Better place to put dad’s savings

Q My dad is in his 70s and is still working as he loves what he does. Sadly, my mum lost her battle with cancer last year. He has paid off his house and has about $300,000 in super, which is a mixture of shares and cash. He also has received a lump sum inheritance of about $200,000, which is sitting in a bank savings account earning a little over 2% interest. I would like to help him get a better return on his money. He does not currently need access to this money but may need it in the future if he decides to finally retire. My commiserations, Fiona. Losing your mum and, of course, your dad’s wife, is terrible. I am really glad he has his work, which he loves. It sounds a bit like my dad. After my mum passed away he worked as a country doctor until he was 81. I know 2% is not great, and the money would be better in longer-term investments such as shares or even in super if he is in a position to make an after-tax contribution.

Equally, though, having a good amount of cash gives your dad flexibility if this is needed. I’d have a chat to him about how he feels. Given he is in a strong financial position with his house and super and is still working, while the money could be used more effectively, I think it really depends on his views. He may feel more comfortable holding some easily accessible cash.