"We can, and do, rest easy, secure in the knowledge that our financial interests are in good hands..."

G & J

Investment Performance

Am I in the Right KiwiSaver Fund?

This is a commonly asked question of financial advisers especially when KiwiSaver investors are in a group default scheme. It is always a bit difficult to answer at the time, given that the first thing an adviser is supposed to do is provide the person with a disclosure statement, before even attempting to answer the question. It is all a bit unusual given that journalists, teachers, and members of parliament can legally answer the question yet the clear majority of them have no qualifications or expertise to do so.

Asset Rich, Cash Poor – A dilemma with solutions

Many elderly people are asset rich, but cash poor. They live off their National Super, and over the years, they will have drawn down on their investments. This then leaves them with what was probably their largest asset, a lifestyle asset, being their home.

Living on very limited means makes paying for rates, insurance, and meeting repair and maintenance costs extremely difficult for them. Of course, this means that expensive trips are simply out of the question.

Currency – to hedge or not to hedge?

As New Zealand is a small export orientated country, most of our exports are not sold in New Zealand dollars. The New Zealand dollar tends to fluctuate considerably. There is little that New Zealand can do to protect our currency from fluctuating significantly. When there is a global hiccup, there is a flight to the so-called safety of the US dollar. With BRIXIT, the GBP fell considerably lowering farmers’ returns for lamb.

Couples – Talk to your partner about money management

We should all know that communication is one of the keys to maintaining a relationship with your partner. Often one of the difficult areas to communicate effectively is about money. It is not difficult to understand why this is the case. Everyone’s perspectives and priorities are different.

Passive Investing – Maybe you are paying too much?

Over the years there has been a lot of debate about the merits of investing in passive funds compared to actively managed funds. In the United States passive or index funds are very popular. There are even more passive funds than listed companies. Just because something is popular does not make them necessarily a good choice.

Passive investment funds’ performance has dominated active performance for the past five years in the United States. This is like what has occurred in Europe.

Syndicate content