Latest News

The latest personal finance and investment news and views from Liz Koh

Liz koh

The Shape of Your Wealth

Your net worth is the sum total of all your assets – your house and investments – less any debts you owe – your mortgage, personal loans and other debt. If you were to measure your net worth every year of your life, you would notice a pattern. For the average person, it starts at zero, takes a dip down with student loans, then slowly rises to a peak at the point of retirement. Thereafter, net worth falls as money is ...


The Great Wealth Transfer

Over the next twenty years, a massive transfer of wealth will happen as baby boomers age and eventually pass away. This transfer will be on a scale not seen before. Net worth statistics for June 2018 put the total net worth of all New Zealanders at just over $1 trillion, of which $334 billion is owned by people over the age of 65. That’s around a third of our total wealth that will change hands over the next few decades....


The Art of Rebalancing Your Portfolio

The golden rule of investment is to diversify your portfolio. That’s a concept most investors understand, however they are not always sure how to achieve it. Diversification is simply spreading your money across several different investment types (such as cash, bonds, property and shares) and then within each investment type choosing a range of individual securities or funds. Within a portfolio there are assets which ...


The Difference Between Saving and Investing

One of the basic principles of money management is being clear on the difference between saving and investing. A lack of understanding of this principle means that money is not managed in the best possible way. Saving is simply the difference between your income and your expenses. The act of saving is no more than setting aside money that has not yet been spent. This money is usually left in a bank account. However, tha...


Spending Your Inheritance

Receiving an inheritance is a time of mixed emotions. There is the anticipation of receiving a sum of money, possibly a very large sum, but also the sadness of the loss of a loved one. Sometimes this tangling of emotions can lead to decisions being made which are not the best from a strictly financial point of view. There is a group of people for whom inherited money is sacrosanct. Such people will talk about how their ...


Plan to Spend Your Capital

As interest rates head down further, different strategies are needed for those in retirement who depend on investment income. It is difficult, if not impossible, to live on NZ Superannuation alone and retirees are feeling the squeeze as their interest income shrinks. Some economists are talking about the possibility of negative interest rates – a crazy situation where investors pay a fee for the privilege of having the b...


KiwiSaver and Mortgages

Simplicity KiwiSaver can lay claim to be one of the most innovative KiwiSaver providers. They have differentiated themselves by operating as a charitable organisation, a low-cost provider through the use of passive funds and an ethical investment manager through avoiding investments in nasties such as fossil fuels, alcohol, tobacco, gambling and weapons. Now they are set to take on the banks by offering low cost mortgages ...


The Biggest Mistakes Retirees Make

Retirement should be the best stage of life – a time when you can enjoy life to the max, free of worry. However, many retirees make mistakes with managing their money which mean they aren’t able to achieve the kind of retirement they deserve. If you want the last thirty or so years to be the most extraordinary time of your life, here are the key mistakes to avoid. Failure to plan. Time goes very quickly in retirem...


Parents Under Control

In business, there is a very important principle when it comes to management and governance of financial matters – the principle of conflict of interest. A conflict of interest arises when the concerns or aims of two different parties are incompatible, or when a person is in a position to derive personal benefit from actions or decisions made in an official capacity. It is no different in families, particularly when f...


Consequences and Regrets

Physicists know that for every action there is a re-action and it’s the same with money. With every financial decision you make (or don’t make) there is a consequence. Consequences may not, however, be instantaneous. They make take years to unravel. Where we end up in life is the sum of the consequences of every financial decision made. People who don’t consider the consequences of their financial decisions jeopar...


Search the Site

Subscribe to Our Newsletter

Enter your information below to receive all latest news, tips and advice from Moneymax, directly into your inbox.

Mailing List:
Subscribe
Investment Clients