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Why bother having income protection insurance?

When things are going well and we are fit and healthy and well, the last thing that we think of is falling ill.  Most people assume that it is never going to happen to them, and if they do get sick, then it will only be for a very short period of time and they will bounce back and be back at work and life again quickly. Unfortunately, things don't always work out like that.  Moneyworks currently has at least four of our clients on permanent long term income protection insurance claim as they ...

Should you 'go guarantor' to help your children buy into their first home - the Mum & Dad Bank.

This article was generated from a query from a client this month, she is close to retirement and we are working hard to make sure that she will have enough money to have a financially comfortable retirement. But she is concerned that her son and his wife will not be able to get on that property ladder, and heard a snippet on Breakfast, from a commentator suggesting that parents could become a 'Mum & Dad' bank. With entry property prices being so high, and more and more young people being un...

Big Brother and China's 'dystopian credit scores'

In the investment newsletters and presentations that we have read and attended over the last 5 months, the current issues of 'big brother monitoring' in China has been addressed on a regular basis. Basically, China has extended its historic approach to 'watching out' for their people by the use of technology.  An example that was quoted that particularly stuck with me was that if you were jaywalking in China, the camera's would catch you, send you an instant fine to your mobile phone while you...

KiwiSaver Fees are falling

KiwiSaver is big business for fund managers now.  Launched on 1st July 2007 - KiwiSaver is now 12 years old.  The total amount of money invested in KiwiSaver is $54,661,000,000 and in the quarter ended 31/03/2019 the value of funds invested in KiwiSaver increased by $4,453,000,000. ...

Should you have health insurance cover?

Simply, if you can afford it yes.  However, New Zealand does have an excellent Health system - but there are many many things that 'fall through the gaps' that are likely to be covered by a good quality health insurance policy. There is a big difference in the quality of health insurance policies - at Moneyworks we recommend that you have a health insurance policy that will pay for non-Pharmac listed drugs.  We have an extended-family member who had various cancers, and was in a fortunate pos...

Esports - a rising phenomenon

When I was much younger (a teenager and in my 20's), I couldn't believe that my parents didn't 'get' the things that were important to me.  I recently read an article that brought home to me that I am indeed half way through my 6th decade and that there are many things that are foreign to me. One of these things is the rise and rise of 'esports'. The Asian Games had six esports demonstrated in 2018, and medal status is promised for the 2022 Asian Games.  The six sports that were demonstrated ...

Risky New Zealand, Earthquake commission and house and contents insurance cover

From July 2019 the Earthquake Commission will no longer be providing House contents insurance cover (which has been $20,000) for natural disasters, and will be increasing the cover for properties from $100,000 to $150,000. We have recently seen media coverage of the announcement by IAG that they will not be taking on new house contents risk in the Wellington market as it is 'too risky'.  As identified by interest.co.nz commentator Gareth Vaughan, this is a concern as between IAG (which owns th...

More requirements for landlords

In our June 2018 newsletter we discussed the issues facing landlords who own residential investment property.  We also covered the issues relating to Airbnb properties in our February 2019 newsletter. We have provided some quick links to these articles at the bottom of this article. In recent times there has been a lot of discussion about the impact of any potential Capital Gains Tax on the housing market and the so-called 'Kiwi way of life".  But amongst the Capital Gains Tax discussions, fu...

Its risky if your tax rates aren't correct

As part of our annual review process with our Membership Fee clients we check the current level of income (and where it comes from) and check that their PIR, Marginal Tax Rate and FDR/FIF settings are correct.  We then work with them to make any required changes. ...

Upcoming KiwiSaver Changes

This website is operated by Moneyworks NZ Ltd and is not endorsed by, or affiliated with, the New Zealand government or Inland Revenue. Moneyworks NZ Ltd is using the KiwiSaver trade mark and logo under licence from Inland Revenue. To view the official New Zealand government KiwiSaver website, please click Here ...

Insurance and DNA Testing

In late 2018, as a business we had our first experience of how insurers are using DNA testing to make their insurance underwriting decision.  The client is a delightful young professional woman, a daughter of one of our clients, who had previously been insured on a childs trauma policy on her parents insurance.  As she is now an adult, we were applying for trauma insurance for her, so that she could have security if anything happened to her. We had no idea of the impact of her doctor recommen...

