Commission or Fees? It seems it is only a matter of time before the payment of commission to financial advisers will be banned, and advisers will instead charge fees. Commission will be banned in the UK from 1 January, 2013 and in Australia there is a proposal to ban most commission from 1 July 2012. In New Zealand, the Committee of Inquiry into Finance Company Failures has recommended that Government “investigate the p...

Plan for a Long Life When our great grandparents were born, they could expect to live on average for 55 to 60 years and it was likely they would continue working until just a few years before they died. The introduction of Government pensions was intended to provide a means for those who were too sick or too old to work to live a few short years at the end of their lives without financial worry. Of course, what has happen...

Employee Share Plans Many companies, both large and small, now have employee share plans. In theory, it is a win-win for company and employee. The company is able to reward and motivate staff without having to pay cash and the employee is given an opportunity to acquire shares on favourable terms. There are a number of different schemes including: Options - a right to purchase shares in future at a fixed price Employe...

A Winning Team Whether you are a fan of ruby, football, netball or baseball, it’s a great feeling to see your home team take out the championship. Reaching high levels of success in sport can only be achieved with a total focus on teamwork, through which each player contributes their own individual strengths in a way that complements and enhances the skills of other players. Even top performing athletes in solitary spor...

Cash in a Hurry A wise person once said that the shortest period of time lies between the minute you put some money away for a rainy day and the unexpected arrival of rain. Although savings seem to disappear quickly, without them, unexpected events can become disasters. If you have a reasonable income and a small mortgage or none at all, having a chunk of money set aside ‘just in case’ should be easily achievable. Dec...

Prudent Investment Investment markets have taken a pounding in recent weeks as investors grow increasingly nervous about developments in the USA and Europe. Economic growth has slowed sharply in these regions and the slow-down is more widespread than previously forecast. Adding to this are fears of an imminent default by the Greek government which could have a flow on effect on other indebted countries and the banking sec...

Working Less While most of us say we can’t wait for retirement to be able to do all the things we’ve always wanted to do, the problem is how to fill in the thirty years or so after retirement, especially as we are living longer. Retiring from work doesn’t mean retiring from life.  According to a recent survey in North America, 40% of recent retirees said they were happier when they were working because they felt th...

Get a Life Following recent financial crises, there is a growing realisation in society that friendships, family and hobbies are more important than money. People are slowing down; they are making less money but having more fun. There are lots of ways this can be achieved. Here are a few examples of strategies that work:   Ask your employer to be more family friendly.  Many companies now have a documented policy for ...

Financial Freedom Part 2 Last week we looked at the first four steps you need to take if you want financial freedom; something that most Kiwis aspire to. They were: (1) Spend less than you earn; (2) Join a subsidised superannuation scheme; (3) Pay off short term debt and (4) Set up an emergency fund. Here are the last four steps that will help you be financially free:   Step Five - Buy at least one house To have a comfor...

Financial Freedom Part 1 Living from payday to payday is nobody’s idea of an ideal life. What most Kiwis aspire to is to have a comfortable life free of financial stress. There are eight simple steps that will help take you on your way to financial freedom and here are the first four:   Step One - Spend less than you earn The ability to spend less than you earn is the one thing that separates wealth creators from thos...