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  1. Yesterday
  2. KiwiSaver Providers with no Fees on Accounts for Children

    Hi everyone, so here is the latest information I have from all KiwiSaver providers: Aon: the membership fees for those under 18 are reduced – from $49.80 to $40 each year Craigs Investment Partners: waive the administration fees for under 18s in the Craigs KiwiSaver Scheme Juno: the newest arrival on the KiwiSaver scene, they have confirmed they will be waiving all fees for those under 18 NZ Funds: waive the administration fee if $200 or more is put in each year Westpac: used to waive the administration fee for those who joined their Starter Pac programme – this is no longer on offer for those signing up. For more considerations to make on kids'n KiwiSaver, see here: https://sorted.org.nz/must-reads/kidsn-kiwisaver/
  3. Earlier
  4. Hi NelsonGirl, Equities refers to shares whether they are in a managed fund, individual stock or ETFs. I used to be in a managed fund and enjoyed good returns but recently transferred to ETFs. NZ Bond ETF would most likely follow an index in this case the NZ bonds market which will compromise of Government and private bonds. NZ Bond fund can choose over time to change their allocation and not follow an index but individually buy and sell bonds to try and increase their return. In this instance it seems NZ bond Fund has chosen to follow the market index to get the best returns but that could change. NZ bond market is quite small and therefore it does not matter by what name its called they all end up investing in the same bonds. A good indicator would be the risk indicator, an ETF would have a lower score and over time a higher return compared to a fund.
  5. Tina, your own personal approach sounds like one aligned with myself. When you say 'equities' are you saying that you are in a managed fund, individual stocks, or ETFs? Also, there's a NZ Bond ETF and NZ Bond option I'm looking at, but don't understand the differences in the bonds types given that it appears they're getting the same returns. ???
  6. Very true RichLife. Many professionals recommend basing ETF allocation on your age for instance if you are 70 years old putting 70% in bonds/cash and 30% in equities. If 30 years old 30% bonds/cash and 70% equities. Others to base it on when you plan to retire. And there is my personal favourite 60% equities, 10% property and 30% bonds/cash. I keep 5% cash amount as an emergency fund layered into 3-12 monthly term deposits just in case the markets do go down and I loose my job at same time. I can than live on the payments which mature every 3 months for a year while I look for a new job.
  7. Yes to the first part. The second part is harder and requires lots of reading. My process was to read nz and overseas finance blogs like the happy saver, smart and lazy, mr money moustache, the deep dish, etc. I settled on this: For the first few years while I don't have much cash (still at uni): Buy units in NZX top 50 and Vanguard International Shares Select Exclusions (unhedged) through the platform Investnow. I chose Investnow because I can do as little as 50 per month into those funds, and they charge no fees (other than what everyone pays to invest in the ETFs). Good alternatives would be Superlife or Smartshares, but they both charge some fees. Whatever you do, set up a regular automatic contribution so you can set and forget. Make it easy.
  8. I guess it all comes down to timeframe too. If you're going to keep your money in ETFs for 20+ years then short term ups and downs don't really matter (even rather large crashes). If you're close to retirement then you'd probably want most of your money in lower risk investment like bonds or term deposits anyway. A good strategy seems to be to transition your money out of the higher-risk higher-growth classes like ETFs into lower risk products as you age. For example, at some point you'd want to have roughly half and half. I don't know much about what a good asset allocation looks like for each age group, but if you spoke to an AFA you could probably work out a plan for when good times are to rejig your allocation as you get older.
  9. As a new investor with small amounts to invest is investing in managed funds a good alternative to kiwi saver and how do you select a reliable and ethical company to begin the process?
  10. Mortgage to pay off Personal Loans and purchase property

    I don’t think thats a good idea, home loans have huge interest and your not really getting any equity out of it like when investing into a home. When it comes to debt the good ol fashion way is the only and best way. Just like losing weight there are no short cuts. Either increase your income or cut costs down and try and put everything you can into the debt. Given you have budgeted out your living costs like food, rent, power etc... best of luck
  11. What does an insurance broker do?

