Ask Noel

Ask Noel

I am 70 and receive a full Centrelink pension. My wife will reach pensionable age next February and has $250,000 in super. We require $850 a week ($44,200 a year) for living expenses. What would be the best way to invest the $250,000 to maximise the pension for a couple and achieve a fixed income of $850 a week?

You should be talking to an adviser. The super will be assessed once your wife reaches pensionable age and this may cause your aged pension to be reduced. The extra sum of $250,000 itself may not be sufficient to give you the income you require if your pension is reduced, therefore you will need to consider drawing down on your capital or possibly investing in an annuity. Another option is to take on part-time work if it is available.

In an article about investing for grandchildren you said: “A good option is to place the money into investment bonds where there is nothing to declare on anybody’s tax return each year, and where the asset can be transferred to the child without capital gains tax.” Where do we buy them and are there different types of bonds (such as government bonds and private bonds)?

Investment bonds have nothing to do with government bonds or private bonds, they are a tax-paid investment like super; their performance depends on the assets they invest in. Any competent financial adviser will be able to recommend an investment bond that suits your goals and risk profile.

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