Investment Portfolio for Retirement

[job52]

I really appreciate the detailed response to Beagles excellent hypothetical question.
I'm 66,house and no debt, a reasonable amount of savings, still enjoy working,I have one very high risk investment,plus a small
passive income. I am going through this exercise at present.....for me deciding on the Portfolio Strategy is the hard part.
At present I'm out of the market and sitting on TD's

[Waiuta]

I hold bonds in IFT, KCFHA, MCY and ZEL. I also hold shares in AIR,CEN,GNE,IFT,KPG,NZR and ZEL. Also hold about $40K cash
It's taken me a while to get this mix and maybe I should have MEL instead of GNE and perhaps some HGH. We're in our early to mid 70's and overall I'd say it's pretty defensive and seems to suit our needs. I sometimes wonder if I should cash out some share growth but knowing it's there is a sort of insurance if needed.

[Beagle]

I hold bonds in IFT, KCFHA, MCY and ZEL. I also hold shares in AIR,CEN,GNE,IFT,KPG,NZR and ZEL. Also hold about $40K cash
It's taken me a while to get this mix and maybe I should have MEL instead of GNE and perhaps some HGH. We're in our early to mid 70's and overall I'd say it's pretty defensive and seems to suit our needs. I sometimes wonder if I should cash out some share growth but knowing it's there is a sort of insurance if needed.

Looks pretty good to me.

[percy]

I hold bonds in IFT, KCFHA, MCY and ZEL. I also hold shares in AIR,CEN,GNE,IFT,KPG,NZR and ZEL. Also hold about $40K cash
It's taken me a while to get this mix and maybe I should have MEL instead of GNE and perhaps some HGH. We're in our early to mid 70's and overall I'd say it's pretty defensive and seems to suit our needs. I sometimes wonder if I should cash out some share growth but knowing it's there is a sort of insurance if needed.

I brought GNE and MEL at issue.MEL is our power supplier.Perhaps MCY is the best generator to hold ,as their generation is closest to their customer base.?I would not recommend one generator over another.
Sit on what you have,it looks a pretty good portfolio to me too.

[Snoopy]

I hold bonds in IFT, KCFHA, MCY and ZEL. I also hold shares in AIR,CEN,GNE,IFT,KPG,NZR and ZEL. Also hold about $40K cash
It's taken me a while to get this mix and maybe I should have MEL instead of GNE and perhaps some HGH. We're in our early to mid 70's and overall I'd say it's pretty defensive and seems to suit our needs. I sometimes wonder if I should cash out some share growth but knowing it's there is a sort of insurance if needed.

Well I beg to differ with the other Beagle and the one who holds the 'perce' strings. Nothing wrong with any of those investments on their own, I agree. But as a portfolio it looks very strongly correlated, perhaps unhealthily so, to the energy sector. CEN, GNE and IFT (through Trustpower) are all Gentailers. ZEL owns a stake in NZR. AIR and ZEL both suffer when fuel prices are high. Petrol price goes up and the retail malls are hit through drying up of spare cash (affects KPG). If you have retired, it looks a bit risky to hold such a combination. I would suggest diversification into other sectors less susceptible to the pitch fork of the dancing energy demon.

SNOOPY

[peat]

Conservatively it should have these components as a basis set to appropriate percentages e.g. cash <5%; NZ Fixed Int 30% Int'l Fixed Interest 12% etc etc.
Even with a 500K portfolio those divisions means mostly using funds so as to gain company diversification within each sector. It is usually accepted as practical to have a large element of fixed interest in NZ despite it not being quite correct.

Cash
NZ Fixed Interest
International Fixed Interest
Property
NZ and Australian Equities
International Equities - Core
International Smaller Companies
Emerging Markets
Specialty

[Beagle]

Conservatively it should have these components as a basis set to appropriate percentages e.g. cash <5%; NZ Fixed Int 30% Int'l Fixed Interest 12% etc etc.
Even with a 500K portfolio those divisions means mostly using funds so as to gain company diversification within each sector. It is usually accepted as practical to have a large element of fixed interest in NZ despite it not being quite correct.

Cash
NZ Fixed Interest
International Fixed Interest
Property
NZ and Australian Equities
International Equities - Core
International Smaller Companies
Emerging Markets
Specialty

Thanks but that's straight out of the authorized financial advisor standard rulebook. What ynot needs is specific advice. For example if one were to have some of their funds in emerging markets which fund would you recommend ? How does he buy them e.t.c.
I would go with TEM in that sector which is easy and cost effective to buy on the NZX but I would only recommend a maximum of 5% in that area. (Almost zero yield for one thing, same for international fixed interest) (Disclaimer - Not that I am an AFA or specifically recommending anything)

[peat]

Thanks but that's straight out of the authorized financial advisor standard rulebook. What ynot needs is specific advice. For example if one were to have some of their funds in emerging markets which fund would you recommend ? How does he buy them e.t.c.
I would go with TEM in that sector which is easy and cost effective to buy on the NZX but I would only recommend a maximum of 5% in that area. (Almost zero yield for one thing, same for international fixed interest) (Disclaimer - Not that I am an AFA or specifically recommending anything)

Well sure , but I thought it might be informative to people who haven't read the textbook.
I wouldnt underallocate too much to int'l f.i. but I agree it is easier to manage NZD FI and being the ultimate destination currency one could accept over exposure to it. EM percentages should of course be small as volatility is high. But some, not none!

I wonder if there is single fund that does all this for you? Bound to be...

[BeeBop]

Well sure , but I thought it might be informative to people who haven't read the textbook.
I wouldnt underallocate too much to int'l f.i. but I agree it is easier to manage NZD FI and being the ultimate destination currency one could accept over exposure to it. EM percentages should of course be small as volatility is high. But some, not none!

I wonder if there is single fund that does all this for you? Bound to be...

As I sold down my NZX shares a year or so ago, I put the monies into Milford Diversified Income Fund. A nice holding and seems to deliver a conservative/balanced mix of growth and income.

Last week, however, I made the call that things had bottomed out enough, and I bought back into the NZX with my USD - I will maintain my holding in Milford and let it compound up.

[Joshuatree]

Conservatively it should have these components as a basis set to appropriate percentages e.g. cash <5%; NZ Fixed Int 30% Int'l Fixed Interest 12% etc etc.
Even with a 500K portfolio those divisions means mostly using funds so as to gain company diversification within each sector. It is usually accepted as practical to have a large element of fixed interest in NZ despite it not being quite correct.

Cash
NZ Fixed Interest
International Fixed Interest
Property
NZ and Australian Equities
International Equities - Core
International Smaller Companies
Emerging Markets
Specialty

This is a good blueprint to follow. lizard was in to this.She reviewed reset every three months stocks that had run well and gone over their weighting had the top taken off and the funds reallocated. This is the fun/rewarding part in a disciplined investment portfolio esp in the last 9 years or so of the Bull.