The breaking news that got everyone talking is the government's new set of measures to confront the housing crisis in New Zealand. It’s a welcome change: the constant pressure by media and the public outcry finally moved the needle. This course correction is long overdue.
Commonalities between Winemaking & Investing
Autumn is here, and the grape harvest is well underway, with winemakers commenting on the fruit's quality. Savouring a vintage wine is one of life’s great pleasures, but often overlooked in the joy of consumption is the carefully calibrated journey from grape to glass.
There is no free advice
If you are wrestling with a prickly investment question or simply hoping to seek some financial advice, engaging a financial adviser might sound appealing. But searching for one who would put your interest above all can quickly get confusing.
Third Age
This is not another piece about retirement. Well, it is a little, but it is really about dreams and goals. Just as most things in financial planning are. Your dreams of not just relaxing in front of the TV but also exploring new facets of life. Your goals of achieving financial freedom and enjoying a pretty good third age.
Greenlights & Redlights
Behaviourally we all face the same challenges. Lifestyle inflation. Who to trust with our money? Overestimating how long things can stay good for. Finding a good adviser and being coached on how to focus on the basics maybe even more important.
Questions on Sustainable Investing
Many people want to align their environmental views with their portfolio objectives. But can you support your values while maintaining sound investment principles and pursuing higher expected returns? Here are three important questions that are important to ask your financial adviser.
Be wary of financial advertisers
Social media has been blamed for being the cause of many ills over the past decade. Being able to blatantly tell lies and distort the truth to a narrow group of people is regarded as a serious problem on social media. Much of the focus to this point has been on political campaigns, but the investment world is quickly catching up.
Do You Need Life Insurance in Your 20s?
Building a strong financial foundation in your 20s begins with having the right tools. A budget is one thing you'll need, especially if you're focused on building an emergency fund, saving for retirement or paying off debt. Life insurance is something else you ought to add to your toolbox. But does life insurance for young adults make sense?
GameStop Hangover
GameStop. Hedge Funds. Wall Street Bets. Robinhood. What was it all? In the last week of January, the price of the stock in GameStop (NYSE: GME) – an ailing brick-and-mortar video game retailer – very suddenly skyrocketed.
The greatest risk
Lurking just under the surface of the investment ocean is a risk waiting to devour retirees desperate for yield. It’s understandable: after all, a retirement portfolio is supposed to generate cash. But considering the current economic situation generating income is tough.
Trust Law is finally here
In just 14 days the new Trust Act 2019 will come into law from 30 January 2021. Be sure to talk with a financial adviser with a fiduciary responsibility to review your objectives and goals to ensure that the trust is still relevant and is being properly managed.
Building resilience
In media forecasts for 2020, a global pandemic and the worst recession since the 1930s weren't high on everyone's list of threats. But even had these events been foreseen, who would have tipped global equities to reach record highs a year later?
2021 is here
Good habits are hard to stick with – it takes a great deal of discipline, motivation, and self-control to develop also follow through with them. Involving a financial adviser through regular meetings to discuss your financial goals and progress can also be a big help.
2020: A wrap
It's been a year like no other. A global pandemic. Economic downturn. A global race for a vaccine. A nationwide database to trace outbreaks. 2020 is finally in the home stretch, although there is no magical fast forward button to hit on New Year's Eve to get us to 100% normalcy – but 2021 is looking hopeful.
A Christmas Tree
Brent Allcock recently joined Stewart Group to support and serve our clients in the greater Wellington region. Brent and his wife Sabrina moved back to New Zealand from Singapore after being away for 30 plus years. Sabrina loves New Zealand but misses her family back in Malaysia. Knowing that Brent went Christmas tree shopping so we could decorate the house and the tree and make it homey. But the tree didn't arrive in time. Read what happens next.
ESG Investing hotter than ever
The only thing hotter than the Hawke's Bay summer right now? ESG funds. Between April and June, as the COVID-19 pandemic gained speed worldwide, funds that prioritised ESG investing saw global assets under management hit a record $1 trillion, according to Morningstar. That was on the back of net inflows of $7.1 billion in those three months alone.
The Value Dilemma
Every investor will face a conundrum at some point: what to do when their beliefs don't work. Sometimes it's an assumption that becomes lore. A favoured company paid a dividend for 20 straight years. Of course, it's not going to ever stop paying a dividend… then it stops paying a dividend. A dagger to the heart! An outrage, there were plans for that money!
Running a Trust in 2021 and beyond
The Trusts Act 2019 ("Act") will take effect from 30 January 2021. Running trusts under the new regime can be divided into three components — functional, emotional, and ethical. Neglecting to invest trust property or poor investment choices can be reasons for the breakdown of trusts.
Gifting that might be taking
New Zealand has remained prosperous for more than a decade if you're judging based on recessions, but it hasn't happened without creating wealth divisions. The property ladder issue has led to some parents feeling the need to help the kids reach the first rung. What are the issues?
Falling out of fashion
One of the main reasons people invest in term deposits over other investment assets is for safety. But not many realise the risky fact that New Zealand does not currently have a deposit insurance scheme. A long-standing Reserve Bank’s policy is aimed at allowing a distressed bank to be kept open for business while placing the cost of a bank failure primarily on the bank's shareholders and creditors, rather than the taxpayer.
