Complications of not having a Will!!

As a Financial Adviser, I help you make decisions to make sure that if any unforeseen accident or illness occurs, then you family, business and dependents are protected.

In such an event, I also recommend that you also look at your Estate Planning, so that there are no delays in ‘getting the right funds to you at the right time’

This is an article/video that not only shows the need to have correct Estate Planning in place but more importantly making sure you get good Financial Advice.

Please, if you need any help or advice then feel free to contact me or call on 09 551 3500

Get Ahead On Your Mortgage In This Low Interest Environment

 

 

 

 

Home loan customers could save over $100,000 by taking advantage of the low interest rate environment and paying off their mortgages faster, according to new data released by Westpac.

The data shows that two thirds of Westpac customers are ahead of their mortgage repayments by an average of eight months, which totalled $8,563 for the year ended 31 October 2018. Homeowners living in Nelson are the furthest ahead at 20 months, followed by Tasman and Marlborough on 15 months – though Aucklanders have repaid a greater median amount, totalling $14,456.

According to Westpac NZ general manager of consumer banking and wealth Simon Power, paying off an extra $150 a fortnight on a $500,000 30-year mortgage could shave up to 6 years off total repayments, and save over $106,000 in interest.

“With many mortgage rates falling in the past two weeks to historic lows, it’s a great time for customers to get ahead by holding their repayments at the same level at which they have been paying,” Power stated.

“If people are able toHome loan customers could save over $100,000 by taking advantage of the low interest rate environment and paying off their mortgages faster, according to new data released by Westpac.

The data shows that two thirds of Westpac customers are ahead of their mortgage repayments by an average of eight months, which totalled $8,563 for the year ended 31 October 2018. Homeowners living in Nelson are the furthest ahead at 20 months, followed by Tasman and Marlborough on 15 months – though Aucklanders have repaid a greater median amount, totalling $14,456.

According to Westpac NZ general manager of consumer banking and wealth Simon Power, paying off an extra $150 a fortnight on a $500,000 30-year mortgage could shave up to 6 years off total repayments, and save over $106,000 in interest.

“With many mortgage rates falling in the past two weeks to historic lows, it’s a great time for customers to get ahead by holding their repayments at the same level at which they have been paying,” Power stated.

“If people are able to increase the amount they repay each fortnight or month by $50, $100 or even $200 when they re-fix, it can make a substantial difference to their overall interest savings.”

He said the bank had many tips to help customers pay off their loans faster and save on interest, and customers have the chance to make significant savings in light of the low interest environment.

“It can be as simple as changing your repayments to fortnightly instead of monthly,” Power said. “You end up making two extra repayments per year, which reduces the amount owed and the interest paid.

“People could also consider increasing their regular loan repayments, shortening the term of their loan, and consider paying lump sums off their loans when it comes time to re-fix. Also, choosing to float a portion of their loan allows them the flexibility to pay off that part of their loan faster.

“Westpac’s mission is to help our customers financially, to grow a better New Zealand. One of the clearest ways we can do that is to support our customers to save more by paying off their debt faster.” increase the amount they repay each fortnight or month by $50, $100 or even $200 when they re-fix, it can make a substantial difference to their overall interest savings.”

He said the bank had many tips to help customers pay off their loans faster and save on interest, and customers have the chance to make significant savings in light of the low interest environment.

“It can be as simple as changing your repayments to fortnightly instead of monthly,” Power said. “You end up making two extra repayments per year, which reduces the amount owed and the interest paid.

“People could also consider increasing their regular loan repayments, shortening the term of their loan, and consider paying lump sums off their loans when it comes time to re-fix. Also, choosing to float a portion of their loan allows them the flexibility to pay off that part of their loan faster.

“Westpac’s mission is to help our customers financially, to grow a better New Zealand. One of the clearest ways we can do that is to support our customers to save more by paying off their debt faster.”

 

Source

One Size Fits All – OR Does It??

We at Insure NZ, for all the questions below, can help to tailor Insurances to fit your needs!! Contact us on info@insurenz.co.nz or call 09 551 3500

the whole insurance thing can leave us scratching our heads sometimes. It can feel like it’s not even a real thing.

So many questions, and too often we get left with vague answers.

For starters:
Why is it – no one ever seems to say much about the limitations of a certain policy? You know, when it’s a good fit, when it’s not.

If I were buying a ute, the sales guy would easily tell me how much it could haul. If it’s unsuitable, I’d move on and look at a different model.

It’s hard to say the same for insurance.

“This policy only works for those who …” said no one, it seems.

Why is it – no one explains when don’t we need insurance? This doesn’t seem to get discussed much either, and we’re much more likely to feel that we never have enough cover.

