Get Rid of Dumb Debt The most common financial mistake people make is to borrow money at a high rate of interest in order to buy something they don’t really need or without considering whether they could borrow at a lower cost. This type of borrowing is what the Retirement Commission calls ‘dumb debt’ and they have launched a campaign aimed at encouraging people to get smarter with their debt. Examples of dumb debt ...

New Era for Financial Advice As we edge closer to 1 July, 2011, financial advisers are spending most of their waking moments preparing for the new regulatory regime which will clearly identify those advisers who are authorized to give financial advice on investment products and those who are not. Financial advisers who are not authorized have some significant decisions to make about what happens to their investment client...

Top Up Your Retirement Savings Now is a good time to be thinking about whether you are putting enough aside for your retirement. A review of your long term plans should be done on an annual basis and June is a good month for two reasons; firstly because it is too wet and cold outside to be doing anything more interesting and secondly because you should make sure you have put enough into your KiwiSaver fund to get the maxi...

Love and Money Relationships are complex and adding financial stress into the mix complicates things even further. Arguments about money are the leading cause of relationship breakdown and it follows that if couples can find a way to reduce financial stress and avoid conflict over money, the chances of a successful relationship are greatly enhanced. When two people come together from different backgrounds, they usually ha...

The Price of Good Advice The calendars of financial advisers throughout the country have a big circle around 1 July, 2011. That is the date by which, with a few exceptions, any person giving advice on investment products must be an Authorised Financial Adviser (AFA). An adviser who works for a large company, such as a bank, which has been approved as a Qualifying Financial Entity (QFE) may give on advice on products issu...

Advice for KiwiSavers KiwiSaver skeptics will no doubt be saying ‘I told you so’ after the recent changes announced in the budget. A minority of the population have refused to join KiwiSaver on the grounds that the Government will keep changing the rules or mismanage their money. Yes, the rules have changed, but joining KiwiSaver is still a great idea and the skeptics are missing out on an opportunity to increase thei...

Happy Retirement! Retirement is something to look forward but ensuring that the experience lives up to your expectations requires some forward planning. These days it is becoming more common for people to work less rather than retire and many pensioners have part time jobs. However, it is good to be working by choice. NZ Superannuation is generally enough to keep you alive from one day to the next but you probably won’t...

Invest Offshore Global influences in investment markets have become more powerful over the last decade, due to the effects of technology, globalization of businesses and economic union between countries. The Global Financial Crisis is a powerful example of how interconnected world investment markets are now. This is not necessarily something to be afraid of and in fact there are many opportunities as well as threats. Ther...

Bank and Lose Investors who retreated to bank deposits after the Global Financial Crisis now find themselves caught between a rock and a hard place. Do they stay in bank deposits for peace of mind but poor returns or do they venture back into investment markets? It is sensible to batten down the hatches when a storm blows over, but at some point, life has to return to normal. So how do you know when it is time to come ou...

Property Investment Tax changes for investment property came into force on 1 April this year, forcing many existing investors to review the ownership structures for their investments and the viability of retaining their properties. In a nutshell, the effect of the changes is that investors will no longer be able to claim depreciation on their buildings, and fewer investors will be able to claim losses against personal inc...