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Tina last won the day on September 1 2018

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  1. yes I have an AP in place but sometimes I make more or less money to invest and would have liked to have direct debits instead. when I was with InvestNow, there were a lot of glitches and compared to superlife and simplicity I found daily updates and totals slower and not in detail. I tried it for a month only before I transferred all money to superlife and simplicity. Only recently I have transferred to superlife as I have found it suits what I want. I have heard that Investnow is bringing more ETFs in now so may give them another shot in future.
  2. Hi NelsonGirl, in reply to your original question on a market crash, I would like to add/change something. In light of some proposed changes by our government, rising fuel prices, US-China tensions and the world summit currently happening, on a personal gut level I feel the market is about to crash. also, The increase in natural disasters which in turn has led to increase insurance premiums is slowing down many countries if not causing a downturn already. Investors are scared and it is shown on the many fluctuations on the index front over the last month. It could be a small bump in a series of long bumps or it could be the snowballs beginning to form eventually into an avalanche. In light of that I have decided not to quit the equities market completely but now my portfolio has an allocation 0f 80/20 split. this reduces my average return from 7% to 4%. I am currently bumping up my emergency account and not contributing any extras towards my portfolio. I will be happy with this rate of return for another 12 months. these are my opinions and feelings, but I would like to know how others feel as well.
  3. A few months ago I enrolled myself into InvestNow, Superlife, Simplicity and smartshares. I put $10,000 in each and than tried to set each up as per my investment strategy. I found InvestNow did not have enough ETF options to suit my strategy. They also did not have automatic balancing as per my strategy nor could I see all my totals daily. Smartshares is an issuer of ETFs so it had a lot of ETF options but service was poor. Also the whole setup seemed more expensive. Simplicity is a good option to invest and forget as it has predetermined allocations and indexes which make up their funds and that's why it can afford the low costs. But as I had specific indexes and allocations I wanted to follow, this was not suitable for me either. Superlife I found had the ETFs I wanted to invest in and I could allocate my own split of shares and bonds. Yearly fee is $12 and each of the etf funds have their own management fee which for NZ is fair. Plus I can change between ETF funds, change my allocations and automatically rebalance my account at no extra cost. the only downfall is I cant transfer money to them. I have to fill out an online form to authorise them to take the money out of my account which takes 2 days to happen. Overall I found superlife suitable for me.
  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. 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.
  6. 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.
  7. 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?
  8. 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.
  9. Tina

    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
  10. Hi Marilyn, Nice to see someone who does not give up but keeps going when life gets tougher. a few suggestions though. I would recommend an emergency cash account as your access to Kiwisaver may not happen for sometime and unexpected costs may derail your plan. As for 600k mark, it depends on where you decide to live. I have travelled a bit around NZ for my holidays instead of going overseas and have decided on medium sized town to live in when I retire. Invested in a house there while I work in Auckland. over the years all costs have been paid by rent earned and it should be mortgage free in a few more years so will end up personally costing me nothing. It also comes with a sleep out which I will over time change to a 2 bed unit for my retirement. It has a garden where I hope to grow my own fresh veges, shop locally and lots of places for me to explore in my golden years. In todays money, I calculated I would need $200/week to live that life which would be covered by renting out the house. Kiwisaver will take care of everything else. this will balloon 5 or 6 times if I decide to retire in Auckland or Wellington. its something to consider what kind of lifestyle you may want when you retire and than build on it now. also to consider is would you need a 3 bed house or just a unit if its one person and your children are going to take care of themselves. less rooms to pay for and clean in your golden years.
  11. I have a slight difference in opinion. It is about right and wrong and about the maths. The purpose of investing is to benefit the economy overall but the current super system is no longer working if it is not able to cover a retiree's retirement and the government is finding it harder to sustain the current payments and any future payments and any increases to match inflation. People are living longer and the old system is not working. Something would have to give, the payments, increase in taxes or rising of debt or retirement age. Overall this would not benefit the economy or the public and the ones who are struggling to make minimum payments would be the worst hit. The old purpose of investing is more concentrated in now and here. The new purpose of investing is to secure our future by doing the hard yards now, otherwise why invest at all and take the risk. Just put it in a nice savings account or under the mattress where it Is safe. If we struggle now while we still can and do an extra few hours to save that $18 in Kiwisaver today, it may return 10 fold to us in our retirement when we cant struggle as much to work. And we still have control as to where and what to invest it such as cash savings accounts only. At present the current taxpayers are paying for the super payments and every 1 taxpayer is covering 3 super payments. That ratio is going to increase overtime and so is the tax to fund it. If Kiwisaver becomes compulsory today, it will take the burden off future taxpayers maybe even us by covering our retirement using Kiwisaver thus less super payments needed and in turn less tax which means more savings for the future taxpayers to pay into their Kiwisaver accounts to fund their retirement. Moreover, more money in hand would equate to spending more on improving your own quality of life, thus using and paying for more services such as healthcare, shopping, entertainment, studies, etc yourself and reinvesting that money into NZ's economy and people. NZ super can become obsolete either way with it becoming too expensive to pay for it or not needing it at all. Which will it be better for the future economy and the public than?
  12. There would always be objections to a new law but that does not necessarily mean its wrong. When Kiwisaver was first introduced, there was a lot of negative comments but to date almost 3 million NZers have joined in and so many NZers have also used it to assist in getting into their first home or when they have faced financial hardship. Sometimes money kept away from one is a good thing for later when one actually needs it. And I am not saying everyone one should contribute $5000 but keep minimum compulsory what it is 3% which equates to $18 for a person working full time on $15 weekly. But make maximum contributions $5000 with an incentive of $1 to $1 government contribution up to $5000. This will be incentive for Kiwisavers to contribute more which will help them in their retirement. We would not know until we try
  13. I think only your own contributions and employers' contributions should be allowed for early home grant and the government contributions should stay in the kiwisaver.
  14. Hi so according to this article $20852 a year is given by the government to over 65s but most likely this would not be enough for all of us. That' over $500,000 per person over 30 years. In comparison, $521.43 max is given per year to those who are trying to save for retirement in Kiwisaver. Would it not be better to make kiwisaver compulsory from the age of 18 and give at least $1 for $1 incentive up to $5000 by the government to encourage people to save for retirement. Add $5000 ur contributions, government contributions and $1000 employer contributions from 18 to 65 years of age at 5 % interest would amount to $2 million for retirement. And would only cost the government $235,000 per person over 47 years half of the nz super cost. What do you think?
  15. Tina

    The 52 week money challenge

    Well done. I am Definitly impressed.