It's been a year like no other. A global pandemic. Economic downturn. A global race for a vaccine. A nationwide database to trace outbreaks. 2020 is finally in the home stretch, although there is no magical fast forward button to hit on New Year's Eve to get us to 100% normalcy – but 2021 is looking hopeful.
A Christmas Tree
Brent Allcock recently joined Stewart Group to support and serve our clients in the greater Wellington region. Brent and his wife Sabrina moved back to New Zealand from Singapore after being away for 30 plus years. Sabrina loves New Zealand but misses her family back in Malaysia. Knowing that Brent went Christmas tree shopping so we could decorate the house and the tree and make it homey. But the tree didn't arrive in time. Read what happens next.
ESG Investing hotter than ever
The only thing hotter than the Hawke's Bay summer right now? ESG funds. Between April and June, as the COVID-19 pandemic gained speed worldwide, funds that prioritised ESG investing saw global assets under management hit a record $1 trillion, according to Morningstar. That was on the back of net inflows of $7.1 billion in those three months alone.
The Value Dilemma
Every investor will face a conundrum at some point: what to do when their beliefs don't work. Sometimes it's an assumption that becomes lore. A favoured company paid a dividend for 20 straight years. Of course, it's not going to ever stop paying a dividend… then it stops paying a dividend. A dagger to the heart! An outrage, there were plans for that money!
Running a Trust in 2021 and beyond
The Trusts Act 2019 ("Act") will take effect from 30 January 2021. Running trusts under the new regime can be divided into three components — functional, emotional, and ethical. Neglecting to invest trust property or poor investment choices can be reasons for the breakdown of trusts.
Gifting that might be taking
New Zealand has remained prosperous for more than a decade if you're judging based on recessions, but it hasn't happened without creating wealth divisions. The property ladder issue has led to some parents feeling the need to help the kids reach the first rung. What are the issues?
Falling out of fashion
One of the main reasons people invest in term deposits over other investment assets is for safety. But not many realise the risky fact that New Zealand does not currently have a deposit insurance scheme. A long-standing Reserve Bank’s policy is aimed at allowing a distressed bank to be kept open for business while placing the cost of a bank failure primarily on the bank's shareholders and creditors, rather than the taxpayer.
The slippery slope of borrowing money
Many of us will agree that the COVID-19 economy in New Zealand has resulted in record-levels of government borrowing and Reserve Bank lending. Soon it may challenge the idea that we are supposed to keep those two things separate.
Through a different lens
With most things in our life, we get a second opinion of some form or another. From purchasing a new car, changing jobs, getting a doctor's opinion, or entering into a new relationship, we want to make sure it is right for us before we make a serious decision that impacts our future. But why is it that so many of us do not tend to do the same for our financial health?
True value creates true wealth
Finding the best place to put your investments and KiwiSaver can be tricky, but you don't have to do it alone. A financial adviser can help build a portfolio based on your risk appetite and goals. An adviser with a fiduciary duty will have tools to assess how much risk you are happy to take and develop a plan to reach certain milestones in your life.
Beyond 2020 and Elections
On the night of October 17, 2020, I like five million other Kiwis, watched the general election results roll in. Based on pre-election polls there was little doubt that Labour would form the government again. the New Zealand markets were unrattled by the result and looked pretty steady with investors relaxed after the Labour Party secured a historic majority in the general election.
Get ready for Life Two
If ever there was a word that needed to be retired it is retirement. What kind of mental picture does this word invoke up for you? Is it sunny beaches and no longer having to set an alarm clock? Or a stressful feeling about how much longer you will need to work to afford such a lifestyle?
Investing in fashionable technologies
Ever stopped to wonder why you’re using a particular new word or phrase? Or maybe you’re sitting in the back of some strange person’s Toyota, they’re driving you to some strange person’s house where you’re staying the night in their guest bedroom. How did that happen?
Should you expect unexpected returns with FAANG stocks?
Investment returns have two parts: the expected return and the unexpected return. The expected return is the best guess of what will happen based on all the information currently available. The unexpected return is the surprise, the difference between what does happen and what was expected. Investors should base their portfolio decisions on expected returns, not realised returns, and the two can differ by a lot.
Is 2020 the year of ESG Investing?
Started in the 1970s, the sustainable investing movement was already showing strong growth before the pandemic hit and the ESG-managed investments world-wide had reached almost USD 31 trillion by start-2018, a 34% increase over two years.
Financial & mental wellbeing go hand-in-hand
As a society, we are finally beginning to have more honest and supportive public conversations about mental health, but too often the connection between mental health and money hasn’t been recognised.
Bonus Bonds: One birde in the hande is better
Questions are coming in; folks are weighing up their options and wanting to know what is the best investment vehicle out there to put their Bonus Bonds money in as the ANZ's 50-year-old scheme will be wound up with money returned to bondholders.
Sentimental value can destroy monetary value
One of the staples of investment media and stock picking newsletters are the ‘if you had invested…” stories. The writer will pick a well-known stock, go back to a point in time (usually the IPO) and inform us how many millions we would have today, if only we had invested a specific dollar amount into that stock. It’s meant to make us feel like fools for not jumping aboard at the right time.
Bonus Bonds: Last stop for the gravy train
Okay, this one created quite a stir in financial circles. ANZ Investment Services (New Zealand) decided to stop Bonus Bonds and wind up the investment scheme by the end of October and return funds to bondholders. Here is a thought for those who feel disheartened.
Money under the mattress
In its latest interest rate decision on 12th August, the Reserve Bank of New Zealand maintained its official cash rate at 0.25 per cent but also raised the possibility of going into negative territory as the country faces the severe economic impact caused by the pandemic.
