Holding property does not make you wealthy.  In fact, it can cost you quite a bit. Wealth, by true definition, isn't about one's worth, but about enjoying a lifestyle of choice without worry.[i] Many punters have underestimated the actual costs of holding a home, or had it downplayed by others who dangle the prospect of ‘being on the property ladder’ in front of them as if it were a guaranteed investment. For many, the tried and tested mantra has been to buy the most expensive home they can afford or that the bank will allow them.  And then rinse and repeat through ‘post code jum ..read more

Inflation will always drive-up prices, though the pace at which it impacts our wallets has been particularly rapacious in recent times. Think of inflation as the silent thief. It’s the rate of prices increasing in an economy over time – or, how much your money today will be able to buy in future. This difference between the buying power of $20 in your pocket today and $20 in a year’s time can be different. The rate of inflation is how we measure exactly how much buying power we’re losing. So, while the thief isn’t physically reaching into your pocket and yanking that $20 out, they’re still ..read more

When it was revealed the tax rate on trustee income would be increased from 33% to 39% from 1 April 2024, there were understandably a few feathers ruffled. It was a sledgehammer approach which proposed significant collateral damages to small and medium sized trusts. We can understand the ‘why’ behind the move. Tax works differently for trusts. Since the introduction of the 39% personal tax bracket in 2021, there have been concerns expressed that people would use trusts as a means to divert some of their income to be taxed at the lower 33% rate. So, the new Bill is a way to ensure these high ..read more

As mortgage arrears surge to pandemic-era heights, it’s time to return to the old chestnut of owning property as ‘investment’. According to Centrix data, homeowners are falling behind on their mortgage payments at an alarming rate. Arrears climbed to 1.47% in January, escalating from 1.40% in December 2023 – that works out to almost 22,000 accounts overdue, and a whopping 16% increase year-on-year.January also saw a 4% uptick in mortgage enquiries.[i] The latest market commentary suggests that we may be facing more profound and extended financial stress in the near future.[ii]   Clearly ..read more

In the intricate world of financial services, trust is the bedrock upon which relationships are built, decisions are made, and success is achieved. But what exactly constitutes trust? How can you quantify trustworthiness when seeking help with your financial plan? Enter the Trust Equation, a powerful model that dissects trust into four essential components: Credibility, Reliability, Intimacy, and Self-Orientation.[i] Let’s explore each of these facets and understand how they shape trustworthiness when choosing to engage a financial adviser.   1.Credibility: The Words We Speak Credibility ..read more

Most of us likely understand wholesale to mean ‘cheaper than retail’.  Wholesale stores usually sell to other stores rather than directly to customers, so buying at wholesale price typically means saving a few bucks on the retail markup that stores would use to make their profit. Concerning investments it is a different matter, and one that has been getting a few companies in hot water recently. Wholesale investors, broadly speaking, are people or organisations who have sufficient previous investing experience that they do not require disclosure.  This can be for all offers of fin ..read more

There is little love to be found in any financial or business headlines lately. Profits are down year on year for household name companies. Air New Zealand is down 38%[i] compared to the same period last year; Genesis has reported a 32% profit drop in the last six months to December.[ii] The Warehouse Group just sold Torpedo7 to Tahua for $1 in a bid to focus its energy on core business, which was down 6.7% across divisions at last reporting.[iii]  Fletcher Building investors have scrambled to dump shares after the company announced a first-half loss, and the impending exit of CEO Ross T ..read more

I recently saw an article titled “Why you should never retire.” This doubtless sent a chill down the spine of a few readers before they clicked into it – but the essence of the article was sound. If you think of retirement as one big, long holiday where you do nothing… you should not retire. Not like that, anyway. Best case scenario, you will be bored to tears – worst case, the monotony of inactivity will take a serious toll on your mental acuity, your health, and your relationships. Lifespans are getting longer. Retirement, the Third Age, might be just as long (or longer) than your career ..read more

The best things in life are free; one of the best things you can do for your kids is prepare them for adulthood by teaching them about money. For little more than your time and transparency, you can set your kids up with good financial habits before they are thrust into a world that encourages spending over any other money behaviours. Our children look to us to learn how they should navigate the world around them. Whether they stick to those ideas is another matter, but our input and actions can be extremely influential; for better or for worse. Physical piggybanks may be a little outdated ..read more

This time last year, everything ground to a halt. Telecommunications and electricity were down for weeks in some areas. It was a long time before the damage could be fully understood, and to date, some places still have not recovered or been rebuilt. They are still at risk, should there be heavy rainfall, be that from a lack of restored access or simply the permanent change in the landscape from Cyclone Gabrielle’s fury. I would like to take a moment in this article to acknowledge everyone who lost a home, livelihood, or worse, a loved one, in this event. The impact the storm had was quite li ..read more