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  1. #1
    ShareTrader Legend Beagle's Avatar
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    Default Investment Portfolio for Retirement

    Suppose you're 65 and your wife is 63 and you have recently downsized your house and have exactly $500,000 to invest to supplement your superannuation. Modest risk conservative age appropriate portfolio suggestions please.
    I'm starting this thread for ynot.

    Please suggest a portfolio predominantly based around conservative sustainable dividend income.

    My initial thoughts.

    Of the Utilities I like and presently hold MEL and GNE approx. gross yields 6.8% and 9% respectively
    REIT's I like and hold are ARG. PIE (exempt income about 5.2% yield) I also like GMT, lower yield about 4.5% from memory but also a PIE
    Retail - I like HLG but presently don't own any. Gross yield about 10%
    Retirement sector - OCA for 6% gross yield in FY19 growing strongly in the years ahead
    Transport - AIR for gross yield of approx. 10%
    Consumer staples ZEL for gross yield of about 14% looking forward to 2020 year.
    Financials - HGH for approx. 9% gross yield
    $25,000 - $50,000 in cash in a call account with HGH paying 2.5% as an emergency / medical fund

    I wouldn't own bonds as the yields are too low and would use the power companies and REIT's as a bond proxy.

    I am sure others will be happy to contribute and make suggestions to help you ynot.
    Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
    Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine

  2. #2
    percy
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    Well I am now 70.Wife is 69.
    At the end of January last year I retired from selling books to school libraries. .
    In May we downsized our house.Brought a new slightly larger over 60s house.
    Share potfolio was reorganised.Objective was to hold along term portfolio to provide dividends, and once that was achieved the balance could be put into growth shares.Most Australian shares were sold.Two reason ;[a] I was finding the Australian small cap market difficult.[b] Australian dividends are not imputated.
    Dividend NZ stocks. GNE,MEL,SPK,HGH,TRA........These stocks alone provide the level of dividends I wanted.
    Other "core" NZ stocks.MCK and OCA.
    Fun NZ stocks,ALF,IKE,PGW,RBC.
    My largest NZ shareholding is not one of the above.
    My Australian stocks include a few small holdings I will not list.
    Aussie stocks.AQZ,MMI,SEQ,TTI,VHT.
    I do not hold any bonds,however have a large enough cash holding.
    Last edited by percy; 16-01-2019 at 07:29 PM.

  3. #3
    percy
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    Quote Originally Posted by percy View Post
    Well I am now 70.Wife is 69.
    At the end of January last year I retired from selling books to school libraries. .
    In May we downsized our house.Brought a new slightly larger over 60s house.
    Share potfolio was reorganised.Objective was to hold along term portfolio to provide dividends, and once that was achieved the balance could be put into growth shares.Most Australian shares were sold.Two reason ;[a] I was finding the Australian small cap market difficult.[b] Australian dividends are not imputated.
    Dividend NZ stocks. GNE,MEL,SPK,HGH,TRA........These stocks alone provide the level of dividends I wanted.
    Other "core" NZ stocks.MCK and OCA.
    Fun NZ stocks,ALF,IKE,PGW,RBC.
    My largest NZ shareholding is not one of the above.
    My Australian stocks include a few small holdings I will not list.
    Aussie stocks.AQZ,MMI,SEQ,TTI,VHT.
    I do not hold any bonds,however have a large enough cash holding.
    Above posted 09-01-2019.

    A few changes.
    Core;PGW increased from Fun to core.MCK and OCA sold.
    Fun: ALF and RBC sold.
    Aussie.SEQ and TTI sold.Added AVA,MSV and PTB.
    Cash holding increased.
    Last edited by percy; 12-03-2020 at 05:52 PM.

  4. #4
    Legend minimoke's Avatar
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    Can we assume Govt Super is worth $617 a week in the hand and house is mortgage free.

    What is the couples budgeted / hoped for expenditure a week. How is their health?

    What is value of house - as I would also look at a REL.

  5. #5
    percy
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    Quote Originally Posted by minimoke View Post
    Can we assume Govt Super is worth $617 a week in the hand and house is mortgage free.

    What is the couples budgeted / hoped for expenditure a week. How is their health?

    What is value of house - as I would also look at a REL.
    Govt Super $491.52 net each a fortnight.
    No mortgage.
    Last power bill [solely electric] $104.65

  6. #6
    Legend minimoke's Avatar
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    Quote Originally Posted by percy View Post
    Govt Super $491.52 net each a fortnight.
    That's probably due to yoru focus on dividends and paying the price through extra taxes.

    Which in a "diversified portfolio should mean: cash on hand; dividend yielding shares that dont loose capital value (for cash flow purposes that can also be sold down over first few years) and shares with less dividend but more potential for growth so dividends kick in in later years and higher capital value mean long term sell down creates greater return

  7. #7
    percy
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    Quote Originally Posted by minimoke View Post
    That's probably due to yoru focus on dividends and paying the price through extra taxes.

    Which in a "diversified portfolio should mean: cash on hand; dividend yielding shares that dont loose capital value (for cash flow purposes that can also be sold down over first few years) and shares with less dividend but more potential for growth so dividends kick in in later years and higher capital value mean long term sell down creates greater return
    After following the sharemarket for 52 years I settled on the portfolio I wanted for our retirement.
    More than happy with what we have.

  8. #8
    Guru
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    Quote Originally Posted by percy View Post
    Govt Super $491.52 net each a fortnight.
    No mortgage.
    Last power bill [solely electric] $104.65
    Plus a tax fund each year.
    All declarable dividends are taxed at 33c/$ and your super is at 30c/$.And income splitting.

    But then you may be share trader which changes things.
    Last edited by 777; 09-01-2019 at 04:10 PM.

  9. #9
    percy
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    Quote Originally Posted by 777 View Post
    Plus a tax fund each year.
    All declarable dividends are taxed at 33c/$ and your super is at 30c/$.And income splitting.

    But then you may be share trader which changes things.
    Share investor's portfolio.
    No share trading.

  10. #10
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    Quote Originally Posted by minimoke View Post
    Can we assume Govt Super is worth $617 a week in the hand and house is mortgage free.

    What is the couples budgeted / hoped for expenditure a week. How is their health?

    What is value of house - as I would also look at a REL.
    Thanks so much for this feedback guys as I am stumped regards knowing what to do. At this point all I can conclude is knowledge is good. The more information I have available the better equiped I should be to make an informed decision.
    As for our situation, we have always lived within our modest means so I see no major change there going forward. We would however like the 500k to enhance our modest lifestyle as we move forward.
    Our health is good, I prefer to invest in good fitness and diet rather than health insurance.
    Yes, once wife retires we will recieve $617 pw. For now im still working (modest income low stress employment ) but, only becuse I want to. If i wake up tomorrow and decide to persue other interests I will !
    House is mortgage free.

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