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Investing has sometimes been viewed by New Zealanders as a dark and mysterious field. Fortunately, as Kiwi’s become more familiar with a wider range of investments – such as KiwiSaver, shares, property, or managed funds – this is steadily changing. Unfortunately, at times when we know a little bit about something, we become more dangerous than if we knew nothing at all. Consider this old... Read more Read more

Stress testing (sometimes called torture testing) is a form of deliberately intense or thorough testing used to determine the stability of a given system, critical infrastructure, or entity. It involves testing beyond normal operational capacity, often to a breaking point, to observe the results. Stress tests are used in many fields: The most well-known might be a fitness... Read more Read more

Cars are more efficient these days. Yet Kiwi drivers still spend staggering amounts of money on petrol. The latest data available from Statistics NZ says that the average NZ household spends a whopping $2,522 each year at the pump. This is a significant increase since data was last collected in 2016. Since the reporting period ended, taxes on petrol have gone up, so the annual... Read more Read more

Many of us received an allowance back when we were kids. This is often the main reason many of us pay an allowance to our own children. But is tradition really a good reason to give our kids money? In fact, there might be some very good reasons for not giving our kids an allowance. There are some good reasons to question the conventional wisdom in this area. Should kids get an... Read more Read more

“Where are you going to be in 5 years’ time?” We are often asked this question in interviews, goal setting workshops or development plans. The fact is, you can have a plan, but you know that the world is an uncertain place. While some things are in your control, many are not. This shouldn’t stop you having a plan; if you identify the factors of success, put targets in place... Read more Read more

Inflation is the steady increase in average prices throughout any economy. It means that money is steadily losing its value in real terms. Inflation in most developed countries, including NZ, has been at low levels for many years, though many leading financial minds now believe inflation could come back with a vengeance. Inflation, the thief in your wallet As inflation means... Read more Read more

In her day, billionaire hotelier Leona Helmsley was as famous as Kim Kardashian, and once said “only little people pay taxes.” Helmsley’s notorious remark came to mind earlier this month when ProPublica released a report that the 25 richest Americans collectively paid a “true tax rate” of only 3.4% for the four years ended 2018. As the US tax system is broadly comparable to New Zealand... Read more Read more

In amongst the sometimes-emotional talking point that is the NZ property market, the latest development is the possible introduction of debt-to-income ratios (DTIs) for new mortgage lending. What is a DTI? Keeping debt at a manageable level is important for good financial health. Your debt-to-income (DTI) ratio is a financial measure that is used by lenders when you apply for... Read more Read more

Risk is defined as the potential for uncontrolled loss of something of value. When you put the words ‘uncontrolled loss’ and ‘something of value’ in the same sentence, it’s natural to want to shudder. Risk is a scary word for many people, particularly in investing and when that something of value is hard-earned money. The important thing to remember, however, when it comes to... Read more Read more

There is a near certain way to become wealthy that doesn’t involve the lotto, an inheritance, or a get rich quick scheme: simply invest for long enough. Given a long enough timeline, your chances of becoming wealthy are close to 100%. Accumulating wealth is the ultimate long game. If you stick with it for long enough, there are only two outcomes: You become wealthy (... Read more Read more

Historically, as the wealth of New Zealand families increased, their desire for several key things has grown. A typical progression may have been to buy: A family-sized home, A nice vehicle, Perhaps a boat, and A bach or crib. This combination was sometimes shortened to “the beamer [BMW], the boat, and bach”. In particular it was the purchase of a... Read more Read more

Professional investors often dive deep into technical analysis, looking for that perfect predictor of market turns. Even then, many get it all wrong, let alone those of us who don’t have a doctorate in economics. The good news: You can earn strong returns with a completely automated investment strategy. The bad news: Your emotions fight you tooth and nail along the way,... Read more Read more

Yes, you can treat yourself without spending too much! Here’s a few ways you can get started, most of which don’t need you to splurge a lot of cash. Benefits of treating yourself While saving money and investing is key to a great financial future, it also doesn’t mean you should never spend money on yourself and enjoy the journey along the way. Yes, sacrificing to ensure your... Read more Read more

Bitcoin is the world’s most popular cryptocurrency. Bitcoin is popular because it has a lot of built-in advantages. Some of these traits are shared with other cryptocurrencies, like Ethereum, while others are attributable to Bitcoin’s market-leading status. Bitcoin also has some important downsides that should give would-be investors and everyday users reason to pause. Like the broader... Read more Read more

Fixed mortgage interest rates have already hit the lowest they will go for the near future, if the Reserve Bank’s outlook issued in its 26 May monetary policy statement comes to pass. However, New Zealand’s central bank (who regulate the mortgage lenders such as ANZ and Westpac) said that was conditional on the economic outlook evolving broadly as anticipated and talked of the... Read more Read more

As we age, we might notice people around us fit into one of two broad groups, those who: Seem to be stagnant, i.e., not changing, not progressing, not accomplishing their goals, or Are growing, i.e., moving up in the world, making things happen, reinventing themselves and their lives. What’s the difference between these two groups of people? A bestselling author... Read more Read more

As you move through life, you might meet people who you would never know are extremely wealthy or have amassed large fortunes. Or maybe you also fall into this category? As more people become millionaires, more are interested in practicing something called “stealth wealth.” And as you grow your own nest egg, you might highly consider practicing it as well. What is stealth... Read more Read more

Running a successful small business is incredibly difficult. Few people have the skill, stamina, and grit to survive over the long-term, which is why it’s a well-known fact that most small businesses fail within their first five years. Then Covid came along and made things even worse: Growth within NZ’s small business sector has stalled and is down around 40%, according to... Read more Read more

Most of us are aware of the benefits of repaying a mortgage sooner by making extra payments. These benefits include saving on interest repayments, being mortgage-free faster and obtaining a sense of security that comes with a debt-free roof over our heads. However, on the flipside, there could be a few benefits to not making extra mortgage payments. At first this might sound like crazy... Read more Read more

The government’s first home loan scheme is designed to help first home buyers, but across most of the country it’s becoming irrelevant. Milestone Direct’s mortgage advisers (“mortgage brokers”) have previously helped many young Kiwis gain homeownership with the First Home Loan (FHL) scheme back when the scheme was more accessible. First Home Loans are unwieldy and bureaucratic, with... Read more Read more