Do you need an alternative strategy to term deposits? Could it be stocks?

Founder and Publisher of the Switzer Super Report
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At a time when interest rates are on the way down, those who want to invest for income are scratching their heads on how they can get the 5% plus annual yield that most of us would be happy with. Of course, we’d all want 8-10% a year but that’s easier said than done, so a 5-7% result, probably helped by franking credits, is a more likely outcome.

Clearly, with term deposits averaging around 2%, too much commitment to these brings down your overall return pretty aggressively. This means we have to look to other assets to help deliver the number we need to make our super funds deliver the lifestyle we desire.

I think it’s through dividend-paying stocks that we can shore up our income from our investments. This is why I created the Switzer Dividend Growth Fund and what it has done is captured in the chart below:

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