Super or deposit – the quarter-million-dollar question

I’M 61 and not working. I am not due for the age pension for another four years. I have $265,000. Is this money better off in a superannuation fund or in a monthly paid term deposit?

I suggest you seek advice because, if you are considering Centrelink benefits such as Newstart before turning 65, you will be much better off having the money in super, where it will not be counted for the assets or income test. If this does not apply to your situation, it is a matter of deciding whether you wish to enjoy a guaranteed 3.1 per cent for five years while accepting the risk of interest rates and inflation rising in that time. I AM 58, earn $75,000 per annum and live with my partner. He owns the house we are living in. I sold mine and put most into super in 2003. I have $500,000 in super and contribute by salary sacrifice every fortnight. My defined benefit superannuation fund is currently worth $154,000.

I started a share portfolio when the stock market dived and now have $98,500 worth of shares. I am hooked on following the stock market and love to do my own research on companies before buying shares.

Am I doing the right thing? Please advise if I am wasting my time with a share portfolio – at this stage I have no plans to retire.

It is my firm belief that shares will give the best return over the long haul, so I heartily endorse the course of action you have embarked on.

A growing share portfolio will provide growing taxadvantaged dividends when you retire and your interest in the share market should become a most enjoyable hobby.

Just bear in mind that you need to take a 10-year view when you buy shares and not panic and bail out when the market has one of its inevitable downturns. I AM 63 with $120,000 in super, my husband is 64 and has $60,000 in super. I am planning to finish work in a few months, but my husband is happy to work a few more years. If I am not using my super at the moment, could I place it into my husbands super account? Would there be any advantage or any disadvantage to doing this?

Once you retire you will be able to access your super tax free and you could, if you wish, contribute the proceeds to your husband’s superannuation account as a non-concessional contribution on which there will be no entry tax.

Apart from a small saving in annual account-keeping fees, I cannot see any advantage in doing this if the asset allocation in both funds is the same.

You need to take a 10-year view when you buy shares and not bail out when the market has an inevitable downturn