Blog

What is a non-bank lender?

Non-bank lenders are becoming more mainstream and can be a great solution for those who might not otherwise be able to obtain lending.

Save Household Expenses

New Zealanders are currently dealing with what some have called a cost-of-living crisis, as prices are being driven up for all kinds of common goods and services. To help keep more funds in your back pocket, here are 15 ways you can save on household expenses.

How to Increase Your Home Value

Buying a house can be a great investment, though nobody can control how the ebb and flow of the property market might impact your property value. One surefire way to grow value is to increase it yourself! Here are 10 upgrades to consider

Will You Pay a Wealth Tax?

As talk of taxing wealthy NZers is on the rise, let's take a look at how this might work, and whether you might have to pay up!

NZ Banks Lift the Interest Rates Used to Assess Mortgage Applications

Two of NZ’s largest banks have increased their servicing rates for mortgages over the last couple of weeks, in effect making it harder for Kiwis to get a mortgage

What We Can All Learn From Billionaires Right Now

How you might be able copy the current moves of the wealthiest people in the world.

New Zealanders ranked fifth richest people in the world

2016 saw New Zealand named the world’s best place to live as ranked by the Legatum Prosperity Index. This has now been followed by the Credit Suisse Global Wealth Report that ranks New Zealanders the fifth richest people in the world. New Zealand has leapfrogged the UK, Singapore and Belgium to be fifth. The Swiss remain the world’s wealthiest at $US562,000 total household wealth, ahead of...

Monetary policy statement signals ‘steady as she goes’

The Reserve Bank of New Zealand’s Monetary Policy Statement (MPS) is always closely reviewed by Milestone financial advisers. The MPS is a quarterly assessment by our Reserve Bank of what they believe is happening in NZ, internationally, and the impact upon our financial stability. The February 2017 MPS signals a ‘steady as she goes’ approach for the remainder of this...

Have you insured your largest asset?

For many of you reading this, the first thought you may have about your largest asset may be that it’s your house, an investment fund, a business, or perhaps a share portfolio. However, for nearly anyone reading this still in paid employment, (or in other words, if you haven’t retired yet) your largest asset is usually your ability to earn income. That’s because your financial security – and...

Top five investment tips from Warren Buffet

Warren Buffett is possibly the world’s most successful investor. Buffett is one of the richest men in the world and investors in his company, Berkshire Hathaway, have enjoyed outstanding returns over a long period. The secret to his success is not ‘sexy’; it is about adopting a disciplined and patient approach to investment and avoiding the normal traps of behavioural finance. Here he shares some...

5 steps for retiring early

For many New Zealanders, retiring before age 65 is the lifestyle Holy Grail. The dream is to kick back, spend time with family, friends and loved ones, and travel extensively. They subscribe to the view of “casting off the drudgery of day-to-day work and enjoying the good times as you only live once!” It sounds appealing, but many who attempt early retirement find the financial burden too...

Reserve bank has a positive outlook

Global economic growth has increased and become more broad-based over recent months. However, major challenges remain with on-going surplus capacity and extensive political uncertainty. Stronger global demand has helped to raise commodity prices over the past year, which has led to some increase in headline inflation across New Zealand’s trading partners. However, the level of core inflation...

Where to live when you get older

Where to live when one gets older is an issue we all need to confront at some stage in our lives, be it making the decision for ourselves, or assisting a loved one to make that decision. Moving into a retirement village or rest home is now becoming more popular. However, there are other choices: Stay in the same house and modify it with ramps and rails, install assistance alarms, and get in...

Why is the Reserve Bank worried about high household debt levels?

In its May Financial Stability Report, the Reserve Bank of New Zealand revealed the results of stress tests designed to assess the vulnerability of households to service their mortgages if rates rise. Its findings show a high number of owner-occupier households would be under financial stress if rates jump, which could collapse the housing market as defaults rise and demand weakens further...

Why am I not wealthy?

From time-to-time, many people ask this question about themselves. Often, the people who ask it are hard-working, well-educated, high-income individuals and couples. These days there seems to be too many such professionals who are facing a bleak retirement. Sometimes they realise this too late in life. So, why is it that so many people in this situation aren’t wealthy? The answer to this...

