Retired lady

Needing some advice
I’m 63 recently single needing investment advice. I’m retired and living off the income from a term deposit.
I have a large amount of cash currently in a term deposit at 4.95% expiration in 11 months but don’t own my own home now, as he kept the property and I took the cash. My superannuation is only around $100k.

Going forward, what do do next when the term deposit expires? With the current price of property I can’t afford to buy as I won’t have money to live off, so renting is my only option I think. After always owning my own home, renting is such a depressing thought at my age.
So my question is going forward , what is a better option for investing my cash with better returns. Some have suggested La Trobe first mortgage investing, anyone had a positive experience with Latrobe?
I am a bit risk averse

 

What is a ‘large’ amount of term deposit, and how does the interest compare to the pension?

consider what a drop in interest rates and increase rent would look like.

 

. Welcome. You’re the same age as I am, please please try to buy a home, even a tiny flat, women our age are the fastest growing demographic of homeless. If that is impossible please seek out the older female specific housing programs and put your name on the list immediately. Good luck!!!!!
New concept to see older women living together to avoid homelessness, loneliness

WPI Older Women’s Housing Project by Studio Bright

Home

 

Agree with the replies above.

- get a PPOR (lost interest largely offset by no rent).
- look to qualify for the pension (there is a sweet spot for this).
- invest the remainder.

Below article explains it :

Finding the sweet spot: how to earn more while having less in retirement (epicretirement.net)

 

My friend is a bit older and just purchased an old house just outside of Perth as her landlord was selling. I would go for security of a home also.

 

Welcome to the forum. The current best deposit rates are over 5%. Consider an at call account, and if you have more than $250,000, put this in different banks.

The age pension has varying start dates.
Who can get Age Pension - Age Pension - Services Australia
You were born in 1961 or so, certainly after 1957, and your age pension starts at age 67. The age pension is around $26,000 a year.
How much Age Pension you can get - Age Pension - Services Australia
Hence, you need to find a way to manage for another four years.

Owning the family home is a good thing in retirement, but it may not be possible unless you buy in a regional town.

 

Like others have said....buy something if you can. It doesn't have to big, it doesn't even have to be pretty, but securing a permanant roof over your head should be the goal. Put your money to good use, or it will be slowly whittled away. Renting on a pension is not a pretty picture. Don't worry about having money to live off. That's the job of the pension. Sure you're probably a couple of years from pension age, but you can still get some income support from the government. If you can get a property to live in, you could get a boarder (if there's a spare room) to help with expenses.

 

With care it is possible to live quite well on the age pension if the home is owned. If there's no car then living well on the age pension is a lot more viable. Thrift is good, saving on the small items to afford the big ones.

 

Sometimes thinking outside the box can help. Possibly buy a place that could be easy to rent out a room without interfering in your life too much. You could rent to a FIFO guy that lives a pretty quiet existence and only there half the time. You could rent out to a likeminded retiree like yourself and enjoy the company. You could look to buy an apartment in a bit of a holiday area and rent it out a few weeks a year in the peek periods to get in some cash. Take the opportunity to stay with kids or friends for a short time while its rented?

 

See if you qualify for jobseeker etc. you may not due to the asset test (cash) but if you can buy a place then that will reduce your assets (PPOR isnt considered) and then may qualify.

Yes, centrelink can be a PITA but if you can get 12-15k/year it can significantly help extend your remaining finances until you eventually qualify for the Age Pension.