Wearable Devices and Insurance

I have a love hate relationship with my Fitbit.  It is a bit too big for my arm and seems to continually need recharging.  But on the other hand, the information that it gives me on how healthy I am, how much sleep I get and how much exercise I have done - and then compares it to other woman my age is very motivating! As this article outlines, insurers can use this information in negative ways. What might happen in the future with insurance cover and the use of artificial intelligence ...

What might happen in the future with insurance cover and the use of artificial intelligence

Technology is impacting all sectors of life & there are risks to people seeking new insurance cover when insurance companies can use your information. On the other hand, some companies are using technology to reward their insurance clients that engage in 'desirable behaviour'. This article and video on Stuff outlines some very relevant points about how insurers might be able to use technology in the future to get information about our lifestyles and decide pricing based on that information....

Changes to Tax Returns - Automatic Assessments from 01/04/2019

Since 2014 at Moneyworks we have had the privilege of working with our technologically advanced accountancy firm Beany. Beany have used technology to make the preparation of annual accounts and tax returns so much quicker, easier and cost effective.  Part of this work is their interface that they use with Inland Revenue, which reduces the manual work and exchanging of files. We have introduced a number of our clients to Beany - let us know if you would like an introduction. Moneyworks and Bean...

How to Talk about money (Carl Richards - The New York Times)

We have published information from Carl Richards previously - and this special series published in the New York Times seemed particularly relevant to share with you. Here is the link to The New York Times listing (but you may need to be a subscriber to access it) ...

Changes to KiwiSaver (proposed and actual)

It has been some time since the last changes to the structure of KiwiSaver, and it is great to see the following proposed changes making their way through the legislative system.  ...

Property Relationships Act - and changes in society - a review by the Law Commission

Since 1976 the Property (Relationships) Act has applied to divisions of property when a relationship ends.  The law is now 40 years old, even though it was amended in 2001, which including extending it's reach to de facto relationships.  The Law Commission notes that 'The underpinning principle of the Act is that “relationship property” as defined by the Act should be divided equally between the two partners upon their separation.' The Law Commission is currently undertaking a review of t...

History shows that investment markets rise over time - small wobbles are buying opportunities

For the last six weeks, we have seen headlines in the business pages about the share markets around the world going down, then going up the next day, followed by a fall the following day. This is normal - the reason that the media is following these movements at the moment, is because of the size of the movements. Like the natural world, markets follow cycles. For the last two years, along with most of your fund managers we have been anticipating a correction in the investment markets.  It fee...

Heineken Worlds Apart - Video

This 4:25 video can be confronting, but I thought it would be worth sharing with our readers. Heineken presents ‘Worlds Apart’ An Experiment. Can two strangers with opposing views prove that there’s more that unites than divides us? ...

Southern Cross Healthcare removes benefits from policy holders

Many New Zealanders have their Medical/Health insurance cover through Southern Cross Healthcare. Southern Cross Health Society (a charitable trust) has been around since 1961 and has traditionally provided Health Insurance through the workplace.  ...

Sale of AMP Life Insurance and Wealth Business

On the 25th October 2018, AMP announced that (subject to regulatory approvals), the business that had been the cornerstone of financial services in Australia and New Zealand for many years would exist no longer. ...

Busting Cancer Myths - [videos]

  There are a lot of myths around Cancer - and what happens with cancer.  These short videos made in Canada look at some the of the common myths circulated about what causes cancer: Cancer Mythbusters: Antiperspirant and breast cancer ...

Keep calm and carry on

I receive a number of email newsletters each day, but I thought this one was particularly useful, so have replicated it below.  It is from Fortune magazine in their Cyber Saturday Edition: ...

Protect your online self

Following on from the project that we carried out in 2016 with our membership clients, it is important to continually be aware of the risks of your online self. The following checklist is from CERT NZ - the Government agency who provide you with up-to-date actionable advice on current threats and vulnerabilities.  We subscribe to their newsletter of alerts - which you can do here. ...

Recent news on various scams in New Zealand

Although the development of the internet, email, smart phones, tablets and computers has brought many advantages, it has also created an entirely new criminal industry. The types and breadth of technological related scams is continually increasing and evolving.  Every week, we read information about a new scam and every now and then hear of someone that we know who has unwittingly fallen prey to these scammers. There are also scam phone calls - that are insistent - That included a current wave...