Clearly anyone can quickly pick up cooking, laundry or start the hedge trimmer if needed, but finances can be daunting and difficult if there’s no familiarity there. A lack of financial knowledge can be paralysing if a person is suddenly confronted with financial demands.
New Zealand appears to be stuck in an economic malaise. Household debt has never been higher, wage growth tends to lag, and gross domestic product per capita (everyone’s share of the economic pie) annual growth has been shrinking. And this was with interest rates already at record lows. Solution? Cut interest rates further.
The hype in new IPOs continues to be huge. The recent announcement by Hawke’s Bay Regional Council approving to float a 45% stake in the Napier Port on July 15th has stirred up a lot of interest among many investors in New Zealand.
Neil Woodford has a neck thick like a rugby player and a head shaped like it was chiselled out of granite, it could be mounted somewhere on Easter Island. Imposing is an appropriate word to describe his appearance. Woodford is a man screaming conviction.
In Greek mythology Sirens were beautiful half-bird/half female creatures, but you couldn’t trust their appearance. They lured passing sailors with beautiful music and melody toward their island home. While not quite as dramatic, the world of investing has never been short of sirens and their songs. These mostly manifest, not in tune, but in story.
Is your will drawn up? Do you have a power of attorney? Aside from ensuring your investments are right for you, your financial adviser should have a healthy interest in ensuring a few other things in your life are addressed.
Any company can run into difficulty. Most potential good news is already built into the stock price of a blue-chip favourite. Bad news tends to be unexpected and can cause significant damage to the share price.
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.