How do I tell my friends that finding a rich husband isn’t a financial plan?

I am worried about several of my female friends who ultimately think a man is a financial plan and aspire to find a rich husband to solve their money problems. This has not yet transpired, and many men they have met have had the opposite effect on their finances.

Every time I try to broach the subject they don’t want to listen. I was wondering if you might have some advice or be able to lay out the numbers in a way that is palatable.

Planning to live and retire rich thanks to the wealth of your partner is not a viable goal.Credit: Simon Letch

Thanks for your interesting question, not one I’ve had before.

It is challenging to be financially secure and independent as a single person, particularly if you live in one of our larger capital cities. But entering a relationship with an expectation of financial dependency doesn’t seem healthy.

I doubt scaring them with big numbers will help, so how about you encourage them to set a goal for an emergency fund. Perhaps a target like $5000 could be a good place to start.

Hopefully, that is achievable in a relatively short period of time, and the positivity associated with achieving a financial goal might empower them to set a new, slightly more ambitious goal, and work towards that. Small steps.

The good news is Australia’s compulsory superannuation system will ensure they have at least some degree of financial security later in life. No matter how bad they are with money, 12 per cent of their salary is getting socked away for them.

On a related note, one of the best investments they could make would be investing in their careers to increase their earning power and employability. Higher wages mean more into super, and more capacity to save. Perhaps you will get a receptive ear if you take that angle.

I wish you luck, though I suggest you keep your expectations low. Providing advice to someone who isn’t looking for it is likely to produce as much success as trying to teach your cat to fetch.

We are 63 and 62, own our home and an investment property worth $1.2 million. Our combined income is $140,000 (including $36,400 in rent). We’d like to help our two kids with home deposits – possibly $400,000 each. Should we sell the investment property to fund this, contribute any surplus to super (currently just over $400,000), and potentially qualify for a part age pension?

So you have total savings/investments of $1.6 million (property plus super), and you are contemplating giving away half of this – $800,000 – towards the end of your working life. I think this is madness.

Once retired you need to plan to support yourself for about 30 years. After making these gifts and paying capital gains tax, your remaining savings, even when accounting for a possible age pension entitlement in the future, will permit a fairly limited lifestyle.

A couple of car changeovers, a bit of travel and some unexpected medical costs, and you could find yourself in a very constrained position a decade or so into retirement. If one of you needed aged care services later in life, it could even be that you’d need to turn to your kids for help.

You have worked hard for your money, and while I think there is likely some scope for you to provide early inheritance gifts to your children to help them into the property market, your priority should be to ensure you are financially secure. I’m sure your children would want the same.

Paul Benson is a certified financial planner at Guidance Financial Services. He hosts the Financial Autonomy podcast. Questions to: [e-mail]

• Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.

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