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How much do you need to spend on home maintenance in retirement?

When you are working and earning a good income, you are able to keep up with the maintenance requirements of your home.  However, when you retire and are living off a defined income and capital, juggling the demands of a high maintenance home with day to day living costs becomes more difficult. ...

When will your insurance not pay out?

The goal of having insurance is to have it work for you when you need it.  Unfortunately, sometimes insurance companies don't pay out on a claim on insurance, and this can give the insurance industry a bad name.  As your financial adviser, we work with you to make sure that you declare everything that you are aware of to an insurer when you are completing an insurance application. ...

Do you have a photographic memory?

I know that having a photographic memory is rare (and valuable), but I did this test with fingers crossed and hopeful. When I am studying I can remember pictures of the mind maps that I have drawn in various colours, so maybe....   ...

When cheap insurance may not be the best (Youi controversies)

As your financial planner, our goal is to make sure that you have all the financial solutions in place that will help you achieve your goals.  This includes your life, trauma, health and income protection insurance cover.  But as part of our job, we want to ensure that you have fire and general insurance (house, contents, vehicle, boat) in place that will work for you. Fire and General insurance cover is a specialist area of advice, one that we are not experts in.  We aim to make sure that y...

New Zealanders are Fat and in Denial About it, Says Survey

Independent research conducted for the annual Cigna 360° Wellbeing Score found that of the study comparing 11 countries New Zealanders were not only the chubbiest, but were "wildly off the mark" in estimating how fat they were. "I think it's normal to be overweight now," New Zealand Nutrition Foundation dietitian Sarah Hanrahan said. "More than half the population is overweight. You will see more overweight than you will see within the normal weight range, and in some parts of town it wi...

Does your financial adviser really care about your interests?

The Financial Advisers Act 2008 was enacted to increase the responsibility of Financial Advisers towards their clients.  The current legislation is complicated with a number of definitions that confuse people.  To understand the legislation, you need to understand: ...

Use a 2 minute Super Hero pose – and increase your confidence!

Most of us know that your ‘body language’ can be read, with several TV series using an understanding of body language cues to tell when people are uncomfortable or telling lies. ...

Managing your retirement investment funds – the risks of living off interest from fixed interest investments only

In New Zealand, NZ Superannuation is a generous after tax income provided by the Government.  At present, this is $30,000 after tax for a couple where both qualify with no means or asset testing.   ...

Fixed Interest – risk and return - Southern Cross Financial Contributory Mortgages (6.50% pa)

Over the last few years, we have noticed the increasing risks of bonds and capital notes issued through stockbrokers.  As the risk free (and reference) interest rates have been low, the returns that have been offered in return for the risk involved has been very low.  (Refer to Fixed interest – risk and return – CoCo’s and bank hybrids).   ...

Fixed interest – risk and return – CoCo’s and bank hybrids

Part of the volatility on international financial markets since the start of 2016 has been related to the concern about the highly leveraged European banks and whether they will be able to pay the interest on the CoCo’s (Contingent Convertible bonds) that they have issued.  See Bernard Hickeys excellent summary of the issue here. ...

This is what happens when you reply to a suspicious email

Suspicious emails: unclaimed insurance bonds, diamond-encrusted safe deposit boxes, close friends marooned in a foreign country. They pop up in our inboxes, and standard procedure is to delete on sight. But what happens when you reply? Follow along as writer and comedian James Veitch narrates a hilarious, weeks-long exchange with a spammer who offered to cut him in on a hot deal. If you have any thoughts or opinions that you would like to share, visit us at our Twitter, Facebook or Linked In p...

Is Churning a Dirty Word?

In the Financial Advisory industry, the biggest insult that you can receive from one of your peers is to be accused of ‘churning’.  Churning generally relates to insurance products, but in recent years, also applies to KiwiSaver. The insult of being a ‘churner’ suggests that you are putting in place an insurance policy for your own income benefit with a total disregard for your clients interests. ...

No one is interested in your opinion...

Unless it is supported by facts. “No one is interested in your opinion - unless it is supported by facts.” ...

