Money Togetherness Your relationship with money is often a reflection of who you are as a person and how you interact with the world. If you are by nature a cautious person, you will probably be very careful with your money. Likewise, if you are a go-getting risk taker in life, chances are you will take risks with your money. The way in which money is managed within a relationship often reflects how committed the relation...

Putting Financial Plans into Action There is a big difference between knowing the right thing to do and doing the right thing. Just ask anybody who is trying to lose weight or get fit. There are endless books, websites and seminars that provide all the information you need to have the body of your dreams. In the majority of cases, the information does not produce long lasting results. When it comes to getting your financi...

The Impact of Fear The impact of the turmoil in Greece on share markets is a classic example of how the emotions of fear and greed create volatility. When shares start to drop in value, investors can become fearful of sustaining further losses. This leads to panic selling which further fuels the fear. Eventually a turning point is reached where less risk averse investors spot the potential for gain. Increased buying activ...

Migrating Pensioners There is an interesting trend developing amongst retirees; they are increasingly on the move internationally, not only for holidays but to live overseas permanently or for extended periods. Better health and increased longevity for retirees are factors in this trend, as well as the desire to be close to children and grandchildren living overseas. This raises the issue of mobility of pensions, and it i...

When to See a Financial Planner It’s not hard to know when it’s time to call a plumber or a painter, or to make an appointment with your doctor or dentist. But when should you see a financial planner? Many people hesitate over this question because they don’t understand what financial planners do. Qualified financial planners are in short supply. While all financial planners are financial advisers, the reverse is no...

The Sandwich Generation The changing nature of families is putting real pressure on middle aged adults who are having to support more than one generation. These are the members of the so-called sandwich generation. Increased longevity means that retirees are more likely to run out of money before the end of their life and turn to their offspring for help. Children who struggle with debt, failed relationships or single par...

Sweet Spot for First Home Buyers Proposed changes to the Reserve Bank’s restrictions on high-LVR residential mortgage lending could create opportunities for first home buyers outside the Auckland region. The Reserve Bank has released a consultation paper which proposes a tighter regime for Auckland and a more relaxed approach for other areas of the country. Currently, banks are subject to a ‘speed limit’ on lending ...

The Three Bucket Approach to Retirement How best to get income from investments in retirement is a problem that has many possible solutions. The return on an investment portfolio is a combination of income (interest or dividends) and capital gain (the increase in the value of the investments over time). The disadvantage of income-producing investments is that the income is taxable and in general they offer little or no ca...

KiwiSaver Kickstart Kill-off and Kids The Government Budget announcement that the $1,000 kickstart for KiwiSaver has been terminated with immediate effect is no surprise. From a marketing perspective it was an enticing carrot in the early days of KiwiSaver when there was considerable sceptism about the Government’s intentions with KiwiSaver and the benefits of being enrolled. The majority of the working population are n...

Guilt-free Retirement Planning Many books on retirement planning suggest you start thinking about planning your retirement when you start your first job. While it is true that the sooner you put plans in place for the long term the better off you will be, it is unrealistic and impractical to start planning too soon. Let’s face it, when you are a twenty-something, your priorities are to find your way in life and have a g...