What do you recommend we do with our money so we can live on it as
long as possible?
Q.
We have an investment property which we plan to move into in
three years time and then we will sell the family home. This will
leave us with a substantial amount of money. We will both continue
to work for a few years and we are cautious about super funds. What
do you recommend we do with our money so we can live on it as long
as possible?
A.
There is no need to be cautious about super as long as you
understand that it is not an asset like property or shares but
merely a vehicle that lets you hold assets in a low tax
environment. The advantage of super is that you save tax and that
your money is protected from creditors if you get into financial
difficulties - the disadvantage is that your money is tied up until
your preservation age and you are always open to changes in the
law. When the proceeds of your property are in the bank you should
seek advice to confirm that superannuation is appropriate for you
and if so, what mix of assets best suits your goals.
Each week financial advisor Noel Whittaker answers your
questions.
