You note that when your reassessment of $200,000 becomes subject to the presumption, you will exceed the $92,416 threshold for CSHC. However, if that money had been in cash or stock so far, it would have already been subject to a presumption, so putting it in a super fund shouldn’t affect the card’s income test.
Generally, I wouldn’t recommend selling stocks to fund the contribution, assuming your strategy has been to buy good stocks and hold them. However, if you’re more of a stock trader, or just don’t want to ride through the latest equity market pullback, I must warn you that I expect the market to fall further as rates rise. interest increase.
When the Reserve Bank recently raised official interest rates from 0.1% to 0.35%, its chairman pointed out that the so-called “neutral rate” was 2.5%, so there is probably a few more short-term rate hikes.
I also think that 2.5 p. 100 is too low to fight against the observed level of inflation.
My wife and I are 75 and 74 respectively. Our two children are well off financially and would only need help in an emergency. We operated our own manufacturing business until our retirement approximately 12 years ago. About two years ago, we downsized, sold our house, business, and factory, and moved into an apartment. We are debt free and have large term deposits in St George and Bendigo Banks, earning almost nothing in interest. Our stock portfolio earns about $50,000 a year. What are our investment options to get a stable return for living? My wife prefers to buy a rental property, but I feel the returns are low despite the potential capital gains, which I don’t care much about. I would prefer to put the money in a secure managed investment fund, capital guaranteed if possible. What are your thoughts? DN
A property would bring in more income than a capital guaranteed managed fund, but given rising interest rates I would expect it to lose more capital than you gain in interest.
I see the best strategy over the next six to 12 months as finding a money pit.
However, real estate and equities are overvalued and nothing corrects them like increases in official interest rates.
I agree that the best set and forget strategy may be to invest in a number of diversified managed funds, but even these can show temporary negative returns at times like this.
Settle in with a six month term deposit and see what’s on offer next.
- The advice given in this article is of a general nature and is not intended to influence readers’ decisions regarding investments or financial products. They should always seek professional advice that takes their personal circumstances into account before making financial decisions.
If you have a question for George Cochrane, send it to Personal Investment, PO Box 3001, Tamarama, NSW, 2026. All letters answered. Helplines: Australian Financial Complaints Authority, 1800 931 678; Centrelink pensions 13 23 00.