There are over a million Australians now who have started self-managed or DIY super funds (SMSF). They want to have more control over their financial destiny. They can choose what to invest in – property, shares, etc, – and enjoy tax benefits and the compounding growth of money for their later years.
Super funds, wealth management firms and fund managers are also reaping the benefits right now. Imagine over the next 10-20 years how much money will be flowing into these financial services organisations from Australians' wages and super contributions. I have calculated it – A LOT!
As the custodians and "toll booth operators" of these funds, they generate management and performance fees.
One such stock is Perpetual Limited (ASX: PPT). It's a successful investment fund management company and a great money-maker for shareholders who got a 139% share price gain since early 2012, thanks to the rising equities markets both here and overseas. The stock offers a fully franked 3.3% dividend yield.
It manages over $31 billion in funds. As customers put away more money for the future, long-term gains can grow as stock markets eventually rise at historical average rates.
— Preparing for market ups and downs
Market watchers ask, "Will there be a correction?" Yes, we can't say when, but it will come. That's why The Motley Fool unwaveringly stresses holding quality stocks paying good dividends that will be around as long as you will be.
People will probably be drinking Coca-Cola and other beverages many, many years from now, so Coca-Cola Amatil Ltd (ASX: CCL) is a natural pick. The stock is going through the wringer recently, now down to $9.15 following a forecast earnings downgrade, but the temporary setback could be righted in the short term by its business restructure plan.
It offers a huge 5.6% yield and the current price level gives investors the chance to add more to the portfolio for better future returns.
