Ask Paul: We're pensioners - where should we invest $57k?
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
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.
Get stories like this in our newsletters.