Rental property beats shares — or does it? At first it looked as if a recent article in the Reserve Bank Bulletin might help with the perennial question: Is it better to invest in property or shares? But no such luck!
Risk is not a dirty word. A man on the radio the other day was talking about risk, and how we’ve become so scared about our children’s safety that we don’t let them climb trees. The kids lose out. It’s similar with investments. Many New Zealanders seem to be too scared of riskier investments, and they too lose from that fear.
Retirement spending puzzle solved. It was a question that got people thinking. Massey University senior lecturer Claire Matthews had just finished a presentation at the Workplace Savings NZ conference on how much people spend in retirement. “How come most of the spending totals for two-person households are more than twice the one-person totals?,” somebody asked.
Tax deductions: Not all they’re sometimes cracked up to be. A comment I overheard from a young man recently worried me. Talking about some kind of investment in race horses, and he said, “I put in $1000 a month. But I can deduct $800, so it’s hardly costing me anything.”
More than one way to fill a financial gap. This is one of those columns — like the one in which I confessed that I don’t have a goal for my retirement savings — that might make the “conventional wisdom” people cross. But here goes: We don’t all need a sizable emergency fund sitting in a savings account.
Many KiwiSavers contribute too much or too little. Some people are putting too much into KiwiSaver- arguably anyway. Meanwhile, others contribute nothing or too little to get the most out of the scheme, and would be rewarded for taking steps to change that in the next two weeks.