Q&As: Don’t try to time markets. Stick with your regular retirement savings, although you may want to modify where you save; Teen’s worries are unfounded about how Dad’s income would affect KiwiSaver first home subsidy — but other subsidy issues still undecided; Tax-wise, it’s better to borrow for taxable activities than to buy a family home. Plus: Clarification on the taxation of interest on loans between family members.
Getting in and out of share market a losing strategy. Many people with share investments — including KiwiSaver and other funds that hold shares along with other assets — are probably eying the 37 to 39 per cent drops in the New Zealand, US and Australian share markets last year and considering taking flight to lower-risk investments. Don’t.
Q&As: Couple can afford to retire youngish, especially if they are willing to eat into their savings; Cash PIE not always a good substitute for a term deposit — but there’s another way to achieve reader’s goal using PIE tax advantages.
To hedge or not to hedge? There are two key questions around investing overseas: Should you do it? And if you do, should you hedge your investment, so it’s not affected by movements in the New Zealand dollar. The first answer is “Yes”. The second is trickier.
Q&As: A happy share investor, and how you might get out of shares if you need to in the current market; How does KiwiSaver mortgage diversion work for someone with a “2 + 2” contribution arrangement? Plus: Winners of the Herald book giveaway.
Q&As: Far from being “devalued”, bank term deposits are a good deal these days; Don’t bail out of funds that include shares, despite forecasts of lower long-term returns; No, last week’s comment on the non-deductibility of mortgage interest wasn’t wrong — 2 Q&As; Another option for last week’s correspondent is house-sitting.
Q&As: Monkey story a great yarn, but it’s not about the share market; Reader’s concerns about banks’ exposure to foreign exchange risk are unfounded; 61-year-old should think hard before selling her house and enjoying some of the proceeds; Man about to retire can still get plenty from KiwiSaver.
Q&As: A landlord’s threats are perhaps a little hasty — but he has a point; A KiwiSaver misunderstands the ups and downs of the market; Are property shares a good option for young man saving to buy his first home?