Ask Paul: We're pensioners - where should we invest $57k?

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Dear Paul,

My husband and I are both retired. He is 74 and on an aged pension, and I'm 62 on a disability pension.

We have just had a managed fund close and return our funds to us, but we don't know what to do with them. We have $57,000 - where should we reinvest it? - Barb

ask paul clitheroe we are pensions where to invest paul clitheroe

It all depends on the amount of risk you are happy with, the access you need to your money, and if a bit of income would help you.

As you had it in a managed fund, that is a vehicle you are used to, so I would be inclined to go the same way.

You could go with a very low-cost indexed-type fund run by Vanguard or BlackRock, or one of our big listed investment companies such as Argo and Australian Foundation.

If you want to take less risk, a more diversified income fund could do the job for you. With your husband aged 74 and you 62, the money could be invested for a long period of time.

The only people who really understand your need for the money and the level of risk you are happy with are you and your husband.

But I don't see how leaving the money in a savings account will be a great idea over the long term.

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Paul Clitheroe AM is founder and editorial adviser of Money magazine. He is one of Australia's leading financial voices, responsible for bringing financial insight to Australians through personal finance books, the Money TV show, and this publication, which he established in 1999. Paul is the chair of the Australian Government Financial Literacy Board and is chairman of InvestSMART Financial Services. He is the chair of Financial Literacy at Macquarie University where he is also a Professor with the School of Business and Economics. Click here to ask Paul your money question. Unfortunately Paul cannot respond to questions posted in the comments section. Please view our disclaimer here.
Comments
Paul Konig
April 25, 2022 10.08pm

Hi Paul,

My wife and I are 54

have 2 homes paid off...

Holiday farm house and the house we live in..

We have saved $450,000

In the bank and got no children at home.

Our super is quite low..

What would be best to invest our savings at this point in our lives..

Thanks Paul Konig.

Money magazine
Verified
April 26, 2022 11.37am

Hi Paul,

Thank you for your comment.

Unfortunately, Paul Clitheroe is unable to respond to questions posted here. Please submit your question via this link: https://www.moneymag.com.au/co...

- Money team

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