Good insurance advisers secure big payouts for clients

Insurance can often turn a terrible situation into something more tolerable. However, when an insurer declines a claim, then it tends to magnify the unpleasantness and compound an already stressful situation. This is when a good insurance adviser is worth their weight in gold. Recently, two of our insurance advisers went to bat for their clients and won them sizeable payouts. Neither of the...

One-third of Millennials are living with parents

As the father of three Millennials (identical twin girls aged 23 and a son aged 26), I pay a great deal of attention to articles and studies on this largest generation – especially since our kids keep coming home and thinking that what is in our fridge should rightfully be theirs. Given the sheer size of this generation, and its vast effect on the economy for decades to come, we should all be...

Family trust law reform

Trusts are an important part of New Zealand society and the economy. It is estimated there are between 300,000 to 500,000 trusts in New Zealand. The Government is moving to update and improve the general law governing trusts for the first time in 60 years. Generally, the proposed reforms seek to clarify core trust concepts such as what constitutes a trust and what duties a trustee has. The...

Give your finances a spring makeover

We have now officially said goodbye to winter and are enjoying the first days of spring. Now is the time to take a fresh look at your finances to ensure you are on track to achieve your financial goals. Talk with us about your financial plan but, before doing so, consider the following: Are you getting the best from your mortgage? Interest rates are likely to start rising, so do you fix a...

Southern Cross Cancer Assist

We believe that advice should be affordable and accessible wherever you are in New Zealand. To do this we embrace technology to deliver a low cost, high quality service. At Milestone Direct our advisers are trained and obliged to put your interests first. We are here to ensure your financial goals are understood and an appropriate financial recommendation is presented to you and your family: one...

7 reasons why your term deposits could be your worst enemy

A term deposit is one of the safest investments there are, though what’s little known are the risks and disadvantages of investing in term deposits.

5 ways you could be wasting money on insurance

Term deposits are perhaps the most well-known type of investment. A term deposit is essentially an agreement with a bank to deposit a lump-sum for a fixed period, for the benefit of receiving a specified rate of interest. What’s little known are the risks and disadvantages of investing in term deposits - the seven points below explain how your term deposits could be your worst enemy...

The benefits of using a mortgage adviser (mortgage broker)

While it’s widely accepted that most New Zealanders are , recently our advisers here at Milestone Direct have been seeing people who are over-insured. Being over-insured basically means you are wasting money on insurance. After a mortgage, personal insurances such as life insurance are one of the most important personal financial decisions you can make in life. Too much...

Why do I have to keep proving who I am?

When looking to borrow money for a property, many people don’t realise the benefits that working with a professional and experienced adviser can offer – including helping them get the best overall mortgage deal. Using a mortgage adviser could save you tens or even hundreds of thousands of dollars over the lifetime of your mortgage. Here are the top six advantages of using a mortgage...

5 reasons why you should spend your kids' inheritance

Life is too short to delay having fun, read on to learn the five reasons why you should spend your kid's inheritance ("SKI")

How to get the most from your car insurance

Thought of spending your kids' inheritance? This concept now even has a new term dubbed “SKI’ing” – spend your kids' inheritance. Below are five reasons why this is a great idea. 1. Life is way too short to delay having fun You’ve worked all your life despite the long hours, difficult bosses, obstacles to overcome, and endless deadlines. If you’ve built yourself a healthy nest egg, this is...

Five financial mistakes to avoid in your 20s and 30s

If you’ve insured your car, boat, or other vehicle, the chances are that you can get more from your insurance. Here's the top four ways how: 1. Excess Your insurance excess is the amount you pay before your insurance kicks in. Choosing an excess that isn’t right for you can be a big mistake. Generally, car insurance companies will reduce your premiums (the annual or monthly payments you...

Don’t save money

You may have heard the old saying that ‘cash is king’. Once upon a time, this was a true statement. Since then, cash has been toppled from the throne. The word save is defined by the Oxford Dictionary as: ...

What is a managed fund?

A managed fund is a pool of investments that is managed professionally by an expert fund manager. In a managed fund, your money is pooled together with other investors' money to create a single fund that provides significant investor benefits, which include an instant increase in buying strength and tax efficiencies. An investment manager then buys and sells shares or other assets on behalf...

