Jed is 65 and retired. He has $850,000 in his super fund and is considering moving it to the pension phase and commence drawing a regular monthly pension from it. As he will be drawing income (pension payments) each month his friend has told him that he needs to invest in income producing assets such as bonds and term deposits and to avoid investments like shares and gold that produce no income. 

His reason is that although those assets may provide capital growth, you do not want to incur capital gains tax. How would you respond to Jed's concerns?

Answer rating: 100% (QA)

Investment strategies for retirement can be complex and require careful consideration of various factors In Jeds case hes concerned about incurring capital gains tax and is contemplating investing in ... View the full answer