Buying shares and the "sole purpose" test

[skipau]

Hi all..

just asking for some thoughts on this...

When buying shares for your super fund how does buying shares that return a dividend rate against shares which don't return a dividend but have potential for higher capital growth.?

What I mean is... if the goal of the super fund is to give money for retirement then would I have to shy away from dividend type shares in more favour for capital growth as that is the aim of the super fund?

Cheers

 

[Clawhammer]

IMHO, Non-Dividend shares are a 'construct' of the banking industry to rob you of your reward.

They're for the greedy, gullible and uneducated, Avoid them like monkey stink!

 

[Cracka]

You can go both ways, the sole purpose test is just that the reason you are doing it, is for money in retirement. How you get there is up to you. Capital growth is one component as is dividends paid. You would hardly expect that you would not change your mind between buying a stock and when you meet retirement age. At the end of the day, it's how you accumulate and grow the balance that's important.

Personally, I have a mix of all the above, penny dreadfuls through to dividend paying blue chips and cash and Precious Metals. All because I believe they will give me the best bang for the buck and importantly, they are monitored very closely to try to ensure that I don't lose capital on any of them.