How do I tell my friends that finding a rich husband isn’t a financial plan?

We are 63 and 62 years old, our house and an investment ownership worth $ 1.2 million. Our combined income is $ 140,000 (including $ 36,400 rent). We want to help our two children with home deposits – probably $ 400,000. Should we sell investment ownership to finance this, should we make any more contributions to Super (now a little more than $ 400,000) and potentially the right to receive a partial age pension?

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So you have a total of $ 1.6 million (property plus super) savings/investment, and towards the end of your working life, you intend to give half – $ 800,000. I think this is madness.

After retirement, you must plan to support yourself for about 30 years. Once you have made these gifts and pay the capital earning tax, your remaining savings will allow a very limited lifestyle even when taking into account a possible age retirement authority in the future.

A few car changes, a little travel and unexpected medical costs and you can find yourself in a limited position of up to ten years. If one of you needs elderly care services in life, you may even need to return to your children for help.

You’ve worked hard for your money, and I think there’s a scope for you to provide early heritage gifts to help your children’s real estate market, while your priority should be financially safe. I’m sure your children will ask for the same thing.

Paul Benson, Guidance Financial Services. It hosts Financial autonomy Podcast. Questions: paul@financialautonomy.com.au

• The recommendations given in this article are general in nature and do not aim to influence readers’ decisions on investment or financial products. They should always seek their own professional advice, taking into account their personal conditions before making financial decisions.

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