Admittedly most of us take too long to get insured. Had we started earlier, we could have locked in some low premium levels for life. Something to think about for the kids, perhaps?

But it also seems we’re behind in thinking about when we no longer need insurance and can cast it off.

The whole thing is on a lag – we get cover too late, then keep it longer than we need.

Or we buy insurance when we’re already covered, either by another policy, other consumer guarantees or state-funded safety nets like ACC.

Why is it – that you practically need an expert adviser in order to get a claim through the system?

The insurance experience is often not great. You might start with travel insurance, and then when your favourite Ray-Bans get lost and you make a claim, you find the policy doesn’t pay out and was a bit useless for the smaller stuff. Car insurance is typically next, and that’s about it for a while.

Meanwhile, we start working and often overlook protecting our biggest asset – our ability to earn.

I feel lucky to have found an adviser with a lot of experience in underwriting and “working” the system to make sure claims get paid when they’re supposed to. But not everyone has an expert at their beck and call.

The way we’re doing everything online these days means we’re often whipping out the card and buying cover on the fly. Who knows if the policies are right for us? Who knows if they’ll work when we absolutely need them to?

Like I said, so many questions. If you have an insurance adviser of your own who answers these, hang on to them!

Find a good tailor
For a while there my goal was to get the right insurance for my situation. Not everyone needs the same cover, and there is no “one size fits all”.

An insurance adviser is much like a tailor, actually – not just to get your fit right, but to make alterations over the years as well.

At the time I even hacked my daily computer password to be “getcover1” to remind myself. It wasn’t until “getcover4” kicked in almost a year later that I finally could say I had the right insurances in place.

Feel free for a free to contact us for a free no obligation chat.

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30% of Kiwis victims of scams

Thirty-three percent of New Zealanders have been actual or intended victims of scammers, new research from the Commission for Financial Capability shows.

CFCC said tactics used ranged from emails, letters and phone calls to face-to-face meetings. Fraudsters either try to obtain access to computers, or bank accounts and other personal details, through opportunity scams such as bogus lottery wins and previously unknown inheritances.

While fraudsters reached many people, findings show only 16% reported a loss, with 52% of respondents losing less than $500. The largest loss reported by a respondent was in excess of $800,000.

Commission for Financial Capability newly appointed fraud education manager Bronwyn Groot said: “Even very intelligent people get duped. The scammers move fast and hit hard, looking for any sign of vulnerability.

“They are organised, constantly evolving and the only way they will stop is if we stop sending them our hard earned cash and private information.”

Groot said it’s best to “stop, think and research” before sending any money or giving out bank account details or personal information.

“By making a simple google search or ringing your bank to check the email or phone call, could save you a whole lot of heartbreak and financial loss,” she said.

The survey polled 1,034 people and the results will be being released during the International Fraud Awareness Week.

The survey also found most respondents – when fallen victim to a fraud or a scam – reported feeling annoyed (64%) and angry (42%), and most respondents (67%) were proactive in reporting this to an authority.

In line with this, CFFC said it spearheaded the first ever New Zealand Fraud Forum yesterday. The event was co-hosted by CFFC, the New Zealand Bankers’ Association and the Banking Ombudsman Scheme and featured fraud expert Jeffery Thomason from Canada’s Anti-Fraud Centre.

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Home loan rates to rise, says major bank

Bank of New Zealand (BNZ) has reported a statutory net profit for its banking group of NZ$416 million and a ‘significant increase’ in cash earnings of 9% on the 2016 prior comparable period.

BNZ CEO Anthony Healy says New Zealand’s economic strength is providing benefits and challenges, “which is reflected in very sound credit quality and lower bad and doubtful debts, but with increasing margin compression as credit growth continues to exceed deposit growth in the system.

He said housing affordability remains an issue, though house prices have recently appeared to plateau as a result of the loan-to-value restrictions.

“We anticipate there will be increased pressure on lending margins in the coming months which will influence interest rates. Essentially, while funding costs have fallen they haven’t fallen by as much as our lending rates, which means our margins have reduced.

“Today there are more people looking to borrow, so banks are paying more to win customers deposits so this will lead to higher lending costs being passed through to borrowers.”

Healy said the bank is focused on sustainable growth and “the broker market is key for us achieving that”.

BNZ saw growth of $900 million in broker home loans this year and a portfolio of six broker partners connected to more than 800 advisors.
“We’ve made improvements to our processes and we’re realising the productivity benefits of this.”

BNZ’s investment in digital and online banking and payments technology has also helped their customers reach their financial goals, he said.

“Our home loan repayment calculator allows them to increase their home loan payments from the comfort of their couch. So far, customers who have made increases to their payments stand to save $187m and take 43,000 years off their home loans. On average, customers using this tool to increase their payments have taken two years and three months off their home loan.”

