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When the boss sells out

There are many things that can have an impact on the value of a share investment - from the industry outlook, the local and global environment, to a consideration of who the Directors and Executive Management of the business are and what their business track records are. As well as the obvious issues, there are other things that will have an impact on the valuation and desirability of investing in a company from time to time. One of these factors was well profiled in the NZ Herald article by Ta...

A healthy economy should be designed to thrive, not grow (Kate Raworth | TED2018)

This is a TED talk that struck a chord with me.  It is a British Economist talking about whether everything needs to keep growing forever - and pointing out that in nature things have a limit to their growth - then they explode or die. She has developed her 'doughnut' theory, which makes a lot of sense. It is 15.54 minutes and I strongly recommend that you find the time to watch it - it is definitely food for thought, given how many problems we have in the Western world as a result of the focu...

Governance issues with listed companies

To get your money working for you (instead of you continuing to work until you die to have enough money to live off), a portion of your investment portfolio needs to be invested in shares (or equities). Owing shares of a company means that you are an owner.  You participate in the success of the company (by getting income streams as dividends and by increases in the value of the company – which is reflected in the increased value of your share). However, you also participate in the failure o...

How much would you pay to keep using Google?

My morning newsletter from The Economist is a valuable part of my day - even when I am too busy to read all the other newsletters, I save the Economist newsletters to check when I have time. The newsletter has between 3 and 5 summaries of articles, and you can get a limited free subscription.  Often the summary gives enough detail to understand what is happening, but sometimes, the information in the summary or the picture is just too enticing, and I have to pursue the information.  For your ...

Berkshire Hathaway AGM: Warren Buffett shares investing insights

Warren Buffet is pretty much the most successful investor ever, he is a legend and 42,000 people went to the AGM of his company (that he owns with Charlie Munger, they are both in their late 80’s now) this year.  This is an excellent video to give you a feel for the long term impact of investing in shares. Berkshire Hathaway AGM: Warren Buffett shares investing insights | The Economic Times Video | ET Now https://economictimes.indiatimes.com/markets/stocks/news/berkshire-hathaway-agm-warr...

Inflation - and why you shouldn't put your money in a savings account

Every now and then I come across an article that is so important, that I just have to share it with you. Susan Edmunds wrote this article in Stuff - and I thought it the nail on the head. So this blog post is really just sharing it with you! Here's why you shouldn't put your money in a savings account ...

Opening an investment for your children or grandchildren

Over the years, we have set up quite a lot of diversified investment accounts for our clients for their children and grandchildren. Time is a powerful ally of the investor – with us seeing more and more Grandparents keen to invest on behalf of their Grandchildren.  As we know investing money for a child’s future can last well beyond birthdays and Christmases. How does time work?  The best example is this graph of $10,000 invested since 1January 1992 until the end of 2017 - as you can see,...

Residential investment property and taxation issues

The taxation environment for residential property in New Zealand has changed quite a bit in the last five years and is likely to continue to change. ...

Managing your rental property

While it may seem easy to ‘buy a property’ and watch it go up in value, as you have your own home and know how that works, and at some time you have probably rented a property, it isn’t always plain sailing. Not all tenants are ‘dream tenants’ and there are a lot of potential issues relating to your rights as a landlord (not the least being the meth epidemic in New Zealand.) ...

The challenges of investing in residential rental property

Over the last few months we have had far more than usual queries from our clients about whether they should invest in residential rental property. This has come about as people see prices of properties soaring throughout the country, and as people own their own home, the thinking is ‘it can’t be that hard, you just buy a property and sit back as the prices go up and you make money’. We totally understand this perception, so thought it was a good time to update you on the pitfalls of inves...

The Financial Services Royal Commission in Australia

April 2018 saw a number of shocking revelations of the behaviour of the four main Australian Banks and AMP.  All of these companies operate in New Zealand (ANZ, Commonwealth Bank of Australia (ASB), National Australia Bank (BNZ), Westpac and AMP).  These have kept coming throughout May, with more information on various questionable practices from the big four. The commission was established in 2017 after years of pressure from whistleblowers, consumer groups, the Greens, Labour and some Natio...

What does the Australian Financial Services Royal Commission mean for New Zealand?

The four main Australian banks and AMP are significant providers of financial services in New Zealand.  They have the vertically integrated organisations that exist in Australia (selling their own products and clipping the ticket at each stage).  They also have incentive programmes for employees to sell products and KPI’s for them to retain their jobs based on the products and services sold. The Financial Markets Authority (the New Zealand regulator) and the Reserve Bank of New Zealand have...

