Should I sell inherited single shares?
Written by Glen James
Host of the Retire Right & money money money (formerly my millennial money) podcasts & author of The Quick-Start Guide to Investing.
If you’re like many Aussies in their 50s, 60s or beyond, you might’ve found yourself holding onto a few old company shares, shares like Telstra or IAG, passed down from your parents or picked up in the early 2000s float craze. They might not be worth a fortune, but they can still create a bit of confusion or paperwork. What should you do with them? Keep them for nostalgia’s sake, or tidy things up? Let’s unpack this a bit.
Understand how you actually hold them
Typically shares will come to you via two routes:
CHESS-sponsored (HIN): these are shares linked to a broker account (like CommSec or NABtrade). Easy to view, buy, or sell.
Issuer-sponsored (SRN): these are often the old ‘paper shares’ you get from a company’s share registry. They’re legitimate, but a pain to manage or sell.
If you’ve got an SRN number, it’ll usually start with an ‘I’ on your statement. A HIN starts with an ‘X’. You can move SRN shares into a HIN account to make life easier, but if you’re not fussed and the amounts are small, it might just be simpler to sell them and be done with it.
Ask: is it worth keeping them?
Holding single company shares isn’t really diversified. If you’ve got a few thousand dollars of Telstra or IAG shares sitting outside your super, it’s not going to move the needle on your retirement. In that case, it might make sense to sell them and put the money somewhere more diversified, like your super, an ETF (exchange-traded fund), or simply use it to top up your emergency fund. Plus, fewer accounts and dividend statements means less paperwork for you, and less to report to Centrelink or your accountant. I often told clients: if these old shares are creating more admin than value, tidy them up.
If the amount is large, think diversification
Different story if you’ve inherited a lot, say, $400,000 worth of Commonwealth Bank shares from a parent’s estate. CBA is a great company, sure, but if that’s half your retirement wealth, you’re putting a fair bit behind one stock. It’s a concentration risk, and while it might have done well recently, the future can always surprise us. In that case, it’s worth getting personal advice. You might decide to gradually sell down and spread the money across different investments or ETFs. That can help balance risk and reduce your exposure to any single company.
Old shares can feel sentimental or too hard to deal with, but sorting them out can simplify your financial life and reduce risk down the track.
Whether it’s $3,000 or $300,000, take a moment to ask:
✅ Is this investment meaningful to my retirement plan?
✅ Is it diversified?
✅ Is it making my life simpler or more complicated?
If you’re unsure where to start, speak to a trusted adviser. A bit of tidying up now can make things much smoother later, for you and for your kids. Reach out here if me and the team can connect you to a financial adviser to assist.
Community question
Community member says: what about extra non-concessional contributions versus paying down the home or investment property mortgage?
Glen says: there’s no one-size-fits-all answer to this. Think of it less as a right or wrong decision, and more as a balancing act between peace of mind and financial optimisation. If you’re in your 50s or 60s, you’re likely thinking about how to position yourself best for retirement, whether that’s owning your home outright or boosting your super.
Now, the general logic goes like this: your concessional contributions (the tax-deductible ones) usually come first because they can save you tax and grow your retirement balance. After that, if you’ve still got surplus cash, paying down the home loan tends to make the most emotional and financial sense. It’s a guaranteed return, no market risk, just less interest to pay and better sleep at night. ‘Boring’ is often beautiful when it comes to personal finance.
When it comes to non-concessional contributions, they’re great for long-term wealth building inside super because your investment earnings are taxed at just 15%. But the trade-off is access, you won’t see that money again until preservation age. So, if you’re still working and value flexibility, paying down your home or keeping some cash in an offset might suit your personality better.
Finally, if you’re juggling an investment property, remember that the loan on that property is likely tax-deductible. So, it’s usually the last one to aggressively pay down. Think about your endgame: are you planning to hold that property long term, or sell it to help fund retirement? Your answer to that will drive the best move. The key is not just looking at numbers, but asking: what gives me the most peace and control heading into retirement?
I discussed this with Martin on the show recently, watch our chat here.