How to increase your wealth

Knowing how to increase your wealth is a challenge in the present environment. The world is still returning to a ‘normal’ state after the global financial crisis of 2008. For example, while New Zealand is still experiencing historically low interest rates, much of the world has negative interest rates. Another example is housing affordability, which is an issue worldwide, not least of all...

Financial wellbeing in retirement

Despite financial wellbeing in retirement being essential, you’ll still frequently see some concerning headlines about funding retirement or retirement planning. For those of you who’ll retire soon, or have just retired, read on for eight secrets to ensure your golden years are free from financial worry – and can become the best years of your life.

How to avoid an investment scam

Avoiding investment scams is becoming even more important, as recent Australian data shows investment scams have now overtaken romance and dating scams as the most lucrative method of fraud.

How the rich spend their money

Ever wondered how the rich spend their money? Here at Milestone Direct, our advisers see such a wide range of people that we understand the spending habits of a wide range of New Zealanders – including the rich. To help you replicate the habits of the rich, here are seven ways the wealthy spend their money. For those of you wondering what’s so great about being rich after all, scroll down to...

Can you trust a retirement calculator?

Retirement calculators seem to be popping up everywhere, and people are betting their financial future on them every day. Unfortunately, the calculators are often giving fictitious outputs based on assumptions that have little to no chance of being accurate. Here are six reasons you can’t trust retirement calculators, and what you can do to ensure you’re getting the best predictions for a...

What to do when investment markets drop

By its very nature, investing involves risk. When you invest any sized sum, whether it's into a property, KiwiSaver, shares, or a managed fund, you accept the risks associated with that particular investment. The nature of all investments is that there are constant market fluctuations - peaks and troughs - when investment values rise and fall. However, with nearly...

We’ve moved! - See Milestone Direct’s new office

The new place Milestone Direct has just moved into a brand-new office in Smales Farm, Takapuna. The team now shares the top floor of the Business Hive building (B:Hive) with other major and minor businesses including divisions of financial heavyweights ANZ, ASB, and KPMG. While our old office served us well, and we made some great memories there, we couldn't be more excited about...

Financial rip offs

We all know that sinking feeling of knowing you’ve been ripped off. Unfortunately, in the financial world there are quite a few offerings, products, services, and outright rip offs that you should be aware of. Awareness can help you avoid that sinking feeling. While many of these financial offerings are appropriate under the right circumstances, it can sometimes still be difficult to tell the...

The best financial advice

Multimillionaire author and speaker Jim Rohn famously said that we’re the average of the five people we spend the most time with. The principle is that the more quality time we spend with good people, the more pearls of wisdom we begin to hear from them, then the more wisdom we implement in our own lives. Here’s some of the best financial advice you’ll ever hear, collated from experts including...

Do you really need a financial adviser?

In a perfect world, we would all have a financial adviser who you could check in with regularly, including calling before making any investment decision or big purchase. But while nearly everyone benefits from working with a financial adviser, the cost often prevents it being worthwhile. Clearly, advisers must charge a certain amount to make a living (and don’t even get us started on the rising...

Gym memberships are a waste of money

“Getting more exercise” is routinely the most common New Year’s resolution. However, while joining a gym may seem admirable, it is generally one of the worst investments you can make. The reasons for this are deeply embedded in the way all humans make and keep commitments to ourselves, the business model of the fitness industry, and even behavioural economics. But before we get into all that,...

New Zealand rental property tax changes

Hot on the heels of introducing restrictions to property ownership by non-residents and the extending of the “bright line test” for taxable property sales from 2 years to 5 years, the Labour-led coalition government is now following through with another of its property-related proposals aimed at levelling the playing field for taxpayers. Whilst most people were busy buying Christmas presents...

New Zealand rental property tax changes

Hot on the heels of introducing restrictions to property ownership by non-residents and the extending of the “bright line test” for taxable property sales from 2 years to 5 years, the Labour-led coalition government is now following through with another of its property-related proposals aimed at levelling the playing field for taxpayers. Whilst most people were busy buying Christmas presents...

How could proposed banking changes impact your mortgage rate?

Recently proposed changes to the amount of financial backing New Zealand banks need to operate could have a significant impact on all New Zealanders with a mortgage – or about to get one. Such changes could also impact those saving money in the bank.

