To Aussie Mustacians, how do you intend to allocate your assets during retirement? What percentage would you allocate to ETF's (ASX200 or international?), resi real estate, or others?
I am at present set up for resi real estate, as I bought my next PPOR, with my current PPOR becoming an IP at some stage. It will be negative geared initially, but I think there will be cap gains so makes sense to hold for now. After a 'paid off' house (cash in offset account), I am thinking along the lines of:
1) 40% resi real estate
2) 30% ASX200 ETF (probably SPDR ASX200, already have some in super on ASX300)
3) 25-30% international shares (probably an ETF, undecided)
4) 0-5% cash
I like resi real estate and ASX200 ETF because this is where I live, so if the economy booms or inflation occurs, then real estate and ASX200 ETF should correlate well to that. The downside of resi real estate though is how low yields are compared to interest.
0-5% cash for some liquidity (roughly speaking, 1-2 years of withdrawal depending on what happens to the portfolio). Not really necessary because I will have a paid off house, with cash in the offset account against the loan.
25% international shares for some diversification.
What do you guys think? Am I missing something from a diversification, tax, or another perspective?