All Topics / Creative Investing / Investing with a retired couple (parents)

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  • Profile photo of MikGanMikGan
    Join Date: 2008
    Post Count: 4

    Hi guys a rather complicated question coming, strap in :D

    My parents are at the age where they are have both retired but perhaps with less that they expected to have at this point in their lives. My wife and I have a large amount of extra cash at the end of each month and would like to do something to help them out. 

    Let me try to paint a picture:

    They have a own outright a property in outer Melbourne  (~500K) and stocks (~250K) (that I'd describe as volatile). They are from a generation where super was not always saved and they had to withdraw what was saved before they retired to make ends meet, and look after us kids years ago. So in simple terms they are selling the stocks piece at a time to provide for themselves. They are not elligable for government assistance (or very little I understand) due to their assets, the house and stocks, so their liquid situation is not great. 

    My wife and I are in a good position, we have are both employed, have a mortgage and have a fair chunk of money left each month to do with as we wish (~4K) so we have been contemplating what to do to help them out, we could just give them cash each month (as we have been doing) but that may not be sustainable if our circumstances change, kids etc. Ideas have been kicked around like purchasing a property that they could rent and there by receive government assistance, but their assets from the sale of their property would still make them inelligable (I persume). Or possibly purchasing their property and charging them very low rent, so they have an outgoing and we'd have a negative geared property. And anything in between.

    This being the creative investment section I thought I might throw the doors open to how we could invest with/to assist a retired couple. I know that seems against the grain of many investments, they need cash now but investing is generally a longer term game, however if there were some way that I could invest with them somehow to remove the burden of their assets such that they could gain government assistance and extend the life of their assets longer.

    After writing all that I'm not sure exactly what I'm asking but hopefully you get the idea, folks with not enough assets to provide for their future but enough to stop a pension income, how can I help?

    Thanks in advance, 


    Profile photo of TheFinanceShopTheFinanceShop
    Join Date: 2012
    Post Count: 1,271

    What outcome are you trying to achieve? Do you want to own (title wise) a property under all 4 names? 

    There are a lot of questions so that we can get a better idea of assets, outgoings, income, etc. It will make sense to find a broker that has experience with these scenarios so they can tell you whats doable and whats not.



    TheFinanceShop | Elite Property Finance
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    Residential and Commercial Brokerage

    Profile photo of Richard TaylorRichard Taylor
    Join Date: 2003
    Post Count: 12,024

    Hi Mik

    Welcome to the forum and i hope you enjoy your time with us.

    There are many differing scenarious and structures i would suggest but would need a lot more information to enable me to provide a more accurate answer.

    I have a couple of forum clients who are doing exactly the same and to be honest once we received additional information the advice was totally different for each.


    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
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    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of MikGanMikGan
    Join Date: 2008
    Post Count: 4

    Thanks for the replys, I guess we haven't set such a concrete goal and I'm sure that's the best place to start, in simple terms I want them to be able to make liquid their property value and stocks, moving them into my name or a trust or any other structure so that they can receive the pension that people who saved nothing in their lives get. It's not so much about building my or their wealth as much as perhaps a short term investment that's not means tested under their name so they can stretch their assets over the next 30 years.

    * If I purchased their property then they could live off the 500K the next 30 years.

    * If they rented a unit I purchase then I could have them rent it (that I'd essentially make available back to them) so I can tax the property and they can claim rent assistance perhaps?

    * If they were able to somehow gift a sum of cash to me (that I'd essentially make available to them) such that their means test would make them eligible for assistance in retirement

    Just throwing ideas about.

    If theres specific information that I can provide ask away or PM me and I'd fill in what ever I can.

    Profile photo of Jamie MooreJamie Moore
    Join Date: 2010
    Post Count: 5,069

    Hi Mik

    Might be worth while giving Richard a buzz – he knows his stuff and has been assisting forum clients for over a decade.



    Jamie Moore | Pass Go Home Loans Pty Ltd
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    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of TerrywTerryw
    Join Date: 2001
    Post Count: 16,213

    First thing I would do is to look at the centrelink website and try to ascertain what the assets test and the income test mean for them. They may not qualify now, but they may be close or may qualify in the future for a pension. This would probably change their plans a bit.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide)

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