Alternative to Term Deposit for Retired Investor

Discussion in 'Shares & Funds' started by Johnny85, 8th Aug, 2021.

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  1. Redwing

    Redwing Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    7,472
    Location:
    WA
    I was just reading about someone who was planning to sell thier rental properties over the next year and move the funds into higher-yielding income assets like covered calls and covered call ETF's

    Having a look at the ASX there's YMAX and UMAX

    Beyond dividends: how to boost your equity income

    @Baker mentioned them also

    Listed Investment Companies (LICs) 2021

    Looking at YMAX last year

    upload_2022-3-6_5-23-30.png

    Last 5 years

    upload_2022-3-6_5-24-10.png


    Last 10 years

    upload_2022-3-6_5-25-20.png
     
    Redwing, 6th Mar, 2022
    #21
    Anne11 and Islay like this.
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    14th Jun, 2015
    Posts:
    10,634
    Location:
    Gold Coast (Australia Wide)
    Not risk free, but there are many organisations such as Latrobe that provide decent returns, but no cap gain.

    Some folks wont go to equities markets and prefer this style of investment because of the deemed bricks and mortar security

    ta
    rolf
     
    Rolf Latham, 6th Mar, 2022
    #22
  3. Ross36

    Ross36 Well-Known Member

    Joined:
    14th Aug, 2015
    Posts:
    591
    Location:
    Cane Toad Country
    There is nowhere near enough info here for anyone to provide any useful opinions, let alone (illegal) advice.

    Do they have any other investments? PPOR or renting? Eligible for age pension? Etc.etc. If you need to ask this question on a forum and are actually interested in the responses that might be a danger sign and you need to find a good financial planner.

    If this is play money and they're rich? Then either leave as is (conservative) or YOLO into triple leveraged long or short depending on the wind direction at Nazare at 5am tomorrow. Either way it makes no difference.

    If they have limited funds, are on the aged pension and this amount has a major impact on their retirement lifestyle then consider annuity with pension loan scheme etc. etc. to get their combined income up to the 60-70k per year range whilst minimizing sequence and longevity risk. But this works only if they don't have reason to believe they'll die much younger than normal.

    There's a heck of a lot to this, and a simple "buy a high dividend ETF" is not the answer.

    This is NOT advice either. You must DYOR. Sorry to be blunt but investing for people who are retired and don't have high net worth is a very tricky business.
     
    Ross36, 6th Mar, 2022
    #23
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