This week, we have a listener question from Linda. Linda and her husband live on the Sunshine Coast and are 5 years away from retirement. They have $200,000 in cash and her question is whether they should invest the money into superannuation, or use it to build a 2-bedroom cottage on their existing acreage, allowing for dual occupancy. The detached cottage would provide an income stream for Linda and her husband over the next 5 years and continue into their retirement. Linda and her husband might move into the cottage later on in life and rent out the main property instead, for about $600 a week.
In preparing for retirement, a common strategy is to downsize the family home to a smaller and lower cost home. By selling and purchasing a lower cost, smaller house, and pocketing perhaps $100,000 to put into your superannuation, you could benefit from drawing an additional income of circa $8,000 pa. in retirement.
Dallas Davison, Michael Hogue and Ali Hogue.
Money Over 50 Financial Advisers
Tel 07 4772 0938
45 Ingham Road West End Townsville Qld 4810
Money Over 50 Financial Advisers Pty Ltd ABN 26 146 225 505, 45 Ingham Road, West End Queensland 4810 is the holder of an ASIC Australian Financial Services Licence (AFSL) #471826.
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