Q: We are a married couple in our mid-40s and over the past 25 years have managed to build our wealth to where we are comfortable and the kids can do activities and get an education, etc.

But we have been a bit stale lately as we are not sure what to do. I'm paying $10,000 to $12,000 in provisional tax for income from rental properties. We have no debt, so we've been spending more but also saving, as it's a hard habit to break.

We have three-and-a-half mortgage-free properties (one half is a holiday home with my father) and a combined $150,000 in our KiwiSaver accounts, $250,000 in index and managed funds and $190,000 in term deposits.

With 12 to 15 years till we retire, should we take on more debt? Some say you should be 50 per cent in debt to make money work for you. Is it bad to have no debt for this long?

A: It's never bad to have no debt.

The view that debt is good comes from people who have borrowed to invest, often in rental properties, and the property values have soared. They got


Escape the debt trap


Stuck in the hold queue

Overseas pensions