Q&As:
– What should siblings under 23 do with inheritance?
– Does this reader still need trauma or life insurance?
– Skip strategies to “get rich” in share market …
– … and maths won’t help you
– Share markets don’t necessarily move with economies
– KiwiSaver when you turn 18 or 65
– Covid government subsidies are taxable
Q&As:
– Sorry but I won’t ban the expression “property ladder”
– Non-bank mortgage lenders are needed
– Risks of property syndicate investments
– Would fewer landlords be bad for tenants?
– Loss of deduction unfair to landlords — but hey!
Q&As:
– Mortgages not a good substitute for term deposits — try managed funds
– Where to save house deposit
– Last week’s renter/landlord not so badly off …
– … Some ideas for her, but they’re not great
– Will landlords be able to raise rents?
– A better idea on bright-line test
– Finally — lovely feedback from a mother
Low-risk funds — a good alternative to bank term deposits
(But first — a quick follow-up on share trading)
– Defensive and conservative funds, in and out of KiwiSaver
– Where to get info — Smart Investor tool. Look for low fees.
– Don’t panic when balance falls a bit
– Comparison with bank term deposits:
— Pluses: withdrawals, PIE tax, safety
— Minuses: fees, don’t know returns, some volatility
Emergency — or rainy day — money
– But first — win a copy of Mary’s new book!
– Make emergency money your second to top priority
– When things go wrong…
– How much do you need?
– How to set up saving for this
– Where to keep the money
– Use your mortgage?
– Charity fund?
– If you use the money, top up again!
Q&As:
– Share market not yet like tulip bulbs — stay invested!
– Are passive investments the next bubble? Plus a note on mis-timing the market
– Low-risk funds not all like bank term deposits
– Risk and return do go together, despite reader’s claims
– Landlords can get hit in a long-term rental
Q&As:
– Safe, accessible, and going backwards — invest beyond bank accounts
– KiwiSaver a good spot for grandfather’s gifts
– My “cavalier response” last week about p/e ratios angers reader
– Comments from a café in Thames
– Why long-term rental leases might not work…
– … And how they might be made to work
Q&As:
– Ignore hot tip about market downturn — unless it scares you
– Switching from term deposits to KiwiSaver in retirement is not without risk
– “Millionaire-making” companies on warnings list
– Weighing up mortgage offerings is tricky
– Covid-19 aside, bank communicated poorly
Q&As:
– Time to accept that cheques are a thing of the past, and learn online banking
– “What’s that?” — the young ask about a cheque book
– For short-term money use term deposits or a cash fund
– Reader misses the point about fun element in Bonus Bonds
– One bank offers car and cash prizes on savings
– How to seek refund if you’ve overpaid tax on NZ Super
What is investment risk and what can you do about it?
New free booklet I wrote: Hit and Myths — an introductory guide to investing — at fma.govt.nz
Today we look at one of the booklet’s 8 Myths About Investing: “Investing is too risky”. Types of risk:
– You won’t get the return you want because of inflation
– You won’t get the return you want because of volatility
– You’ll lose some or all of your money
Importance of diversification
You can also watch a webinar I did with FMA on investing, at fma.govt.nz