WealthDesign

So here’s the deal.  People who get financial advice for their investments, make smart financial decisions more often than those who don’t get advice.

Proof?  The number of investors who switch KiwiSaver funds because the markets are volatile has increase 500% on the back of increased market uncertainty.  Why is this not so smart? Because these investors have sold out of assets at a discount, and have missed the opportunity to buy assets cheaply.

It is understandable though when you can see your KiwiSaver balance gong down on your iPhone, plus you don’t have the insight of sound financial advice.  Losing money is never fun but investors need to remember, they don’t get the money today, they may have 25 years to go!   If you understand dollar cost averaging and how KiwiSaver makes money for you in tough times, switching to a conservative fund isn’t going to be in your best interests in the long term.

Advice counts! Talk to a Certified Financial Planner today about your KiwiSaver and make some smart decisions around your investment.  Remember, we’re here for the long haul, to help navigate the obstacle course that is life.

John Barber
WealthDesign – a life well planned

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Kiwis are a mobile breed – we love to take flight and nest down in locations all over the world.  Sometimes this is on a permanent basis, other times just for a year or two.  If you or someone you know is planning to head overseas, there are some financial matters that will need some attention.

KiwiSaver – in some instances you can take it with you, but keep in mind, there is some fine print you’ll want to know about, BEFORE you leave. 

House insurance – will you rent it out or keep it unoccupied for a while?  Check out the insurance implications.

Travel insurance – definitely not just for tourists.  In fact, you won’t want to get caught in a predicament overseas without it.

Life insurance – your existing life policy probably works wherever you live,  or some policies can be ‘suspended’ while you are away.

New Zealand life insurance companies always ask questions about residency, but few people have an idea what the implications are.  For example, if you are about to head off to Afghanistan to work in the ‘security’ industry, insurers would consider that an important titbit of information.

Before hopping on that plane, give us a call to ensure your financial matters are taken care of.  An hour spent with us can avoid time, suffering and money!

Regan Thomas
WealthDesign – a life well planned

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A bankrupt’s KiwiSaver are off limits to creditors according to a recent Court of Appeal ruling.

This was tested in court recently when an official assignee tried to access two bankrupted KiwiSaver investor’s funds. The official assignee argued that the funds should be available under financial hardship but the Court of Appeal disagreed.

The key message of this ruling is that regular payments into KiwiSaver are protected for the intended purpose and are safe from creditors. This is a very important point as investor’s KiwiSaver balances start to become significant.

KiwiSaver is a really simple process, however, there is some important information that could significantly influence how successful your KiwiSaver is, which we know about and are keen to ensure you know too!  Planning prior to life’s events can make a big difference to your experience of life.  If you want to discuss the nitty gritty around KiwiSaver, give us a call.  

John Barber

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KiwiSaver really is worth belonging to, and here’s another reason why.  The new government initiative for first home buyers, the KiwiSaver HomeStart grant, came into effect from 1^st April 2015.  It replaces the KiwiSaver First Home subsidy.

Here’s how it works: If you’re buying an existing/older home, you may be eligible to receive up to $5,000 for individuals and up to $10,000 for couples to put towards the purchase.  If you’re either building or purchasing a new home the numbers are up to $10,000 for an individual or up to $20,000 for couples.

You do have to have been contributing for three years, be 18 years or older, and meet income and other eligibility criteria.

 Find out more.

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We told you in May and now it’s our last reminder before the cut-off date. 

Each year, the government will contribute 50 cents for every dollar you save in your KiwiSaver, with the maximum contribution being $521. To get the full amount of $521 you need to have contributed $1,043 in the twelve months prior to the cut-off date of June 29th 2015.

Even if you haven’t contributed the minimum of $1,043 up to this point, you can add a lump sum prior to the cut-off date to take you over the threshold – this will give you the full contribution of $521.

It may not seem like much, but it’s what being a ‘kiwi’ who is saving is all about!  For example a  24 year old in KiwiSaver,  who is over the threshold of $1,043 yearly (and therefore receiving the full $521 contribution), could end up with as much as $50,000 more in their retirement fund, when they reach 65. 

Be the optimal ‘kiwi’ saver by giving us a call.  We’ll help you to save smart – easily and relatively painlessly

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