When it comes to investing for your retirement, I believe capital preservation and a growing income stream are two of the most important things to take into consideration when making an investment decision.
While the sharemarket certainly carries the highest risk when it comes to capital preservation, it also provides the best chance of achieving a fast-growing income stream through rising dividends.
With that in mind, here are some shares that I think could be great options for SMSF investors:
Sonic Healthcare Limited (ASX: SHL)
Sonic Healthcare is one of the world's leading pathology companies and has an impressive track record when it comes to expanding offshore. The growing focus on preventative medicine is a huge tailwind for the company and means the company is well positioned to grow steadily for many years to come. The shares wouldn't be considered an outright bargain right now, although a fall back towards $20 would present a good buying opportunity and offer a dividend yield of around 4%.
TPG Telecom Ltd (ASX: TPM)
Once a market darling, TPG has been a disappointing performer over the past six months as the market has re-rated its growth outlook. Nonetheless, the risk of capital loss at the current share price is much lower and I believe this now makes it a far more suitable option for SMSF investors. The company is still expected to grow its earnings this year and beyond, and is also actively pursuing a number of growth options including the entry into the Singaporean mobile market. The shares are now trading on a forecast price-to-earnings ratio of less than 15 and offer a growing dividend yield that currently sits at around 2.5%.
Magellan Financial Group Ltd (ASX: MFG)
Magellan is a great option for those SMSF investors who want exposure to international equity markets without the effort of buying shares directly. The fund manager has a superb track record of delivering out-performance and this has seen a consistent increase in funds under management over recent years. With that said, investors buying shares today must be confident that international equity markets will continue to perform strongly in the short term as the shares trade on a pretty full valuation. SMSF investors who want exposure to international equities without the leverage of a fund manager could also consider exchange traded fund's (ETFs) such as the iShares S&P 500 ETF (ASX: IVV).