Quota’s, incentives, and Moneyworks withdrawal from offering mortgage advice

Background In 1997 when I set up Moneyworks, there were very few options to operate in an ‘independent’ manner.  After a lot of research, I selected AXA (for insurance) and Armstrong Jones (for investment) as the two key providers for our clients.  The respective decisions were made on their competitiveness for our target clients, and their low cost, high returning innovative investment solutions. Both of these agreements had ‘quota’s associated with them.  We had no difficulty fulfi...

Are these the best kids test answers ever?

This article is from the Daily Mail in the UK via the NSZ Herald.  A little bit of light relief.  These are my favourites (Actually that was hard as there are some classics, but I managed to get ti down to three) ...

Global Investment Indexes outnumber Mongolians – what does this mean for monitoring your investments?

Over the last ten years, the number of ‘index’ products has ballooned. An index, an artificially constructed conglomeration of shares that can be used as a benchmark for investing. ...

Travel insurance is pretty important stuff

When our clients discuss their travel plans, we are pretty heavy handed on insisting that they put in place travel insurance (and good quality insurance too).  Your credit card insurance might be good quality – read the wording and policy document. It is vital that you know the rules of your travel insurance. In particular, if you have any pre-existing conditions that might affect your cover, you need to contact the travel insurance company and let them know. It will probably cost you more m...

So... how long are YOU going to live for?

Many of my parents friends are in their mid 80’s and only now starting to suffer from illnesses.  These people were born in the late 1920’s and during the 1930’s, when life was different, getting chores done was far more physical than today and medical care was not as developed as now.  Yet, they are continuing to thrive, many for a lot longer than they anticipated. As we learn more about health and fitness, and nutrition, we are likely to live for longer (even with the counterbalancing...

What might your retirement look like – the three stages of retirement

When we are creating our Retirement Savings Analysis for our clients these days, we calculate how long your money is going to last based on the assumptions of saving and spending that you establish with us. As you are likely to live longer than you might think, we make sure that this information shows you the impact of you living to 95 or even 100 years old. It used to be that you could count on living for 15-20 years after the age of 65, but we are living longer and longer now.  But we arenâ€...

Your health and your financial planning

Although part of a full financial planning process involves looking at the role of your insurances in achieving your goals this is NOT what I want to talk about today.  I also don’t want to talk about how mis-managing your money can cause you stress and affect your health (When I googled health and financial planning ALL the articles that came up – in three different searches were about this topic.) I want to discuss how your goals and dreams can get derailed, even if you do have enough mo...

Some entertaining tennis videos/ads

Roger Federer and the Robot (and of course Jura coffee) This one is always a good one to make you laugh. Roger Federer and Rafael Nadal cant stop laughing when they are trying to record a promotional vido. And Roger Federer again, this time with Nike   Finally - if you are enjoying these - here is a link to a whole lof of ads and videos (many of them starring Roger Federer) https://www.followyoursport.com/article/41854/funny-tennis-videos-players-in-commercial-ads/ ...

Taking a break from reality - the Australian Tennis Open

I can’t recall the rationale that we used, when we first went to the Australian Open Tennis in Melbourne in 2007, for choosing which days to attend, but it has worked well for us.  After going to the tennis every year for five years, we took a long break, until deciding that 2018 was the time to return to being an in person spectator. If you haven’t watched professional tennis in person, it is difficult to explain how different it is to watching it on TV.  While good commentary on TV (and...

Tennis, Business and Money

When Peter and I attend or watch sports we make a great team. Peter is passionate and knowledgeable about the sports side of the contest, and I am fascinated by the business of the sport.  The professional tennis world is a huge business world. In our seven years absence from the Australian Tennis Open, the business side has become even more commercial and lucrative for the organisers and the stars. The prize money (which is the same for both men and women) has increased dramatically from 2007...

5 tips on how to be better with money in 2018

The start of the year is the time of New Year Resolutions, and we all know how easy those are to break. So instead, why not take this time and change the way that you deal with your money? One of the tricks that our clients have - is that by working with us each year, they have an annual check in - and an accountability to themselves, through that annual review meeting with us.  ...

What is your money personality?

Understanding how you interact with money will help you with managing your money - whether by yourself or working with a life partner. Sorted has money personality quiz, that it is worth taking the time to complete.  Check it out at Sorted Money Personality Quiz. I completed the quiz to see how realistic I thought it was - and am pretty comfortable with my results. Of course, they are influenced by the fact that I live and breathe the world of money and finance and talk to people about money ...

A financial to-do list

We all know how easy it is to procrastinate about money things. Here is a checklist of things that it might be time for you to review and sort out: ...