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The revelations from the Australian Financial Services Royal Commission have shocked people. The unethical behaviour (in spite of legislative requirements), the unabashed pursuit of profit at the expense of clients in the main four banks and AMP, and lying to the regulator.
Criminal charges might be laid in Australia, but with the current reforms to the New Zealand Financial Advisory legislation working its way through consultation, the bias of the current drafts towards the Vertically Integrated Organisations of ASB, ANZ, AMP, BNZ and Westpac are being questioned.
Moneyworks have a transparent relationship with ANZ Wealth, with no quotas or restrictions, we deal with them because they have great products for our clients. But the mortgage broking side of the banks is driven by quota’s, production requirements and the expectation the we will move our clients mortgages to fulfil those production quota’s, irrespective of our legal requirement to ‘put the interests of our clients first’. As a consequence, we have resigned from being a mortgage broker, but have established a relationship with a specialist mortgage broker to assist your cilents. Read more below.
1. The Financial Services Royal Commission in Australia
2. What does the Australian Financial Services Royal Commission mean for New Zealand?
3. Quota’s, incentives, and Moneyworks withdrawal from offering mortgage advice
Travel insurance is vital, a reminder of this to start off the newsletter this month, then a quick look at the role of investment indexes in monitoring investment performance. Finally a light look at some kids test answers – a bit of a laugh.
Retirement tends to be a common goal for our clients (although some people want to keep working until they drop dead). But the key thing about having a goal of stopping work and living off your savings as compared to earning an income, is that you need to be healthy to achieve all those goals and dreams.
This newsletter is dedicated to that topic, balancing up future goals with enjoying the present, but making sure that you stay as healthy as possible to enjoy those three stages of retirement.
Anything can be big business now, the world has changed. Our 7th trip to the Australian Tennis Open highlighted how much money there is in ‘superstar’ profile, professional sport and sponsorship.
Mastering social media and a profile appears to be the key (oh, as well as being able to play great tennis).
We have shared our experiences, thoughts and some funny videos relating to tennis belown.
Happy New Year, hasn’t it been a tumultuous summer weather wise.
For the start of the year, we are looking at the role of money in your relationship. It is such an important issue and is a major factor in friction and divorce within relationships.
We also give you a link to a quiz to work out your money personality, 5 tips for your finances for 2018 and a financial ‘To-Do’ list.
If you are ready (as a New Year Resolution) to take control of your future, and want to organise a free 45 minute Financial Strategy Session, click here.
For Carey and Peters clients – just to let you know that we are off to watch the Australian Open Tennis in Melbourne from Thursday 18th to Thursday 25th January, so will be out of the office.
It has been a quick year, I don’t know where it has gone. This month I have shared two recent FMA releases, one is a KiwiSaver analysis tool – that has it’s flaws, but might be of interest to you, and a warning on scams.
We have also given you a tool to deal with those annoying scam emails and of course, outlined our Christmas hours.
Have a great summer break and festive season.
Why? This is the question that I have continually asked since I was able to speak (much to everyone’s annoyance). Now we want you to ask Why? See the great article below (thanks to Carl Richards).
Elder abuse (including financial abuse) is a major issue around the world, we have had a quick look at this topic below, and then some tools for you to see what the internet knows about you.
Trustees duties and obligations are clearer and defined in the Trusts Bill currently before Parliament. Trustees have 18 months after the Bill becomes law to comply. This is a good time to review the role of any Trust that you are involved with and consider whether it is appropriate for you to continue with it or not. If you do, it is vital that you are fully aware and compliant with your duties and obligations.
With the 4:48 video from the Economist, we share with you how Money Laundering has actually worked in Brazil.
1. Changes to Trust law – Trust Bill -why do you need to know about this?
2. What are some of the important changes to the Trusts Bill?
3. Corruption, money laundering and Brazil
While election season is upon us in New Zealand, the news of natural disasters around the world brings us back to reality. This newsletter focuses on three topics associated with catastrophes, ‘tweaking’ your claims on an insurance policy (and why it isn’t a good idea), CAT bonds (and why they aren’t a good idea for retail nvestors) and how criminals make money out of disasters.
We hope that these are enlightening for you.
1. Why you shouldn’t ‘tweak’ your insurance claim (it’s not just a little white lie).
2. Catastrophe Bonds – exotic financial instruments
3. How do criminals make money from disasters.
We are delighted to introduce our two new team members to you this month, Katherine (Kat) our Operational Support and Process Manager and Melanie, who is our Projects Manager. They are both on steep learning curves and adding immense value to our business, we have included their profiles below for your reference.
