Retirement Planning for Second Time Couples Retirement planning is complicated enough for any couple, but when there is a second time relationship involved, there are even more issues to consider. In many cases, for couples coming together later in life after a previous relationship there is disparity of both assets and income. The consequences of the Property (Relationships) Act mean that such couples often start their r...

The Ironies of Money Some people have an obsession with wealth – how to get more of it and what to buy with it - and they dream of the feelings of security and freedom that come with it. Yet the irony is that such people are not the most likely to become super wealthy. Successful wealth creators are driven not by the motivation to create vast wealth or by what they will do with the money. Instead, it’s all about the j...

Get Ready for User Pays Retirement Care If you have ever flown Economy Class on a long haul flight and looked with envy at the First Class passengers enjoying their extra leg room, fancy meals with real plates and cutlery and personalised service, you will know what it will probably be like in rest homes and retirement villages of the not too distant future. User pays is becoming the way things are done in retirement vill...

Using Interest-Only Mortgages An interest-only mortgage, as the name suggests, is one where no principal repayments are required to be made during the term of the loan. It is usual for an interest-only mortgage to be interest-only for a fixed period of time, such as two years or five years, after which it can either be converted to a table loan (principal and interest) or rolled over as interest-only with the approval of ...

Time Running Out for Overseas Pension Transfers Proposed new IRD rules which may take effect from 1 April, 2014 will treat transfers or payments from overseas pensions as taxable income with certain exceptions. For the first four years of being in New Zealand the portion treated as income will be 0%.  For each subsequent year the portion increases, until it reaches the point where 100% of the transfer or payment is treat...

The Unders and Overs of Insurance Insurance is one of those things that most people need but resent having to pay for. When money is tight, it is often insurance premiums that get cut from the budget. With an increasing amount of insurance being bought online or over the phone without advice there is a real danger that more and more people will be either over-insured or under-insured. The value of insurance is not just t...

Get Rid of your Money Hangover The party is over and it is time to take stock of the financial damage done by holiday excesses. If you are feeling as though you have a money hangover, here is what to do so you can get back in control of your finances. Face the reality of your position. Make a list of all your assets (house, car, KiwiSaver and other investments) and your debts. The difference between your total assets an...

Apples and Oranges There is a plethora of options available for investors wishing to place their money in a managed fund or portfolio. Differences in the way fees are charged and returns reported have made comparisons between funds akin to comparing apples with oranges. A simple approach for investors is to compare investment funds based on their most recent net gain in value after all fees and tax. In recent times, there...

A Fresh Start The start of a new year is often a trigger to re-evaluate life in general, to set new goals, and to think about what needs to be done differently. Throughout the year there can be other triggers such as the end of a relationship, the birth of a child, or a financial catastrophe which demand that things be done differently. Whether the trigger is good or bad, a thorough re-evaluation can bring about positive ...

Make your Resolutions Real There is a good chance, in fact about a 50% chance if the psychologists are correct, that some time in the New Year you will make at least one resolution. Researchers have found that the most popular resolutions fall broadly speaking into four categories: health and lifestyle, personal development, relationships and money. The bad news is that less than 10% of people stick to them. Here’s how ...