My husband and I, 69 and 66, have about $60,000 in super. It is in the ''balanced'' option and lost money last financial year. I decided to withdraw it and put it in a term deposit, but since June 30 it has gone up a couple of thousand dollars. I considered changing it to ''conservative'' . Is there a way I can compare that with a bank term deposit?
You have highlighted problems with trying to time the market. The balanced option contains some shares, which is why it will do better than term deposits when markets are rising, but worse when markets are falling. Speak to your adviser and work out an asset allocation that suits your goals and risk profile.
My wife and I have three young children. I am working while my wife minds our two youngest. We have about $250,000 in a savings account and don't want to buy property or shares. If I were to become unemployed, would the government force us to spend all our savings before we qualify for unemployment payments? Or would it take only the interest into account?
The only place you can shelter your money from Centrelink is to use it to buy a home or place it in super. Neither of these seems appropriate for you. Under current deeming rates, your $250,000 in the bank will be deemed to be earning $389 a fortnight. While this will reduce the benefits to which you may be entitled, you will still be eligible for some. As well as the income and assets test, you might have to serve a liquid assets waiting period of one to 13 weeks.
Noel Whittaker is the author of Making Money Made Simple and many other books on personal finance. His advice is general in nature. Readers should seek their own professional advice before making decisions. Email: email@example.com.