Retirement questions Answered: from time to time, we will pick a question sent in by a reader and offer a response from personal finance writer Gill South. You can submit questions below.
Isn’t "windfall" a lovely word? It can be traced back to the mid-15th century and was described as a piece of wood or fruit brought to the ground by “natural agency". Well, strap some money to that, and that’s what we call a windfall today in this more money-grubbing world.
I am always ready for a windfall, though I have had disappointingly few, and they tend to come with losing someone precious. But Brenda*, my reader with a question this week, is the lucky recipient of a $60,000 payment, which I can only hope is above board.
Here is what she asks: "I have recently taken out a mortgage of $305,000. Which is just over 50% of the value of my home. I have fixed it for four years. My KiwiSaver is predicted to give me around $200,000 in four years’ time. I am also about to receive a payment of $60,000.
“My question is about how best to manage the $60k to best effect. Am I best to put it into my KiwiSaver, use it to bump up my fortnightly mortgage payments, or put it into different savings options, such as a term deposit? Or a mixture of all three? Or are there other options I haven't thought of? I don't have children so am not concerned with leaving anything to anyone but would like to maximise my chances of a decent life after retirement."
