Winning entry for the Financial Capability Commission competition, as submitted by Rosemarie Hawkins
Cardinal rule. Don’t spend more than you earn
Credit card. Pay off the total sum owed each month
Get rid of that house mortgage as soon as possible. If children have left home consider downsizing. Look at retirement villages with three levels of care. Find out all about how they managed and staffed. Tell the family your thoughts and discuss the what “if’s”.
Reverse mortgages. Sounds good but there are costs involved so get good advice.
Kiwi Saver.If you are about 50 join as soon as possible and go into the high risk fund (which offer better returns in the long term). If you are over 60, go into a conservative fund.
Have a couple of term deposits at the bank that mature at different times. have at least one on either 30 or 90 days notice in case of emergencies.
Get regular blood pressure and cholesterol checks, a colonoscopy every five years, an eye test every two years and book in for a melanoma check.
Holidays. How much of the this beautiful country have you seen. If holidaying overseas, plan well in advance and take out good travel insurance.
Health insurance if you can afford it. Loss of income if under 65 and self employed. House (replacement value) and contents, both are worth reviewing regularly. Car insurance can be cheaper if it is used around town only.
Will,: Make sure that you have one and that is renewed every two years. Enduring Power of attorney for peace of mind.
Financial adviser. It is wise to go through the professional body to find one
Website. Look at http://www.sorted.org. nz
The transition. Think about interests and hobbies before you retire. Will you be able to continue with them and will you be physically able?
Posted by Alec Waugh