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Why a downturn in the markets isn’t a reason to stop investing

With KiwiSaver and investment balances dropping since the start of the year, there may be the temptation to reduce or even stop your contributions. Why would you keep putting money into something that was going backwards after all? Before making any changes, it’s important to understand what’s happening. When you put money into your KiwiSaver, […]

Inflation is here, that’s why you own shares

  We’re not exactly sure of the recipe required to bake fast rising prices into the economy but we’re pretty sure of the ingredients. You will commonly need – disruptions in free-flowing trade shortages in goods surplus money in the economy, such as that provided by financial stimulus packages   Between the effects of Covid-19, […]

Have Conservative Funds become Riskier?

Stuff posted an article last week entitled “KiwiSaver investors told: Conservative funds have become riskier”1. This article explains what they meant by this statement, but also why it is fundamentally wrong. It does highlight something that investors should be aware of though.   So why conservative funds specifically? This is all about bonds and how […]

Why Having a Financial Plan is Important

Have you ever gone to the airport with your bags packed and boarded a plane without having any idea where it is going? As much as we might miss air travel now, it is unlikely we would board without knowing the destination. It is hard even to pack properly without knowing where we are headed, or for how long. The same applies to our finances. We need to know where we are going before making decisions about how we are going to get there.

What is Investment Risk?

  When it comes to our money and finances, we often get asked how much risk we want to take, and what “level of risk” we are comfortable with. This is a really difficult question to answer as risk means different things to different people, and what does risk really mean when it comes to […]

Changes in KiwiSaver Annual Statements

This year, there will be a new addition to your KiwiSaver annual statement. For the first time this year, KiwiSaver providers have been required to let members know about two numbers with big long-term significance: How much your KiwiSaver is on track to be worth by the time you are 65 What income this might […]

5 Steps to Building Financial Resilience

1. Assess your current situation Uncertainty can be a major source of anxiety To determine the source of stress and if it’s warranted, take stock of your: “Financial self-awareness is positively associated with greater financial satisfaction, and stronger spending and investing decisions.” (source: Psychology Today, 28/10/19)   2. Prepare for the worst-case scenario If you […]

Don’t change long term plans due to short term “noise”

  You are sitting in your nice, new, comfortable home. You purchased it intending to live there indefinitely which, given your health, you figure is several decades. Just as you are taking it all in, you hear a knock at the front door. Opening the door, you see someone looking rather stressed and bedraggled. “Yes?” […]

8 Tips for Dealing with a Market Shock

  Check Your Sources Review the source of your information. Do they have the right agenda, or are they trying to sell advertising space with click bait? We are hearing a lot about “market crashes” and “plummeting markets”, but we heard hardly anything about the significant market out performance last calendar year. The media is promoting […]