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.
A second-wave wobble | COVID-19 special focus
By now, most people are aware that our world – especially the situation with COVID-19 pandemic – is changing and developing lightning fast. A mystery COVID-19 outbreak in Auckland on 11 August has forced the government to postpone the dissolution of parliament as the country’s alert levels changed at noon on 12 August.
Should investors bother about election results?
The 2020 New Zealand general election will be held after the currently elected 52nd New Zealand Parliament is dissolved or expires. It is a chance for Kiwis to vote for not only who will lead our country for the next three years but also who will take charge of our COVID-19 economic recovery.
The new face of wealth and legacy
Whilst no one sets out to leave a financial mess behind if they lose mental capacity or pass away, but if you want to leave your family fond memories rather than confusion and conflict, you need to properly consider and document your legacy plans.
Vices and virtues | Covid-19 Special Focus
I often hear stories about how people mistake their knowledge, expertise or success in one area for giving them some insight into investing or investment markets. No one should ever make the mistake of believing their brilliance in one area will equal brilliance elsewhere.
Property investors feel the pinch | COVID-19 Special Focus
Recently, a story popped up on the landlord section of an online property investment forum. The story is an extreme version of what we view as the risks associated with property investing. It was exacerbated due to Covid-19, but it's illustrative, nonetheless.
The cost of short-sighted investing | COVID-19 Special Focus
If you are frequently checking the portfolio balance, then you may see a rise in your anxiety and stress levels. Behavioural finance studies confirm that investors tend to be more cautious when they check portfolios regularly, with adverse long-term consequences for their investing goals.
The pre-retirement squeeze | Covid-19 Special Focus
As we are going to have to find a way to co-exist with the coronavirus, it will continue to change lives, goals and plans. It seems clear retirement goals and lifestyle intentions post Covid-19 may not be as expected.
Gotta be right twice | Covid-19 Special Focus
In mid-January 2020, China was announcing confirmed human to human contact of Covid-19, locking down Wuhan province and building temporary hospitals. While many investment managers carried out daily operations, some had their eye on China.
Slashed dividends | Covid-19 Special Focus
Dividend stocks are a staple of every income investor, and they can play an important role in any portfolio, regardless of age and financial circumstances. But it is very much possible that dividend investors can fall into the trap of hindsight bias if they are not careful and sufficiently diversified.
Forward-looking | Covid-19 Special Focus
Do you find it confusing when a bleak economic report emerges from the press, only to be accompanied by a positive surge in the global share market? You're not alone. The last few months have produced many examples of a stark contrast between global market performance and economic indicators.
Time to rethink your retirement income | Covid-19 Special Focus
The spectre of zero and negative interest rates are looming over the New Zealand financial market and those looking for a haven can't find much relief. Last week, the Reserve Bank of New Zealand (RBNZ) deputy governor Geoff Bascand suggested at least some bank depositors might want to put their money to use elsewhere.
Investing FOMO | Covid-19 Special Focus
Investing FOMO is when you watch a share price soar to new highs, and you realise you missed out on the opportunity. You might spend the next hours, days, weeks thinking about what could have been the returns. This type of self-talk and do-it-yourself financial planning is damaging to your mental health and retirement goals.
How to invest during a downturn | Covid-19 Special Focus
Over the past few weeks, we have been answering lots of money and market-related questions that members of our community have asked. Not surprisingly, a lot of the questions have had to do with the market volatility and how that can, or should, affect their investments.
Budget from the dark side of the moon | Covid-19 special focus
Budget 2020 is unveiled under the most challenging economic conditions since 1984 and with expectations from the whole nation that it will cushion the economy from the fallout from COVID-19, the stakes are surely high. This budget is seen as the voyager for our journey around the dark side of the moon.
Wild west of lending | Covid-19 special focus
LVR restrictions are one of the four macro-prudential tools used to help reduce risks with rising household debt. So, why would the RBNZ take LVR restrictions to the woodshed which could potentially push the household debt to newer heights when uncertainty abounds?
