Ask Paul: We’re pensioners – where should we invest $57k?

Dear Paul,

My husband and I are both retired. He is 74 and on an aged pension, and I'm 62 on a disability pension.

We have just had a managed fund close and return our funds to us, but we don't know what to do with them. We have $57,000 - where should we reinvest it? - Barb

It all depends on the amount of risk you are happy with, the access you need to your money, and if a bit of income would help you.

As you had it in a managed fund, that is a vehicle you are used to, so I would be inclined to go the same way.

You could go with a very low-cost indexed-type fund run by Vanguard or BlackRock, or one of our big listed investment companies such as Argo and Australian Foundation.

If you want to take less risk, a more diversified income fund could do the job for you. With your husband aged 74 and you 62, the money could be invested for a long period of time.

The only people who really understand your need for the money and the level of risk you are happy with are you and your husband.

But I don't see how leaving the money in a savings account will be a great idea over the long term.

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