I am 67 and my husband is 68, and we are both retired. Between us, we have about $1.5 million in superannuation, from which we currently receive fortnightly payments from our income stream accounts. In addition, we hold about $50,000 in shares – mainly BHP shares that I inherited and some CBA shares. My super totals $975,000, made up of $170,000 with one fund and $805,000 in a defined benefit account that is in a holding account not yet opened. My husband’s super balance is $774,000.

We plan to downsize, but because our current home is in a lower-value area than the one where we intend to buy, we expect to be about $200,000 out of pocket. We would like advice on whether it would be better to use funds from our superannuation or to sell some of our shares to cover this shortfall.

Keeping your money inside your super account is often more tax effective, so don’t be too tempted to break it open.Credit: Simon Letch

I notice that some of the shares have been inherited, which means capital gains tax could be an issue, especially if they were bought many years ago and have a low cost base. It’s usually more tax-effective to have your money inside super, but the great advantage of shares is that they can be sold in small parcels.

A smart approach........

© The Sydney Morning Herald