How to say no to a purchase, even when you can afford it

No matter what you earn, building a comfortable savings and investment nest egg will be difficult if you’re constantly spending on a multitude of things – even if you can afford them. While nice things and experiences can be tempting, here are four ways to ensure you say no to purchases – even when you think you can afford it. 1. Perform some quick maths to check your reality Do a little...

Is rental property investment still worth it?

Property investment has been a great method of wealth creation for many New Zealanders over the years, especially for generations such as the ‘baby boomers’. But recently, a lot of things have changed, or are about to, including: Especially in larger cities, yields are too low to make a cashflow profit, It is becoming harder to offset any rental property cashflow losses against...

How to become more wealthy

For many, it can seem like becoming wealthy is an impossible task. This feeling can be made worse by present-day realities such as expensive housing and low interest rates for any money we save in the bank. Thankfully, according to research which canvassed a wide range of millionaires, becoming wealthier requires only two qualities that anyone can develop: perseverance and resilience. That means...

Financial lessons you wish you knew as a teenager

Imagine if what we know now about finances, we knew back in our teen years – how much better off would we all be? When most of us were in high school, we didn’t learn anything about money, budgeting, or investing. However, nowadays, by the time you leave your teenage years, you’re hopefully no longer financially clueless. Here are six of the best financial lessons you wish you knew as a...

Travel mistakes that could blow your budget

The holiday season is approaching fast, and many of us have already started planning trips away. Keep your hard-earned money working for you by avoiding these seven holiday travel mistakes on your next trip: 1. Using public Wi-Fi, especially for financial transactions When you’re travelling it can be tempting to connect to every airport, café or hotel Wi-Fi signal you come across...

How to deal with financial uncertainty

A wise man once said: ‘the only constant in life is change’. Of course, a part of change is uncertainty. While you may not be able to prevent yourself from all forms of uncertainty, you can surely prepare well in advance for any kind of financial uncertainty that may occur in the future. 1. Establish an ‘uncertainty fund’ Similar to an emergency fund, an uncertainty fund is a sum set aside...

Relief for first home buyers

Recent research confirms what many of us may have been thinking – that things are looking better for first home buyers. This particular study is called the Massey Home Affordability Index, and to determine their conclusions, researchers ran a series of calculations which consider the cost of borrowing (mortgage interest rates) as well as incorporating house prices and wage levels. In summary,...

Have term deposits done their dash?

Traditionally, term deposits have been a popular strategy for many retirees and Kiwis who weren’t quite sure about how to choose or access other investments or needed to access the money in the near future. What has happened with term deposits? Before the Global Financial Crisis (GFC), New Zealand’s Official Cash Rate was sitting at 8.25%. The official cash rate tends to influence the rates...

How to improve your credit rating

Even if you have a faultless record of repaying any debts, if you’ve ever applied for a credit card, home loan, phone contract or hire purchase agreement, you probably know the feeling that comes when you hear the words, “I’ll just have to run a credit check”. When a lender runs a credit check, they’re requesting information that relates to your history of repaying debt to help determine...

9 small financial steps that will pay off big in the future

American financial guru and self-made millionaire Suze Ormon’s nine financial steps are a great overview of personal finance, and while most of the steps would apply to most people, all steps don’t suit everyone. Susan, ‘Suze’ Ormon built a career as a US financial adviser who progressed into a range of areas including hosting her own personal finance TV show and authoring books on financial...

How to avoid supermarket rip-offs

Supermarkets are useful one-stop shops for a variety of goods. However, in case you weren’t already aware, the multi-billion-dollar NZ supermarket industry is dominated by two players, so we don’t have much choice when it comes to our weekly shop. The big two are: Woolworths New Zealand (owner of Countdown and franchisor of the SuperValue and FreshChoice stores) and Foodstuffs (the name...

What is a financial asset?

The word ‘asset’ has a rigid accounting interpretation, though let’s keep things simple and stick with the Oxford dictionary definition which considers an asset to be In contrast, Oxford defines a liability as Most of us understand financial assets as...

What is a financial liability?

The word ‘liability’ has a strict accounting interpretation, though for the sake of this article let’s keep it simple and stick with the Oxford definition of a liability as The opposite of a liability is an asset, which Oxford defines as The common...