    Hi Steve and Gill, I spotted your comments and was compelled to reply. It’s important to note there are two types of commission structures available to insurance brokers/advisers. Steve, the first is as you mentioned with one exception, higher upfront commission with low ongoing commission. The second option is low is upfront commission and higher ongoing commission. Both types of commission are paid by the insurer, not the client. In my opinion, the second option is by far the most client centric model as it promotes a service driven culture rather than a sales driven culture. It’s the commission structure my organisation has used for the past six years. An easy way to find out if your adviser is in it for the long-game is to ask them what their commission structure is. I hope this clears up any confusion around adviser remuneration.
  12. Hi Tina. Thanks for the feedback, you sound super smart and it's reassuring there are others (albeit a minority) out there that think as I do. I'll just keeping 'putting the beans away' as dollar cost averaging is my strategy. Thanks again.
  13. Hi Jaed, First of sorry you have had to go through all of this. Firstly, I would recommend also talk to ACC if your husband has a permanent injury and your house is not suitable for his needs, they may be able to help a little with making it a little more comfortable. A friend of mine had quicker help from ACC after damage to her home for her disabled son than the bank.secondly, have a look at this article which was in the NZ herald about banks including "ANZ https://www.nzherald.co.nz/personal-finance/news/article.cfm?c_id=12&objectid=10708833. Finally, I would recommend not to keep it quiet and talk online only. Contact FairGo and let the whole nation know about it. Who knows there may be others in your position and may want to team up. good luck and keep fighting. Its your hard earned money not theirs.
  14. For each of us we either recognise (or not) our shortcomings. Sometimes we get told about it by others but mostly not because we may react angrily to it. We all say we want to be told the truth but we cant take it. Its money week at present and we are all asking questions on income, debt, investing, etc. But I think the first thing we should identify and eliminate is what is holding us back? Responsibilities, family, bad habits, laziness, information, etc. I have learnt that the hard way so I am identifying mine which is indulgence, I am not talking shopping but entertainment which I have spent thousands on especially with my so called friends and in one night. It hurts the next day especially on the bank balance and when I have to work extra shifts to make up for it, my blood and sweat. So I have dumped these friends, secured my savings away where I cannot fritter them away and found at least 1 new friend who is into saving n investing. And thus my money has grown and so has life as I have become a more outdoors person. so can you identify what's holding you back and do something about it?
  15. Hi NelsonGirl, First of all good on you to be investing in ETFs, its not big here in NZ and most people have not heard of it or scared of investing in the markets. First a disclaimer, I am not a financial advisor just a person with a regular job who has been investing her money in the market for the last 10 years. I will advise you to speak to a financial advisor who will be able to advise you better. Now for your first question is there going to be a stock market crash? Nobody knows, it cannot be timed. But if we look at the statistics there is usually a significant correction on average once every 10 years. The last one was in 2008 and was caused as a result of high lending in the housing market and we all felt it. But statistics also show that the market always bounces stronger than when it crashed and it did not take 20-30 years to recover but a few years. 5 years after 2008 correction of the market, when the market had reached its pre2008 high again people were saying the market is going to crash. If I listened to them I would have lost the gains for the last 5 years. But lets say the market does correct itself by 50% (extreme). Someone invested 100% of their money in equities (shares) will lose 50% of it. Someone invested in 50% equities and 50% bonds will lose half of 50% so 25% of their money. Personally I have a 60/40 split of equities vs bonds in my ETFs as I can tolerate a 30% reduction in my investment. The bonds provide a lower but stable source of income regardless of what the market does. The good thing about ETFs is they don't invest in a few companies but an entire index so if even 10 companies shut down, the others would still be chugging along so your portfolio cannot go to zero, that's the beauty of ETFs. Now you just have to decide on your risk tolerance. Is NZ going to be affected by a US stockmarket correction? YES. NZ stockmarket is very small compared to overseas markets because we have more small privately owned companies rather than big multi national ones floated on the open market. If a 100 companies in NZ shut down, the NZX may decrease by 10%, the same happens in the US market, it may be 0.01%. plus most NZ companies export overseas and a downturn outside NZ is going to affect them. We also rely on lending from banks which in turn comes from overseas as well as tourism, all of which will be greatly affected in a market correction. So investing in bigger markets as well as smaller ones is going to be less risky, than investing in one small market. In my personal opinion, the market is slowing down due to tighter restrictions and the fear of a correction. If nothing big happens such as World War 3, we could still have a slower sustained growth for a few more years. Hope this helps.
  16. Car Loan Vs Credit Card same interest

