Back to Blog

Are investors getting too greedy with fixed interest again?

Before the Global Financial Crisis (GFC), New Zealand had it's own meltdown with Finance Companies.  Everyone learned a lot of lessons about the relationship between risk and return.  The higher the risk, usually the higher the return. ...

Birthdays and delayed gratification - why is it important?

One of the wonderful things about having good friends is that we are all different and have different experiences. In my family, the birthday tradition was that the children would get up early and make Mum and Dad a cup of tea and we would all pile into the bedroom to get and give birthday presents.  Then your birthday would be a special day for you, and dinner would always be your favourite meal (and I still, many years later, have a treat of stuffed potatoes as my special birthday treat when...

Is your 'stuff' properly insured?

About every five years, we do an annual project with our Membership Fee clients to make sure that their 'stuff' is properly insured.  We are not house and contents insurance specialists (but we do refer our clients to a terrific specialist insurance broker.) ...

Are you liable for USA tax? Do you have a USA Tax number?

Do you know about FATCA? ...

Travel insurance and credit cards - Important to read if you rely on your credit card travel insurance

For many years, we have had a Global Plus credit card that has provided us with travel insurance whenever we travel for leisure. No cover for business travel, no cover after 90 days, but I have read the terms and conditions and been very comfortable with the cover that we have had available. In fact, I have used the cover twice, and been very impressed with the results.  Once for an ear infection in Fiji, and more significantly, for a broken elbow (at the start of a 7 week cycling trip of Fran...

Travel insurance Trip-ups

In my opinion, the best personal finance pages produced in New Zealand are in the business section of the Sunday Star Times.  It is pretty much the only thing I read in that newspaper, but it is worth purchasing just for these articles. In particular, Rob Stock produces some thought provoking and valuable articles.  I often rip them out so that I can refer to them for blog articles, and for general awareness of issues for all of us in the business. ...

Buying things on your credit cards - is it worth it for everything?

Over the years the incentives for buying things on credit cards has increased (but the interest rates that apply if you don't pay ...

Bubble-ology - Context and pedigree are vital

Over recent days the New Zealand media has been awash with commentary on a column written by Jesse Colombo- a self proclaimed 'expert' on economic bubbles.  The column was  published as a contribution to the online edition of Forbes magazine.  12 Reasons Why New Zealand's Economic Bubble Will End In Disaster.  ...

8 Tips on arranging your mortgage and reducing your interest cost

Interest costs on mortgages are a large cost, and if you can manage your financial planning so that you pay less interest over the life of a mortgage, your financial situation will gain a big benefit.  You should be aware of how your mortgage is set up, what your mortgage interest rates are, whether you are getting a 'carded' rate, or a better deal. Your mortgage is likely to be your largest financial commitment for a big part of your right.  It is important to get it right. ...

Fix or Float - decisions around your mortgage structure

Over the life of your mortgage, the amount of interest that you pay is likely to be more than you like to imagine. One of the ways that you can manage your interest liability is to be aware of the structure of your mortgage. Are you getting the best value with your mortgage? Traditionally the long term average interest rate on mortgages in New Zealand has been 8%.  For the last few years, we have had low mortgage interest rates and many people have had their mortgages on floating rates.  This...

Mortgages - use us to get the best value for your or your family and friends

Moneyworks NZ now have a fully accredited Mortgage Broker.  Carey Church is licensed to assist you and your family and friends with managing and arranging and structuring your mortgages. Carey is supported by Paul Swarbrick, Client Relationship Manager - who has in excess of 20 years experience in providing people with assistance in organising and managing their mortgages. ...

Foreign Super Tax legislation passed

  ...

The what, the why, and the how of your premiums - Partners Life

This article from a recent Partners Life publication raised my interest.  I thought it would be useful for you to read. ...

Insurance Cover- Don't assume....

Fro most people, having insurance cover in place is a 'grudge' purchase.  You know that you need it, and you have the cover 'just in case'.   This can easily lead to a decision to settle for 'the cheapest' insurance cover.  After all - something is better than nothing right?? Wrong.   ...

What is a 'Balanced' KiwiSaver fund?

The recently published Morningstar KiwiSaver Survey December Quarter 2013 (access here KiwiSaverSurvey31-12-2013) raises interesting questions about what makes up a 'Balanced' Fund.  ...

Research shows KiwiSaver investors are irrational in chasing non-recurring past returns and accepting higher fees

This article on www.interest.co.nz is an interesting review of a research paper.  We don't necessarily agree with all the findings, but will be of interest to those technocrats who are following KiwiSaver trends.   ...

How much does it cost to educate your child?

A key expense in most family's financial planning is that relating to childrens education.  And this is not just when the children are getting 'private' education. ...

Investing and the New Zealand dollar impact

...

100 things we didn't know before 2013 - courtesy of the BBC News

Some fun things to mull over.  Our favourites are numbers: 2 -Hot things taste different according to the cup colour (with Carey's favourite colour - orange - coming out tops!!) 8. Women look their oldest every Wednesday at 3.30pm 13. Fidgeting is good for men's concentration but bad for women's 20. Monkeys avoid selfish people 34. "Lucifer" and "." (full stop) are banned baby names in New Zealand 57. Scientists still don't really know how bicycles work 83. Nervous dogs wag their tails to the ...

What are Fixed Interest Investments in New Zealand?

There are three main 'asset classes' when investing.  Fixed Interest, Property and Equities (Shares).  These are then often separated into New Zealand, Australian and International sub categories.  It is easy to think that the Fixed Interest asset class is straightforward and the easiest to understand, but unfortunately, it is actually the most complicated. ...

Fixed Interest Terminology

To understand Fixed Interest there are certain words that you need to become familiar with.  To assist you, we have given you a quick description of what they mean below: ...

Fixed Interest Secondary Market - a what????

What on earth are you talking about?? How can there be a 'secondary market for Fixed Interest? For investors used to only investing in Term Deposits, this is quite a logical question.  However, Term Deposits are a very small part of the 'Fixed Interest' market of investments.  With a Term Deposit, you are lending money to your bank/Financial Institution and they are promising to pay you a fixed rate of interest and repay your capital at a date in the future. ...

How do Credit Ratings work?

Credit Ratings are a good guide to the 'risk' involved in a financial security.  While there has been controversy during the Global Financial Crisis about the value of these credit ratings, they are still a valuable tool to assess the 'quality' of an investment that you are looking at making. ...

Should you be a 'guarantor' for someone elses debts?

Being a parent involves nurturing and caring for your children.  While it would be nice to think that this obligation ended at age 18 or 21, the reality is that it tends to exist for many many years into your children's adulthood.  My mother continually reminds me that although I am a well established adult - I am still 'her little girl'. ...

Overseas foreign superannuation and the IRD

The tax legislation around overseas foreign superannuation holdings has changed. If you have foreign superannuation (except Australia), you need to be aware of these changes and the tax liability associated with those holdings. ...