Setting funds aside as cash 'provides security'
Speaking to the Sydney Morning Herald, managing director of Professional Wealth Doug Turek suggested that some funds should be kept as cash rather than shares for this reason.
"If you prudently set aside enough funds in bonds and cash in advance of a GFC, and we don't know when there will be another one, you can sleep well," he stated.
Mr Turek added that it could also prevent Aussies from being forced to sell assets and may ensure they have a "more financially secure retirement".
Those whose asset allocation is wrong and leans too heavily on shares may find they are forced to sell at a low price and do not get the full value of their investments back.
Minutes from September's meeting of the board of the Reserve Bank of Australia suggested that Aussie households are exhibiting a cautious approach to their finances, with many opting to save rather than spend.
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