Active vs Passive share funds:
– Listener’s letter suggests an active NZ fund beats the index
– Why this could be misleading – wrong index, chosen time period etc
– Research on 15 NZ active share funds
– Conclusion: passive is a better choice
Going through our Lucky 13 Money Quiz
– Questions and answers to online quiz for Money Week
– Discussion on the harder ones
– The one question few people got right — about house prices
Online share trading — don’t forget the basics
– Main platforms — Sharesies, Hatch, Invest Now and Stake
– Nearly 40% of adult NZers (1.5 million people) use or plan to use
– Five messages for share investors:
1. A good company is not necessarily a good investment
2. Decide about diversification (Can do share funds online too)
3. Shares are for the long term — or gambling
4. Traders are not winners on average
5. Value vs growth? Dividend payers vs others?
– Comparisons and info on safety of your investments — MoneyHub
Listeners’ questions about anything financial:
– KiwiSaver v shares — or electric vehicle?
– KiwiSaver for people in 2 jobs
– Risk level for money soon to be withdrawn
– Pay down mortgage v investing
– How much do you need to retire?
– Using KiwiSaver in retirement
– KiwiSaver as you turn 65
– Alternatives to bank term deposits
Gender differences in handling money and investing
ASB info from customer transactions:
– Spending
– Money management
– Saving
– Retirement savings
– Knowledge
Other research:
– Risk
– Trading
– Scams
Messages for each gender
KiwiSaver for non-employees of all ages — plus new research on KiwiSaver fund switching during Covid downturn
Switching funds: Young switched more, and members of bank schemes
Non-employees:
– Aged 18 to 65: $1,042 BEFORE June 30; rules for first year and turning 18 or 65; best to drip feed.
– Over 65: Good place for retirement savings; problems withdrawing money?
– Under 18: savings habit and learning about investing; aim at first home ownership
Reverse mortgages revisited, and 10 ways to make retirement easier financially
– Further thoughts about reverse mortgages — when younger retirees might use them
– Retire later — job satisfaction, social contact, financial
– Move house, and maybe town
– Boarders or flatmates or Airbnb
– Subdivide
– Rates rebates if on low income
– Rates postponement on any income in some places
– Accommodation supplements (government help with rent, board or home ownership costs)
– Sell your house and be a tenant
– Sell assets on Trade Me etc. including valuables
– At 90, you become the charity!
Reverse mortgages: Free up money for retired people — but take care!
– Growing interest in them
– How they work
– What to ask about them
– Some problems
– How people use them
– Where to get more info
Changes to consumer lending – harder to borrow but less spiralling debt
Notes from Financial Services Complaints Ltd conference on May 4
– Changes in effect last year: Caps on interest and fees.
– Changes in October 2021: Lenders must assess whether borrower can afford loan.
– Consumer Data Right: Government considering this. Consumers can choose to give their financial data to providers, budgeting platforms or comparison websites, etc.
– Another topic: “A complaint is a gift”.
DON’T BE SCAMMED!
– Bernie Madoff (just died) and David Ross (recently released from prison)
– Who is most often approached, and how?
– Types of scams — boiler room, Ponzi, high-risk products, shares, software packages and seminars, imposter websites
– What to do if considering an investment that might be dodgy
– What to do if you think you might have been scammed