Like many things, ‘money sense’ is typically learned at home by copying what Mum and Dad are doing.
The New Default(s)
Every seven years, the Government reviews the default KiwiSaver providers to make sure you, the investor, are getting the best bang for your buck. They conduct these reviews based on a number of factors including investment performances, services, and fees. The idea is that the default funds selected by this process are going to give you the best outcome for your retirement journey.
The Downsides of DIY Investing
With home ownership out of reach for many people, we’re seeing shifts in investing priorities that align with generational differences, particularly from Millennials and Gen Z. Following on from Boomers, who are tipped as the wealthiest generation in history, things are tough in a world where costs keep rising and outpacing income.
The Hard Yards
Do the mahi, get the treats.
Historically we could see this saying as a rallying point to work harder, push more and get ahead for your future self. However, since COVID has (and continues to) highlight inequities between the haves and have nots, many have become disillusioned to the idea.
Turning up the Heat on Housing
New Zealand house prices are over 160% higher now than in 2011. Yep, that’s a real number. Let that sink in for a minute.
Getting Super Motivated
The “I” word keeps popping up at the moment; Inflation.
What will your money be worth in a years’ time? Or ten? What will you be able to afford by then? Do you have enough to retire on?
When it Rains, it Pours
A Consumer NZ sentiment tracker recently reported that 15 per cent of New Zealanders have no savings, 27 per cent were anxious about the level of their savings, and one in ten of the respondents indicated spending more than they saved over the past three months.
The Skinny on CEFEX Accreditation
We are frequently asked by investors and trustees – do financial advisers get audited?
As an investor, you want peace of mind. You need to know that not only is your adviser competent, but also that they’re acting in your best interest.
Riding for a Fall
There’s an ironic certainty to the Cup, given the pony-picking premise. We know that it’ll happen every year on the first Tuesday of November (not even COVID could stop it, though it did keep the fans at home last year). Beyond that there are so many variables for the punters – weights, age, barrier draws, recent form, the race distance, the weather and the state of the track.
If you’re trying to pick stocks, the options are just as bewildering.
Let's talk Inflation
If you weren’t already weary of living through historic events in recent years, here’s another driver for rapid change: inflation is on the rise, and quickly. In New Zealand the annual inflation has jumped to 4.9% in the September quarter compared to the June 2021 quarter which was reported to be 3.3%.
Is property still the golden goose?
Buying a house these days is turning into quite the luxury. If we dig deeper just into the statistics of Hawke’s Bay, we can see the prices of our properties have skyrocketed. Adding to matters, the Reserve Bank’s just announced the first cash rate rise in 7 years – some retail banks immediately passed this increase on to borrowers, while others are phasing them in slowly.
The 5th Birthday
To my surprise, we’ve chalked up five years of writing our ‘Canny View’ column. It truly is a milestone to have five years’ worth of weekly columns under our belt – and to have our community continuing to engage with them. To celebrate Canny View’s 5th anniversary, we’ve compiled five of our top articles:
The Crypto Trading Hamster Who’s Crushing it
The social media is blowing up with ongoing talks about a hamster. A hamster? It may come as a surprise, but a hamster in Germany is proving "A Random Walk Down Wall Street" author Burton Malkiel's hypothesis that a blindfolded monkey throwing darts at a stock ticker list in the newspaper could do just as well as a human investment professional.
How to Stop Fighting about Money
It is perhaps no surprise that financial stress can impact your mental health. This stress can also impact your relationships, particularly with your significant other. As a whole, we have a tendency to brush the issue of financial stress off as part of life - however, it can cause a tremendous amount of emotional strain, both personally and in your relationship.
Risk of Investing in Individual Stocks and Countries
When it comes to investing, we need to distinguish between two very different types of risk: good risk and bad risk. Good risk is the type you are compensated for, in the form of greater expected returns. For example, shares are riskier than bonds, therefore over time, shares must compensate investors by providing greater expected returns.
The Pre-Retirement Squeeze
With good planning, some retirees may already be handling their new circumstances in a good way. Staying home may have resulted in spending less, especially if they’re travellers or have active social lives. Market falls aren’t welcome, but with an understanding, they happen, along with a portfolio built to withstand them, there can be good results.
Dealing with Cognitive Decline
While we understand the impact of COVID-19, the biggest global health crisis in 4 generations, Alzheimer’s disease demands more attention. But why? Every 3 seconds, someone in the world develops dementia and with the current number of dementia being 50 million people this number is only set to double over the next 20 years reaching 82 million in 2030.
Why Bonds are like Ballast
The outbreak of COVID-19 has ushered in a new situation. Risk sits at the forefront of every investor's thinking right now. For retirement savers, it is uncomforting to see the value of their portfolios shrink substantially within such a short period.
Toilet Paper Vs Equities | Covid-19 Special Focus
The outbreak of COVID-19 has provided numerous examples of decisions that are seemingly fuelled by stress and uncertainty; from the bizarre stockpiling of toilet paper to investors moving between funds and cashing out.
Wellbeing and Positive Psychology
Okay, so many of us may have heard our peers and family members say that we should cancel 2020 and start afresh with 2021! We can all agree that it has been a tough battle with many unexpected changes along the way. It’s remarkable how well the nation has adapted to these dramatic changes to our everyday lives.
