Opinion

Debt in retirement is often a poisoned chalice. So, a solution that allows people to tap into their home equity by selling a share of its future sale proceeds without incurring debt can be a viable option.

It was a mixed bag for self-funded retirees this reporting season. The big banks continued to deliver those precious franked dividends, Charter Hall gave the office sector a much-needed fillip, while Dexus reminded everyone just how much financial pain some property groups are still experiencing.

Despite new supply coming on to the market, economic tailwinds should continue to underpin this buoyant commercial property sector’s growth for the next decade.

Sharp market downturns can play havoc with those in retirement who must draw down on their savings and have less capacity and time to wait for their investment portfolios to recover.

For those bored in retirement or simply needing the dollars, starting afresh in a new business venture can be a viable option. It looks exciting and it can be financially rewarding but be warned – the challenges are many.

While retirees understandably fret when markets resemble a roller-coaster ride, their fears are misplaced. A new study shows that over the past three decades markets have performed strongly, the GFC, COVID, economic downturns and geopolitical events notwithstanding.

With the Productivity Commission estimating $3.5 trillion will change hands by 2050, there is a pressing need for all the generations to work together to ensure that this windfall legacy is not squandered.

It was lance corporal Jones of Dad’s Army fame who immortalised those two words, ‘don’t panic’. It’s exactly the right advice for those in retirement who are seeing equity markets see-saw due to geo-political events, profit-taking and rising Japanese interest rates.

It might just prove a double whammy for self-funded retirees. A looming US recession is not only bringing sharemarket bears out of hibernation but could prompt the Reserve Bank to cut interest rates earlier than many analysts expected.

Baby boomers have been the major beneficiaries of rising housing prices over the decades. That does not necessarily mean it’s a good investment decision for them to buy residential property as they near or begin retirement.

Laurence Parisi will build on more than two decades in real estate with listed and unlisted funds to grow funds under management and broaden the product offering.

Investors are cognisant of the capital gain and income property can deliver. But there’s a bonus in the form of a tax deferred component as part of their distributions that some might not realise.