As a topic of conversation, investment is like sports. Everyone has an opinion. And the strongest opinions often come from those who spend more time in front of the TV than out on the field. Practitioners, meanwhile, are wary of anything labelled a sure thing.
Making sensible investment decisions is difficult. We are subject to a range of behavioural biases. We have to cope with incessant noise around financial markets. We behave in ways that are inconsistent with our long-term investment objectives. So, what can we do about it?
Some positive KiwiSaver changes are coming into effect from 1 April 2019 and later in the year. These changes will provide greater options for New Zealanders to see their retirement savings increase over time.
When we obtain advice from a financial adviser, the fee charged should be transparent, and the fee in transparent dollar amounts is for the advice received, not for a product.
Digital innovation has democratised access to financial information to the point where anyone with a smartphone, a few apps and real-time news and data feeds can be like a pro trader. But who wants to do that? And do you need to?
Finance journalists tend to write lots of articles about industries or sectors because these stories fit a current narrative. In the tech stock boom, it was the information revolution. In the mining boom, it was the rise of China.
Although financial markets are awash with randomness and uncertainty, there are obvious, vital and, often simple, cues that as investors we seemingly choose to ignore or disregard. This results in poor choices and often disappointing outcomes.
So, renting a home always equals throwing money down the drain, and buying a home is key to building equity … right? Nope. That rule is as outdated as a horse and carriage. In fact, more people are deciding to keep on renting — indefinitely. Why? People have different financial goals.
Purchasing life insurance is one of the most important financial decisions people will make in their lives. There are approximately four million life insurance policies in force in New Zealand, with consumers paying $2.54 billion in annual premiums.
Those of you in your 30s know it's the decade when a lot of significant things happen. Along the way, there are some smart money moves you can make now that "Future You" will seriously thank you for.
We'd all love for the market to go on a tear forever, reaching record highs and blowing minds; but the truth is, downturns are a reality, particularly if you are a long-term investor.
The new year is a time of reflection; a ready-made reminder to us all that we should perhaps take stock of what's happened and what will come next. It is a good time to ask a very simple but profound question: What could possibly go wrong over the course of the coming year?
One old adage about investment is that you buy a bunch of reliable stocks, stick them in your bottom drawer and forget about them. That ignores one pesky fact: nothing stays the same.
Men and women are different when it comes to money. Not the most outrageous statement. It's something financial advisers who sit across the desk from the sexes on a daily basis have no problem telling you.
I hear young people complaining on a regular basis that it’s impossible for them to save money. The list holding them back is a long one – student loans, minimum pay, rent, coffee, and the desire to enjoy their youth.
People rarely take this approach with their finances. Often, financial matters are treated like an overstuffed, messy closet that needs to be dealt with but remains closed and put off for another time
Timing the market is tough, as is basing an investment strategy on economic or market forecasts. But we can do ourselves a favour, both materially and emotionally, by accepting that volatility is a normal part of investing and by sticking to a well-thought-out investment plan agreed upon in less stressful times.
Despite recent market volatility KiwiSavers should be happy with their investment. Now is not the time to be cutting and running or you will miss the benefits of long term investing. Even default funds are doing better.
Volatility is back. Just as many people were starting to think markets only ever move in one direction, the pendulum has swung back the other way. Anxiety is a completely natural response to these events. Acting on those emotions, though, can end up doing us more harm than good.
A couple that decides to form a long-term relationship does more than create a legal and spiritual bond. At the same time, the personal and financial goals probably shift and become more complex.