We all know New Year’s resolutions have a particularly high fail rate – so here’s a more novel idea for looking forward to 2017 and beyond.
Download it and give it a whirl for 2017.
Now would be a great time.
WealthDesign
A life well planned
“Mummy’s phone!” cried the little boy in the stroller… he might have been two years old, but could’ve been younger. “No Honey, Mummy only has 1% charge left; you can’t have Mummy’s phone.” He struggled and cried despairingly as he wriggled around, trying courageously to reach his mum’s cell phone as she held it out of his reach, swooping it into her purse – gone, but not forgotten.
I was shopping in Spotlight, looking for inspiration for Santa’s upcoming visit, when I witnessed this unfold before me. Whoa – screens have taken over the world! And it disturbed me, so much so, that next time I was in front of mine, I googled it.
It’s been bugging me on and off, as John and I grapple with screens and their importance in our day to day lives. So just what is it doing to family life and relationships?
So Catherine Steiner-Adair EdD, a really smart lady who’s recently written a book discussing just this issue, was interviewed by the Huffington Post. She has a thing or two to say on the matter.
Let’s use technology for what it’s intended for, but be super aware that it does need to be managed. The tendency is for screens to manage us. This is a new phenomenon which, if we totally ignore, we may do so at the peril of the relationships with those we hold the most dear. And you just can’t take the time back once it’s gone (spoken by a true empty nester!).
Kristine Barber
WealthDesign – a life well planned
If you watch the Big Bang Theory, my favourite programme ever (apart from Dukes of Hazzard – nothing is better than that!), you’ll know about Sheldon’s cable show ‘fun with flags’.
Well recently some people have been having ‘fun with words’. People have been talking about ‘putting clients’ interests first’. That this was even a discussion was a bit of a revelation for the team at WealthDesign, because we never realised it was a new thing.
The basic idea is that where the outcome for the adviser and the client are in conflict, the right thing to do is ensure the outcome favours the client. Do the right thing and so on. Rob Everett from the FMA recently said that ‘clients’ interests first’ “can mean different things to different people, in different situations”.
No, it doesn’t.
I prefer a higher standard – ‘clients’ best interests first’. This one can be much harder to meet if you can only sell one or two product lines, rather than compare and choose from a wide range of providers and products.
For example, if you go into a bank that sells its own KiwiSaver, and the teller suggests you change to that KiwiSaver, they are considered to be putting your interests first, because they don’t receive a commission for making that sale. The bank product is not being chosen by the teller over another product, because they can’t sell any other product, so there is no conflict.
What if that bank’s KiwiSaver has much higher fees than the one it replaced? It might have much poorer returns (we know which KiwiSaver schemes have consistently underperformed) than the one it replaced. The bank teller doesn’t compare the old scheme to their one. They won’t give a written statement of advice outlining the pros and cons of switching. They won’t tell you that their salary-not-commission job is tied to targets, bonuses and KPIs that require them to sell things. They are having ‘fun with words’, at your expense. That sale would not meet the standard of ‘clients’ best interests’.
And this is the problem.
If you go to a doctor or a lawyer, and they said to you “just so we’re clear – my duty is to put your interests first, but I won’t necessarily be acting in your best interests”, would you take their advice?
At WealthDesign when we say we put our clients’ best interests first, we think it means what you think it means.
Regan Thomas
WealthDesign – a life well planned
2014 – Rome. Our first exposure to staying with Airbnb. Max was our contact, and we got to stay in the middle of Rome, in the middle of summer (man, it’s hot over there!) with our daughter, while she was studying in the city for a year. Breakfast was provided for us each morning, and all went smoothly. (It helped having our own tour guide by the name of Meg!) The price was super-reasonable and all-in-all, a great experience.
Fast forward to about six weeks ago. John tells me we’re off to Wellington to see the All Blacks play Wales. I jump online to find accommodation in the city – and unless we were prepared to pay for two nights’ accommodation at some places, or, an exorbitant amount of money for one night – accommodation fell into the ‘hens’ teeth’ category.
So I decided to try Airbnb again – worth a try I thought. Well, fast track to mid June, and we got to experience a gorgeous little house in Island Bay, with a view of the ferry inching into view, and a chance to meet a wonderful lady by the name of Chris, who was welcoming, hospitable and just plain lovely! We had friends who came with us too, and the set up was perfect. And all for a reasonable price, plus in the morning we didn’t have to be gone by 10am for the cleaners to come in! John and I got to go for an invigorating walk along the coastline and take in a bit of Wellington we rarely get to see.
Technology has catapulted us forward into the 21st century and how we’ve lived and done business in the past has been transformed. Who would’ve thought of travelling ten years ago, and staying at someone’s home – someone you don’t even know? But with online reviews that keep businesses honest, the playing field has been levelled, and you can get a feel of what a place will be like, prior to booking.
Go check out the website and get inspired!
Kristine Barber
WealthDesign – a life well planned
We are very fortunate in New Zealand to have a guaranteed government superannuation scheme which isn’t means tested, and which is available to everyone over 65. The amount is the problem. It’s $374.53 per week for a single person or $288.10 per married person – enough to cover the basics, but nothing more.
The question is how to invest to top up on this base. Recently a pension provider, Lifetime Income Limited, introduced a new pension fund to the market. Investors can lock in a pension for life, based on their age. Today the rates (after tax) are as follows:
Age at first Lifetime withdrawal rate
withdrawal (after tax)
65 to 69 5.0%
70 to 74 5.5%
75 to 79 6.0%
80 to 85 6.5%
This won’t be for everyone, but will have a place in long term retirement planning in this country.
Give WealthDesign a call to see if it is something that would work for you.
John Barber
WealthDesign – a life well planned