• How to tackle debt - Debt is a drag on a person – both financially and emotionally With high interest debt, the costs of the interest payments make it extremely difficult to repay the principal of the debt, never mind the interest. There are 2 types of debt: GOOD DEBT and BAD DEBT Good debt is debt associated with an asset that goes up in value (such as property) or something that makes it possible for you to earn more (education and at a stretch, READ MORE
  • Keeping an eye on currency rates - The value of the NZ dollar against the US dollar has been headline news almost daily for the last few weeks as the NZD has fallen sharply against the value of the US dollar. Why is this so important? When the value of the NZ Dollar drops against another currency, it means that it costs more to buy either the other currency or goods that are sold in that other currency. For example, one NZ dollar currently buys around 65 READ MORE
  • why credit risk matters What is credit risk and why does it matter? - When I am talking about fixed interest as an asset class, I often talk about credit risk as being an important concept when investing. In fact, it could be THE most important concept when investing in fixed interest and cash – particularly if you believe that these 2 asset classes are the absolutely secure part of an investment strategy. Credit risk is the risk that the issuer of the investment (the bank/the company) will default on their commitment to return READ MORE
  • rupees - Janet Natta is excited about India Why I’m excited about India - I first heard a presentation about the potential of investing in India about three years ago, and I was mesmerised India is the world’s largest democracy, and is likely to take over from China as the world’s most populous nation by 2028, according to UN calculations.   India is a young nation   In terms of population demographics, it is a young country, with 65% of the population under the age of 35. The “average” age of an Indian is READ MORE
  • What the Australian Government Royal Commission could mean for us here in New Zealand - The Australian Government has commissioned a royal enquiry into the banking, superannuation and financial services industry in Australia and the enquiry began its hearing process in March 2018. The purpose of the Commission was to determine if there had been any misconduct in the financial services industry.  The Australian public were invited to make submissions. As of 1 June 2018, they have received 6320 submissions, with by far the largest number being about banks (64%) followed by superannuation at 10%. READ MORE
  • taking stock at the end of a financial year - With 31 March fast approaching, I am sure that there are many business clients (and accountants) hanging on to their sanity by their fingernails at present. However, as the end of the financial year approaches, it is the natural point at which most business owners stop to benchmark how their financial year has been compared to previous years, and try to identify any variances in both income and expenditure. It is also a good habit for everyone to get into READ MORE
  • Should I invest in Bitcoin? What is Bitcoin? - What exactly is Bitcoin? Bitcoin is a crypto currency, which was invented by Satoshi Nakamoto in 2008 and started operating in 2009. Bitcoin is a peer-to-peer electronic cash system which operates freely over the internet. Electronic money stored in electronic vaults The bitcoins are representative of electronic money, and are stored in electronic vaults. You can buy assets or trade with other Bitcoin users who will electronically remit payment to your personal vault, which is known as a “digital wallet”. READ MORE
  • 5 things that you need to consider when you are moving in with a new partner. 5 things to consider when moving in with new partner - 5 things that you need to consider when you are moving in with a new partner #1 - Work out how you are going to split costs Money is always one of the biggest causes of stress in a relationship. Before you move in together, work out how you will split the living expenses i.e. Rent, power, food etc. Have a plan around which one of you will buy the furniture that you need (bed, fridge, washing machine, furniture). Work READ MORE
  • The seasons of share markets - spring the Seasons of Share Markets - The seasons of share markets I was pondering on the current record highs of the share market (both in NZ and the USA) and I realised that the share markets basically have a lot in common with the seasons. At the moment, here in NZ, we are sitting in a never ending winter, waiting for spring.  As a friend of mine declared yesterday “The idea that spring is coming is just fake news!” Spring In the US and NZ share READ MORE
  • 5 things you need to do when you turn 50 - #1 - Have a close look at your money management skills It is quite possible that you have gone from being a flush young person to a starving parent, and are heading back towards having a good disposable income again. Having a good income can mean that people get lazy about tracking their spending, especially when the pressure is off. Get three months of bank statements and credit card statements, and work out where your hard earned money is being READ MORE
  • KiwiSaver NZ How kiwis missed out on $302 MILLION in 2016 - Make sure you're getting your full KiwiSaver tax entitlement Government Tax Credit An important component of any person’s KiwiSaver savings is the contribution that the Government makes each year, referred to as the Government tax credit. If you are aged between the age of 18 and 65 and you personally contribute $1,042.86 in the period between 1 July and 30 June each year (not including your employer contributions), the Government will deposit an amount of $521.43 in your KiwiSaver around READ MORE
  • 5 Ways to Make Hay While the Sun Shines -   New Zealand is like "Godzone" Right Now In an economic sense, things in NZ seem to be progressing at a fast clip. Unemployment is at low levels, mortgage interest rates are at very low levels, inflation is low so the cost of living is not increasing significantly, exports are going well……NZ is a great place to be right now. Along with new immigrants, significant numbers of New Zealanders have also been returning home to work and live. It really READ MORE