Beautiful Dancing and Great Music

I was going to write an indepth article on insurance churning (which has been topical in the media for the last few weeks), but... its been a long year, and I wanted to watch this beautiful dancing again. ...

How much do you know about your country?

At Moneyworks, our advisers spend a lot of time reading information on the economic and investment situation and outlook.  This involves reading and understanding what is happening with different statistical measures in New Zealand, as well as having a knowledge of the general trends internationally. ...

Seasons Greetings and Moneyworks Close down period

I've heard that time gets faster as you get older, and that it flies by.  Based on how quickly this year has gone, I am becoming a true believer.  Long gone are those days when the hours stretched ahead to be filled at leisure.   ...

Corruption across the world in pictures

One of the features of living in New Zealand is the relative LACK of corruption compared to the rest of the world. Poorly equipped schools, counterfeit medicine and elections decided by bribes are just some of the consequences of public sector corruption. According to Transparency International, nowhere on earth is deemed totally free of corruption. Somalia and North Korea in particular stand out on this map - both scored only 8 out of a potential perfect score of 100. Denmark, New Zealand, Fin...

11 attributes of successful investment managers [From Magellan - Hamish Douglass]

It can be difficult being an investor. ...

How much income do you need in retirement?

We find that our clients definition of retirement is rapidly changing.  Many of our clients choose to continue working and gradually 'ease out'  of the workforce at the end of their careers.  Or, they choose to change occupations and take up some less stressful work that still provides an income stream. With the universal NZ Superannuation system, where you receive an income in retirement when you reach age 65 regardless of how long you have worked, how much you have earned, how many other a...

Is your KiwiSaver manager making too much profit? Or not enough?

KiwiSaver is such a part of the fabric of New Zealand society and financial planning now, it seems strange to think that it was only launched 8 years ago.  Launched on 1st July 2007, because there is a three month holding period for funds before they reach the KiwiSaver manager, the second important date for KiwiSaver is 1st October 2007. On this date, fund managers started receiving KiwiSavers money and started investing it.  Over the next two years, we experienced the Global Financial Crash...

Understanding the NZ Superannuation rules

In New Zealand, the magical age for 'retirement' is 65.  At this age, you are entitled to receive the NZ Superannuation income. If you are eligible to receive NZ Super, you will receive the same amount regardless of whether you are male or female, regardless how much you earn, or how many assets you have, regardless of how much you have worked or earned during your life.  The simplicity of our universal NZ Superannuation entitlement is in stark contrast to most countries where the income that...

Beware online dating scams (particularly if you are a single older woman)

We work hard to accumulate our nest eggs and for many people retirement is the opportunity to enjoy financial freedom and choice.  Having a nest egg (whether small or large) can provide us with the ability to have that freedom, to make decisions, to have a coffee or lunch out, or to travel. Holding onto that money is important so that you can use it to enjoy your twilight years. However, there are many ways that you can lose that money.  As financial advisers we work hard to assist you with p...

Changes to Property Purchase Rules coming on 1st October 2015

Over the last 6 months it has been pretty much impossible to escape the media commentary on housing in the Auckland region. Most commentaries acknowledge that the source of the problem is a lack of supply of properties, and there are now calls to turn the council owned golf courses into housing estates. While this raises challenges with the 'green-ness' of the City, which is an international indicator of the quality of a city and its associated lifestyle, it could be a good solution to the supp...

Common misunderstandings about KiwiSaver

Although KiwiSaver has been around for 8 years, there are still some common misunderstandings about KiwiSaver.  We have explained why the following information IS accurate, despite what you may believe. ...

Volatility and your investment portfolio

The last four weeks have seen volatility in international and New Zealand investment markets.  Markets have been increasing and decreasing in value from one day to the next. The triggers for these recent market changes have included 1. The Chinese share-market fall, slow down in economic growth and changes to its currency settings 2. The anticipation of the Federal Reserve in the USA increasing the Federal Reserve Rate (interest rate) 3. Australia's economy continuing to stumble 4. Good and t...