There is no such thing as risk free investment,not gold, not property. There are only degrees of risk. Expected rates of return are usually but not always a fairly good indicator of the degree of risk.
I am what is laughingly referred to as a 'self-funded retiree'
I have a good super scheme. When I retired,I converted half to a fully indexed pension .The rest I rolled into a superannuation fund.That was just fine until the financial melt down. I saw it coming.First I got out of property trusts,then out of stocks, completely. In Australia, virtually ALL pension schemes are based on the stock market.
My investment advisor wanted me wait another 3 months. Had I done so, I would have lost about 30% of my capital. I put all of my money in money at 5 % .(more secure than even term deposit) I lost no capital,but my interest halved.
I have never considered an investment property.There are risks for the ignorant and good returns are not guaranteed. Although negative gearing is allowed here, profits are more from long term capital gains rather than rent.This is just dandy if you can wait 10-20 years,but not so good if you need a cash flow
IF I was setting up a pension right now,I would buy the worst (rentable) house in the best street in the best area I possibly could. Houses rarely appreciate. In fact their value usually declines.The value of land on which the house is built almost always goes up.
I think gold ( not silver) will be a pretty good investment for the next couple of years, but not long term,unless the US economy REALLY goes belly up,THEN you'll see > $2000 an oz..
I am what is laughingly referred to as a 'self-funded retiree'
I have a good super scheme. When I retired,I converted half to a fully indexed pension .The rest I rolled into a superannuation fund.That was just fine until the financial melt down. I saw it coming.First I got out of property trusts,then out of stocks, completely. In Australia, virtually ALL pension schemes are based on the stock market.
My investment advisor wanted me wait another 3 months. Had I done so, I would have lost about 30% of my capital. I put all of my money in money at 5 % .(more secure than even term deposit) I lost no capital,but my interest halved.
I have never considered an investment property.There are risks for the ignorant and good returns are not guaranteed. Although negative gearing is allowed here, profits are more from long term capital gains rather than rent.This is just dandy if you can wait 10-20 years,but not so good if you need a cash flow
IF I was setting up a pension right now,I would buy the worst (rentable) house in the best street in the best area I possibly could. Houses rarely appreciate. In fact their value usually declines.The value of land on which the house is built almost always goes up.
I think gold ( not silver) will be a pretty good investment for the next couple of years, but not long term,unless the US economy REALLY goes belly up,THEN you'll see > $2000 an oz..