At this time of year it is a good idea to prepare for rainy days. That’s not just the wet stuff! Rainy days cause problems with our financial affairs as well, hence the old adage about saving for a rainy day. These days we are ever conscious about insulating our homes and putting in efficient heating and ventilation systems so we stay warm and dry through the coldest and wettest times. These measures can cost thousands ...

New Zealanders have always been good at giving to others. Whether it is selling sausages, baking for a cake stall or running errands for elderly neighbours, most Kiwis pitch in at some stage in their lives to lend a helping hand. Our generosity is also to be seen on collection days for charities and in the regular donations made to favourite organisations. Some people are lucky enough to have more money than they will eve...

There has been much talk lately about KiwiSaver fees and the impact this has on the value of KiwiSaver funds over time. Simplicity KiwiSaver is a recent market entrant which prides itself on low fees and uses this as a selling point. The Financial Markets Authority (FMA) has recently changed the way in which KiwiSaver providers disclose fees so that funds can be more easily compared. For the first time, KiwiSaver members ...

Life has seasons. There are good times and bad times, and the changes are often caused by factors outside our control. At a personal level, our health, employment status and family relationships can all work either in our favour or against us. At a higher level, the economic state of the region we live in, of New Zealand, and of the world, can have an impact. Our personal finances can be directly affected by global politi...

If you want to know how to manage your money and create wealth, look no further than your garden. The principles you use to create a beautiful, flourishing garden are exactly the same as you need for wealth creation. Let’s say you are starting with a bare piece of land to create your magnificent masterpiece. The starting point is work out what resources you have available. What is the nature of the soil, the climate an...

Managing money is more of an art than a science. There is no right and wrong when it comes to managing money. It is simply a matter of finding the right balance. That means looking at the choices you have and the consequences of each so as to achieve a compromise between competing objectives. Everybody’s needs and preferences are different, so there is never a one-size-fits-all solution to a financial question or proble...

One of the biggest dilemmas for people with a limited budget is whether it is worth taking out health insurance. This group of people includes retirees, young people at the beginning of their career and couples with young families. For retirees the dilemma is magnified, because both claims and premiums escalate very quickly with age. In the event of an accident, emergency, or critical illness, the public health system gen...

Retirement planning is not easy, and it’s made even harder when there is a significant difference in age or health status between two partners in retirement. It is not uncommon to have an age gap of ten or more years, or for one partner to have a life-threatening or debilitating illness. In these cases, the older or less healthy person may have concerns about the future welfare of their partner once they are gone. Meanw...

Conventional wisdom says that once you are retired you shouldn’t take risks with your money. That’s good advice, however it doesn’t mean you need to be a ‘conservative’ investor. It simply means that if you invest in assets such as shares and property which have a high return but high volatility, you need strategies for minimising the risk of loss. If you have a KiwiSaver fund, managed fund, or investment portf...

Compulsory retirement ended in New Zealand in 1999, and since then, the percentage of people over the age of 65 who are working has rapidly increased. It is estimated that 27% of men and 17% of women aged 65 or more are working – some through choice and some because they cannot afford to retire. By 2050, it is projected that 65% of men and 55% of women between the ages of 65 and 69 will be working. This makes good sen...