Episode description
Quick fire finance question of the day:
"My husband and I are 61 and 60. I work on a modest salary and my husband’s business unfortunately suffered badly as a result of Covid and he has had no meaningful work since March 2020.
At the end of 2020 we sold our family home, as we had become empty nesters. We have downsized to a lovely apartment in a good area that will hopefully increase in value over the years.
We plan to invest the residual funds from the sale (about $250,000) in managed funds. However, with the volatility of the market last year we ended up leaving the money in a low-interest account. As things still seem to be quite volatile we are still loath to invest in managed funds, as we may require the money for unexpected costs. We are being very conservative I know.
We would like to generate a small income from these funds whilst retaining the capital. Currently we could invest for two years at 2.5 per cent with the interest paid monthly. If we wait for two or three months interest rates may have even moved closer to 3 per cent. We have three questions:
Do you think this is a good option?
Is there any benefit in investing with a New Zealand-owned bank e.g TSB, SBS, Cooperative, Heartland or Kiwibank over one of the Australian-owned banks?
A number of the banks also mention Term PIE funds. How do these differ from normal investment funds?"
Source: https://maryholm.com/nz-herald-19-february-2022/