Explain to Omar the main risk and return concepts associated with cash investments in this scenario....

  
  

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Explain to Omar the main risk and return concepts associated with cash investments in this scenario. Consider the issues of Omar using his superannuation (or an allocated pension) as his investment instead of his working account and two term deposits. Briefly explain how Australia's retirement income policy is associated with this scenario. In your answer include details of how theory, politics, and legislation influence outcomes. Omar has just retired at age 67. He has $250,000 in his superannuation account. He doesn't like the amount of fees charged by financial planners and is worried that he could lose his capital if he used investments that they would recommend. He plans to cash out his superannuation and place some of the funds in his working account for the next 6 months, with the balance split between two term deposit accounts. Explain to Omar the main risk and return concepts associated with cash investments in this scenario. Consider the issues of Omar using his superannuation (or an allocated pension) as his investment instead of his working account and two term deposits. Briefly explain how Australia's retirement income policy is associated with this scenario. In your answer include details of how theory, politics, and legislation influence outcomes. Omar has just retired at age 67. He has $250,000 in his superannuation account. He doesn't like the amount of fees charged by financial planners and is worried that he could lose his capital if he used investments that they would recommend. He plans to cash out his superannuation and place some of the funds in his working account for the next 6 months, with the balance split between two term deposit accounts.

Answer rating: 100% (QA)

Risks and Returns of Omars CashHeavy Approach Risks Inflation risk Cash loses purchasing power over time due to inflation With interest rates generally lower than inflation Omars 250000 will gradually ... View the full answer