Stop loss orders a dead loss. A reader writes that he is concerned about my advice in my last column. “Your two rules of share investing are to a) diversify (i.e. neutralize returns), and b) not sell when the market bombs,” he writes. “One would have hoped you would have added a third — enter a stop loss to avoid catastrophic loss if/when the market does bomb.” Not in my rulebook.
Q&As: A few fewer luxuries and many New Zealanders could afford to buy homes; 2 Q&As on whether the Reserve Bank got it right with the new coins; A financial planner objects to what I said last week about how to choose an adviser.
Q&As: Typical but rich women ask how to find an adviser; Does local government keep house prices up? And will they ever fall?; Let’s not have the government meddling in the housing market; Doing your homework doesn’t necessarily help share investment.
Readers’ questions on renting v home ownership. My last column — which said that you may do just as well renting as owning your home, provided you are disciplined about saving elsewhere — brought interesting questions from two readers. The first one is 40 and planning to return to New Zealand with his family. “I would be happy renting until I retire whilst growing our capital in areas other than property,” he writes. “At some time later I might buy a small place to live in. However, do you think in 25 years that ownership of property might be out of reach?”
Q&As: Should we have a new 25c coin instead of a new 20c coin, and also a $5 coin?; Is tithing the way to go? One reader says yes, another no.
Q&As: 2 on whether preparation and research plays a part in “luck”. Plus: Winning entries in competition to win a copy of “Get Rich Slow”.
Owning your home not always the best option. Most New Zealanders grow up expecting to own their own home, but soaring house prices have made it harder for people to get into the market. Does that matter? Is home ownership all it’s cracked up to be?
Stay Away: Don’t rush to bring your shares back from overseas. Also in this issue: From the Mailbox — Giving the kids a great start with regular investing.
Q&As: Lessons from the Bible: Is borrowing bad?; Is luck or attitude the secret to wealth?; Sharebrokers shouldn’t always be expected to give ongoing advice.
Q&As: What to do about negligent adviser who recommended bad finance company investment; Do high earners pay too much of the tax burden?; Parable about why the highest taxed get the biggest tax breaks.