Not having a mortage free home post 65, is a big issue. See Link at bottom of page.
During the August Month attended a presentation from author Martin Hawes on Ready for Retirement. Excellent address, and here are my own notes, taken at the time.
- Update your will.
- Is your trust still needed. Why does it exist, what is the Cost, is it still required and for what purpose?
- Stipulate any money for kids, go into their Kiwi Saver account, excellent way for 1st home deposit.
- Protect your biggest asset (often house), careful placement of this asset in all calculations
- Spend your money in retirement, but for those on medium or low income, strongly consider a home equity scheme(release a portion of your home value for living purposes). Life time Income is the primary NZ provider
- Do not cancel your health insurance. Health insurance is for anything you cannot afford. Tailor the cover and use excess but do not cancel.
- Retirement income is Property, cash, Fixed interest, shares. Take off Super, and then address how do you fund the income gap. Work for a couple more years if you can, makes a big difference.
- Draw down 4-6% of your investment total each yr to spend, the aim is to run it down, too many live frugally and want to pass on to their kids (who may not be as frugal, let alone use the money to best affect)
- Amazon best investment return 33% return every year (28 yrs)
- The Tech companies are where the return is, note wide definition of tech stocks bio, medical etc
- No individual selections , or single asset class investments please . Managed funds and wide diversity, with an emphasis on USA. Invest through a firm or person you like.
- Term deposits only short term. Inflation and tax each year, impact returns, below everything else.
- Accept volatility and do not sell in “the noise”: When to sell is always an issue, easy to buy!
- Do not wait to see what might happen with markets. Make a decision and Act!
- Kiwi Saver funds good for over 65 age group, you can get out funds anytime
Retirement Ready
https://www.thepress.co.nz/business/360780831/1-5-flatting-demand-soaring-seniors-who-dont-own-home