Don’t let supporting your adult children ruin your retirement

Many millennials are having a tough time launching their adult lives. The usual blame for this is placed on burdensome student loans, job insecurity, high housing or rent costs, and – of course –surplus cash regularly devoted to smashed avocado on toast and the latest iPhone! As a result, perhaps it’s no surprise that many parents of these grown-up children are offering financial support....

What is market timing?

Timing investment markets is everybody’s dream. Self-proclaimed “financial gurus” may lead you to believe they have market timing mastered, and that by following their steps you’ll be on a certain path to riches. In fact, if these self-proclaimed gurus knew how to consistently time the market the last thing they’d do is tell everyone else about it – they’d be far too occupied cruising the...

Mortgage rates to increase

Interest rates on mortgages and other loans are estimated to rise by between .20 and .60 percent as a result of the Reserve Bank's decision to require banks to put an extra $20 billion of capital into their businesses. The Reserve Bank put the figure at .20 percent, while ANZ believed the impact could be up to triple that, with other estimates somewhere in between. This is because the Reserve...

The worst ways to waste money

To help you learn from the mistakes of others, here’s a quick-fire list of the 25 worst ways people waste money: New cars. The average depreciation rate for new cars in New Zealand is 40 percent in year one, then 20 percent for the next three years. Enough said. Overpriced phones. When the newest model smartphone offers negligible benefits compared to the...

How to make the most of current mortgage rates

The last few months have provided the perfect storm which has benefitted borrowers and punished savers. New Zealand interest rates (or more specifically, the Official Cash Rate) remained unchanged at one percent in November. This left those who’d been holding out for a further drop in mortgage rates disappointed. Given the next review is not until February, with several economists...

When to overspend on a house

When you’re house hunting, the amount you can afford to spend is all-important. After all, you don’t want to end up house poor, or worse-still, unable to maintain your mortgage repayments should your situation change, or mortgage rates substantially increase. In general, we’ll hardly ever encourage anyone to spend more on a home – in fact, the opposite is much more likely the case! However, in...

What is minimalism?

Minimalism is growing in popularity across the world. Documentaries, podcasts, and books have been made and written about minimalism, explaining how it can change your life for the better leaving you debt free and with more time to work on personal relationships. What is minimalism? It’s difficult to define minimalism because it means something different for everyone. Minimalism is...

Does money make you happy?

A new survey has identified that rich people are much happier with their lives than those on middle and low incomes. Many people could have guessed that without a poll! But the reason this survey is interesting, is because a widespread range of earlier studies have shown there's a happiness "saturation point" - the mark beyond which more money doesn't have much impact on your day-to-day mood....

Mortgage lending soars

The more funding there is available to purchase homes, the more the price of homes can rise. The mortgage lending market is growing robustly according to the Reserve Bank’s latest figures, which recorded a $1.1 billion jump compared with the same month a year earlier, the fourth such increase in a row and the strongest burst of activity in four years. The total we all owe in mortgages is...

Jobs that technology will replace

Earning income is crucial to financial wellbeing, but it’s tough to earn if you’re replaced by a worker who never sleeps, gets tired, or asks for a pay rise – these workers are called robots! At first, robots will make existing jobs more productive. But ultimately, jobs will be lost as robots assume more and more of the work. One famous Oxford study went as far as suggesting that 47...

How to save money on your weekly grocery bill

If you think you’re spending more at the supermarket lately, you’re probably right. That’s because NZ food price inflation has ratcheted up in price over the year to January 2020 – increasing at nearly double the rate of inflation. (Inflation is the general increase in prices and fall in the purchasing value of money over the years). Feeding yourself - and possibly others - can sometimes be a...

What is a reverse mortgage?

A reserve mortgage is a loan that can enable an ‘asset rich, cash poor’ older homeowner to access the value held in their property by taking out a loan secured against their home. There are usually no regular repayments on the loan. This means the homeowner will receive capital – i.e., money – and in exchange, they delay payment of the loan until they die, sell the home, or move out of the home (...

NZ’s newest tax

From April 1, 2020, you’ll be hit with a whopping 45% "non-declaration rate" on interest and dividends if you fail to give the interest payer your IRD number. The Inland Revenue Department (IRD, who collect taxes for the NZ government) has issued new guidance on resident withholding tax (RWT) for interest and dividends from bank accounts and investments. RWT is the type of tax you...

