The message in the foot and mouth threat. The “Invest offshore” message was loud and clear the other day, after the news broke that somebody may have released foot and mouth disease on Waiheke Island. By the time you read this, the claim may have been proven a hoax. Here’s hoping so. If that’s the case, take warning from it.
Q&As: A letter to give a spouse who is mean with money; Where to get info on interest rates; Returns on share funds, and debt repayment.
Index funds still the best, despite tax changes. An ice cream is still delicious without the chocolate dip. The same goes for index share funds. Since they made an appearance in New Zealand in the late 1990s, these funds have had a tax advantage over the other type of share funds, called active funds. It seems likely that the tax advantage will be removed soon. But even if it goes, I still think index funds are best.
Q&As: Is it better to repay your mortgage or invest in a work super scheme?; Website with interest rate info.
The inherent differences between property and share investments. There’s a fundamental difference between investing in shares and property, a reader says in an email. “With a stock there is always the risk of bankruptcy of the entity you invest in, and the investment you make becoming worthless,” he writes.
Q&As: Where should a 13-year-old put his regular savings?; Extra repayments on a fixed mortgage.
Rentals not necessarily as good as they seem. Rental property is sometimes an excellent investment. There, I’ve said it, for all those who reckon I’m anti-rentals! Often, though, rentals are not quite as good as people think — and not just because the tax breaks are over-rated, as I said in my last column.
Q&As: Should single Mum renovate, rent our her house and move elsewhere, or move to a cheaper house?; Share trader’s early success won’t last.
Research shows how to invest in shares. Pictures may speak louder than words, but numbers speak loudly too at times. Some recent research shows, numerically, why it makes sense to: Stick with share investments when they lose value; Invest in both New Zealand and international shares.
Higher returns don’t matter for the short term: They need time to work their magic. There’s more than one reason behind the old investment message that goes like this: If you need your money in just a few years invest your savings conservatively, but if you have a longer horizon take more risk.