Q. I have inherited a little amount, under $100,000, and am pondering as to what to do with it. Should I add it to my superannuation income stream? I have my super with Hesta but am ready to swap to Australian Super. Hesta has huge fees but the dividends have been fine, but last time I checked, Australian Super would be a better deal for me. I own my own home in a lifestyle village in Hervey Bay and we rent the site. I’m 70, not on any medication and enjoy a happy, healthy life.
A: This is an interesting question, however, without knowing more about your financial position and your requirement for cash flow, it is difficult to give any definitive answer.
In general terms, I prefer to hold some investments outside the superannuation environment. The main advantage of super (including income streams) is the reduction (or exemption) of tax. But it is possible to hold significant investments outside super and still pay no tax once you are over 65. It is also worth considering the impact of this additional money on any Age Pension entitlements you may have.
Also, if you are maintaining a comfortable standard of living with your current arrangements and do not really need the income from this additional money, you could consider spending some of it on lifestyle choices like travel rather than investing all of it. It may be worth getting some objective financial advice on the appropriate course of action as the wrong choice could have unexpected consequences.
IMPORTANT LEGAL INFO This article is of a general nature and FYI only, because it doesn’t take into account your financial or legal situation, objectives or needs. That means it’s not financial product or legal advice and shouldn’t be relied upon as if it is. Before making a financial or legal decision, you should work out if the info is appropriate for your situation and get independent, licensed financial services or legal advice.