategy that’s nearing $200 billion in assets under management has never been more important.

By stress testing portfolios in rising markets, Atchison Consultants principal Kev Toohey argued, investors can better understand how they would perform in a market downturn. For retirees, in particular, this could provide a valuable lesson.

Cashed-up retirees in the market for yield are finding that it’s increasingly being delivered by assets that aren’t on the stock market but still have a palatable risk profile.

Retirement coach Jon Glass will explain to a one-day event focusing on the ‘golden years’ why it’s important everyone finds a new meaning in life after leaving the workforce.

Two decades of investors being able to offset bonds against equities are over. Now investors must go back to the drawing boards to construct their portfolios to meet the challenges of inflation.

Cashed-up baby boomers are in the market for yield and are finding that it’s increasingly being delivered by non-listed assets with a risk profile they can tolerate.