By Dene Mackenzie on Thu, 23 Jul 2009
Economic downturn Living smart
Paying off a mortgage and/or any debt should be a priority for anyone inheriting money during the current recession, a panel of experts selected by the Otago Daily Times recommends.
ABN Amro Craigs sharebroker Chris Timms, wealth management adviser Craig Myles, Forsyth Barr sharebroker Peter Young and financial planner Peter Smith were asked by the newspaper to provide some guidance to two selected groups - a family with three children, parents 35 years old, and with a $100,000 mortgage; and a couple aged 55, with children who had left home, and who had three grandchildren.
Each family was assumed to have inherited $350,000.
Younger couple
Paying off the mortgage, and any debt - either partially or in full, depending on circumstances - should be a priority for the young family who had inherited money, according to our panel of experts.
"This releases at least $750 a month, assuming a 20-year mortgage payment. To keep the mortgage requires $1.27 to be earned for every dollar paid into the mortgage," Mr Smith, the principal of Smith Financial Planning, said.
The couple should repay student loans and should join KiwiSaver, if they had not already done so.
Economic downturn Living smart
Paying off a mortgage and/or any debt should be a priority for anyone inheriting money during the current recession, a panel of experts selected by the Otago Daily Times recommends.
ABN Amro Craigs sharebroker Chris Timms, wealth management adviser Craig Myles, Forsyth Barr sharebroker Peter Young and financial planner Peter Smith were asked by the newspaper to provide some guidance to two selected groups - a family with three children, parents 35 years old, and with a $100,000 mortgage; and a couple aged 55, with children who had left home, and who had three grandchildren.
Each family was assumed to have inherited $350,000.
Younger couple
Paying off the mortgage, and any debt - either partially or in full, depending on circumstances - should be a priority for the young family who had inherited money, according to our panel of experts.
"This releases at least $750 a month, assuming a 20-year mortgage payment. To keep the mortgage requires $1.27 to be earned for every dollar paid into the mortgage," Mr Smith, the principal of Smith Financial Planning, said.
The couple should repay student loans and should join KiwiSaver, if they had not already done so.
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