Riding to the rescue of diversification. Diversification — a key element to successful investing for most people — has taken a bashing in the press lately. Even David McEwen, who writes this column alternately with me, quoted criticism of diversification on this page a few weeks ago. I feel bound to leap in and defend it.
Back to the creepy stuff. Well, he did it. Despite my impassioned plea in this column in February last year, Finance Minister Michael Cullen took away our chewing gum tax cut in the recent Budget. And we’re much bigger losers than most people realise.
Readers respond on KiwiSaver tax breaks. Three readers were unhappy with my last column, in which I said the KiwiSaver tax breaks expected in the upcoming Budget will benefit only some people, at the expense of New Zealand as a whole.
From the Mailbox. A mortgage-free couple wonder how to use the equity in their home.
Think again about those KiwiSaver tax breaks. Many readers were no doubt pleased to hear of Winston Peters’ recent hints that the May 17 Budget will include tax breaks in the KiwiSaver retirement savings scheme. But only some will benefit — and it will be at the expense of others, and the country as a whole.
Obsessed with property? Not us. New Zealanders are not as property mad — or as mortgage mad — as we’ve been led to believe, recent research shows.
New tax rules not so bad. As the new tax regime on shares in countries beyond Australasia takes effect, many taxpayers seem to think it’s tougher than it really is.
KiwiSaver enticing enough already. KiwiSaver, the new retirement savings scheme starting July 1, is coming in for criticism that is doesn’t include more tax incentives. But I’m glad of that.
Digging your way out of the big hole. You’re never in debt so deep that you can’t get out again. At least one reader of this column will be reassured by this message from Raewyn Fox, chief exec of the Federation of Family Budgeting Services.
Direct share holding often not the best way. A sentence in a recent speech by Reserve Bank Governor Alan Bollard caught my eye. “New Zealanders invest about twice as much in equities (shares) directly compared with managed funds,” he said.