More punter than in­vestor

Money Magazine Australia - - ASK PAUL -

QMy hus­band and I are re­tired (69 and 67). We have a SMSF which com­prises $650,000 in CBA shares and $615,000 in fixed de­posit. I have $80,000 in VicSu­per and Aus­tralianSu­per. We also have shares in two apart­ments out­side su­per. Th­ese gen­er­ate only about $5000 each.

Our dilemma is whether the shares are go­ing to con­tinue to pay a de­cent div­i­dend and fixed de­posits to pay noth­ing. We are con­tem­plat­ing keep­ing the shares, as it is too late to sell at a profit, and putting cash into an in­dus­try fund. Is it prac­ti­cal or vi­able to run two funds pay­ing two sets of fees. Or should we sell shares, cut our losses and put the whole lot in an in­dus­try fund.

We are sick of wor­ry­ing over the whole is­sue of su­per­an­nu­a­tion and its com­pli­ca­tions, and also pay­ing for advice where ev­ery­one has a dif­fer­ent opin­ion. But while we are pro­cras­ti­nat­ing we are not gen­er­at­ing enough in­come.

Crikey, Glenda, you are more pun­ters than in­vestors – 50% in one share and the rest in a term de­posit is not the way to go. And you are pay­ing high SMSF fees to hold two in­vest­ments. I also note you are wor­ried about this. I would be too.

If my wife Vicki and I were in your sit­u­a­tion we would shut the SMSF, after tak­ing advice, and put the money in a very low-fee bal­anced fund, giv­ing us a ter­rific level of diver­si­fi­ca­tion, very low fees and lit­tle worry.

Your ac­coun­tant will hate the idea – he or she will lose fees, so they are hope­lessly bi­ased. See an in­de­pen­dent per­son.

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