I am a sole trader who is almost 60 and now considered too old for a home loan with a $200k deposit in Sydney, so I am wondering what I should do with my savings.  I have $50k in blue-chip shares and only about $35k in super as I have mostly freelanced during my working life, often hand to mouth.  I may inherit close to $1 million from my father’s estate one day.  

You are far from alone in being under-done with regards superannuation as a sole trader. Your experience highlights how lucky the bulk of us are who have compulsory employer contributions made for us.

If the bank won’t lend you money for a home, there are ways you can still get into the property market.Credit: Simon Letch

I’d encourage you to spend time reflecting on your longer-term goals – 5, 10, 20 years. Will you be okay continuing to work until age 67, at which point you should qualify for the age pension? Once retired, would you stay in Sydney? Is it important to you to own a home, or would renting work for you?

With clarity on your goals, we’d then work back to what are the appropriate investments that would support the achievement of those goals. Time frame and tolerance for risk are key inputs.

Depending on your level of taxable income, contributing to superannuation may well make sense. If home ownership was a priority for you, perhaps you could buy a rental property that could become your home upon receipt of your inheritance.

As it would produce rental income, I expect you would be able to secure a loan. You could pay interest only on the loan until you receive your inheritance, and then clear the debt via that lump sum.

I’m 63 years old, twice divorced, no dependents and no partner, and with no assets or savings. I currently earn around $130,000. I anticipate working for 7 years at least, to try to claw back some financial stability. Is it better to try to put as much in superannuation for my remaining years, or should I look at investing and prepare myself for the old age pension.  If I enter a new relationship I don’t want to be a drain on my partner.

A focus on superannuation would seem to make sense here. Your marginal tax rate is 37 per cent, so the 15 per cent tax rate that applies in super is attractive. Normally, the trade-off with superannuation savings is that whilst the tax treatment is generous, you lose access to your savings for some period of time. In your case, however, being over age 60, your savings would be accessible whenever you cease work, or at any time from age 65.