Question 1

Sliding doors moment at 59.

I am recently divorced and have taken a $70,000 mortgage to purchase a property with my share of the family home.

I’ve moved my $550,000 super out of the self-managed super fund shared with my ex-husband. I expect to work for the next five to seven years.

Are there any financial strategy moves I should be thinking about to set myself up?

At 59, with another five to seven years of work ahead, there is still meaningful time to strengthen your retirement position.

I’d start with three areas – debt, super and your retirement target.

First, consider what you want the $70,000 mortgage to look like when you eventually stop working. Paying it down may provide certainty, but that needs to be balanced against other uses for your surplus income.

Second, revisit your super contributions. For 2026-27, the general concessional contribution cap is $32,500, including employer contributions, salary sacrifice and eligible personal contributions claimed as a tax deduction.

There are also carry-forward rules that can allow some people with a total super balance below $500,000 at the previous June 30 to use unused concessional cap amounts from earlier years.

Whether that applies will depend on your previous balance and contribution history, rather than simply today’s $550,000 balance.

(You also have the option of making non-concessional [after-tax] contributions to super up to a general cap of $130,000 each year.) 

Finally, rather than asking whether $550,000 is “enough”, work backwards from the retirement you want.

Think about when you’d like to stop working, what you’d like to spend each year and whether you want the mortgage repaid by then.

After divorce, your financial position has fundamentally changed. The next five to seven years provide an opportunity to build a retirement plan around your priorities rather than trying to recreate the arrangements you previously had as a couple.

There are certain strategies you can implement with your superannuation that may help any debt reduction or to increase your retirement savings to help fund your desired retirement.

With this significant change in your life circumstances, we would suggest seeking personal financial advice. A good starting point would be to contact your superannuation fund.

Question 2

Aged in our 60s, we plan for my husband to stop work and, in the next financial year, sell an investment property to help fund retirement.

We won’t qualify for the Age Pension due to our assets. With the new capital gains tax rules, is the gain up to July 1, 2027, still eligible for the 50 per cent discount, or will the whole gain be taxed at a minimum of 30 per cent?

The good news is the new rules don’t simply apply a 30 per cent minimum tax to the entire gain on a property you’ve owned for years.

Under current rules, an Australian resident individual who has held an investment property for at least 12 months can generally apply the 50 per cent CGT discount. The remaining net capital gain is then included in taxable income.

From July 1, 2027, the rules change. For an eligible property already owned at that date, the gain is effectively dealt with under two regimes.

The gain accruing up to July 1, 2027 remains subject to the existing rules, including the 50 per cent discount where applicable.

Gains accruing after that date are subject to the new arrangements, including indexation and the new 30 per cent minimum tax on certain net capital gains.

That makes the property’s value at July 1, 2027, important, particularly if you’re planning to sell shortly after the new rules commence.

Your instinct about retirement is also relevant.

Under the existing system, because the discounted net capital gain forms part of taxable income, the amount of other income received during the year can affect the ultimate tax outcome.

So, while the system is becoming more complicated, an investment property held across July 1, 2027, won’t simply have its entire historical gain taxed at a minimum of 30 per cent.

Question 3

I have read a lot about gold being a smart investment when the sharemarket is down. How do I buy gold?

There are a few ways to invest in gold, and you don’t necessarily need gold bars sitting in a safe at home.

You can buy physical gold, typically as bullion bars or coins, through precious-metals dealers such as the Perth Mint. If you take physical possession, you’ll also need to consider storage, security and, potentially, insurance. 

Alternatively, there are exchange-traded products listed on the ASX that provide exposure to gold and can be bought and sold through a sharebroking account. Some are backed by physical gold, providing exposure to the gold price without personally storing the bullion.

Another option is investing in gold-mining companies. However, that’s not quite the same as owning gold because the value of a mining company is influenced by the performance and costs of the business as well as movements in the gold price.

One caution – gold shouldn’t be viewed as something that automatically increases whenever shares fall. Gold can provide diversification, but its price also rises and falls.

MoneySmart cautions against investing in something simply because it’s receiving significant attention in the news or elsewhere.

So, before deciding how to buy gold, consider what role you expect it to play in your portfolio. That will help determine whether physical gold, an exchange-traded investment or another approach makes most sense.

Paul Johnston and Linda Panaszek are financial advisers within the IFS Trusted Advice Network.

Disclaimer: The responses provided are general in nature, and while they are prompted by the questions asked, they have been prepared without taking into consideration all your objectives, financial situation or needs.

Before relying on any of the information, please ensure that you consider the appropriateness of the information for your objectives, financial situation or needs. To the extent that it is permitted by law, no responsibility for errors or omissions is accepted by IFS and its representatives.