Hi all It’s likely that I’ll be retrenched half way through next year. This has made me start to think about our financial position. And I realize that it’s about time that we (wife and I) do that as up till now all of my mental energies have gone into the job with hardly any left for planning investments. What we have done well is to save hard, pay off mortgage, pay the maximum into employer’s super and salary sacrifice a lot into an industry-based super fund. Furthermore, my very kind Aunt recently left me 450K in her will. So there is money to deal with. I’ll be a couple of years off of being 60 and would have probably worked to 80 if nobody tried to stop me. But now I’ve been forced to think about it, maybe stopping working is not such a bad idea. We’ve just bought a property in a very nice location and the aim would be to rent it out as a holiday home so that we could also sometimes stay and become sure that we like the area and would like to retire there. But we would have to knock down the very old cottage and rebuild – something like a fairly small 3 bedroom, very low maintenance house that works well for retired couples, either us or potential purchasers if we had to eventually move out e.g back to Sydney for proximity of hospitals etc OK so current situation: --- Me: 125K salary, sacrificing 50K each year Employer pension (if I go next year) will be 42K per annum cpi index linked, taxable 310K lump sum, ETP 100K pay out for number of years of service since retrenched. 60K unused long service leave (6 months – unless I take it before leaving) 440K in industry Super Fund, low fees, 15% tax on earnings and contributions. Currently invested aggressively -- 50% Aus and 50% international shares. --- Wife 30K income I suspect she will want to carry on working for a few years at least :-( Very little super 40K in Exchange Traded Funds Money in internet Saver account, but this will go toward stamp duty, other costs and the rest into an offset account Our house maybe 700K, mortgage was paid off (no plans to sell) Central Coast house, bought as joint tenants for 500K Mortgage of 400K Offset account linked to mortgage will start with about 150K If I am retrenched next year, my plan was (before getting any tips from the very helpful people on here, and before seeing a Financial advisor which I do plan to do): Roll over 310K or however much it will be at that time into the industry super fund giving something like 800K by that time. Bit complicated tax wise because of not being quite 60 but I would probably convert this to an allocated pension. I would have to take out 4% per year at first (and then a higher % later), but if left aggressively invested in shares I imagine that because earnings are then tax-free that the 800K would increase if anything over 20-30 years (I’m assuming that we live a long time of course) I would then be getting 70+ K per annum (41K cpi-linked pension and 32K tax-free from allocated pension) without much tax having to be paid. This annual income would go into paying off mortgage, or into wife’s super for her own allocated pension, or into ETFs or similar. At some stage we would be in a position to rebuild on the Central Coast. I’m sure there are better ways of doing it, but with what I’ve learnt over the past 2 months that’s the best I can do!) If you were prepared to read this far, then much appreciated! I almost didn’t write the sentences just below because I feel a bit uncomfortable about it. But I think I need to tell you this so that you have the complete picture. Both my wife and I are sole children and will inherit from our parents. I hope this won’t be for a long time. And I think that we will pay for advice on how to set up some sort of family fund or trust fund or whatever so that this money can be used down the generations for descendants who might really need it. We have never lived a rich lifestyle and I can’t see that we would be happier if we tried to in the future. We have enough to work with now without depending on further inheritances. I only mention it because it might be a factor when considering how aggressively to invest even when retired, as it acts as some sort of insurance against things going really wrong. If there is other info that is needed then I would try to give it. It doesn’t seem right to expect any free advice, but I have seen that people have kindly offered to do this if anybody gives out the info, so I thought I would give it a go. I will definitely also pay for a financial advisor, but having read on these boards about advisors I realize that it is critical to find the right one, so I won’t rush into that. If I think that something on here sounds good then I will ask the advisor about it. I won’t be holding anybody responsible for suggesting something that turns out badly – it will be all my responsibility, and that of the advisor. I suppose I should be asking – what would you do in this situation, and then it’s up to me to decide (after a bit more self education, and with paid-for advice) what I end up doing. If anybody replies then let me thank them in advance so that you don’t keep seeing ‘thank you so much’ in reply to each post!