Listeners’ questions on rental property and KiwiSaver. Questions include: Rental property — A good idea to buy a second rental?; KiwiSaver — Are providers rated?, Contributions versus mortgage repayment, What happens at 65?, What happens if I die before 65?, Join up under fives?
Why it’s not easy to get rich quick. How you might get rich quick without putting in heaps of time and taking high risk: Not via scams (discussed last year); The other ideas need luck; What would happen if someone found a low-risk easy way to get rich quick?; 3 ways you could try to get rich quick — 1. High-risk shares, 2. Start a new business, 3. Highly geared investments; What do they all involve?
Listeners’ questions on setting financial priorities: Quick summary of last week’s segment; Listener’s comment on repaying your mortgage; Listener questions on KiwiSaver; Listener questions on non-KiwiSaver funds.
Setting financial priorities — Best thing to do with excess cash: the rule about repaying debt versus investing; Applying this to: credit card and other high-interest debt, mortgages, student loans; Top priority for all: repay credit card debt. Next priorities: If you don’t own a home; If you have a home with a mortgage; If you have a mortgage-free home.
Goal setting and the B word (budgeting). Goals should be SMART — specific, measurable, achievable, (w)ritten, time-bound. The goal habit: If you save before a trip, buying a car etc you can have many more trips and cars. Tips on goals. Budgeting: Firstly estimate spending in different categories, then keep track for a while; Tips on budgeting; Robert Frost poem; Emergency money; Help with budgeting: familybudgeting.org.nz.
Insurance: Why it’s best to be “ripped off” by insurance; Key info on life and disability insurance (who needs it? how much?); Other types of insurance: Income protection; house and contents; car; travel; health (what they are, and how much?); Which company?; Cost cutting tips; What to do after a car crash; A comment on insurance fraud.
How overconfidence can make you poorer (and other psychological aspects of investing): Applies to shares, property, fixed interest etc; Which gender?; Overconfidence leads to — 1. Too little diversification, 2.Frequent trading; What to do instead; Many women have their own problem — too little risk; Other ways emotions affect investing.
Too good to be true?: Warning signs of a scam — Who are victims?; Warning signs; False friends — features that make you think you’re OK; What to do if you’re suspicious; What to do if you’ve been ripped off.
Are you in the best KiwiSaver fund for you?: 1st question: which type of fund is best; Then ask which provider; It’s easy to change funds AND providers. Some unusual KiwiSaver funds to consider.
Getting through Christmas without going broke. Also, the big spender and the big saver. For big savers, Christmas is no problem. But there’s a downside. More later… Turning to the big spenders: What really makes the kids happy?; Ways to cut back gift giving; Tips on shopping wisely; Meaningful Christmas gifts; Spending lots on food and booze. Back to the big savers — a challenge for them (Includes lots of suggestions from listeners).