Savings growth is far from over at 65. I’m a bit hesitant to pass on this information, for fear that some readers might get the wrong message. But here goes. Just promise me you’ll read past the first half dozen paragraphs, okay?
Q&As: You need to compare rental properties and share investments on the same basis; How does KiwiSaver work for kids, and will the parents “trap” them into something they won’t want as adults?; Should we look at house prices versus household income, rather than individual income, when looking at affordability over time?
Q&As: Bad experience with fund shouldn’t put you off KiwiSaver…; …Nor should low income; Way of getting around high-interest fixed mortgage not without risk.
How not to be ripped off. There’s no denying that some fraudsters are clever. Bernie Madoff — the American now serving 150 years in prison for probably the biggest rip-off of all time — didn’t promise investors 20 or 30 per cent returns, which would have looked highly suspicious. Instead, it was a steady return of around 10.5 per cent a year. While you can’t get returns that high on a steady basis, it obviously sounded possible to thousands of Americans.
Q&As: Executives of failed finance companies can’t get away with wearing the dunce’s hat; Beware “investment houses” offering 20-per-cent-plus returns; Why did long-term investment go backwards?
Q&As: Where does the money go when a finance company fails?; How bank mortgage interest rates are set, and how to compare them; Should a reader switch from a fixed to a floating mortgage?
Why a dollar in the hand is worth more. The recent attempt by Bernard Whimp to buy shares in half a dozen companies cheaply — and the Securities Commission’s response to it — is a good illustration of how a dollar now is worth more than a dollar later.
Q&As: Should it take a bank three weeks to cut its mortgage rates?; Just how great was one family’s “Great Mistake of 2009”?; Reader tells Mary off for forgetting about the expenses of selling a house; How couple should invest as they approach retirement.
Q&As: A reader clearly doesn’t like the idea of renting instead of home ownership; How risky are mortgages, and who owns a home with a mortgage — you or the bank?; Share portfolio in some ways better than rental property in retirement.
When small is not beautiful. This goes against the grain, given that I think direct shareholders should own a wide range of shares. But there’s such a thing as too small a shareholding.