where to put money after retiring

this question is more for my parents, one is retired (in 60s) the other doing part time work (almost 60). They recently closed their SMSF (various reasons) and sold all the assets in there , have about $1mil in cash. Right now its not doing much in a standard super account and they want a more planned approach - but without expensive advisors or accountants (whom messed them up with the SMSF).

I've never paid much attention to retirement planning, so need to read up

but anyone have suggestions as to what they are currently doing or would do when retired?

They are in low tax brackets and probably won't work for much longer. I was thinking a simple plan, low fee, mixed portfolio of growth and dividend shares/funds, diversified between Oz and rest of world. Probably ETFs (eg Vanguard, MSIC) and LICs (Argo, AFIC)

 

If they don't want the management or compliance issues look at one of the complying pension phase funds eg. Cbus or other low fee industry fund. Speak with a FP not an fw

• How long so they intend to live? It may have to last them 25+ years.
• Do they own the ppor outright?
• State of health?
• Travel requirements?
• Are they intent on keeping it in a tax free environment?

 

What do you mean theyve closed their smsf?

 

Sounds like they wound up the SMSF and rolled the cash over to a standard super fund.

 

Correct Perthguy. They had some potential compliance issues with SMSF and so decided to wound it up.

They own their PPOR outright, its really their one asset left. Able bodied, aside from usual supplements and cholesterol pills no real heath issues right now. They do travel, about twice a year. They are good savers and frugal. Wouldn't everyone want to keep it tax free ?
I think they intend to live forever

We kids aren't expecting them to leave us anything (even though they probably will try, knowing them)

 

When both no longer working they can earn over $36k between them tax free in own names. Dividends with tax effective franking credits could work nicely eg AFI / ARG. After taking advantage of personal tax free thresholds the remainder could be placed into a tax free Super pension with one of the low fee Industry Super funds. This removes all the hassles associated with the likes of an SMSF. The Super pension can be more diversified than just ASX if they choose. So in theory there shouldn’t be any tax to pay under this scenario but not everything is in Super.

Still think it best if they got some advice around tax planning in retirement from a fee for service advisor. Ignore the advisor’s kind offer of ongoing investment advice / service and just say they want to confirm what their intending to do is the most tax effective option. That’s it, finished with the advisor for good or until they want some more “one off” advice in the future.

Not licensed to give advice, an advisor I am not.

 

Yes they really need to get some proper advice. Because the first advisor stuffed them up doesn't mean they should never see an advisor again - perhaps they should see 3 of them for 2 additional second opinions - and no 2 advisors would generally be advising the same answer as it is not something that is black and white.

 

If they have not already cashed out the smsf then it may be an option to roll the money over into a low fee superannuation fund. They can choose their investment mix and take advantage of the tax free income when over 60.

Otherwise it can be re-contributed, amounts and time frames depending on legislation.
Marg

 

I realise you are not offering advice ...but what you says makes much more sense than some FPs.

 

Forgot to mention @troung @SatayKing who are retired...and annoying their wives .....