We have also provided you with information on Bitcoin/Cryptocurrencies and Blockchain. There seems to have been a bit of media coverage of these topics in recent weeks, and some of our clients have been asking us about looking at the idea of investing in cryptocurrencies, so we thought it was time that we shared some information with you.
As always, if this raises any questions that you would like to discuss with your adviser (or if you feel that you are ready to work with Moneyworks on an ongoing advice basis), don’t hesitate to contact us on firstname.lastname@example.org or 0800 225 621,
This month our theme is being retired. In particular, looking at how residential care subsidies work, and an update on the Lifetime Retirement Income annuity financial solution. I have also added some information on what to do in a terrorist attack (particular when you are travelling overseas).
When you put in place insurance cover, you are doing so to give you financial protection if something goes wrong. The last thing you want to happen at that time is for your policy to not pay out because you forgot to tell the insurance company something on the application form.
This month we are focussing on the importance of disclosure – even if you might not think that it is relevant. This is particularly important for your house/contents/car/boat insurance, where you have an obligation to make any disclosures each year on the anniversary.
1. Non disclosure case studies from the Ombudsman
2. The importance of disclosure on your insurance policy application
3. Putting people in boxes – All that we share.
We are looking at the issue of dying and wills, and even making your own coffins this month. We have a special inspirational video at the end of this newsletter, looking at a father and son who overcome all obstacles to achieve significant milestones together – including completing Ironman events.
Two thought provoking articles on investments this month, and a look at an innovation in Norway to give people a laugh.
We try not to bore you with things like taxation, unfortunately every now and then we think it is important to remind you of your tax rates, liabilities and obligations. We have outlined all the potential taxes that you might be liable for below, with a reminder that if you are not sure whether the tax might apply to you or not, that you need to discuss your situation with an Accountant. We can refer you to an Accountant if you would like some help with your taxes.
Our third post is an interesting video from Al Jazeera from a retired CIA agent, which provides some food for thought.
On the 14th February 1997, Carey set up a financial planning business, in Turangi, with a goal to provide full service financial planning to people aged 35 to 55 and help them to achieve their immediate and long term goals and to keep working with them for the rest of their lives. 20 years later, the business has changed (Careys last name has changed from her maiden name of Hughes, to Peters name of Church), from Church Financial Services to Moneyworks, and at the end of 2016, the business was relocated to its new hub in Cambridge.
We are celebrating this anniversary this month, so we thought we would share our journey with you, and let you know what ‘financial planning’ is all about and let you know what we are up to now. Thanks for your support.
1. Moneyworks 20th Anniversary
2. What is ‘Financial Planning’?
3. Moneyworks Photos – For our 20th Anniversary, we have shared some of our photos with you – see more by clicking through and looking at the page on our website.
4. What are we doing now?
Happy New Year, while we are all waiting for summer to arrive, here is some food for thought to ponder in relation to your financial arrangements.
Thankyou for all your support over 2016, we look forward to working with you again in 2017.
Changes to tax can lead to unforeseen implications. The bright line rule that was enacted recently may cause problems for people who purchase a property in one name and settle it or transfer it into a Family Trust later. We have covered an article on Stuff about this in our first article. We then look at the what happens when you don’t share all your actual health issues with your doctor and then a quick look at how your loved ones can create new memories.
1. Bright-line tax rule could sting genuine homebuyers
2. One in Five Lie to Their Doctor
3. How would your loved ones create new memories?
This month we have some assistance for the procrastinators amongst us with the 5 second rule concept. We also look at by we want fund managers to ‘eat their own cooking’ and also why ACC isn’t the complete solution for insurance in New Zealand.
1. Why do you want your fund manager to ‘eat their own cooking?’
2. ACC – not the complete solution
3. The Five Second Rule – beware procrastinators
During August we ran two successful seminars in Cambridge and Hamilton, to talk to people about planning for their income in retirement. We have provided you with information below on the new Lifetime Income financial solution. It is also timely to look at some of the often forgotten benefits available within your insurance.
And for light relief – a mashup of dancing through the years, set to modern music.
This months theme is Tax. Not a pleasant topic, but an important one. Two articles, then a bit of light relief.
The topic of death and succession planning is one that most people don’t enjoy thinking or talking about.
This is a core part of our role as your financial planner. While we regularly give you information on the role of your insurances, it is important to make sure that your will is valid and will work as you want it to. There have been a few articles in the media recently which are worth reading, so we have highlighted these for you as the core of this newsletter.
With our house being a biggest asset (apart from our ability to earn), it is an important part of our financial strategy. This week we look at using KiwiSaver ‘second chance’ facilities to buy your first home, and the costs of home maintenance in retirement.
