Some need to know, with a bit of WealthDesign nice to know thrown in.
Having a regular review with your financial adviser really is worth the time. We hear stories regularly of people who aren’t aware of what they can claim for on their insurance policy, and who could’ve claimed when they were diagnosed and treated for a serious health issue.
We had a case recently where a client didn’t know they could make a trauma claim when they were diagnosed and treated for cancer. This person hadn’t seen their previous adviser in an age and didn’t realise the cancer diagnosis and treatment was a legitimate trauma claim on their insurance. Having had the claim processed and the money in their account at the time would’ve made life that much more bearable while going through a stressful and emotional time.
You don’t have to know it all – just catch up with your adviser regularly – and let them do what they do do well!
Call us if you have a health issue – client or not, we’re happy to help you out.
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Do you know everything that you are covered for under your health or trauma insurance policy? Often people have insurance policies that they religiously pay but don’t claim when they have the right to. Today’s health and trauma insurance policies are often very comprehensive. Check your policy – you may just discover cover you didn’t know you had.
If you have a health issue, ring us. We’ll check if you’re covered.
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The government is selling down their shareholding in Air New Zealand (AIR) and I think this is a great idea. Not because I am a great fan of assets sales, but if I owned 75% of Air New Zealand, I would sell and take profits as well.
AIR has sold on the market over the past 12 months between $ 1.02 and $1.54. The sell down is at $1.60 or better. AIR has performed really well over the past couple of years and has increased revenue by 3.6% and reduced costs by 3%. The problem I have with AIR is their debt level is around 67% and they are in a business that is very competitive and fuel price sensitive. You only need look at the research for 2009 to see the negative impact on cash flow from strong fuel prices and falling passenger numbers.
As tax payers we bailed out AIR when they needed it, now let’s take the profit when it’s on the table.
John Barber
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As you will have all seen on the news, the government is changing the rules around drink driving. The limit has been lowered and now drivers face a ticket and demerits if over 50 milligrams of alcohol per 100 millilitres of blood. Over 80 the rules stay the same.
We have seen comments in the press such as “You certainly need to watch your alcohol consumption. But if you only have two or three bottles of beer after work, then you’ve got nothing to worry about.” These comments tends to give a false impression that it is ok to drink and drive.
One of the major unintended consequences to this law change is that we are going to see a number of car claims declined as the wording on most car insurance policies includes an “under the influence” clause. You may find more claims declined now police will be recording if people have been drinking, not just if they are over the limit.
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Research shows that human behaviour and investing mistakes are closely linked.
- Investors like to chase high past returns.
- Fund management companies love to advertise strong past performance.
- High past returns are often poor predictors of future returns.
Fund managers get paid on the amount of money they manage. In fact some even go so far as to pay themselves a bonus when the market goes up. As advisers we want our clients to take the least amount of capital risk, while still allowing them to reach their financial goals.
The paradox is that financial advisers are here to advise and to help people avoid the pitfalls of investing, yet two thirds of KiwiSaver fund managers don’t want financial advisers involved in the retirement planning process, and will not deal with anyone unless they are tied and bound to their company.
The next time you see a well dressed fund manager telling you what great returns they achieved last year – don’t fall for the spin. Go find an adviser who can provide you with truly independent research. Be an informed investor, not a cash cow for the fund management industry.
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