Retirement is supposed to be a time in your life when you can set your worries and financial responsibilities aside and really focus on pursuing what makes your heart sing. It might be finally taking that trip around the world, buying a caravan and hitting the open road, making your home a little more comfortable or simply spending more time in the company of much-loved family and friends.
Regardless of how you plan to spend your retirement, it’s important that your superannuation savings can go the distance and that you’ll have enough income to sustain a long and happy life.
In the past, many Australians didn’t have to look much further than a simple term deposit account to help finance their retirement dreams. Through the late-80s and early-90s, investors could rely on term deposit interest rates that were north of 10% p.a.[1] In 1990, the average term deposit rate was 14.90% p.a. Combined with a modest share portfolio and home ownership, a comfortable future was seemingly assured.
While still an effective investment vehicle, low interest rates for term deposits have limited the opportunity for retirees and Australian’s preparing for retirement. Not only are most term deposits now offering a less competitive yield, but they can often place restrictions on when investors can access their money.
Investors looking to ensure their savings can go the distance in retirement may consider looking beyond standard cash investment products to something that can bring greater reward. Whilst all investments carry risk, investors in Trilogy Enhanced Income Fund know their investment is professionally managed by a team with decades of experience.
Trilogy Enhanced Income Fund is a diversified investment product where approximately 65% of investor’s money is invested into cash, cash-style and other financial assets. The remainder is invested into the Trilogy Monthly Income Trust, a pooled mortgage investment that offers returns through loans secured by first mortgages over Australian property.
The Trilogy Monthly Income Trust has a solid track record of providing investors with competitive monthly distributions since its inception in 2007. When used as part of the Trilogy Enhanced Income Fund portfolio, the intended result is a product that provides investors with enhanced returns from exposure to the Trilogy Monthly Income Trust.
Whilst past performance is not an indicator of future performance, since launching, Trilogy Enhanced Income Fund has returned an average net rate of 3.95% p.a., and more recently providing a net rate of return for June 2020 of 3.02% p.a. to investors.[2] One of the other benefits is its withdrawal timeframe, with investors able to access their funds within 30 days with no withdrawal fees (however, up to 6 months is allowed under the constitution). Investors can also reinvest their monthly income distribution into the Fund, building on their initial investment.
If you’re looking to diversify your investment portfolio to ensure your savings can go the distance in retirement, learn more about Trilogy Enhanced Income Fund or chat to a member of the Trilogy Distributions team on 1800 230 099 about their current investment offerings.
[1] www.canstar.com.au
[2] Net rate paid to investors calculated daily and paid monthly in arrears for the month ended 30 June 2020. Net distributions are variable each month and are quoted net of management fees, costs and assume no reinvestment. Please note, past performance is not a reliable indicator of future performance.
Trilogy has issued a Product Disclosure Statement for Trilogy Enhanced Income Fund ARSN 614 682 469 dated 27 July 2020 and The Trilogy Monthly Income Trust ARSN 614 682 449 dated 17 December 2018 which is available at www.trilogyfunds.com.au or by contacting us. Applications will only be accepted on the current application form that accompanies the PDS. You should obtain a copy, understand the risks, and seek personal advice from a licensed Financial Adviser before investing. Investment in the Trust is subject to terms and conditions, and risks which are disclosed in the PDS. These risks include the risk of losing income or principal invested. The Trust is not a bank deposit and Trilogy does not guarantee its performance. Trilogy provides only general financial product advice on its own products and does not consider your objectives.
