Investments

Is now a good time to cash in some investments? – The Sydney Morning Herald

Summary

I am aged 60, married, and work three days a week with a government agency and two days in my own business, earning a total of $85,000 a year. I plan to retire in five to seven years. I have recently come into a $170,000 inheritance and am in a quandary as to where to invest it. I would like to access the money easily after retirement for travel and possibly small renovations, as my husband’s defined-benefit pension paying $2415 a fortnight will cover our expenses. We own our home and have …….

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I am aged 60, married, and work three days a week with a government agency and two days in my own business, earning a total of $85,000 a year. I plan to retire in five to seven years. I have recently come into a $170,000 inheritance and am in a quandary as to where to invest it. I would like to access the money easily after retirement for travel and possibly small renovations, as my husband’s defined-benefit pension paying $2415 a fortnight will cover our expenses. We own our home and have a $300,000 mortgage on an investment property, valued at $850,000. Should I buy another property, which would require a large loan, buy shares via exchange-traded funds, or put the cash into my super, which stands at about $60,000? C.M.

Rising interest rates are threatening all overpriced assets, which includes many residential properties and shares so, in general terms, I would classify these as not overly attractive to new investment.

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Remember that a goal for most people is to retire without any major debts. So, if you want to keep your investment property, possibly for your children, put the money into a linked mortgage offset account and try to pay off the loan by retirement.

  • Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.

If you have a question for George Cochrane, send it to Personal Investment, PO Box 3001, Tamarama, NSW, 2026. Help lines: Australian Financial Complaints Authority, 1800 931 678; Centrelink pensions 13 23 00.

Source: https://www.smh.com.au/money/super-and-retirement/is-now-a-good-time-to-cash-in-some-investments-20211126-p59cex.html