At a recent seminar for prospective retirees, I mentioned that there were only three practical places to invest. The first is cash, the second is property, and the third is shares. I explained that every one of these options has advantages and disadvantages. Let me share my thinking with you too.

If you leave your money in the bank, there is no risk of a capital loss, but there is no prospect of capital growth and no chance of getting the tax concessions offered by franking credits. And if you leave it there a long time, the value of your capital will gradually erode due to the effects of inflation.