Sailors keep it sim­ple

A cou­ple who spend their lives on the high seas need a safe har­bour for their in­vest­ments

Money Magazine Australia - - ASK THE EXPERTS - SU­SAN HELY

NAME: Jody Bed­son STA­TUS: Mar­ried, re­tired and sail­ing around the world.

QUES­TIONS: Where do I in­vest $100,000 in a con­ser­va­tive but high-re­turn portfolio? Should I cull or add to my ex­ist­ing shares?

AN­SWERS: Keep your in­vest­ments sim­ple and place your ex­tra money into Aus­tralianSu­per, where in­vest­ment earn­ings are tax free and you can draw it down when you need it. Sell your shares and in­vest the money in Aus­tralianSu­per so you won’t have to keep an eye on how they are per­form­ing. But if you want to keep the shares, con­sider cut­ting back on banks and re­tail stocks.

Seven years ago, Jody and her hus­band flew from Mel­bourne to Florida and bought a 13-me­tre ketch built in 1980. “In two weeks we bought the per­fect boat,” says Jody. The cou­ple, in their early 50s, named it Blue Pel­i­can and set sail for the Ba­hamas. Af­ter 30 years in cor­po­rate life, they de­cided to sail the world while they were still young and able. “Over the past seven years we have lived a sim­ple life on our sail­ing ves­sel and are con­tin­u­ing our cir­cum­nav­i­ga­tion this year,” she says.

How can they af­ford to stop work­ing? It is a clever strat­egy of not need­ing too much money and liv­ing off the rental in­come from their apart­ment. “We just don’t spend much and we are very con­tent. We used to spend so much money but now our pri­or­i­ties are dif­fer­ent,” says Jody.

They sailed through­out the Ba­hamas, in the Caribbean, up the east coast of the US into New York har­bour past the Statue of Lib­erty, past Gu­atemala, Ja­maica and Cuba and back­packed through five Cen­tral Amer­i­can coun­tries. They tran­sited the Panama Canal and for 39 days saw no one at sea be­fore reach­ing French Poly­ne­sia, then sailed across the Pa­cific to Bris­bane.

They sold their apart­ment and built up their ac­count with Aus­tralianSu­per, draw­ing down a pen­sion of around $4000 a month. “We are re­ally happy with Aus­tralianSu­per. You can see it all on­line and usu­ally talk to some­one pretty quickly,” she says. They are now set­ting sail for Asia and then Suez and the Mediter­ranean. Jody has in­her­ited shares worth about $50,000 that in­clude BHP, CBA, Cen­turia In­dus­trial REIT, Health­scope, NAB, Ori­gin, Sonic Health­care, Tel­stra, Wes­farm­ers and Wool­worths. Do they need culling?

They have around $100,000 to in­vest. “I was go­ing to buy more shares but the world is so volatile, I thought I would sit on them and watch a while,” says Jody. “It’s im­por­tant to me not to take on too much risk.”

They would like a set-and-for­get in­vest­ment but be able to ac­cess the funds within three months if nec­es­sary. “We may re­tire in Asia or Mex­ico. We don’t know.”

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.