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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.... Read more Read more

Part 4 of a series of 8 videos where Associate Professor David Tripe of Massey University discusses mortgages with Milestone Direct Limited. This video discusses splitting a home loan over multiple terms. Read more Read more

In many of the world’s urban centres, homes are becoming prohibitively expensive for people with moderate incomes. As a city’s real-estate prices rise, some inhabitants may feel compelled to leave. Of course, if that inhabitant already owned a house there that they can sell, they may regard the price increase as a windfall that they can claim by departing. If not, however, they may be forced... Read more Read more

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... Read more Read more

History shows that investors tend to do the opposite of what works. Prior to the Global Financial Crisis, when stocks were expensive, everyone was piling in. After the crash, when they were cheap, they were selling (which is of course why stocks were cheap). That pattern is repeated throughout history. As much as we might recognise it, somehow it never changes. It’s odd, when you... Read more Read more

Part 3 of a series of 8 videos where Associate Professor David Tripe of Massey University discusses whether to split your mortgage over multiple terms. Read more Read more

Part 2 of a series of 8 videos where Associate Professor David Tripe of Massey University discusses mortgages with Milestone Direct Limited. In this episode, Associate Professor Tripe compares fixed to floating and answers which is better for your mortgage. Read more Read more

Part 1 of a series of 8 videos where Associate Professor David Tripe of Massey University discusses mortgages. In this episode, Associate Professor Tripe describes how fixed terms work and how to get the best one. Read more Read more

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... Read more Read more

Many people ask this question of themselves. Often they are hard-working, well-educated, high-income people. Why, then, are so few of them ‘affluent’? Some of the answers to this intriguing question are contained in the book The Millionaire Next Door by Stanley and Danko. We recommend this book for those who are serious about increasing their net worth. Affluent... Read more Read more

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... Read more Read more

Historically, as the wealth of New Zealand families increased, their desire for a bach or crib increased. Owning one became a status symbol and signified that you had ‘made it’ on the financial ladder. As time progressed, a bach or crib evolved from something simple and low cost that was often built by the owner beside a beach, river or lake, to now being a more palatial dwelling often akin to... Read more Read more

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... Read more Read more

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... Read more Read more

Younger respondents in a recent survey sponsored by Boston-based MFS Investment Management conducted in the United States, reported that they were highly likely to avoid decisions like career changes, home purchases, moving and household formation because of financial stress, even as they approach middle age. According to the 2017 MFS Heritage Planning Survey, 80 percent of Millennials... Read more Read more

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 heaps. 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... Read more Read more

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... Read more Read more

For those of us still in paid employment, our largest asset is often our future income. Our financial security, and that of our families, is dependent on one single factor – our income. Take that away and our ability to pay for all the things we need, and some of the extras that make life more enjoyable, is gone. Despite this fact, only 3.3% of New Zealand households insure their income... Read more Read more

It is official – many of us could live beyond age 90. A recent research report published by the Imperial College of London (ICL) in collaboration with the World Health Organisation (WHO) has identified that South Korean women will be the first to have an average life expectancy that exceeds 90. The report indicates that this trend of prolonging life is expected to continue as more... Read more Read more

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... Read more Read more