RICHARDWHITFIELD
CASESTUDYW
henaninheritancefroma
parentcomesalong,thereare
plentyofquestionsaboutwhat
todowithit.Soit is a perfecttimetovisit
a financialplanner– andthisis exactly
whatCherylLewindid.Theadvicecost
her$2500andthefivesuggestedscenarios
includedputtinghermoneyinChallenger
annuities.Cherylweighedit upbutthe
ideadidn’tappealtoherandshedecided
nottogoaheadwithit.
Cheryldescribesherselfasfinancially
astuteandwaswellsetup,butaround
20 yearsago,throughsomebadbusiness
decisions,shelosteverything.Hermar-
riageendedandshenolongerownsa
home.Shemanagedanagedcareteam
buthasretiredandis onanagepension.
Shesaysshe“stickstoa tightbudget”and
livesfrugallybyhousesittingforpeople,
workingasa marriagecelebrantand
maturemodelling.ASK THE EXPERTS
When the inheritance came through,
Cheryl bought a new car and kept some
money aside for “the big trip”, which
included seeing her friends who live
overseas and her daughter and grand-
children in Canada, as well as her son
in Perth. She would like to stash the
$200,000 somewhere safe for 12 months,
with the view to re-investing each year,
as she would like to rent again. But
what is the best place for her cash?
She has deposited it in a Suncorp
55 Plus account for people aged over 55.
It pays an interest rate of 2.4%, or 2.65%
for 12 months. Should she leave it with
Suncorp, or is there a safe investment
that pays more?
Cheryl would like confirmation from
the Department of Human Services that
her $200,000 will not impact her age
pension. Also what would another
financial planner recommend? COMPILED BY SUSAN HELYSafe spot for $200k
An inheritance
from a parent
needs to be
invested carefully
NAME: Cheryl Lewin
STATUS: A resourceful 67-year-old.
QUESTIONS: What is the best place to
safely invest a $200,000 inheritance for
12 months, with the option to re-invest
annually? Will the money impact the age
pension? Is there a secure account that
is higher yielding than the current one?
ANSWERS: Cash and term deposits
are your best bet for a risk-free place to
park your inheritance for 12 months and
longer. At the cash rates of return, you
won’t lose much of your pension. If you
want to micro-manage your savings
you could earn 2.9% with a bonus
savings account or 3.05% by
chasing introductory offers.