When investors reach their 60s they are usually entering their retirement decade, so the ASX shares that those investors may want to be looking for are ones that are simple to understand, easy to manage and provide a good level of income.
These are some ASX shares that could be good for investors in their 60s or older:
BetaShares Australia 200 ETF (ASX: A200)
This is an exchange-traded fund (ETF) that is offered by BetaShares, supposedly it’s the cheapest Australian share ETF in Australia with a cost of only 0.07% per annum.
The spread of your investment across 200 ASX businesses means the ETF provides good diversification. so there is little individual company risk.
Australian businesses tend to pay out a high proportion of their profit each year, meaning they provide a pleasing level of dividend income for shareholders.
Future Generation Investment Company Ltd (ASX: FGX)
Future Generation is a listed investment company (LIC) that invests in the funds of Australian fund managers who focus on the ASX. However, there are no management fees or performance fees involved – the managers work for free. Instead, 1% of the LIC’s net assets are donated to youth charities each year.
Not only is your money doing good for Australians, if the fund managers outperform the market then you keep the difference.
The best thing for retirees is that one main objective of Future Generation is to grow the dividend every year. It currently has a grossed-up dividend yield of 5.4%.
Rural Funds Group (ASX: RFF)
Rural Funds is a real estate investment trust (REIT) that owns a variety of farms like almonds, macadamias, poultry, cotton, cattle and vineyards.
REITs can provide investors with a steady flow of distributions as the rental income steadily grows due to the rental increases built into its contracts with its tenants. The rental increase is linked to either CPI inflation or a 2.5% increase. Farmland has always proven to be a useful long-term asset to own and I imagine Rural Funds could be one of the best REITs over the next decade.
Rural Funds currently has a FY19 distribution yield of 4.7%.
All three of these shares should make for good long-term investments. Due to the strong recent run of the ASX200 and the premium Rural Funds is trading to the value of its underlying assets, I would choose Future Generation as the best one to buy today.
If you’re looking for more ideas for income and growth then this top ASX share is definitely one to consider for your portfolio.
Our top dividend stock pick for 2019 currently boasts a 5.4% dividend yield (fully franked). I believe it’s a perfect fit for a well-diversified, income-focused portfolio.
Even better, this yield comes attached to an attractive and still-growing business which could keep expanding throughout Australia and New Zealand for years to come. With disciplined management, and a long track record of building wealth for shareholders, this company is a serious candidate for any income-minded investor’s portfolio.
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Motley Fool contributor Tristan Harrison owns shares of FUTURE GEN FPO and RURALFUNDS STAPLED. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.