I’ve just sold my farm and I will have a substantial amount that I need to park until I decide what to do with it. Given that banks are only guaranteed up to $250,000 per account, I’m confused about how best to handle the money. Any suggestions?

Australian banks are among the safest in the world.Credit: Karl Hilzinger

Most people spend their time worrying about things that are highly unlikely, while overlooking the things that could actually happen. Australian banks are among the safest in the world.

Their shares dominate the Australian Stock Exchange, and for a bank such as CBA or NAB to fail, its entire asset base would need to collapse. If that ever happened, the impact on the economy and everyone’s super would be enormous – because super funds are heavily invested in bank shares and the market index.

So don’t focus on unlikely disasters. Park the funds in banks you trust, and focus on a long-term investment strategy that makes your money work for you.

We run a self-managed super fund and are updating our estate plan. If one of us dies, do we have to wait for probate before the death benefit can be paid?

Generally, an SMSF can pay a death benefit........

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