Negative real rate of return for term deposits

Interest rates are at record lows and have been falling for some time now. This is good for first home buyers (who can expect low interest rates, which helps them gain homeownership by reducing the regular mortgage repayment required), but has a bad impact on those keeping significant sums of cash in the bank without good reason. So, how bad have things got for savers? To answer, let’s first...

What can first home buyers do to protect their KiwiSaver?

It’s quite normal for the prices of shares and other investments to go up and down – especially when there’s uncertainty due to oil price fluctuations and coronavirus (Covid-19). The recent volatility has reinforced the importance of being in a suitable fund choice – or mix of investments – to match a range of matters including the overall purpose of an investment, how long someone will be...

The worst mistakes to avoid in a market downturn

Following a decade-plus of generally positive investment markets across the globe, a significant downturn among share markets is finally upon us. Here at Milestone Direct, we don’t pretend to know how bad the downturn will be or how long it will last, however, we do know that some investors will make costly mistakes before values rise again. Here are the four most common financial errors...

How to prepare for a home auction

Auctions can be a great way to buy a home, however they can also be challenging and stressful, particularly if it’s your first time. Auctions can bring out emotions based on attachment to a potential home, excitement, and sometimes they can also bring out a sort of primitive urge to win. With other methods of sale, you can make an offer, but you usually won’t know how many other people have...

Ways to save money

The great depression of the 1930’s spurred a “waste not want not” attitude that defined consumer patterns for a generation. Decades later, the oil supply shock in the 70’s led to the first efforts of energy conservation and efficiency. In more recent times, we quickly progressed from usual life to a covid-struck situation. To help keep more funds in your back pocket, here’s a quick-fire list...

What is dollar cost averaging?

Dollar-cost averaging is a wealth-building strategy that involves investing money at regular intervals over a sustained period. It is a smart investment technique employed by investors worldwide. This is the opposite of simply investing a lump sum all at one time. Rather than trying to time the market, you buy in at a range of different price points. If you’re a KiwiSaver member and you...

What is a mortgage holiday?

Housing is one of the largest expenses faced by most households. To assist with this challenging time, the ‘Big Four’ banks (ANZ, BNZ, Westpac, and ASB), as well as some smaller banks and lenders, have announced that customers affected by Covid-19 can apply to go on a mortgage repayment holiday for three to six months. However, this “holiday” might not be as good as it first sounds....

Your KiwiSaver journey (30 sec video)

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We care - and we're here for you (brief video)

Why you need an emergency fund

Most financial experts say that you should have a sum of money set aside that totals at least three to six months of living expenses. This should be readily accessible and is commonly called an emergency fund. Despite this, according to NZ comparison site “Finder”, as of February 2020 more than a third of Kiwis only have enough money to get from one payday to the next, and one in five of us...

How to prepare for a recession

Most experts agree that the global economy is currently heading into some type of recession. Many people are already out of work, and many others are heading into a period of economic uncertainty. Yet, in those stories about a coming economic recession, there’s almost always a key part missing: what does it practically mean for me? A recession means a higher unemployment rate, which means more...

What is a recession?

A recession is a significant decline in general economic activity in a designated region, most often measured by country. It is usually recognised as two consecutive quarters of economic decline, as reflected by Gross Domestic Product (GDP). GDP is the total monetary or market value of all the finished goods and services produced within a specific area – such as a country or state – during a year...

Jobs for a bad economy

While no job may be completely recession-proof, some are more likely than others to stay in demand. If you think that there’s trouble on the horizon of your chosen field, maybe you could look for a job or start a business in one of these 10 areas? 1. Medical professional Working as a doctor or nurse can be a great option, but there are many other opportunities as well, including...

Financial traps and scams to avoid

Like a pack of sharks who smell blood, the scammers are already circling. A decade or so ago during the Global Financial Crisis, investment fraud and other consumer scams were rampant. As any crisis spurs a degree of fear among at least some of the population, it’s no surprise the scammers are back in force to prey on people’s uncertainties, fears, and lack of knowledge in some areas....