Money mistakes we’re making at every life stage

From student days to divorce, here are the most common money mistakes we’re making, and how to avoid them.

Whether you’re single, married with kids, going through divorce or heading back to study, life can get bloody expensive.

And to make matters worse, we’re so cagey around the subject of money, it can often be difficult to get impartial advice on how to save, get out of debt and generally make wise financial decisions.

Students

With easy credit and student loans, when you’re studying it’s very easy to get into debt. Yes, it’s incredibly tough to work and study, but it’s better to walk away from uni with a reduced debt because you’ve been paying as you go. If you’re financially struggling maybe consider working full-time and studying part-time or working for a year, building up funds and then head to uni with more time and more dollars.

Takeaway message: Pay down high-interest debt as the money become available.

First job
You’ve decided to enjoy your first year of work and get serious about savings later. But before you know it, three years have passed and you have nothing to show for all your hard work. Your friend, meanwhile, has racked up some nasty credit card debt trying to keep up while another has a large loan for a new car they just had to have. Sure, you want to enjoy life but get into the habit from the moment you start working to automatically transfer a percentage to a savings account you can’t access.

Takeaway message: Start saving now and reap the rewards later.

Single life
The danger for singles is they financially press pause until they meet a future partner. Singles need to reject the money message that a man (or woman) is a financial plan and start building assets by themselves. Without a partner to help with the cost of home ownership and bills, you might need to consider other options or become more flexible. This might include taking in a boarder until you can manage rent or a mortgage on your own, or perhaps buying an investment property in your name and continuing to rent somewhere cheaper.

Takeaway message: Start building your own wealth through investment.

Coupled up

When you’re in the first exciting stages of a relationship you don’t want to think about protecting yourself financially. But with money being the number-one thing couples fight about it’s important to talk about it early, to insist on transparency and to understand the financial ramifications of any financial product you invest in. This might be a phone you’re purchasing your partner as a present, through to signing a lease or agreeing to be the director of a company.

Takeaway message: Protect your own wealth and don’t just get swept away by the magic that is love.

DINKS (Dual Income No Kids)
Couples who are child-free are generally in a unique position financially. You don’t have to pay for childcare, school fees or have extra mouths to feed and generally have higher discretionary incomes. The trick is to ensure you’re still enjoying life but also understanding what your goals, values and priorities are when it comes to money so you’re tempted to save, not spend. This might include planned sabbaticals, extended trips away, helping nieces/nephews or starting a charity.

Takeaway message: Determine your financial goals so you don’t frivolously waste your cash.

Families
We might think we won’t try to keep up with the Joneses but when your friend’s child is going to a private school, has a new bike and the latest gadgets and your own child starts asking for them are you going to fall into the guilt trap? It’s important to understand that getting yourself into trouble financially is not helpful for your family. It’s important not to become financially stressed and put pressure on your family relationships by not overextending yourself, whether that’s with the size of your mortgage, the choice of school or any number of things parents feel they should be doing.

Takeaway message: Stay within your means.

Consciously uncoupling
It’s a fact of life that many couples will split and often the only people who win are the lawyers. It’s incredibly important to receive great advice early on so you know what you should and shouldn’t be doing. Whenever possible, agreeing on a fair and equitable split early on means you can start again with more dollars in your pocket. It’s also important not to let emotion get the better of you which is much easier said than done. Don’t give away the lot to charity so you start with a ‘clean slate’. It sounds great in theory but it’s all about looking after yourself financially for the long term.

Takeaway message: Keep a level head so you’re not left out of pocket.

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What is your Diabetes Knowledge?

What’s your diabetes knowledge?

Indicate whether the following statements are true or false.

  1. Glucose is found in blood only.
  2. Insulin is a hormone normally released into the blood after eating.
  3. Type 1 diabetes is a lifestyle disease.
  4. In type 2 diabetes, the body may stop responding to insulin properly.
  5. Being overweight does not increase the risk of type 2 diabetes.
  6. You can develop type 2 diabetes without experiencing obvious symptoms.
  7. Type 2 diabetes increases the risk of cardiovascular disease.
  8. People with diabetes should avoid sugary food and drink.
  9. Type 2 diabetes always requires medication.
  10. Gestational diabetes goes away after pregnancy.

