NZ Herald 28 February 2026

AI love it. At a stage in life when many people avoid risk and discomfort, you are embracing it!

Living in a caravan can be less than romantic in cold, rainy weather. And I assume that — unlike people in motorhomes — you have to go elsewhere for the loo and a shower. You know all that already, but it might be wise to have a trial run over a few months — preferably including some colder weather — before you sell your home.

Then there are bigger worries. A storm could damage your set-up, which would be really disruptive even if you are fully insured. Or your health might deteriorate so that living in a caravan is difficult. Or you might lose your job. Things sometimes go wrong for even wonderful bosses. Or … I’m sure readers will think of other less than sunny scenarios.

But hey! You can always stop early and buy a home if you need to. Whenever you make that purchase, after living in cramped quarters you will probably be happy in a small place, which should keep the price down if needs be.

In implementing your plan, pay off your debt and mortgage as soon as possible. And it would be wise to watch the riskiness of your investments.

I suggest you put several hundred thousand dollars in a cash fund — where the balance won’t wobble much — in case you need the money sooner than planned. But the longer-term money can stay in balanced and higher-risk funds.

There’s another issue here: Should you keep your home and rent it out? See the next Q&A.

AMore not-so-young gypsies! While there are lots of retired people living in motorhomes, usually they are much more spacious and come with bathrooms — and cost much more than caravans.

You’re the brave ones. And your five-year history in a simpler home on the road will perhaps encourage the reader above.

Probably the main issue behind your question about selling your property is whether the money invested elsewhere will grow more than the value of the house over the next few years — taking into account rental income after costs. And the answer: nobody knows.

So let’s look at other factors:

• It’s riskier to have all your wealth in a single asset, which could lose value even if most house prices rise. There could be storm damage or a local downturn or the discovery of an issue like asbestos or leaks or …. who knows?

By contrast, if you put the money in managed funds, as suggested above, you can invest in a huge variety of industries and countries. When one market does poorly, often another does well.

• If you need to withdraw money in a hurry, it’s much easier to get it out of funds.
• Ditto if you would like to set up regular monthly or weekly payments to supplement your income.
• Investing in funds is simple, whereas owning a rental means you either have to deal with complications with tenants and maintenance or pay someone else to do that, cutting into your returns.

But there’s a strong counterargument that goes like this: it’s better to stay in the housing market, given that’s where you want to end up. Even if house prices decrease over the next few years, it doesn’t really matter. You sell at a lower price, but then buy at a lower price.

So I’m afraid there’s no clear answer to your question. I suggest you weigh up the factors listed above. What’s likely to apply in your situation? And — importantly — what do you prefer to do?

Whichever way you go, happy camping!

AI presume you just added a little less of all the other ingredients in your recipe. But that’s not the point. Reducing the size of packaging, as opposed to increasing prices, is a sneaky way producers of food and many other products can reduce their costs.

Stats NZ officials — the people who put together the data for the Consumer Price Index — are of course aware of this. “In the past, we have identified evidence of shrinkflation in several goods, including chocolate bars, biscuits, chips, and eggs,” says a spokesperson.

“We acknowledge that shrinkflation can be challenging for everyday consumers to detect, particularly when manufacturers retain or subtly redesign packaging, and products are selected quickly during routine shopping.”

Indeed! Who compares the size of every item in your supermarket cart with the size last month? Do we notice that a one-kilogram block of cheese now weighs 900 grams?

Stats NZ adds, “While companies are expected to clearly communicate any changes to their products, it is important to note that there are currently no specific regulations in New Zealand that directly address shrinkflation.”

The department has recently enhanced how it identifies shrinkflation and accounts for it in the CPI. For more on this, see this video on YouTube.

AMany readers would respond to your letter something like this: “What have you got to worry about? You’ve got several million dollars. It doesn’t matter how you invest the money — there will be plenty anyway.” And there might be a touch of envy in their voices!

But your concerns are understandable. It would be foolish to squander the money. What’s more, with that amount, you could not only live comfortably and leave plenty to your children, but also make sizable contributions to charities whose work you appreciate. That can be really satisfying.

My main suggestions for finding a good adviser are:

• Choose from advisers whose only remuneration is from fees you pay them. Some other advisers, who receive commissions if they put your money in certain investments, will say they always act in your best interests. But I’m skeptical. It’s better to hire an independent adviser, just as you would a lawyer or accountant.
• Meet with several, and interview them for the job of helping you. Take a list of your main questions, and takes notes on how they answer.

I’ve written more on this on my website. See maryholm.com/advisers/. That page includes a link to a list of advisers who charge fees.

I hope you put a bit of effort into finding the right person. It can make a big difference over the long term.

AI’m glad you wrote, making this important point. In my original draft of that Q&A I went into the ethical issues. But it all got too long, and I decided that — given my role is not really to judge people’s morals — I should delete that bit.

That was not a good decision. I should have made the points that you have made so well. What I suggested last time may not be illegal, it’s not exactly honourable.

Thank you for writing — and to you and your wife for being among the higher-income New Zealanders who don’t regard minimizing your tax as a game.