Q: Due to a change in circumstances, I find myself renting for the first time in my life. I am 71 and worried about what to do to ensure my finances last.

I have $500,000 in the bank on term deposit. I have considered buying but like the idea of having none of the worries of home ownership.

My monthly income is $1207 in interest from the term deposit and $1644 in NZ Super. After paying regular monthly bills including rent, I have $924 a month for food, petrol and everything else.

It has been suggested to me that I put $10,000 into an account and pay myself $200 a week to supplement the living money. And do this each year?

I am worrying myself sick over this.

A: That's not good and not necessary.

Normally I encourage retired people to own their own home if they can. Home ownership gives you a feeling of security and more control over your environment.


Money's not free


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