 

Answers

  1. Glucose is a sugar obtained from food and drink, and used by the body for energy.
  2. Insulin helps to move glucose from the food and drink we consume into cells for use as energy.
  3. Type 1 diabetes is an autoimmune condition in which pancreatic cells do not make insulin because they’ve been destroyed by the immune system. However, a healthful lifestyle is important in managing type 1 diabetes.
  4. Type 2 diabetes may be diagnosed if pancreatic cells do not make enough insulin (reduced insulin production), and/or insulin doesn’t work well, and/or the body does not respond to insulin properly (insulin resistance).
  5. Type 2 diabetes risk increases with overweight, obesity, and other lifestyle factors, including high blood pressure, insufficient physical activity and poor diet.
  6. A person can gradually develop type 2 diabetes symptoms, many of which are subtle, including increased thirst, hunger or urination, fatigue, blurred vision, and poor wound healing.
  7. Type 2 diabetes can change chemical substances in blood, resulting in narrowed or clogged blood vessels and, ultimately, cardiovascular disease.
  8. Although sugar can raise blood glucose levels, it can be consumed in moderation as part of a diabetes management plan.
  9. In some cases, people with type 2 diabetes can manage blood glucose levels without medication, but rather, by losing excess weight, exercising regularly and managing their diet, for example.
  10. Gestational diabetes is a form of diabetes that occurs during pregnancy and usually goes away afterwards. However, it can increase a woman’s risk of future type 2 diabetes.

Official Cash Rate Unchanged

The Reserve Bank has left the official Cash Rate unchanged today at 1.75%.

In a statement released by the Reserve Bank this morning, Governor Graeme Wheeler said, “Monetary policy will remain accommodative for a considerable period. Numerous uncertainties remain, particularly in respect of the international outlook, and policy may need to adjust accordingly.

“House price inflation has moderated, and in part reflects loan-to-value ratio restrictions and tighter lending conditions.  It is uncertain whether this moderation will be sustained given the continued imbalance between supply and demand.

“Headline inflation has returned to the target band as past declines in oil prices dropped out of the annual calculation.  Headline CPI will be variable over the next 12 months due to one-off effects from recent food and import price movements, but is expected to return to the midpoint of the target band over the medium term. Longer-term inflation expectations remain well-anchored at around 2 percent.”Canstar general manager, Jose George said this morning that the Reserve Bank’s announcement to hold the cash rate was in line with market expectations.

“After a flurry of increases in mortgage rates over the last quarter, recent weeks have seen a slowdown on this front. However, with lenders remaining reliant on overseas capital to fund their domestic mortgage book further rate increases cannot be ruled out,” said George.

He said those with home loans should ensure that they can accommodate any potential increased cost in continuing to service their loan. “Depending on individual circumstances, now may be a good time to negotiate a longer term fixed rate option. Currently, there are at least 10 home loans below 5% p.a. in the 2 and 3 year fixed rate category, according to Canstar’s database.

“For people looking to get on to the property market either as first home buyers or as investors, the early signs of a slowdown in the Auckland market is encouraging but not replicated in other regions where we are still seeing year-on-year price increases. This, together with the costlier home loan environment compared to 12 months ago, still makes it a difficult market to crack for many consumers.”

Source

OCR predicted to stay put until 2018

Overwhelming consensus from New Zealand’s economists show a shift in the official cash rate will not be made by the Reserve Bank in tomorrow’s March announcement.

The RBNZ last cut the OCR by 25 basis points in November to its current record low of 1.75% and left it unchanged in its February announcement, the first one for 2017.

In a poll of 11 economists conducted by BusinessDesk, all expected no rate change to be made tomorrow.

Speaking to NZ Adviser, Canstar general manager New Zealand, Jose George also doesn’t expect any surprises in the upcoming announcement and expects the cash rate will also hold for the next couple after that until 2018.

“There’s no definite in this but we’re seeing anything or expecting anything to suggest a change this year at least for sure.”

“The housing market seems to have settled a bit, so there is no additional impetus on them to really want to shake that up at this stage.”

New Zealand Institute of Economic Research (NZIER) Shadow Board considers an OCR of 1.75% as still appropriate, it said in a statement released yesterday.

“The New Zealand growth outlook remains solid, with signs underlying inflation pressures are lifting. This suggests little need for further interest rate cuts,” said NZIER senior economist, Christina Leung.

“But there is no need to rush into rate increases. Downside risks from global developments suggest the Reserve Bank should adopt a wait and see approach, with any tightening likely to be some time away”

“The Shadow Board recommends the Reserve Bank continues to leave the OCR at 1.75% this Thursday. Inflation is picking up from a low base and with capacity pressures expected to broaden beyond the construction sector, we expect the Reserve Bank to keep the OCR on hold until mid-2018 before embarking on a measured tightening cycle.”

On whether the banks will make further interest rates movements, George said, “I think it is quite clear that they are pricing their mortgage book based on reality which seems to be their funding costs have increased over the last six to nine months, so they have been moving their pricing independent of the official cash rate.

“We saw a flurry of interest rate increases probably over the last two to three months – things have sort of settled down but that’s probably more of a reflection of the softening of the market rather than the banks funding situation.”

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