1. KiwiSaver ‘second chance’ first home buyer rules
Insurance companies have been in the news lately, so this month we have a focus on how you make sure your insurance will pay out. We then end with a quiz on whether you have a photographic memory or not.
1. When cheap insurance may not be the best (Youi controversies)
2. When will your insurance not pay out?
3. Do you have a photographic memory?
We have a focus on the new research into Body Language and the benefit of holding a ‘Super Hero’ or ‘Wonder Woman’ pose for 2 minutes before a meeting or presentation.
This month we are revisiting the issue of high risk Fixed Interest investments with a focus on two types of risky investments – Contributory Mortgages and CoCo’s or ‘bank hybrids’.
1. Managing your retirement investment funds – the risks of living off interest from fixed interest investments only
2. Fixed Interest – Risk and Return – Southern Cross Financial Contributory Mortgages (6.50%pa)
3.Fixed Interest – Risk and Return – CoCo’s and bank hybrids
If you are a financial adviser, being accused of churning is an insult. However, there can be good and bad churning – the clients best interests is the test. We review what churning is and how it can be good.
This leads us into reviewing what to look at when reading ‘expert’ research reports, opinions and comments.
Finally, we wrap up with a look at a funny TED talk about what happens when you engage with a spammer.
The end of the year already!
This is a light newsletter, where you can participate in a questionnaire and watch some dancing. We have let you know our Close Down dates and when we are back at work, as well.
1. Seasons Greetings and Moneyworks Closing Down period
2. How well do you know your country?
3. Beautiful dancing and music
1. How much income do you need in retirement?
2. 11 attributes of successful investment managers [From Magellan – Hamish Douglass]
3. Corruption across the world (in pictures)
1. Understanding the NZ Superannuation Rules
2. Beware online dating scams (particularly if you are a single older woman)
3. Is your KiwiSaver manager making too much profit? Or not enough?
Some important information about changes to Property Purchasing rules, and a reminder about how volatility impacts on your portfolio, and how KiwiSaver works.
1. Changes to Property Purchasing Rules from 1st October 2015
2. Volatility and your investment Portfolio
3. Common Misunderstandings about KiwiSaver
This month we have two articles looking at the role of assumptions in comparing investments and in planning for your retirement.
1. Retirement Planning – why assumptions are important
2. Investment returns – why assumptions are important
3. Are women bad drivers?
1. Investment Turbulence – why financial planning is important
2. Financial Advisers Act – why not make a submission?
3. What does your handwriting say about you?
1. The Value of Investment Conferences
2. Moving Office – Vitual Office
3. Milford $1.5m settlement with FMA
Some heavy and some light topics this month.
1. Does your funeral matter?
2. KiwiSaver First Home Buyer Opportunities Increased
3. The Worlds Strangest Laws
Term Deposits are the flavour of the month in this newsletter, along with an introduction to the revamped Moneyworks image and website.
1. New Moneyworks Website
2. How safe are your New Zealand Term Deposits?
3. How to get the most out of your term deposit investments
Getting your investment strategy right can make your life and achieving your goals a lot easier. In this newsletter we are focussing on KiwiSaver and Syndicated Property Investment Traps, and teaching you the kinds of things to look for when you are choosing an investment.
1. Is your KiwiSaver working for you? How do you know
2. KiwiSaver Statistics and information
3. Syndicated Property Trust failures – remember core financial planning principles
An end of year light hearted newsletter.
We will be closed from Friday 19th December, re-opening on Monday 12th January 2015.
1. Moneyworks Holiday Hours
2. Stress Free Holiday Checklist
3. 23 Things to Know about Money before you turn 25 (Actually at any age!)
1. Basic rules to consider with your mortgage
2. Are you getting the best deal possible with your mortgage interest rates?
3. Are you having difficulty in borrowing money for your first home?
This newsletter is investment and tax themed.
1. Are investors getting too greedy with fixed interest again?
2. Tax refunds, what is the risk that you owe IRD money if you do a tax return?
3. Warren Buffet Investment Quotes
Election Day – 20th September 2014. This is the first time since 2007 that we have seen major differences in parties policies that will impact on your financial planning. We have outlined the main policies that will impact you depending on the result of the vote below. KiwiSaver as a political football Age of eligibility for NZ Superannuation Tax on investments and residential property Income and personal Taxes Other interesting promises
1. Birthdays and Delayed Gratification, why is it important?
2. Is your ‘Stuff’ properly Insured?
3. Do you have US tax liabilities?
1. Travel insurance and credit cards – Important to read if you rely on your credit card travel insurance
2. Travel Insurance Trip-Ups
3. Buying things on your credit cards – is it worth it for everything?