Q I have inherited some money from my parents. I am 60 and my partner is 62. We've taken the opportunity to do up the bathroom and kitchen. We don't have any big spending plans in the next few years. We have enough cash in the bank and feel we should diversify. We have KiwiSaver accounts and wonder whether we should add a lump sum to those? I am tempted to put it in a more aggressive fund which would perhaps generate a bigger lump sum for my two sons and any grandchildren in the future.
A You are fortunate to receive an inheritance at this stage in your life. This is a good time to sit down and do some serious planning.
Have you considered talking to a financial adviser? They will raise issues and present options that you may not think of yourselves.
You may feel that your life is too busy, but these are important decisions and should not be rushed.
For example, do you know that an inheritance is regarded as separate property in a relationship, unless it is mingled with joint property?
Once it is introduced to the family accounts (commingled) it becomes relationship property in the event of a separation (generally after three years, sometimes less if there are children). You and your partner may have a solid relationship of many years, or it may be a more recent relationship with children on both sides.