A Regular Retirement Income Most people dream of a comfortable retirement where a regular income flows into their bank account that is sufficient to cover more than just basic needs. For many retirees, this dream never becomes a reality. The 2013 Review of Retirement Income Policies discussion document released by the Commission for Financial Literacy and Retirement Income (CFLRI) highlights the fact that 40% of New Zeala...

Good and Bad News for First Home Buyers Finding the deposit for a first home is a huge financial hurdle and around two thirds of first home buyers obtain a high loan-to-value ratio (LVR) loan. The LVR is simply the amount of lending compared to the value of the property, and an LVR of more than 80% is considered to be high. Since October 1, banks have been required by the Reserve Bank to limit high LVR residential mortga...

Lessons from Failure New Zealand’s failure to bring home the America’s Cup is truly disappointing and also a reminder of what it takes to succeed. Winning a yachting regatta has many parallels to achieving financial success. To begin with, you need to be absolutely determined and focussed on achieving your goals. Having set your goals, make a plan. This includes thinking about what resources you will need. A team of e...

Relationship Property Basics Statistics show that at least a third of marriages and de facto relationships fail. Being aware of the financial consequences of the end of relationship means you can put in place strategies to protect the property you acquired before the relationship and protect your rights to a share of property acquired during the relationship. Under current law, there is a general rule, with few exception...

The SKI Principle Jokes about Spending the Kids’ Inheritance (SKI) abound, however when it comes to the crunch, many retirees find it difficult to watch their dollars slowly dwindle. Saving regularly over a period of many years does two things. Firstly, it builds up a nice retirement nest egg. Secondly, it creates a well entrenched habit of not spending. Sadly, that often means a retirement of going without and making d...

5 Money Tips for the Self  Employed Owning a business is a great way to build your wealth. Use these five money tips to make the most of your opportunity.    Tip # 1 Join KiwiSaver Being self employed doesn’t preclude you from joining KiwiSaver. If you are not a PAYE employee of your business, your contributions will be made directly to your chosen KiwiSaver provider. By contributing around $87 per month, you ...

New Tax Rules for Overseas Pensions A shake-up of current complex tax laws on foreign pensions has been set out by Inland Revenue (IRD).  Under existing laws most holders of foreign pension funds, including UK pensions, should be paying tax as the funds grow. Pensions cannot be readily accessed to pay the tax so most people have not reported them in their New Zealand tax return. The proposed new IRD rules seek to tax wh...

Microfinance for Low Income Families Two of the toughest financial issues for people on low incomes are getting access to loans at an affordable interest rate and getting rid of high-interest, short term debt. That’s where microfinance comes in. Microfinance is the provision of financial services such as loans and savings accounts to people on low incomes who can’t easily access mainstream financial services. Loans ge...

Make a Date With Your Money Money Week 2013 is coming! After the success of last year’s Money Week, the Commission for Financial Literacy and Retirement Income is once again encouraging us all to take some time in the first week of September to have a look at how we are managing our money. Money Week is a week-long series of financial events and activities around the country, the aim of which is to motivate people to t...

Buying Property with a Low Deposit The world economy is still reeling from the effects of the Global Financial Crisis, and one of the major elements of this catastrophic event was a huge increase in lending on residential property by American banks to people who had a low deposit and low incomes. The increased lending fuelled property prices, and when the inevitable property crash occurred, financial institutions and borr...