NZIJ 122 - July 2007
KiwiSaver begins!
In the last few months there has been a flurry of activity brought on by the introduction of the KiwiSaver scheme. Behind the scenes, fund managers have been setting up schemes using suitable funds to be able to offer a range of appropriate options to different sectors of the public. Financial advisers have had to get to grips with a changing picture, with some more changes to the scheme announced in the recent Budget.
From feedback we get, we would venture to suggest that many employers have been slow in taking advice about the scheme and could be still struggling to know what to do, beyond passing on the Inland Revenue produced booklets to their staff. It is to be hoped that employees will not fall into a default scheme without considering the options available. Fritz de Boer of NZIJ Financial Services will be pleased to help. Contact him at NZIJ on 0800 90 60 90 or email fritz@nzij.co.nz
All the talk recently has been about the exchange rate, the Reserve Bankâs actions to rein in both it and the housing market, (all the while watching the inflation figures) and the continuing suggestions being floated from Dr Cullen about possible new or altered taxes eg. not allowing tax loss claims for landlords, or regulation to control excesses eg. capping interest rates for borrowing to prevent loan sharks from operating.
One thing is obvious and that is that there is a huge need for more education in financial matters for people in general. Starting young is the way to introduce this and there are some good resources available for people to learn more. In this issue, for instance, we have the second part of a serialisation of the book put out by ING, Financial Passages, which addresses the main issues for young people just starting out in life.
For even younger people, children in fact, Andrew Lendnal continues with his articles designed to help parents educate their youngsters. This time round he shows how KiwiSaver can be used to encourage saving and thrifty habits!
Also in this issue: David Pine highlights a couple of issues around business liabilities when things go wrong.
An article from Ecosphere shows we all have responsibility to halt climate change. As governments move to address carbon emissions, trading markets will be set up with some businesses likely to benefit financially.
Articles
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- Your childâs flying start! - Andrew Lendnal, CEO, BREAKTHRU KIDS
A sage once said that it takes more than money to make men rich. But the more practically-minded among us also know that a little money can be very useful to help us through life â most of all because it affords us choice in what we do.
- Make a rational decision! - Fritz J de Boer, CFP, NZIJ Financial Services Limited
I am often intrigued by the investment decisions many DIY investors make - particularly in the area of fixed interest investments.
- A whole lot of liability going on - David Pine, NZIJ RISK MANAGEMENT LTD
Business owners these days need to be more conscious than ever of the possibility that something they do will cause them to be at the wrong end of a law suit.
- KiwiSaver enhancements - Editor
The 2007 Budget released on 27 May contained a number of enhancements to KiwiSaver that affect KiwiSaver schemes.
- Secured debenture or term deposit? - Neville Giles, HANOVER GROUP LIMITED
A bank term deposit is perceived to be the absolute safest investment there is, but fixed interest investors are invariably trying to generate a return that âbeats the bankâ. The implied assumption is that they are willing to take on more risk in order to generate a higher return. But what are the characteristics of a secured debenture and how does this compare with a bank term deposit?
- Who halts climate change? - Michael Lockhart, Ecosphere Limited
The term âClimate Changeâ is in danger of becoming a cliché before most people understand what it is and what it means â including the experts!
- Emissions trading winners in Oz - Editor
The changes necessary to address climate change will bring plenty of opportunities for some businesses to make a lot of money. Alternative technologies will become viable as a price is put on carbon emissions and rises in response to demand to reduce emissions.
- Starting out - ages 15-25 - serialised from Financial Passages from ING
âThe only place where success comes before work is in the dictionaryâ -VIDAL SASSOON
Part 2 of our serialisation of Financial Passages from ING.
Freedom! Youâve finished school and the world is opening for you. Perhaps higher education, first full-time job, car, clothes, entertainment. Maybe youâre finally moving out of home into your own placeâ choosing your own furniture, parties, only cleaning your room when you feel like it. Freedom! The world is your oyster, so make the most of it...
- State of the markets - AXA
Global equity markets emphatically shrugged off rising bond yields during May, posting a 3.7% return in NZ dollar terms.
- IPOs in Australia - Editor
In the financial year just ended, Australia had a total of 212 initial public offerings (IPOs) - up 23% on last yearâs 172 IPOs and the highest number for a decade.
- Housing market watch - reproduced from investigate newsletter
Rising prices and increasing sales continue to reflect an active Auckland property market. But as house prices continue to increase, home ownership in New Zealand is in decline. What impact will decreasing home ownership levels have on the housing market and on property investment?
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