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Care to share the asset allocation of your inv funds in % and why?

Discussion in 'Other Asset Classes' started by The Butler, 1st Dec, 2015.

  1. The Butler

    The Butler Well-Known Member

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    Just wondering about this subject. I don’t see much discussion of asset allocation here.

    I’m sure it’s partly because it’s a property forum. I do see comments like “I’m 100% property except my super which is in shares”. Rarely see much talk of Bonds, Cash or other.

    Also maybe its because nobody wants to be told their allocation is wrong. It’s obviously personal to each persons individual situation.
     
  2. The Butler

    The Butler Well-Known Member

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    Happy to start:

    WHAT: I’m considering 25% each across Shares, Real Estate, Bonds and Cash. Each (ex cash) is split 50-50 domestic and international. Mainly in ETFs with some direct holdings in LICs. To be rebalanced yearly.

    WHY: I’ve always thought I could go 100% shares. They interest me the most, apparently produce the best returns in the long run, domestic ones have franking credits and provide a high income. Having been self employed since a teenager I also thought that I could handle the stress of volatility.

    However I’ve come to realise that at mid 40’s with enough to provide for myself and my closest and retire now if I wanted – my main mission is not to try to shoot the lights out with my investments but to “not to blow myself up” (plagiarised from another’s post). I realise that the other asset classes may be a drag on potential returns but am focusing on being diversified in an allocation I am confident I can stick to long term.

    I have also come to realise that while I enjoy reading stories about individual shares and properties and have an interest in Dividend Growth Investing in particular, that interest does not extend to the kind of time and effort required to continually learn enough to be more right than wrong.

    So for now it’s keep the investments boring, diversified, easy to manage and low cost and try to shoot the lights out with my business so that I can make more of a difference on the input side.
     
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  3. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    100% property as far as investments go.
    Got some cash in Super which we'll play with sometime soon, but it's pretty much irrelevant.
    Reason being that it's worked so far an all I know.
     
  4. cdchi1

    cdchi1 Well-Known Member

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    My non-super is around 78% direct equities, 20% property (two IPs) and 2% cash.

    I've had pretty spectacular gains in my direct equities hence why the asset allocation is so highly skewed towards it.I prefer equities anyway though think property is important too for piece of mind.

    My super is 100% equity mgd funds though I don't really have much in super at all.
     
  5. D.T.

    D.T. Adelaide Property Manager Business Member

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    100% residential property
     
    Last edited: 1st Dec, 2015
  6. hobo

    hobo Well-Known Member

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    (Both of) our super is 100% in equities, although I'd have to check exact breakdowns of int'l vs domestic vs whatever else, but IIRC very minimal cash and no bonds.

    Outside-of-super investments are split VERY roughly 30:70 between businesses and property. (Edit: this is based loosely on buy-in costs.)
     
    Last edited: 1st Dec, 2015
  7. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Outside super we have nearly everything in property and cash at the moment - I don't have time for direct shares right now but I do really enjoy them and will definitely get back to them. Maybe over the school holidays when work is possibly a little quieter I can set myself back up with it all.
     
  8. S1mon

    S1mon Well-Known Member

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    10% shares, 90% property...due to the leverage property allows
     
  9. DanW

    DanW Well-Known Member

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    Depends are we talking asset exposure or equity?

    If equity based would be 15% shares, 7.5% commercial, rest residential. Including super.

    If total asset exposure would be only 5% shares, 7.5% commercial, rest residential.

    I suppose it's the asset exposure that is important and exposed to the market. But I would not want to reverse those figures given the volatility of the share market these days!

    Reasons: I strongly believed in property,and once it was setup and going well I strongly believe in not selling so it is now overweight. Will add non resi stuff in the future but not ruling out more resi in the next year or two.
     
  10. The Falcon

    The Falcon Well-Known Member

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    I'll include PPOR in this ;

    SMSF ; all equities 80/20 Oz/Intl. Will be even more oz focussed going forward - chasing franking credits in SMSF.

    Family trust ;
    Stock in unlisted business 70%
    Listed equities 30% (30% of this intl)

    My wife's name ; PPOR :)

    Like you Butler, business is the engine room and where all the cash comes from, and this will continue to be the case.

    By my late 40s I'll be holding some cash, say 10% of asset base, but no need now.

    I hear your comments and for what it's worth I think you are on the right track, but I'd question the bonds and chuck that money in LICs for the reliable income stream. 1/3rd property / equities / cash sounds pretty good from a sleep night standpoint while still giving you some good growth exposure. At your age, you still need growth..need to plan for another 40+ years ! Anyway, the large LICs provide a form of DGI for you, it's really what they are about ;)
     
  11. austing

    austing Well-Known Member

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    As somewhat younger retirees (55 & 52) ignoring PPOR and one remaining IP (plan to sell eventually) it's 85% dividend focused listed equities (10% international) and around 12 - 15% Cash. That is, shares for income and cash for safety ($250k per bank Gov't guaranteed), liquidity and opportunistic share purchases. Or put another way risk and risk free. I have no interest in Bond funds, hybrids and all the in between stuff.
     
  12. HomePage

    HomePage Well-Known Member

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    Excluding PPOR, we sit at approx 20/40/40 property/shares/cash. Cash allocation is high as, even at low IRs, it still provides an adequate enough return to achieve our financial objectives with a much lower resultant portfolio risk. Cash also puts us in a good position to snap up property/share bargains should Australia's economy turn sour or if GFC Mk II presents itself and sucks in Australia in sympathy.
     
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  13. Handyandy

    Handyandy Well-Known Member

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    Location:
    Sutherland
    80% property
    10% Equities
    10% Cash
     
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