Self Funded Retiree

Real Case: Self Funded Retiree

Janet - Recently retired and needing stable income to live on...


The Client:

Janet retired from the workforce in the second half of 2012 with around $1.85 mill in her self managed super fund.

Now in the pension phase, she needed to be paid a monthly income stream from her super fund.

Hence, she requires her portfolio invested in a way that produces regular income and can keep up with inflation, yet without taking on large amounts of risk to her capital.

She didn't want to run down her capital either.


The Funds, Economic and Asset Environment:

Janet's portfolio needs to produce regular income, yet without taking on large amounts of risk to her capital, or running down her capital.

The problem is that not taking risks by leaving her money in cash or term deposits is a very low income outome with returns on cash and term deposits at historic lows.

In addition the level of income she can get from cash and term deposits is not at the moment sufficient to meet he income needs and grow her capital to maintain its value in real terms / to grow by inflation, after her income is taken.

She came to us for some independant fee for service advice.


The Investment Advice:

As such, around 30% was invested in defensive, high yield blue chip shares and property trusts, and around 70% in what are known as defensive assets such as income securities, term deposits, and cash.

These need to be selected carefully though. For instance some of these types of securities are priced relatively higher than others. They need to be purchased at the right price, adn they need to be the right ones. 

These also need to be managed in a consistent, rational research based manner - they arent just set and forget. But that's in the detail and we can epxlain that you you if oyu want to see us.

Why bother with the cost of our management? Because if the consistently good results.


The Result:

A total gross return in 2013 of 10.90%, including imputation credits. In 2012FY it was a higher return.

The conservative asset allocation, along with using only high quality assets, kept her overall risk and volatility low.

Whilst interest rates were low, higher dividends and capital growth on our share selections helped boost the overall return.


We're here when you need us.

To request an appointment with an Accounting, Law or Investment Client Service Manager, please fill out the form or Call: 1300 797 858.

View Investment locations



Service area:

Preferred Contact Method:

*Please complete all fields