Scenario: Rachel, 52, sold her business for $2.4M. Where should she put the money?

Selling a business can be a life-changing financial moment, but what happens next is just as important. Let’s look at Rachel as an example. At 52, Rachel has sold her business for $2.4 million and now needs to decide how to structure and invest those proceeds for the future. After a significant sale, the first step is understanding the tax position. Has tax already been accounted for, or are there strategies available that could help reduce the tax impact? For many business owners, small business capital gains tax concessions may provide opportunities to contribute proceeds into superannuation, depending on eligibility and circumstances. The next consideration is where those funds should be held. Should they remain in a personal investment structure, be contributed to superannuation, or would structures such as a trust, company, or self-managed super fund be appropriate? It’s also important to consider what Rachel wants her money to achieve. Does she have upcoming expenses, lifestyle goals, or plans to continue working? The right structure should reflect both her short-term needs and her long-term financial objectives. Once the structure is in place, the investment strategy becomes just as important. Holding a large amount of money in cash may feel safe, but over the long term it may not keep pace with inflation or provide the growth needed to support her future lifestyle. A significant financial event like selling a business creates an opportunity to build a strategy that provides long-term security and financial freedom. Working with an accountant, financial adviser, and other professionals can help ensure the money is structured effectively and invested in line with her goals. Always seek personalised financial advice based on your individual circumstances. General advice only. Amy Lehmann is an Authorised Representative (No. 1292710) of Consortium Private Wealth Pty Ltd (AFS Licence 495401).

Disclaimer || The information provided in this post is general in nature only and does not constitute personal financial advice. Amy Lehmann is an Authorised Representative(No. 1292710) of AFSL 495401.