Before saying I do ... Are your affairs in order?

After death or divorce, you may well contemplate another marriage.

Before you do, you both need to be very open and disclose all assets and debts.
Especially debts !!

Consider what assets you will keep in your own names (separate property).

Make a new will as soon as you are married or move in together, and  do not take on any debt till you have done so.

Make a pre-nuptial agreement, especially if you have more money than your new partner.

This is pretty hard to do though, as you are bringing up the realities of money at a time when you are supposed to be thinking about love and romance.But ignore it at your peril!

An easier way may be to set up a family trust before you marry again and put the bulk of your assets in it. A trust will protect you quite well in the early years of a new marriage.

Remember though that in the longer term the Matrimonial Property Act may override a trust, especially if your new spouse has been a good contributor to the marriage.

Retirement

Since most women outlive their spouse, they need to be well-informed about retirement and all its financial aspects;

• How much is government super ?
• Will the age you get super at be raised from 65?
• You should be in Kiwisaver, working or not
• Kiwi saver won’t be enough, so set up another savings plan as well
• Kiwisaver is locked in so other savings can double as emergency funds
• Any saving is better than no saving.
• Should you perhaps work a little longer or keep working part-time?
• Why you need more investment returns than the bank will pay you.
• Can you get better investment returns without taking excessive risks?
• Learn the basics or more about investments.
• Get professional advice from an independent adviser or suitably qualified mentor.
• Make a plan and stick to it.
• Review your plan at least annually with your adviser.
• Be prepared to be flexible.

This can seem a pretty scary subject, but it need not be so. In fact you can have a pretty good retirement in NZ if you plan ahead, and there is a lot you can do out and about at low cost.

Property – your home in retirement 

Keep an eye on property prices, because at some point you may downsize your house to release some more cash -  your fallback position.
Since you do not know how long you are going to live, “keep your powder dry” and do not use up your fallback
position until later on – say age 75  to 80.

Living alone - cars, appliances and home maintenance

If you are not mechanically or practically minded, avoid excess bills by finding a man who will act as your “go between” in these cases.
Such men are around and often happy to help.
Sometimes this will keep the naughty boys from overcharging the innocents.
Get them to help too when changing your car.
 
“Above all, be the heroine of your life, not the victim.” ― Nora Ephron
 
Checklist for women

1. Get to know all your family’s finances, inside out
2. Put all legal such as wills in place
3. Make sure you have appropriate life and other insurances
4. Manage risk & debt
5. Be careful about loans to children that might not get repaid
6. Teach all this to your daughters before they marry
7. Don’t get  burn out
8. Take regular breaks and  sabbaticals
9. Make all the others who live with you pull their weight

If you are widow, or live alone

Don’t get scammed
Don’t get cleaned out by a predatory new boyfriend 
Get a mentor to help you with big decisions
Find a guide to advise you on car  and household appliance repairs if you are not that way inclined


Supplied by Alan Clarke, financial & retirement adviser, & author. He also writes regular articles for the media and on line.

His second book  “The Great NZ Work, Money & Retirement Puzzle” is now available.