As many Australians prepare to make the move into retirement, downsizing the family home into a smaller abode is often common.   The need for a large 5-bedroom home is no longer, as your children have grown up and moved out, and the desire for a smaller residence with less maintenance becomes more desirable.

Selling the family home and downsizing will quite often leave retirees with large sums of cash left over.  The important question then becomes, what to do with this money.

Recently, my own mother, Mavis, was presented with this exact situation and made the decision to sell her home and move into a retirement community.  She too was on the receiving end of a cash injection after selling her bigger home and making the transition to a smaller unit.  What was Mum going to do with the cash she had left over? 

The baby boomer generation will be familiar with term deposits, as this style of investment will have served them well over the years, often with impressive returns of well over 10% being the norm.  However, with official interest rates in Australia at all-time lows, term deposit rates are nowhere near as special as they used to be.  This presents a common conundrum for retirees looking for an attractive return on their hard-earned cash as to where to invest to achieve a higher return.

Mum quickly realized that putting the cash into a bank account or even the familiar term deposit wasn’t going to get her the return she needed to help with her retirement funding. Mum then gave me a call, to see what her options were about investing in the share market for a better return.     

In April this year Mum made the decision to invest in some quality blue-chip shares that would provide her with an attractive dividend yield to boost her retirement income.  In just four months since her initial investment, Mum’s shares have risen in price by around 9%, and at the same time have provided her with some dividend income, at an average of 7.5% per annum*.

This was Mum’s first investment in the share market at age 70, proving it’s never too late to start investing.  If you asked Mum about her experience, I’m sure she would tell you the process was easy to follow and understand.  Since investing Mum is very happy with the dividends she’s receiving and is looking forward to the extra spending money to take on her cruise at years end.

Just like I did with my own mother, I will guide you through every step of the investment process using an easy to understand language and will take the time to answer all your questions along the way. I’m also here to support you through your entire investment journey and am just a phone call away if you are ever unsure.  If you’re thinking about downsizing your home or have already done so, I would love to show you how an investment in shares could help you boost your retirement income.

Georgia Harrison, Operations Manager, Equities & Derivatives Adviser, ADA2 (ASX)

iInvest Securities, Stockbroking & Wealth Management

Ph: (07) 5520 8788

iInvest Securities Pty Ltd (ABN 44 246 838 283) (“iInvest”) does not guarantee or take responsibility for the accuracy, completeness, estimates or appropriateness of any information or statement of opinion (any of which may change without notice) set out in this communication.

This communication has been provided to you for your general information and does not take into account your objectives, financial situation and needs and must not be relied upon by you as personal financial product advice that has been provided to you by iInvest. If you require advice regarding any aspect of the information and statements of opinion set out in this communication, particularly as to whether you should base an investment decision upon the information or statements of opinion set out in this communication, please contact your financial adviser.

*Past performance is no guarantee of future performance. 

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