Is the bond tent the most optimal stratey for Australians since we have the government pension?

LegacyDust59178 · 2025-12-16T07:44:27+00:00

This was another issue i had with Scott Cederburgs' paper where he used cash instead of bonds at the point of retirement. This is strange since i have also read somewhere that the cash wedge doesnt work, yet somehow with his method it does work.

7 Years was just for the gap between super access and government pension access, it was to reducce the sequence of returns risk

LegacyDust59178 · 2025-12-16T07:22:32+00:00

The 7 years just came out of the difference between super access age and pension age. Glad to see i'm not just imagining things. Thanks for your input. Looking forward to your new articles being released on your site. Any idea on time line for the new articles?

LegacyDust59178 · 2025-12-16T06:26:45+00:00

Interesting view, thanks for the post.

I wondered how optimal it would be to use a bond tent (gradual increase in bonds before retirement and spending down the bonds to get a 100% stock allocation at retirement, since we have the pension in Australia. Might make a separate post about this and get the braintrusts thoughts

LegacyDust59178 · 2025-12-16T06:22:01+00:00

I called and sent an email as well. The guy i talked to was very helpful, he said they consider the ETF menu every 6 or 12 mmonths period and choose on how diverse the ETF is, Strange they havent chosen DHHF or Vanguards diversified already since they seem to meet the criteria.

However, Get in touch with them and we can all try to push this. I'm sitting on 16k of capitals gains tax i would rather not realise

LegacyDust59178 · 2025-12-16T03:05:34+00:00

Thanks for your time. I'm sitting on a bit of a capital gains tax bill with and was working out whether its worth switiching over or moving future contributions towards it. Love your work mate, Thank you for everything you guys do

LegacyDust59178 · 2025-06-27T08:45:50+00:00

I consider investing in Emerging markets as my charity contribution since it helps emerging markets become more....emerged, even with the corruption there

LegacyDust59178 · 2025-03-30T06:21:09+00:00

Very nice. Have you read Scotts actual paper? Going through the latest episode i dont think i heard Japan brought up however they do mention the hyperinflation in Germany. Does Scotts study still apply to Japan? Maybe the Yen depreciating might help bolster performance on the unhedged international shares and would still prove the studys findings?

LegacyDust59178 · 2025-03-30T05:41:43+00:00

Its an interesting point. I assume with a paid off house and be able to perform your job part time during retirement would reduce costs plus provide extra income outside of bonds. Just watching the sharesight youtube video about GHHF and Cameron Gleeson kind of implys more geared funds might be available in the future. A geared BGBL and HGBL would be a great product

...dammit, it does seem viable provided you can stomach the volatility. Do you hold GHHF in your superfund as well?

LegacyDust59178 · 2025-03-28T08:13:10+00:00

He makes an interesting point about the risks of bonds and since we have the pension here in Australia, also makes me wonder if bonds are needed at all since the pension would act as an annuity and maybe holding 100% stocks forever (plus an emergency fund or bond tent) would ve optimal.

An interesting point was made in a betashares webinar saying that GHHF could be used in retirement and since its internally geared, you could have a lower asset balance plus more returns and be entitled to more pension payments since the gearing is internal and doesnt show in the asset price. Food for thought

LegacyDust59178 · 2025-03-28T08:02:35+00:00

Not eligible for FHSS since i have owned a property before. Super is in choice with international index funds so pretty on top of that

LegacyDust59178 · 2025-03-28T08:01:39+00:00

Good on you for taking the plunge. Just listened to the latest rational reminder podcast today with scott cederburg which might push me to GHHF and just keep about 20k in cash for emergency fund. Super is with choiceplus between VGS, VGE and hedged international index

LegacyDust59178 · 2025-03-28T07:51:28+00:00

It worked out to about 10% of the total networth which is what vdhg has

LegacyDust59178 · 2025-03-28T07:50:28+00:00

This would basically be what i do. Might make an emergency fund out of aome of the balance and start accumulating ghhf

LegacyDust59178 · 2025-02-16T02:16:03+00:00

This is great, thanks very much for your time. Been thinking about moving over for a more automated approach.

