Number one, I said nothing about your wife - it's you who have for some reason dragged her into it. Let's just pretend that didn't happen.
Number two, so how safe is your money a fund like that - really? Is there some sort of government guarantee if things go pear-shaped? What regulatory authority oversees it - is it on-shore here or off-shore? Those interest rates are really quite high considering the extremely low interest rates most retail things are paying in Australia right now - surely there's some accompanying pay-off in terms of risk.
The fact is saying to someone "you don't know anything about this" is frankly patronising and rude and I'm going to dish it out the same as I get it.
1) You did when you tried and failed to make a comment about me, which is why I have previously asked and later told you before to stick to the facts and don't go personal. Lets just leave it there shall we.
2) There is no govt guarantee on deposits in Australian banks and if the banking system collapsed, the Australian govt could not afford to repay the money lost. In Vic, the Pyramid collapse was covered by raising taxes and it was small scale enough. So basically all Victorians paid more tax to recover the funds lost by some. If this was one or more of the Big 4, do not expect your money back in full if at all.
Managed Funds of various sorts and shapes have been around for decades. If the funds are based in Aus, yes there are regulatory requirements, look it up. Funds cover all sorts of industries and locations, you can pick and choose, there are even ones that focus on RE, social responsibility(do not invest in alcohol, tobacco, etc), domestic, off-shore, share market, direct investment, infrastructure etc. Its the lazy mans way of investing in the share market and other, for which you pay a small fee. In general I think most people would be better off with Managed Fund than direct investment in the share market unless they actually Manage their shares which most of us don't. I think also removed any emotional link to the investment.
Managed Funds are just one form of investment, there are many others, Bank fixed interest would have to be one of the lowest earners which is why so little money is tied up in fixed interest these days and Australian banks source much of their loan money from OS.
3) Don, its very clear you don't know much about Managed Funds by the way you commented. Am I patronising, no, do I expect everyone in the world to know about this, no. Do I have any interest in trying to prove I know more than you on this, no. Do I have any benefit from telling you this, no. If you had asked questions about it (not I posted links at the time you clearly didn't look up) rather than go on the attack and a personal attack at that trying to defend your comments. I would responded differently. Again, lets just leave it there and if you have genuine comments on Managed Funds I'll again post links to where you can find the information on them the best I can.
And again I'll state that I believe most people who have sufficient cash to live of or significantly contribute to their retirement would not be simply placing their hard earned cash in the bank to merely get 2-2.5% interest. If they are doing that and able to live off the meager returns, then good for them. Maybe they are just being lazy or couldn't be bothered or want the flexibility, but to live off TD interest, you have to have close to $2m in the bank. Most of us at retirement have less and likely alot less than $0.5m in the bank at retirement + Super.