One of the standard ''expert'' remarks about investing is that you have to skew your super to higher-returning equities, or you won't have enough to retire on. This assumes you can only get satisfactory returns if you take on equities' very high risk. Remember, global shares suffered 40 per cent to 50 per cent losses in 1987, 2001 and again in 2007-08.
The other extreme seems to ask you to accept very low returns on your money for little or no risk. So, many investors sit at either end of this barbell. They can lose their money in a bear market, or realise income returns that are not high enough for their needs.
Read more: http://www.smh.com.au/money/looking-for-a-super-hero-the-name-is-bond-20120630-219c7.html#ixzz1zJLpaLVWI believe in a ''middle way'' solution: a portfolio comprising a mix of short-term bank accounts and term deposits combined with variable or ''floating-rate'' bonds. By diversifying your portfolio across these investments, you can take on low risk - not much higher than cash and much lower than equities - while receiving very attractive returns.
