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Home > Aussie Firebug > Ask Firebug Fridays - 20
Podcast: Aussie Firebug
Episode:

Ask Firebug Fridays - 20
Category: Business
Duration: 00:27:58
Publish Date: 2019-08-29 14:09:45
Description: www.aussiefirebug.com/aff/ In Today's episode we chat about: - REITs - Recommending certain investments to family members especially your parents - Bonds Question (2:00) Hi Aussie Firebug, Since it’s Friday I thought I’d ask you a question: How do you feel about REITs? VAP has fairly stable growth and something around a 7-8% yield and would provide diversification across different types of property (commercial etc) and across the whole country. I think there are some tax implications in that distributions don’t qualify for franking credits, but since they may be gone soon anyway, does this really matter? I have also read that REITs are only loosely correlated to shares, which could be beneficial during market crashes. Thanks, Liam Question (8:33) Hey Aussie Firebug, Love the blog! Thanks for providing great content! I have a question about helping family to invest. My family are clueless about investing. Their idea of building wealth is to hide money under the mattress, they barely even trust their super and when they do make ‘’investment’ decisions, I don’t think they’re based on a sound understanding of the market. My parents are approaching retirement and luckily have a bit of cash sitting around that could be put to better use. The problem is I don’t feel comfortable telling them what to do with it. I’m new to this myself and don’t want to be responsible in case things go wrong. I’m even scared to suggest possible options (eg, Vanguard) in case they take my word for it, don’t do their own due diligence and then things go belly up. How would you handle this? Give them the info I have and let them decide, or don’t get involved at all? Appreciate your response! -Girl On Fire Question (21:25) What is your view on bonds in your portfolio asset allocation? All the traditional advice is that 100% shares is not the best approach, yet I see over and over again people saying go 100% shares while you are young. Older, wiser heads that have gone through bear markets suggest a 60/40, 70/30 type split as a more responsible allocation. What are your thoughts on this? Do you plan to include bonds in your portfolio at one stage? Do you think a cash emergency fund or offset account for a mortgage is a substitute for the bond portion of a portfolio? -Matt
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