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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

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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. ...

Pets at Christmas [Infographic]

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Curb your Christmas Spend

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How is your KiwiSaver going?

Our most popular KiwiSaver blog posts are when we publish a commentary on the investment returns on KiwiSaver funds. We use the publicly available Morningstar KiwiSaver Performance Survey, which is updated each quarter. Here is the latest survey. Morningstar KiwiSaver Survey to end of September 2013 ...

KiwiSaver fees - how important are they really?

With the recent release of the new Sorted KiwiSaver Fund Finder (see the following blog post How is your KiwiSaver going?) several prominent commentators have been vociferous in their opinions that 'total fees are the most important factor' in choosing your KiwiSaver provider. ...

How are you more likely to die? [Infographic]

This amusing infographic reminds us to make the most of life (and to have all our life insurance in place and up to date!).  Check out some interesting statistics on what the likelihood is that you will be killed by part of an aircraft falling on you, being eaten by a shark, or just walking across the road! ...

Do you have super in the UK or USA? Or have you brought it back since 1st January 2000?

The rules are changing on 1st April 2014 and it affects you.  This DOES NOT affect any Australian superannuation you may have in place. The tax rules around transferring your super to New Zealand have been complicated and unclear.  As a result, the Government have 'clarified' these tax rules.  Although the new legislation is effective on 1st April 2014, it is important to note that it applies to ALL TRANSFERS FROM 1st JANUARY 2000.  ...

Top 10 Bizarre Insurance Claims (with thanks to Listverse.com)

Top 10 Bizarre Insurance Claims (with thanks to Listverse.com) Have you ever been hit by a flying Christmas tree while driving? Claimed that your mobile phone got wedged in the back end of a cow? Prepare for deep immersion, readers, into the world of bizarre insurance claims – some of them spectacular, some of them sad, and some of them inviting a hearty WTF?! 10 Back End of the Beast ...

Gifting to Trusts and Residential Care Subsidies - you can gift less than what you might think...

In New Zealand, we seem to have a love affair with the Family Trust (or correctly, the Discretionary Family Trust.) It appears that we have more Trusts per head of population than other countries.  The Law Commission review on Trust law estimates that there are between 300,000 and 500,000 Trusts in New Zealand.    ...

How many assets can you hold on to if you go into residential care?

With the recent Court decision about how much 'gifting' can be protected from residential care subsidy assessment (Gifting to Trusts and Residential Care Subsidies – you can gift less than what you might think… ) we thought it would be useful to provide an update on how much of your assets you need to use up paying for your residential care before the Government subsidy kicks in. Historically this amount of assets was locked at a static level.  However, now it increases with inflation each...

Bonus Bonds - the money or the bag?

If you have been around for a while like me, you will remember Selwyn Toogood, Teneke Bouchier and 'the money or the bag'?  Its in the Bag was a much watched game show in the 1970's in NZ.  After answering questions correctly, contestants got to choose 'the money or the bag'.  They knew how much the money was, but choosing the 'bag' was a lottery.  It could be a 'booby prize' - like a clothes peg, or something amazing and worth far more than the 'money'. ...

Broken bones and mortgage and income protection insurance payments

The best insurance cover is the cover that pays out when you need it.  At Moneyworks, our goal is to make sure that your insurance works for you. So, we were thrilled the other day to be able to help a client with an insurance claim, only 4 months after the policy was put in place.  Not all insurance polices are made equal (see other blog articles for more information).  One of the insurers that we recommend to clients is Partners Life.  One of the reasons that we like working with Partners...

High fees for running a Trust - are they worth it?

Over the last few years, I have had a number of my clients with Family Trusts ask my advice on whether they should retain the Trust going forward.  As part of providing financial planning advice, we also make recommendations to our clients about whether a Family Trust is relevant for them or not. Although having a Trust can be seen as 'sexy' and 'fashionable', for people who are not self employed, and are in stable long term relationships, we often come to the conclusion that the disadvantages...

ACC will pay me... Are you sure? Check out the'degeneration' wording

If you are anything like me, as you are getting older, the bones are starting to creak a little and ache a little (particularly during or after exercise.) Until a universal youth elixir is invented, aging is part of reality. As we get older, there is also a higher risk that we will get injured or ill and be unable to work for a period of time.  But, you say, that is okay, as I am covered by ACC.  Yes, and no.  ...