My wife and I are quite risk adverse when it comes to investing. We are about to receive a sizeable inheritance of about $700,000 and want to ask if we should buy an investment property or put the money into super as we’re in our early 50’s and both still working?

Hi Rick,

Congratulations on your inheritance and for thinking about your future. I would recommend that it would be a good idea to speak with a financial advisor on which option would be better for your situation.

If after you have had these discussions you are looking to invest I would be more than happy to work with you and work on the best course of action for where you should purchase I work alongside a Property Expert who will be able to help you chose the right area to invest in to get the best return on your investment.

I can help you with any loan amount you may need to borrow to get any extra funds or look at your current situation and see if there is a way to better structure your current loans.

If you would like to discuss any of this further feel free to contact me on 0431.156.001. I am just around the corner from your location so can come to you anytime.

Thanks,
Jacqui
Mortgage Broker
Mobile Lender Keysborough, VIC
**@****

Hi Rick,

It is impossible to say what you should do based on so little information about you and your future goals and objectives. By putting the money into superannuation, you will be able to have that money invested at a lower tax rate than your personal tax rate - so that's the big advantage. The downside it is locked away until you meet preservation age and retire, or reach 65 - but that might not be a problem for you. You will need to make sure you don't exceed your caps for non concessional contributions ($100k per annum but you can bring forward the following 2 years so a maximum of $300k). If you are not already salary sacrificing to your cap, then you might like to contribute some of the money as a tax deductible contribution as well.

Once you know the answer of what entity you are going to invest in (your name or in superannuation) then the question comes down to what investments should I invest in. Shares, property, bonds, cash etc. And the answer is probably going to be a diversified portfolio of all the asset classes, whilst keeping your costs as low as possible.

You might also take the opportunity to review your existing superannuation - particularly if you do contribute this money to super as you would now have a sizable balance and can potentially source a lower cost fund.

I would suggest you do speak with a financial planner to help you with all these decisions. If you would like to get in touch, I can be reached on 1300 200 012 or glenn@precisionwm.com.au

Cheers,

Glenn

I am guessing you are about to receive about 1500 messages from financial planners who will be drooling at the prospect of looking after you and your inheritance!!!!
you clearly have many options, and there are a few important factors to consider:
1: $700k is a LARGE sum of money
2: you are in your 50's so cant afford to blow it
3: anything you decide needs to be very carefully researched and all options considered.

If you dont have a good accountant get one!!! Your accountant can help you manage the taxation consequences of what you are proposing

If you dont have a good financial planner get one!!! Your planner can help you to manage your investments and help you figure out a course of action.

Also remember that the inheritance is only one part of the puzzle: you also have a home, perhaps a mortgage, other investments, SUPER, and a whole host of things that need to be looked at: kids, debts, life insurance, plans to retire, asset protection, downsizing, upsizing, retirement, what to do for the rest of your lives, estate planning, etc etc etc

Your accountant and your planner dont have to be in the same office, but they will need to work together to some degree to ensure that everyone is pulling in the same direction. So, ask your accountant who you should use. Also ask your financial planer who to use.

This looks to me to be a once-in-a-lifetime opportunity for you to set yourselves a master-plan that will take into account ALL the things that you will encounter over the next few decades. Dont waste the opportunity to make the most of what you are receiving and ensure that you have the best possible retirement!!!

And dont be afraid to tell either your accountant or your financial planner that you will get a second opinion on things!!! they should welcome it!!

good luck
bc

Hi Rick,

You will need to speak to both an Accountant and a Financial Planner to ensure that you are able to optimise your inheritance to get the best return for your money and to also ensure that your investments are as risk averse and tax advantageous as they can be.

I know an excellent Financial Planner in Sandringham that I could recommend who will look after you. The recommendation is based on a "Trusted Adviser" basis. I have recommended him before and I do not receive any commission or payment for the recommendation. Let me know if want his details.

Cheers,

Michael Budge
Director
Bayside Finance Group
M 0418 547337
E michael@baysidefinance.com.au

Hi Rick,
You have a lot of researching and thinking to do. I would recommend you call 3 or 4 financial advisers/planners and accountants. Two you know or are introduced to and two you’ve never met. They are all going to want to get hold of your investment, insurance and superannuation and will probably all have different opinions.
For what it’s worth, I’m not an adviser but if you are happy with your current home and you are contributing to super you may want to invest in a couple of moderately priced properties with land (read not apartments). Which you could leverage at around 40% and create a small positive income.
As I mentioned, this is not advice, just an opinion - everybody has one after all.
If you would like a review and some guidance on the finance side of things, I am happy to help at any time.

Good luck with your choices.
Regards
Scott
0435.474.498

Being risk adverse is an excellent attribute. Tickly when it comes to money.

As some of my colleagues have outlined you’re in the children’s position now to choose. Through biggest weight sequence of events you’re now implicated in such a way that appropriate money management becomes even more critical.

The commentary around having four key people on your team to assist you in managing your affairs is the biggest tip I can give you.

With your wrist conversion it would be prudent to get perspectives across these for key areas so that you have enough information to make an informed decision.

As mentioned your team should include
1.an accountant who is experienced in tax and wealth management.
2.financial planner who can provide sound advice on how to best balance your portfolio while insuring your life and lifestyle and future plans are catered for and well protected without compromising any tax positions.
3. A mortgage broker who is au fait with investment financeAcross a variety of security types, text affective strategies and experienced in negotiating favourable terms for you so you end up with more money in your pocket.
4. Your own research capabilities. By this I mean you’re naturally inquisitive mind will question each and every recommendation that is put under your nose to establish if it sounds reasonable. I encourage you to ask as many questions as you can as this “once in a life time”opportunity came substantially change your life and your work.

I trust there is some value in all of the comments here that will assist you in maximising the return on your inheritance and who to have on your team

This is now game of minimising tax that you will pay and maximising the amount of dollars that could come back to you through a sound investment strategy over a balanced portfolio.

All the very best
Kind regards
Craig Nicholas

I

Hi Rick,

Brendan, Glenn & myself typically have the same kind of response to questions such as yours when they get posted on here.

There’s not much more I can add that hasn’t been said already other than to emphasise the importance of getting in front of someone who can help you map out the coming years and avoid making silly mistakes with such a sizeable amount of money.

I’m a financial adviser based on the Melbourne CBD. Happy to chat over the phone initially or meet in person.

You can call me on 9909 5800 or email james.wrigley@firstfinancial.com.au

Best of luck.
Regards
James