Saturday, March 1, 2008

Lifting my income in retirement

What's your dream? For most of us, it is having enough money to do whatever we want to do - within reason, of course. To my mind, there are few things worse than constantly having to stop and ask oneself, "Can I afford to paint the house?" or "Can I afford to call the plumber to fix the bathroom taps?" or "Can I afford to see the doctor and/or medical specialist?" I found myself in that position in late 2005, when I retired.

The income from the $NZ350,000 in my retirement scheme with the National Provident Fund, plus the fortnightly payments of about $400 from National Superannuation, would see me right, I thought. But when the dust had settled, I found that I would be making only $600 a week - enough to live on, but not enough for a life without worry. I probably wouldn't be able to upgrade my computer. I would probably have to forget about anything more adventurous than a day trip to Wellington. And overseas travel would clearly be out of the question.

Fortunately, I was able to go back to work on a casual basis, and to start saving again. It was great to find that, instead of making only $600 a week, I was now making as much as $1200 a week. In less than two years, I had stashed away another $70,000 in long-term bank deposits that matured in the middle of successive months. The interest I received from these deposits effectively lifted my weekly income (minus my salary) to about $670.

From time to time, my income was also boosted by sales of old books through Trade Me. One book was Must Australia Fight? (1939) by Ion L. Idriess , which I bought for $1 and sold at auction for $201. Other books, which I had bought for between 20c and $1, were sold for sums that ranged from $50 to $150.

1 comment:

Helen Campbell said...

Hello from Pittsburgh, Pennsylvania, United States. It is still snowing in my neck of the woods. Strange that in the next 36 hours the weather forcast said we are going to have a tropical storm, that is going to melt the snow. Now this is what I call strange but true.

I hope your weather is better than mine!! With the gas prices going up to four dollars, I'll never make it to New Zealand to enjoy the scenery.

Thanks for listening!

Helen Campbell