Adam Dawes’ Masterclass on Investing for a Wealthy Retirement

Why It Matters

By applying a dynamic, diversified allocation, affluent retirees can protect their capital, meet long‑term care costs and sustain income without exposing themselves to excessive market volatility.

Key Takeaways

• Asset allocation shifts from 70/30 to 50/50 as retirees age.
• Maintain short‑term cash bucket covering two years of living expenses.
• Include defensive assets, private credit, and dividend equities for income.
• Fully paid‑off residence is essential; mortgage in retirement is risky.
• Diversify with global, hedged, infrastructure ETFs to reduce volatility.

Summary

In a Livewire Markets retirement series, senior advisor Adam Dawes of Shaw & Partners explains how high‑net‑worth Australians should structure their portfolios as they transition into and through retirement.

Dawes recommends a sliding asset‑allocation mix that starts around 70 % growth and 30 % defensive at age 50, moves to roughly 50/50 in the early‑60s, and approaches 1 % growth by the late‑70s, adjusted for cash needs, legacy goals and medical expenses. He stresses a two‑year cash bucket for living costs, complemented by defensive assets such as Australian fixed‑interest, dividend‑yielding equities (to capture franking credits) and a modest exposure to private credit for regular income.

A sample five‑million‑dollar portfolio might allocate 10 % to an AAA‑rated cash fund, 15 % to a VAF‑style fixed‑interest vehicle, 10‑15 % to private‑credit managers, 20 % to high‑yield Australian shares, 10 % to a global long‑short fund, 10 % to hedged international equities and 10 % to infrastructure ETFs. Dawes repeatedly notes that a fully paid‑off principal residence is non‑negotiable, and that mortgages or dipping into super to service debt undermine retirement security.

The guidance underscores that retirement planning is not static; advisors must continuously rebalance to preserve capital, generate income and capture modest growth while accounting for longer life expectancies and costly aged‑care fees. Implementing these tactics can help wealthy retirees achieve a stress‑free, income‑stable retirement.

Original Description

In this practical interview, Adam Dawes of Shaw and Partners offers a masterclass in how he structures retirement portfolios, how the asset mix changes with age, and why the most important years to plan for may actually be the last.

Read a summary of the article here: https://www.livewiremarkets.com/wires/adam-dawes-masterclass-on-investing-for-a-wealthy-retirement/

00:00 – Setting the scene

1:00 – The typical high net worth client and what they want in retirement

2:43 – How Adam thinks about portfolio weightings in the context of a long lifespan and desire for capital preservation among wealthy Australians

4:55 – The dangers of being “all income” in a portfolio

5:16 – Why you need short-term and long-term “buckets” of money

5:35 – How Adam thinks about asset allocation and the dangers of being too heavy on a particular investment style

7:16 – The importance of franking credits for wealthy Australians

8:02 – 2 recent types of ETFs Adam has incorporated to generate income and manage liquidity

10:00 – Adam’s thoughts on whether you should sell off your properties and a key life event where this makes sense

12:18 – Adam’s hypothetical retirement portfolio, with top ETFs and listed products and their weightings

15:56 – Final remarks on the ebbs and flows of retirement