Set Your Happy Goals It’s that time of year again, when we start with what feels like a clean slate; the whole year before us and the prospect of good fortune ahead. The pace of life is much slower during the holiday period, giving us time to reflect and think about what is important to us. It is as if we are all being given another chance to get things right. It’s the same chance we had this time last year, and every...

A Wake-up Call for Retirement New Zealand must wake up to the fact that our aging population means NZ Superannuation will become increasingly unaffordable. The number of people over the age of 65 will double in the next thirty years and the net annual cost of NZ Superannuation will triple over the next twenty years from $11 billion to $36 billion. The Commission for Financial Capability has recently released the recommend...

Choosing the Right KiwiSaver Options Joining KiwiSaver is a no-brainer and there are now around 2.6 million members. There are three key decisions to be made when joining; the contribution rate, the investment option and the provider. It’s best to make the decisions in that order. Your contribution rate should be set at the rate that gets you closest to an annual contribution of $1,042 which will then give you the maxim...

Give Money for Christmas Whatever your age, Christmas is a stressful time of year, and much of the stress is caused by financial pressure. It seems rather silly that so much precious money is spent on gifts that may not give lasting pleasure, if any at all. Economists would argue that spending money on gifts for others does not give the most satisfaction (or utility, in economic jargon) per dollar spent. That’s because ...

Pension or Lump Sum? Many retirees are in a position where they need to decide between taking a pension or a lump sum on retirement. Workplace pension schemes may offer options of a lifetime pension, a lump sum or a combination of the two. A part lump sum option also applies to members of the old Government Superannuation Fund Scheme and to people who have transferred a UK pension (under certain conditions). In addition, ...

Being Prepared There’s nothing like a week of earthquakes, floods and gales to make you realise the importance of being prepared for disaster. It’s not only environmental conditions that create disaster; there are personal disasters too, such as serious illness, loss of a family member or loss of a job. A disaster of magnitude has financial consequences, whether it is loss of property, a temporary loss of income, los...

The Decline of the Middle Class This year has had its share of surprises. Brexit and Trump have both caught the world unawares and, although both the Brexit referendum and the US elections were separated by time and place, there is a common theme which provides an explanation for the results; the decline of the middle class. It has been eight years since the global financial crisis. Economies have been characterised sinc...

The Rise, Fall and Rise of Property Syndicates Falling interest rates are prompting investors to look elsewhere for returns, and, with the uncertainties of the share market, property is where they are looking. However, the rush for residential investment property has pushed prices through the roof. Commercial and industrial property is out of reach for the average investor and so property syndicates are back in favour aga...

Personality and Investment Decisions People who find themselves suddenly having to make significant investment decisions often feel overwhelmed, confused, or even afraid. They fear making costly mistakes which could jeopardise their financial futures. In most cases, fear stems from lack of information, understanding or experience which undermines confidence in making the right decisions. These emotions can bring about the...

Property Investment Basics Low interest rates and rapidly rising property prices are driving investors to property investment. Many would-be property investors don’t understand the complexities involved and can easily make costly mistakes. Here are some basic principles to follow. Understand that property investing is a business. It requires planning, discipline, a wide range of knowledge, willingness to take calculate...