My son will make a tidy profit from selling an investment property. What should he do now?

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A writer asks the best way to invest a $500,000 windfall from a property investment.

My son, 31, has put his investment unit on the market. He paid $210,000 about six years ago, and it should sell for $625,000. How should he invest the money he will have made after the sale? He owes $120,000 on his loan.Wow, what a great result for your son. On the raw buy-and-sell price, that’s an almost 20 per cent return per year. Factoring in leverage, it’s more than 30 per cent a year.

My point is, the investment decision comes much farther downstream in the planning process. Encourage him to spend time determining his objectives. And in a shameless plug for my profession, this scenario would be a great example of where the help of a financial planner could be valuable, helping with both defining and prioritising his goals, and the ultimate investment strategy.

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