Points of note:
- Cash rates are similar to Term Deposit rates so for the extra liquidity one might prefer Cash.
- Bonds rates vary widely depending on credit rating and will still be subject to capital volatility so one might consider mortgage investments however should speak to a professional who can explain the differences.
- Property investments have declined lately partly due to increases in interest rates.
- Australian shares generally provide higher and more regular income than international shares however it is good to be diversified.
| Estimated Income Rates @ 11.09.23 | ||||
| Risk Category | Investment / Fund | Estimated Income Rate % | Payment Frequency | Withdrawal / Liquidity |
| Cash | Cash | 4.5%+ | Monthly | Daily |
| Cash/Term Deposits | TD 3 to 12 month | 4.7 – 4.9% | Monthly | Refer Term |
| Debt / Bonds | AAA Government to BBB Corp Bond funds | 2.8 – 7.54%+ | Monthly | 3 days to fortnight |
| Debt / mortgage investments | Diversified Mortgages/ Construction loans | 6.75 – 8.52% | Monthly | Unlisted 1-6 months or more |
| Property | Diversified Property funds | 5.2 – 6.6%+ | Monthly/Quarterly | Listed – 3 days to fortnight. Unlisted – Monthly to 5 years |
| Aust Shares | Aust Shares – Large | From 4.8 + 1.8 Franking = 6.6% Grossed up (higher for other funds) | Quarterly/Half yearly | Listed 3 days Unlisted Fortnightly or more |
| Int Shares | International – Share Funds | Can range from very low to 10% depending on whether the income is from dividends/realised capital gains | Quarterly / Half yearly / Yearly | Listed 3 days Unlisted Fortnightly or more |