Property Investment Update Property investment is on the boil again thanks to low interest rates and rising property values. Underlying the price rises are high levels of net migration, low levels of new building and growing numbers of first home buyers tapping into KiwiSaver balances for their deposit. Auckland-based investors are taking advantage of the increased equity in their homes to buy properties in the Upper Nort...

Don't Overpay Tax One sure way to get in trouble with Inland Revenue is to set up your affairs in such a way as to avoid paying tax. While tax considerations should not be the driving force behind financial decisions, there is nothing wrong with being sensible and using tax implications to help choose between options. A good place to start is to check that your tax rates are correct, particularly on bank deposits. If you ...

Living on NZ Superannuation There is an avalanche of baby boomers who are retiring. The burning question for most of them is “How can I live on NZ Superannuation?” A couple who both qualify for NZ Superannuation receive around $576 a week after tax. That’s just under $30,000 a year. For people on an average or above average income, it is a significant drop. Research released last year by the Commission for Financia...

Helping Your Children It’s every parent’s dream to see their children succeed in life and sometimes that means helping them along the way. But how much help should children get? They need enough to give them a good start, but not so much that they become dependent on parents to get by. One of the greatest gifts you can give children is the ability to manage their money effectively. Teaching them basic money managemen...

Asset Rich, Cash Poor It is well known that having a lot of money tied up in assets, especially property, while being on a low income is an uncomfortable place to be. However, it is not an uncommon scenario, particularly for young couples and the elderly. It’s not easy to get the balance right. If you have a high income but don’t have significant assets, it’s probably because you are spending too much of your income...

Back to School Means Money Woes Hard on the heels of the expense of Christmas and holidays comes the start of the school year; uniforms, stationery and school fees. Education in state schools is supposedly free, but these expenses, along with extra school activities are the responsibility of parents. School fees are a contentious issue. State schools cannot charge fees, but often insist that parents pay a ‘donation’ t...

A Perfect Life Money is something that enables us to enjoy life, yet it is surprising how many people have difficulty describing their perfect life. For most people, a perfect life will involve a relationship, family, friends, a comfortable place to live, various kinds of meaningful activity (career, community work, hobbies and interests), and perhaps some travel or further education. It probably also involves something t...

Overcome Your Retirement Fears It’s not easy going back to work after an enjoyable holiday. Rather than returning to the same old drudgery, many people consider a fresh start by thinking about applying for a new job or contemplating retirement. Dreaming about a different life and making it happen are two different things. While some people embrace change and are good at bringing it about, others are more cautious or eve...

De-Tox Your Finances in Five Easy Steps The benefits of cleansing your body by flushing out toxins are well known. The same principles can apply to your finances. It’s about getting rid of everything that weakens your financial position and therefore your ability to enjoy life to the full. Here’s how to de-tox in five easy steps: Face the reality of your position. Make a list of all your assets (house, car, KiwiSave...

It's Poverty; Not Just Child Poverty Much is being made in the media of the issue of Child Poverty. According to the 2015 Child Poverty Monitor, 29% of our children now live in poverty compared with 15% in 1984 and three out of five children in poverty live this way for many years. But poverty is not restricted to children. The focus on child poverty is politically driven; it appears in the media on a regular basis at Chr...