I'm really worried about this generation of Hatch and Sharsies investors as their behaviour is so similar to that of the stock market crash in 1987. The Crash by Liam Dann in the NZ Herald describes it well: “It all happened too quickly,” says Des Hunt, a longtime investor and founding member of the NZ Shareholders Association. “What surprised me and frightened me was that everybody thought that it was easy to make money, so they were buying shares on the assumption they’d go up automatically, with little research,” he says. “There was nothing behind the businesses in some cases. I think the banks, the brokers, everybody was pushing hard. They were just saying you can’t miss out.” “Through 1986, the share market became something of a national pastime,” says the article dated January 2, 1987. “Many average citizens flocked to the new off-course substitute TAB in the hope of catching profits before they were gone,” the article noted somewhat prophetically. By February 1987, the New Zealand Stock Exchange estimated that between 12 and 15 per cent of the population were share investors, ahead of Australia with 8 per cent. Professional director Linda Robertson had just returned from her OE in 1987 and was working in a currency dealing room at the time of the crash. “I recall coming back and everyone was talking about shares. ” “Everyone was abuzz with share trading, there were share clubs. That was all very new.” In the dealing room, she recalls the crash being triggered by news coming out of New York. For Rob Cameron — one of the architects of the current regulatory system, including our Financial Markets Authority — there is no question. “Look, the one thing I can tell you with confidence is there will be another financial crisis. It is in the nature of humans.” “We are our biases — probably a lot of them evolutionary — and they will lead to periods where we become overly optimistic about asset prices, and we’ll find ways which no-one’s ever thought of yet to come up with financial innovations that fuel it.” It’s something to consider as the nine-year bull market, both here and on Wall Street, rolls on to new record heights."

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Quick Fire Finance Of The Day:

"After retiring last year, in June this year I moved all of my savings into ASB KiwiSaver. I chose a balanced fund to mitigate risks. I have now lost a considerable sum of money. I put in $666,430, and it’s now $641,136. I’ve made no further contributions or withdrawals.

I fear that I will never recoup this loss and I may continue to see my savings disappear.

I searched for a cause for such massive losses and found an article stating that ASB KiwiSaver invested in CBL insurance, and that this has led to large losses across their KiwiSaver accounts.

I know KiwiSaver has its ups and downs, but the loss I have experienced is more than a blip. Should I get my money out ASAP, as just having it under the mattress would have been better at keeping up with inflation than putting my savings into this KiwiSaver.

I am not in urgent need of the money right now but I have worked and saved — a seemingly stupid choice — in order to provide for my retirement.

I am feeling a bit scared. I probably found out too late about the CBL issue but I don’t suppose I would have understood what it meant, hindsight is always a torture. Just wondering if you had any advice re going forward."

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The challenge we often face in planning for our retirement, is knowing the difference between good and bad advice. In this case, NZ's favourite financial journalist Mary Holm had a slip up that could have cost a person their financial livelihood and it went like this:

Question:  "I have $200,000 to invest for my retirement. I am 70. Should I look at a fund or should I just buy a spread of shares myself?"

Mary Holm's Answer: 

"You’ve got enough money to buy a wide range of shares, so you could do it yourself. Here’s how I suggest you go about it:

· Make sure you buy in many different industries, as there’s no good way to predict which shares will perform better. Just because a company or industry has a promising future, that doesn’t mean its shares are good buys, as they might already be highly priced.

· Don’t buy and sell. Even the professionals get that wrong often. Be like Warren Buffett and buy for the long term.

Buying shares directly is a bit more hassle than investing in a fund or two — as suggested to the previous reader. But your costs will probably be lower than paying fees on the funds.

In the end, it probably comes down to whether direct investing appeals to you."

Source: NZ Herald 15 September 2018

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 Quick Fire Finance of the day:

"I am 68, semi-retired with an income of $40,000 from part-time work plus my NZ Super and $500 per week from an apartment I own mortgage-free.

I have $250,000 in term deposits and would like to use this to bring in some sort of income for when my part-time job ends. Clearly term deposits are not going to do that for me.

My options seem to be:

· Invest the money in some sort of fund that will give me a reasonable return to add to my pension and rent income.

· As I have a mortgage-free home in a popular beach village, I could spend $200,000-plus (architect and builder’s estimate) and add a self-contained studio underneath my house, which I know I can rent out on Airbnb or similar.

That would potentially give me a capital gain over the next few years, as well as providing (at worst case scenario) about $1000 a month income.

I have been looking at property to purchase, but anything I bought would require a mortgage, which clearly I can’t really service and negates the fact that actually I need something to bring in some extra cash."

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 Quick Fire Finance of the day:

"I am (finally) debt-free in my mid 50s and own my Auckland home, but I have very little saved for retirement. If I sold and moved pretty much anywhere else in New Zealand I could retire tomorrow. But I don’t want to move!

Rather than close down my mortgage against my home I’ve kept it in place, with a revolving credit mortgage (approximately 20 per cent of the value of the house) available to me at standard mortgage rates.

What are your thoughts on drawing on this existing facility if I decide to stop working? It feels like the reverse equity option, but without all the legal stuff. Or am missing something? Would love to hear your thoughts."

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Every New Zealander has the opportunity to make an impact. To share a concept that influences the masses. Point and click. A skill born and nurtured from two concepts: math and art. The mathematics of what converts and the inspiration of a well executed creative. We all have the opportunity but very few have the ability. That's why we are very fortunate to have video guru John Maybury break down the key styles to convert, inspire, and retain potential buyers into becoming a long term clients.

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Quick Fire Finance of the day:

"Having now reached 65 and receiving superannuation payments whilst still employed, I’m seeking confirmation that the government’s annual KiwiSaver contribution of $521 ceases from my 65th birthday.

Is there any point in continuing my minimum payment of $1043 to get the tax credit? Is there pro-rated payment from July 1 till the time you celebrate your birthday?

Would be most grateful if you are able to clarify the situation."

Source: NZ Herald 27th Of October 2018

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You can bail me up about this because it's incredibly bias. What I say to counter that is many listeners don't even know what a financial planner is or if it's worthwhile even talking to one. So I thought I'd take this moment to explain the different types and what to look for.

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I first came across Ed and the team at Opes when searching for ways to upskill in the property space because the first word anyone seems to learn in this country is p p p p rroooperty.  I needed a quick and engaging way to learn the ways of the P.  So I looked around but good lord there is a lot of boring shit and poorly constructed sales pitches. They were the exception. Andrew Nicol and Ed McKnight from the Property Academy Podcast seem to get it.

Good value in short chunks shared every day. 

Check it out.

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