Finance & Fury Podcast

Today’s Say What Wednesday question is from Linus. Linus asks, ‘I was just wondering what you think the ideal weighting of Australian (ASX200) ETFs, similar international ETFs and Bonds is in an investment portfolio? Love the show, thanks.’ There’re a few things to cover off here! The ideal weighting of Asset allocations; that is, how much you have allocated to Australian Shares, to International shares, to Bonds, etc.   To determine the ideal weighting there are 3 questions that need to be asked: What is the purpose of the investment portfolio? What are you trying to achieve? Long term growth – Trying to maximise the balance Short term stability – Well diversified portfolio with low exposure to growth Drawing an income or reinvesting – which determines the type of investment held How much time do you have? Longer timeframes allow for more planning and take advantage of long term growth How much risk do you need? Returns come in two parts = Income + Growth If there is growth in the equation, the inves