LVR restrictions removed

The Reserve Bank of New Zealand (RBNZ), who regulate NZ mortgage lending, has decided to remove the loan-to-value ratio (LVR) restrictions until 1 May 2021 in response to the Covid-19 pandemic. This change marks the end of nearly seven years of LVR limits. What were the LVR restrictions? LVR restrictions were limits placed on banks by their NZ regulator to reduce the amount of low-deposit...

What will happen to NZ house prices?

Before the epidemic struck, in most parts of NZ, home prices had been booming for some time. Reasons for this included record low mortgage rates, building and land restrictions, high immigration, and high levels of employment. The property market is about to undergo a rapid change due to the flow on effect from the virus-related economic slowdown. It is a near certainty there will be a drop in...

What has changed with KiwiSaver?

A major drawback of KiwiSaver is the fiddling and tinkering to it which has occurred since it began. This is often politically motivated, though fortunately, most of this years’ changes seem to be minor improvements. Read on to learn more.

Will taxes go up?

No one likes paying more tax – so what’s the likelihood we could be facing a tax hike in the near future? The NZ government (i.e. all taxpayers in NZ) have just borrowed a lot to get through the economic impacts of Covid-19 and the associated lockdown. Cash has been splashed around to try and prevent a worse economic situation than is already developing. Please let us be very clear: we’re not...

How to manage financial stress

Sooner or later, you’ll probably deal with some financial stress. Many Kiwi’s are already in this position, which might be caused by rising debt, a job loss, insufficient earnings, high living costs, or even money troubles in your relationship. Whatever the circumstances, being worried about money takes a mental and physical toll, plus it can strain relations with your significant other,...

Who wins in a recession

Are you ready to expand as the world contracts? Even in the current dire economic situation, plenty of people will still emerge as winners. Winners know that recessions are not something to fear but are rather opportunities for those who are properly prepared. Here are the top seven characteristics of winners in times of a recession: 1. The win-win mindset Winners know that perspective...

What is a black swan event?

A share market crash is a rapid and usually unanticipated drop in prices. The most recent one was recorded on 12 March 2020, in response to the coronavirus pandemic. Such drops often lead investors to wonder: are such drops normal for share markets, or is this different? You might have heard experts and the media call this a “black swan event”. Defining a ‘black swan’ event A black...

How to invest in gold

Whenever the economy gets turbulent, the fans of investing in gold emerge. They’re sometimes called “goldbugs” and will shout from the rooftops that the world is doomed, and that the only logical investment is gold. They usually make at least a few good points, and their arguments can sound quite convincing. But, is gold all it’s made out to be, and if so, what’s the best way to invest in it...

How our brains lose us money

None of us are perfect – that’s what makes us all human! We all make mistakes (big or small) every day. Sometimes our mistakes are minor with few consequences, and other times our mistakes are major, perhaps we make a mistake which impacts our health, those close to us, or somehow costs us money? We improve our chances of avoiding such mistakes if we’re aware of the common mistakes that our...

Is funeral insurance worth it?

One of NZ’s biggest insurers just ceased offering an insurance product that we’ve long said was nearly always a waste of money: funeral insurance. In fact, this type of insurance policy was placed sixth on our list of biggest financial rip-offs. What is funeral insurance? Not to be confused with life insurance, funeral insurance is a type of insurance policy that can help your family...

How to buy your first home

Buying your first home can be tricky. Over recent years it’s been difficult to visit any New Zealand news site and see an article about housing unaffordability. The increase in property values over recent years has pulled back a little (even before Covid-19 struck), but for many, purchasing your first home can still seem like a far-fetched pipedream. Despite this, home...

How to avoid lifestyle creep

Lifestyle creep is one of the deadliest financial traps in modern life – worst of all, it can sneak up without you even noticing. Before we look at a quick list of six ways you can avoid it, let’s explain what lifestyle creep is and give a few examples. What is lifestyle creep? Lifestyle creep occurs when your standard of living improves to become more expensive as your income rises – which...

Making it work when adult children move back in with their parents

Graduating from university, getting an apprenticeship, or taking an OE (overseas experience) used to be a right of passage, not just for young adults but also for their parents. It marked a glorious time when the young “left the nest”, and the parent’s job was done. The child had been raised to become an adult, and now they were embarking on their own journey in life. How times have changed...

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The Become Wealth Blog

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