    Credit cards usually have a minimum interest free period say for instance 55 days from the day of payment so you avoid paying interest for nearly 2 months. A car loan payment on the other hand charges interest from day 1. Also once the interest free period is up on a credit card, its easier to balance transfer the amount onto anther bank's credit card to take advantage of any balance transfer offers such as 6 months interest free. You cannot do this with a car loan. Plus car loans usually have additional costs such as administration costs of $35 and application fee of $250. Credit cards are free to apply for. car loans also have an early repayment fee if paid earlier which varies between companies but credit cards don't. Hope that helps
  17. Just figuring out loan options for a car and one question is doing my head in and I hope someone can provide an answer: If for example I would buy a 20,000 car and both car loan and my low interest credit card have exactly the same interest level is there an advantage between the two? It would be a dedicated card just for this amount and no other payments on that. I like to make regular payments but will often pay more. Also I might sell my old car in a month or so and pay back a larger lump sum in one go. Credit card debt is calculated on current balance but would a dedicated car loan add the entire interest of say a 4 year term on top (which would be around 5k) and then when I pay back more I have to service these 5k first? For example if I sell my old car for 5k then put it towards the car loan I'm still paying back 20k...? With a credit card this would reduce to 15k owed. Hope this makes sense...?
  18. debt

    Why would you not combine multiple high-interest loans into one single lower-interest loan?
  19. First thing I would say is: speak to an AFA because you can lay out your entire situation and get proper advice. Some people would use a home loan to pay off personal debt if their personal debt is high interest, and I don't see that as a bad option. I do see working 80 hours a week as a bad option though, because its not worth making extra money if you take on stress, health issues, depression etc. If your decision to buy a home is influenced by the idea of paying off personal debt then you definitely need to talk to an AFA. Do not take on such a huge piece of debt lightly, or for the wrong reasons.
  20. $20,000 in debt.

    I think the advice you provided in another thread is pretty good: And you repeated it again in another thread: :-) I'm curious why you are asking the question if you already know what to do? With 90k per year you could easily crush the debt quick and focus on pouring money into investing or savings.
  21. Hi everyone, I had a look at what happens when people don't have a will - have a look: https://sorted.org.nz/must-reads/no-will-no-way/ Cheers
  22. What would you pay first?

    Pay credit card then car
  23. Using savings to pay off debt?

    I think you need to sort out your income. How much do you make? The best option if i was you would be to pay all your debts off from your savings because if you leave it it will just build fees and interest. Once thats paid off then you can start investing loads of your income and nake real gains because you have no setbacks from your debts. Sit back and watch your funds grow.
  24. $20,000 in debt.

    Hi there, So i have in total 20k in debt from a credit cards, overdraft and student loan. I am a single guy making 90k per year. I have been investing most my income into bonds and kiwisaver, but should i just stop and pay off my debts first or keep feeding my investments?
  25. Should I have a credit card as an 'emergency' fund?

    A credit card is not by any means an emergency fund. Its just debt. Banks feed off of people that way.
  26. Debt or a savings stash?

    I think people should always have an emergency fund.
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