Dealing with the Ultimate Risk

Hi Scott,

I am 63 and not presently working. About two years ago I inherited some money. I purchased a property for $700,000 and invested $500,000 in commodities shares through Macquarie. I draw $3,500 monthly as an income. I was a bit disappointed when last financial year my investment only earned 3.25 per cent. How do you suggest I might look to increase that return? Last thing I need is to run out of money!

Thanks

Christine

Hi Christine,

You’ve actually done quite well given the commodities index has slumped to its lowest levels since 1999. But why on earth would you invest all your eggs in the one sector? You’ve got coal for brains! Seriously, I’d suggest you need to diversify and have a good holding in cash (enough for at least three years’ expenses) and have a broadly diversified share portfolio with a good holding in both local and international shares.

Scott