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Have you ever wondered why: At the end of the month you have very little money saved? Or, Maybe you were going to put money away in your savings at the end of the month, but then wonder why there is little to nothing to put away? Both situations are common. Even before the Covid-crisis struck, it was widely known that nearly 4 in 10 Kiwis were living “pay check to pay... Read more Read more

In a word, yes, NZ interest rates are likely to fall further. Here’s why: NZ’s term deposit rate is much higher than in similar developed countries, including Australia, the UK, and Sweden. The Deputy of the Reserve Bank of New Zealand (RBNZ) recently cited this as a reason the RBNZ had to do more to bring the interest rates down. The RBNZ is NZ’s central bank. Central bankers... Read more Read more

The New Zealand share market, based on the widely-tracked NZX 50 index, is at a new high, passing the previous record set shortly before the Covid-inspired crash. These ‘new record high’ headlines might cause head-scratching, as we are simultaneously being told we’re in the middle of a major economic crisis, which will probably see widespread job losses and business failures continue... Read more Read more

For good reason, property investment remains a favourite type of investment for many Kiwis. Listed property commonly refers to a type of property investment that could be a welcome addition to the investment portfolio of many New Zealanders. Background – REITs and listed property A real estate investment trust (REIT) is a company that owns, operates, or finances income-... Read more Read more

Elections are happening soon in both NZ and the US. In case you’re wondering why we mention the US, that’s because it’s the home to the world’s largest financial markets. The US is also the wealthiest nation by some way, and is the home of the most-used currency. This means any major events, such as an election, can have a significant flow-on effect to the rest of the world. Over the... Read more Read more

It’s no secret that Kiwi’s love cars, but did you know that NZ ranks third in the world when it comes to motor vehicles per capita? – we even outrank the car-obsessed United States! Most of us buy a new car every few years, and while Kiwi’s love cars, before you purchase one it might pay to remember: Most cars spend 95% of their time sitting idle somewhere. Buying a car... Read more Read more

Just in case you missed it, interest rates in NZ are at record lows after steadily sliding downwards for at least the last 10 years, and most analysts predict they will drop further. This is great news for nearly everyone who’s borrowed or is borrowing money (including those with mortgages who haven’t fixed the term for too long), as they won’t be paying so much in interest. This... Read more Read more

Recently released research by the Financial Services Council suggests that a NZ financial adviser is worth the impressive sum of $1.5m over 25 years to every person they assist. If you haven’t already received the backing of an adviser, what better time than now? The Financial Markets Authority has developed some initial questions it suggests you ask when selecting a suitable... Read more Read more

By nearly all measures, the NZ housing market has performed better than expected. So far, house prices are defying logic, expectations, and even belief, as they shoot up to record highs amid the health and economic crisis. How much have house prices increased? According to the Real Estate Institute of New Zealand (REINZ), the median house price for NZ increased to $675,000 in... Read more Read more

Most people make one common investing mistake until well into their lives. Before elaborating on the issue, and its simple solution, let’s define the terms ‘simple’ and ‘easy’ with the help of an online dictionary: Simple: as having only one or a few parts, easy to understand or not complicated. Easy: something that can be done with ease, is not hurried, is not... Read more Read more

With NZ’s general election coming up and the world in the grips of an international pandemic, knowing how to spot fake news, misinformation, and conspiracy theories is more important than ever. The term “fake news” has varying definitions, though can be approximately defined as poorly researched, heavily biased, or intentionally incorrect journalism. It is often of a sensational nature... Read more Read more

Since Bonus Bonds started in 1970, hundreds of thousands of Kiwis bought them for themselves or as gifts for relatives. You might have been given some at some point, possibly to lose track of them over the years. Bonus Bonds were started by the government and sold via the post office. In 1990, the bonus bond investment product was sold to ANZ Bank. Bonus Bonds were marketed as “the... Read more Read more

Countries’ economies tend to move in cycles. Like nearly every country worldwide, we’re currently in the midst of another downturn – even if some of the effects in NZ have been delayed by generous taxpayer-funded policies such as the wage subsidy and mortgage holiday and extension. This is nothing new, and there have been plenty of downturns in the past (recessions), each caused by different... Read more Read more

Home loan rates have been slashed again - with TSB offering a one-year home loan rate of 2.49 per cent for borrowers with a loan to value ratio (LVR) of 80% or less. The stunning low rate is believed to be a market record and puts it marginally lower than all the other major banks. Home loan rates dropped to all-time lows this year after the official cash rate was slashed to 0.... Read more Read more

The typical Kiwi family of a heterosexual married couple and two or three children is no longer the norm. In his new book, The New New Zealand, Professor Paul Spoonley of Massey University looks at how our families have changed. These trends include: Increased divorce rates, More single parents, Same-sex partnerships are now common, Young adults might spend longer... Read more Read more

People grow a lot when they are faced with their own mortality. Despite having no formal qualifications or experience, Bronnie Ware found herself working in palliative care – where the patients are those who had gone home to die. Over the years she spent tending to the needs of those who were dying, Bronnie's life was transformed. Later, she wrote a blog about the most common regrets... Read more Read more

A “six figure income” means earning $100,000 or more each year before tax. Having a six-figure income can be a serious game changer for your family, your finances, and your future financial health. For the financial year ending 2019 – the most recent period the IRD provide data for – only about 12% of the NZ workforce earned a six-figure income, which is about 6% of all Kiwi’s. (Noting... Read more Read more

The Reserve Bank of New Zealand’s (RBNZ) Deputy Governor doesn’t want there to be an abrupt end to the six-month mortgage repayment deferrals (sometimes called a mortgage holiday) banks have been offering existing customers since the end of March. This has been predicted by most commentators in the area, as NZ’s general election and the end of the extended wage subsidy scheme – which... Read more Read more

Earning power is crucial to financial wellbeing, and recent events in NZ and worldwide have highlighted the need for people to carefully select their chosen line of work. Even before “the great lockdown” the automation of many roles was already occurring (in other words, robots taking jobs from humans). Covid-19 has only accelerated this trend – and many others. As NZ and the world’s economies... Read more Read more

NZ’s main banks saw a decline in mortgage lending demand over the first half of 2020 and expect a further fall in mortgage demand for the rest of the year, according to a new Credit Conditions Survey released by the Reserve Bank (NZ’s regulator of banks and insurers). The survey started prior to the announcement of lockdown and was completed in the last two weeks of June 2020. It asked... Read more Read more