Comments on: Should cash distributions drive investment decisions? http://www.wealthfoundations.com.au/blog/should-cash-distributions-drive-investment-decisions/ Personal wealth management issues Fri, 30 Jul 2010 06:49:41 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Martin Braden http://www.wealthfoundations.com.au/blog/should-cash-distributions-drive-investment-decisions/comment-page-1/#comment-68 Martin Braden Tue, 02 Jun 2009 07:07:01 +0000 http://www.wealthfoundations.com.au/blog/?p=161#comment-68 Another important elemen, not included above, is an indiviual's need to take risk. If one has, say, $20 mil in Super and the appetite to spend less than $500K p.a.and is in his or her 70's there is no incentive to take any measurable risk. i.e stick to bank bills and govt bonds and rest easy.. However if one is in early middle age, and therefore able to take alonger view, but with a modest amount in Super the need to assume risk to rev up the size, by yield and capital growth .becomes obvious. People should'nt be pushed into risk just to provide diversity ! It has to be the other way round. Only if your circumstances dictate a need for more risk then more diversity. Although it can be argued that diversity is inclined to blunt return, so it can be seen as counter productive. Lowers both risk and return at the same time. I.e. a circular argument ! Just ask all those people on the BRW rich list !! Another important elemen, not included above, is an indiviual’s need to take risk. If one has, say, $20 mil in Super and the appetite to spend less than $500K p.a.and is in his or her 70′s there is no incentive to take any measurable risk. i.e stick to bank bills and govt bonds and rest easy..

However if one is in early middle age, and therefore able to take alonger view, but with a modest amount in Super the need to assume risk to rev up the size, by yield and capital growth .becomes obvious.

People should’nt be pushed into risk just to provide diversity ! It has to be the other way round. Only if your circumstances dictate a need for more risk then more diversity. Although it can be argued that diversity is inclined to blunt return, so it can be seen as counter productive. Lowers both risk and return at the same time. I.e. a circular argument !

Just ask all those people on the BRW rich list !!

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