WealthDesign

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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There are many things in life that you can DIY – and many that you cannot, or at least, really shouldn’t.  Wills fall into the second category.

You can easily go and buy a DIY Will Kit from the post office or a news agent, but unless you are an expert in Wills yourself, that’s where the ease stops. 

1. At best, a DIY Will Kit is only good for a “simple Will”. What that really means is a simple family situation, where you are a couple or single person with only a few beneficiaries and you all live in absolute harmony. Or you only have a limited number of possessions such as some household goods and a few bank accounts. So if you were able to time-warp yourself back to the 1950’s, you might be okay. But the moment you have more than this, such as superannuation – and these days that’s everybody, then the Will Kit won’t cut it!
2. Families will have no way of really knowing if the DIY Will is suitable, because there is no advice. Sure, there may be lots of information provided with the kit, but how do you apply it? And how do you even know if it is correct?
3. Also how good is the kit in the first place? You can be guaranteed that it has not been prepared by an “expert” (even if it says so on the packaging) – because a real expert would never let anyone do their own Will!
4. Even if you managed to put a “proper” Will together, there is the big issue of getting it signed correctly without legal assistance. The Courts are littered with cases of DIY Wills that were not signed correctly and the resulting problems of beneficiaries fighting for control of the estate.
5. Finally, at the end of the day you have to acknowledge that “you don’t know what you don’t know”. Without the help of a properly qualified and experienced lawyer, you may not realise the issues that you are missing in your “simple” family situation. For example, how do you deal with non-estate assets such as superannuation or assets held jointly (especially your own home) or a family trust? Or children/other beneficiaries with special needs, or who are still young when you die? Or families with second spouses and children of previous relationships – there are so many unique situations we live in.

Get an expert to help you. Don’t be tempted to save a few dollars now with a DIY Will Kit, because you may end up risking your entire estate later – and at a time when your family can least afford it! If you want to be referred to a lawyer, just give us a call and we can point you in the right direction.

John Barber

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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 mid June.

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.

read on...

Do you know what happens with your ACC if you get hurt and can’t work again? You pay your levies just like anyone else but if you are hurt in an accident and off work long term, you are discriminated against at claim time.

First year on claim you would get 80% of your salary and the National Superannuation payment.  Year two, either 80% of your salary or National Superannuation payment, but after year two you only get the National Superannuation payment.

Is this fair?  Doesn’t appear so to me, but it’s the rule that applies today.

If you are over 50 and plan to work longer than 65, give us a call and talk about your risk planning.

We’re here to help – we make the complicated simple.

John Barber

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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

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