How much cash should your portfolio hold?
The latest reduction in Australia’s official interest rate presents another challenge to investors already dealing with an extended period of low rates and uncertain market volatility.
The relative attractive yields on offer in Australian shares & listed property compared to cash are tempting, but the risks of overdoing the exposure to volatile growth assets include a deterioration of capital in the event of a correction or downturn.
Apart from diversification, cash – specifically government-guaranteed cash accounts – provides a significant liquidity advantage over almost all other asset classes.
At Intralink we work with our clients to get a complete understanding of your needs and make a strategic assessment of your income sources, regular expenses and lump-sum requirements, which are key steps to helping set an appropriate balance of cash for your portfolio.
For more information regarding cash being held in your portfolio please refer to the attached article.
Should you wish to discuss the property market further please do not hesitate to contact an Intralink adviser on (03) 9629 1100.