Is an international index equities fund suitable?

Q.

I turn 50 this year and have retired from full time work. I have no debts, cash investments of $650,000 which return an income of nearly $50,000 p.a. and property investments of around $3 million (excluding my own home) which I manage myself and earn another $140,000. I am thinking of selling all the property (except my home) to rid myself of the management. After capital gains taxes on the property they should realise a net $2 million. If I sell the property assets I would still like a high income stream (I don't mind paying tax). I like to travel in comfort, and am not interested in accumulating more wealth as I do not wish to leave a large estate. What kind of investment should I consider? Is an international index equities fund suitable?

For starters you should be pouring as much into super as you can so your money can grow in a low tax environment. Then you need to consider an appropriate asset mix which should see your investments spread across the whole asset range. I certainly wouldn't neglect Australian shares by going too heavily into international index equities.