Prepare for a long lifetime, even at 65

Wayne is retiring soon but still needs to ...

QI’m 60 years old and self-employed, looking to retire within five years with a regular income (ideally, $100,000 a year). I have a self-managed super fund valued at over $900,000 and I’m not receiving a great return. What would be your advice on how to invest this money? I would like to receive a regular income.

I’ve been researching different ways to invest, such as purchasing a house or unit through my super fund or through an industrial fund, but the returns are not the best.

Is there a better option?

Hi, Wayne. Let’s not worry about how to invest for a moment. I am far more interested in you building a financial plan that will get you to a position of financial independence.

I imagine that you own a home and you may have other assets, but what you have told me is that you have $900,000 in super and want an income of some $100,000 a year in five years.

In five years, at age 65, you will have a life expectancy of some 20 years. You really should hold a balanced portfolio so you are not gambling on property, shares or fixed interest. A long-term realistic rate of return above inflation and after costs is in the range of 3% to 5% a year.

Your question is far too important for me to muck around with. Your plan for the next five years of work will really set your path for the rest of your life.

My advice is to seek out a professional, fee-charging adviser and build a plan that gives you a path for the next two decades and hopefully beyond.