  • Brexit - as at 28/06/2016 WELL!  Here we have the result that no-one saw coming. There was very little work done here in the office on Friday afternoon as I sat and hit “refresh” on the BBC website every 2 minutes as the results came in. The Brit in me was going YES! and the investment adviser in me was going OH NO!!!! So, on Friday, we started at the point that the investment markets had all closed up on Thursday.  The READ MORE
  • 5 tips to make 2016 a prosperous year -   1.   Clear all your high interest debt If you put your Christmas gifts on the credit card, pay it off as quickly as you can!  Set money aside each payday for your normal bills (food, power etc) and put as much as you can of the rest of your pay onto the credit card to clear it until it has a zero balance. If you struggle to manage the bills that accumulate on your credit card, break the READ MORE
  • 5 things you need to know if your partner is diagnosed with Alzheimers or Dementia - 1. Make sure that your legal documents are in place and up to date Seek legal advice as early as you can about the implications of the diagnosis on your asset ownership structures. Ensure that wills are made, and also that an Enduring Powers of Attorney (EPA) are made. An EPA appoints someone to make decisions about your finances and your personal care if you are no longer able to. This is essential for someone that has been diagnosed with READ MORE
  • Why Market Corrections Can Be A Good Thing - Our investment clients know that we have been saying for at least 18 months that we are due for a market correction, and it appears that we currently have it happening. A market correction is not necessarily a bad thing! Market corrections happen OFTEN. It is in the nature of share markets (and property markets) to peak and trough. Market corrections RARELY LAST LONG. The average share market correction in the last 70 years (from 1945) has averaged 87.8 trading READ MORE
  • the Chinese share market crash in perspective and what it means to the rest of the world - 15 July 2015 For the year to 30 June 2015, the Chinese share market has risen 150% However, in the last four weeks, the Chinese share markets have fallen 30%.  $3 trillion US dollars in value has been wiped off the share markets. The Chinese share market as it stands today is a relatively young phenomenon China’s share markets resumed trading 25 years ago, as part of the Deng Xioaping economic reforms in the 1980’s and the current Shanghai Stock READ MORE
  • Watching a Greek Tragedy Unfold…. (as at 08 Jul 2015) - On Sunday (06/07/2015), the Greek people took to the polls to vote in a controversial referendum asking if they were happy to go with the terms of extended financing to their Government from the European leaders, or not. The answer has been a resounding NO. Greece defaulted on an International Monetary Fund (IMF) loan repayment on 30 June, and at this stage, the IMF has not stated whether it will continue with a pre-planned bailout funding agreement. Greece is supposed READ MORE
  • Auckland House Prices – Economics 101 - The Reserve Bank Deputy Governor, Grant Spencer, made some strong statements in the media Wednesday 15 April about wanting the Government to introduce a capital gains tax on property investments. The media is continually full of stories about the housing booms in Auckland and Christchurch, telling us that we have an investment bubble and that an overheated market will destroy the NZ economy, our banking system will fail, the sky will fall etc. Economics 101: when demand exceeds supply, prices READ MORE
  • Oil prices and what it actually means for the NZ economy - International oil prices halved during 2014 There has been a lot of talk in the press in the last few months about the falling price of oil.  International oil prices have halved during 2014, from a high of US $105 a barrel to US $53 a barrel at the end of 2014.  As of writing this, oil sits at US $51.70 a barrel. Lowered transport costs The economic impact is that global oil consumers (like us here in NZ) are READ MORE
  • Leaving a legacy - This is a conversation that has come up for me a few times in the last few months with people, and it has really gotten me thinking. Everyone leaves a legacy, whether they intend to or not, but what kind of legacy do you want to leave?? Dictionary.com defines a legacy as: Law. A gift of property , especially personal property, as money, by will; a bequest Anything handed down from the past, as from an ancestor or predecessor. I READ MORE
  • Trans-Tasman Superannuation Fund Transfers – new rules - From 1 July 2013, New Zealanders will be able to transfer their Australian superannuation funds back to New Zealand and into registered Kiwisaver schemes.    Similarly, New Zealanders living in Australia will be able to transfer NZ superannuation and Kiwisavers over into Australian superannuation schemes. Currently, Australian self managed superannuation funds (SMSF) are excluded from the transfer arrangements. Under current legislation, Kiwis who have worked in Australia have had to leave their Australian superannuation behind when they have moved back to READ MORE
  • What is an investment bubble and what does it mean…? - This is a term that we have not used for quite some time, but it is one that we are going to start to use again shortly, with regards to the listed property investment asset class. An investment bubble is much as it sounds.  A bubble forms when we have a reasonably rapid increase in prices of an asset class, beyond what we would regard as being their true underlying value. The price increase persists for a period of time READ MORE
  • How to harness the power of your greatest asset - As at June 2012, the average weekly wage for a person in employment was $806 a week, or $41,912 per annum (source: www.stats.org.nz). If you are aged 25 and you had just been successful in getting a job at the average weekly wage,  you stayed on the average weekly wage all of your life, and your wages were increased by an average of 3% per annum as an inflation adjustment over the term of your working life, at the age READ MORE