Handling debt — from mortgages to buy now pay later.
– Worries — job losses, rising interest rates
– 2 types of borrowing — for things that grow in value and things that don’t
– Deferring payments — what that means
– Pay off highest interest first
– Set up automatic payments
– Add to mortgage?
– Buy now pay later. No interest but fees if late.
– In trouble with a loan? Talk to lender.
Q&As:
– When debt can be good…
– … And when it’s not
– Job seeker benefit not easy to apply for
– Is this NZ Super reduction fair?
What financial decisions would I do differently, with hindsight?
Based on an email challenge from a listener.
– Timing — in the share market and property market
– Gearing — borrowing to invest in a share fund
– A foreign exchange investment
– House buying
– Rental property?
– Higher paid work?
Also:
– My holiday message: Be terrific in traffic
Q&As: Should readers put inheritance into a rental property?; Should another reader keep their rental or seek higher returns?; Property versus shares over the last 10 years; Couple in late 70s should reconsider shares — and their adviser; Reader perhaps overrates paying down mortgage.
Has rental property had its run?: The market is slowing; Government changes — mortgages, tax on gains etc; Pros and cons of investing in a rental; Why rentals are riskier than they seem; Comparing rental and share returns; The landlord personality.
Investment risks — Part 2: Too complicated, too much borrowing, not diversifying… In a four-part series, Mary talks about the risks described in the newly updated “Upside, Downside — a guide to risk for savers and investors”. (Download it here) In this session: Investing in something you don’t fully understand; Investing in companies that get into trouble; Overdoing borrowing; Investing in too few different types of assets; Failing to diversify within each type of asset; Failing to diversify over time; Putting short-term money in volatile investments.
Is it wise to borrow to make a property or share investment?: What is leverage — a.k.a. gearing — and how does it work?; Pros and cons of using it; Why it’s wise to pay down your mortgage.
Q&As: Borrowing to invest in shares raises risk — and rewards; Buying shares directly versus using a KiwiSaver fund; Reader shouldn’t worry that KiwiSaver first home withdrawal will stop.
Good borrowing: How gearing boosts returns — and losses: Good and bad borrowing; A simple example of gearing; Compare this with investing without borrowing; 2 other ways gearing is risky; Can you cope with gearing?
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?