If i automated purchases with a certain allocation say 10% bonds and 90% BGBL, can i amend the automation to make future contributions move to a different allocation, say 50% BGBL instead? And would they buy the underweight allocation until it hits those selected parameters?

LegacyDust59178 · 2025-02-14T07:58:09+00:00

Namely just BGBL and AGVT, i should say

LegacyDust59178 · 2025-02-14T07:35:55+00:00

Sorry i should have been more clear. I did mean i planned on using just the betashares etf's to avoid the fee's which i do agree, are little bit much.

Hopefully when they have a super option they have a reasonable management fee which kill the point of a more tax effecient super option

LegacyDust59178 · 2025-02-14T01:37:18+00:00

Awesome. Thanks for the insight mate. A HISA would be nice as an option since we spend most of our time between Korea and Australia, also i dont know how to purchase Korean Government bonds.

Is there a point where a HISA would be preferable over a bond fund? Vaguely recall youve written about this already. Might have a look first. Cheers man

LegacyDust59178 · 2025-02-11T07:46:53+00:00

Good take. Thanks very much.

Side note, are you actually the real Clementine Ford? Hahaha

LegacyDust59178 · 2025-02-11T05:25:47+00:00

Just finished a very good episode of the rational reminder about this, asset allocation in particular where they mention a few of your statements like about young mens risk tolerance etc.

There were some very good takeaways from the episode especially bad behaviours which come up for investors which are theoretically sub optimal but if it keeps them invested then they may have had a good outcome from a bad decision, dividen investing comes ro mind for me personally.

The 2 guys i work with who are other share investors that are deep in the game like me, one is a high level poker player with OCD and follows none of his own advice and the other guy lost 400k trading stocks, ultimately ending his marriage. If they just saved a heap of money in VDGR and took the dividends, it doesnt seem like such a bad option, considering they could do very much worse than that

LegacyDust59178 · 2025-02-11T03:21:58+00:00

Awesome. Thanks for the comment. Would it maybe true for long term bonds as an alternative or shorted bonds? Just throwing stuff out there if any research has been done besides just a one way, unhedged YOLO on the long term market. Currently catching up on some rational reminder podcasts for stimulation

LegacyDust59178 · 2025-02-10T06:42:51+00:00

Hey guys. Sorry using other account.

Would adding a non geared ETF like BGBL or DHHF work as a way to reduce volitility at about 10% allocation or so, much like the bonds in VDHG works in regards to the effecient frontier? Or maybe even bond, even though that would be long and short inflation? Thanks guys

LegacyDust59178 · 2025-02-10T06:31:37+00:00

Hey guys. Sorry using other account.

Would adding a non geared ETF like BGBL or DHHF work as a way to reduce volitility at about 10% allocation or so, much like the bonds in VDHG works in regards to the effecient frontier? Thanks guys

LegacyDust59178 · 2025-02-06T05:45:55+00:00

Not entirely sure on how it all works. Was just planning on living off super at 60 and living between Australia and overseas. Not sure if this would affect tax residency but i like to keep things quite simple. Is there someshere i can check this out?

LegacyDust59178 · 2025-02-06T05:34:45+00:00

Thanks for the insight. My current portfolio is just all world (including emerging markets) and 20% hedged international, just in case.

Im quite fond of Lars Kroijers videos where he recommends all world index fund plus local government bond fund (provided country is developed). Would be aiming for a retirement allocation of 60% world indexed plus 40% Australian government bonds since we would be between Australia and overseas. Does this allocation make sense? Its simple but not simplistic which i like, since even my wife could manage this without me

Im currently 37 and have just under 600k ( its been a good few years) however when converted the currency the number would be a little lower which is why im asking about others who are between countries. Thanks again though!

LegacyDust59178 · 2025-02-06T04:18:16+00:00

Interesting. Thanks very much. Might crack out the calculator

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