WealthDesign

In New Zealand we are fortunate to have a world class accident compensation scheme. We all hear the sad stories of ACC not meeting people’s expectations, but it is still a great scheme in my opinion, and has many benefits.

At present we are seeing a lot of insurance advisers giving blanket advice to reduce ACC and take out private insurance. In some cases this is prudent, especially if your income would continue in the event of a period off work i.e. dairy farmers. But it’s not for everyone and this is where I get concerned.

ACC pays out after seven days versus private insurance that pays only after 30 days off work (at best). ACC covers you even if you have risky hobbies such as motor sport or mountaineering.  Most private insurers would exclude these types of hobbies. ACC also has an accidental death benefit built in as well.

The other thing we see is clients with back and knee exclusions on private cover, and advisers suggesting reducing ACC, just based on a short term premium savings on ACC. This doesn’t always bring about the best outcome.

ACC is a complex product and needs specialist advice.  Before you change ACC because of a sales pitch, ask for a written report, as for the proof that the person actually knows ACC in depth.   Make sure you are talking to someone who really knows the complexities of ACC and not just someone using ACC as a way to make a sale.

If you want quality ACC advice, or you want to double check what you have had recommended, give us a call and we can refer you to a firm that does nothing but handle ACC. 

John Barber

read on...

Think again. Financially, working to age 70 can really help to top up the retirement savings. This is a really important point for some baby boomers, as they haven’t had time to build up a large nest egg in KiwiSaver.  So for those who are heading towards New Zealand Superannuation in the next 15 to 20 years, perhaps it’s time to reconsider all your options.

Working until age 70 can add around $80,000 to a savings plan (if the extra cash from New Zealand Superannuation is just saved for the extended period of one’s working life). When this is added to KiwiSaver, plus a bit of extra savings, the retirement plan starts to come together.

In my opinion, this is a real win-win. Many people aged 65 and over are highly skilled and add much to the New Zealand economy and society by working longer. There are even studies that show working longer is good for your health.

Financial planning isn’t about chasing the best returns – it’s about having a strategy to help you live your best life. If you are 50 plus, it is time to sit down and consider your options as you plan for what the next 20 – 30 years will bring.

John Barber

read on...

Spike Milligan once said “All I ask is the chance to prove that money can’t make me happy”.   While most of us would not consider having financial wealth as an automatic ticket to health and happiness, there are subtle connections. People who are financially better off often use their money to access better health care and advice.  People who suffer poor health are sometimes financially poorer because of extra health costs and limitations on their ability to produce income.  As a result of stress and worry their happiness suffers also. People with good health tend to have more financial resources, because the reverse is more or less true too.  Which one comes first is moot, but the link is becoming clear. 

In our role as ‘financial coach’,  we help you build as well as protect your financial resources.  We want to make sure you can handle a period of limited income and extra cost if you suffer ill health.  And we know a few shortcuts. The prudent use of insurance can fill the gap between having enough financial resources to access better health care, and being self-sufficient.  Insurance can ensure that a prolonged period of limited income is no threat to your household. 

We teach people how to reduce stress and worry.  We help people to be their own version of wealthier, healthier, and happier.  

Regan Thomas

read on...

Some of you may know we recently visited our daughter Meg, in Europe during August.  Great trip.  Awesome to spend time with our girl.  Meg’s been in Rome now for seven months, attending LUISS University.  We got to relax, and be shown around by our very own tour guide!  

Been home now for almost a month.  This morning we get a call from the fraud department of our bank.  “Good morning Mr Barber, we’re just investigating your credit card spending. Did you book an $8000 air flight to Lithuania on the 25th of September?”  Our visa card has somehow been compromised.  It was fascinating to discover how these fraudsters tested the visa limit on our credit card.  First they put a $1 transaction through Paypal.  Then, at a later time, they tried to buy the $8000 flight.  All this, we suppose, to test how much money they could charge to it.

The card details must have been taken only when being used to pay for something, as the rest of the time it was in a RFID credit blocking sleeve, in our wallet.  Scary, huh?

Before we left, we gave all our travel dates and destinations to our bank, to keep on file.  It was because of this, that they were able to pick this up so quickly.  The bank advised us to check our visa balance at an ATM before we left New Zealand, and on return to New Zealand, which allows the bank to have an electronic trail of our whereabouts.  (So we chose to pay with our visa cards in duty free  – fill up the liquor cabinet – and ensure the bank knows where we are!)

So, remember if you’re travelling overseas, go and let your bank know your itinerary – just in case!

John and Kristine Barber

read on...

The total KiwiSaver balance for all investors is now $ 19.94 billion of savings. Who said New Zealanders don’t save?

With rising investment balances, investors need to consider the fees they are paying and which asset allocation they are invested into. In some cases they are paying top fees for the lowest return.

We have access to independent research that can compare fund with fund and manager with manager. Fees and performance really matter, and you need to be an informed investor. This is especially important as most of the marketing around KiwiSaver focuses on things like access to your KiwiSaver balance; not the real issues of fees and performance.

Our door is always open and we are happy to help you become an empowered investor.

read on...