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How will inflation affect me financially?

Thu, 21 Apr 2022 23:36:37 GMT

At the time this article was written, inflation had reached 6.9% in New Zealand - the highest inflation rate we’ve seen in over 30 years .

As a result, this is the first time many Kiwis have experienced sharply rising living costs and interest rates. If you’re concerned about how inflation could impact your financial wellbeing, read on to find out how inflation may affect you, and what you need to do to protect your financial future.

What causes inflation?

Inflation is an overall rise in the prices of goods and services. It generally happens due to a shortage of services or products; when there are fewer items available to purchase, suppliers can charge higher prices and the cost of purchasing goes up. For more information, The Reserve Bank of New Zealand has a good explanation of how inflation works .

The current rise in inflation can be largely attributed to the shortage of goods coming into New Zealand due to the impact of Covid-19. As there are fewer products coming into the country, costs have gone up across the board. The war in Ukraine has also pushed up the price of petrol, given the reduction in oil supplied by Russia due to sanctions imposed on them.

At this stage, The Reserve Bank is forecasting that our current period of inflation has yet to reach its peak. This indicates that it may be some time before our economy stabilises and prices settle.

What does this mean for everyday Kiwis?

New Zealand has enjoyed a buoyant economy for over a decade, with some of the lowest interest rates in the world - so the sudden increase in the cost of living will likely come as a shock for many Kiwis. We can also expect interest rates, mortgage rates, and mortgage repayments to rise.

These cost increases are likely to put pressure on household budgets and mean some belt-tightening is needed.

It’s going to be a challenging time for many New Zealanders, but with the right plan in place, there’s no need to panic. Here’s what you can do to reduce the financial impact in the short term, and give yourself the best chance of riding out the storm with your long-term plans intact.

What should you do?

Stay calm and make a plan

It’s important to assess your situation and make a plan, even if you’re confident that you won’t be heavily financially impacted. Be aware that you may need to adjust your weekly or monthly budget, and that inflation isn’t going to go away overnight.

Don’t be tempted by offers that promise to generate quick cash. Unfortunately, there are plenty of unscrupulous companies trying to profit off inflation concerns, and if a solution seems too good to be true, it probably is.

Ask questions and get support

Inflation is complex, and it can be hard to know what to do - especially when the news is all doom and gloom. If you’re not sure what to do, a chat with a financial adviser can give you peace of mind. By asking some simple questions, you’ll get the information you need to make an informed decision about the best path forward.

Keep an eye on your spending habits

Now is a sensible time to reassess your household budget, and look for areas where you can reduce your spending. Prioritise your spending, separate the must-haves from the nice-to-haves, and shop for bargains where you can.

Once you know you have the essentials covered, you can dip back into discretionary spending.

Don’t panic about your long-term investments

Long-term financial planning is designed to take market volatility into account. If you have a managed investment portfolio, your financial adviser will have carefully calculated your long-term risk and factored in market changes. This creates a smoothing effect, where short-term ups and downs have a minor impact on your long-term investment.

Keep making good investments

If you’re in the position to purchase a home or start investing, don’t put your plans on the back burner. There are always opportunities when the market is low, and if you can master investing in a challenging environment you’ll be in a much stronger position when the economy stabilises.

Thanks to NZFP advisers Karen Lane and Richard McCormick for sharing their insights.

Karen Lane

Advisor

NZFP Dunedin

Richard McCormick

Head of Client Engagement

NZFP Christchurch

Questions? Contact an NZFP adviser. We can provide the information and support to help you survive now, and thrive in the future.

KiwiSaver Changes - What do you need to know?

Tue, 23 Nov 2021 02:22:32 GMT

There are some changes coming to KiwiSaver, and while they’re designed to improve long term outcomes, they could cause some scary moments for investors who aren’t prepared.

When KiwiSaver was first introduced, New Zealanders who opted into the scheme had the option to choose their own KiwiSaver provider as well as what fund or risk profile they want to invest into. For those that were automatically registered, they were allocated to one of the default providers and put into a conservative default fund. Unless they already knew a bit about investing or had access to a financial adviser, the majority of Kiwis went into a default scheme.

KiwiSaver investors possibly see KiwiSaver as an effective way to save for retirement, with the added bonus of a tax credit and employer contribution, but they may not know where their KiwiSaver funds are invested. If they switched to a growth focussed fund, then their KiwiSaver dollars are invested in a range of different companies on the sharemarket. As the value of these companies increases over time, the KiwiSaver balance also goes up.

For the last 14 years, all of the default KiwiSaver providers have invested their customers’ money in conservative funds. Conservative funds - like the name implies - take a risk-averse approach to investing and avoid sharemarket exposure and volatility. These funds only go up and down slightly as the market moves, but overall they aren’t likely to vary by more than 5%. So most default KiwiSaver investors have never experienced a drop in their KiwiSaver balance due to market volatility.

Recently, the Financial Markets Authority made some changes to the default KiwiSaver providers.

From December 1, default KiwiSaver investors will be moved from a conservative fund to a balanced fund which will have a much higher exposure to the sharemarket and more volatile assets.

This is a positive change, as balanced funds have more potential for growth and generally deliver a higher return in the long run. However, there’s also more potential for the fund to move with the market, so any market volatility can mean unexpected changes in the value of your investment. New Zealand has had a very buoyant financial market over the last 14 years, but this could change overnight, making the prospect of low or negative returns very possible. The return, even in a balanced portfolio, can fluctuate up to almost 20% in a year - so for an inexperienced investor, checking their KiwiSaver to find it’s decreased due to a short-term market drop can cause a shock!

As with all things financial, this is only negative if you aren’t prepared. If you’re comfortable with some volatility, you may choose to stay in the balanced fund - just remember not to panic when your KiwiSaver balance moves with the market. If you are more comfortable with risk, you might even opt for a higher growth option, if that is what is right for your longer term savings plans. If you decide to stay in a conservative fund, just be aware that this may have an impact on the real value of your KiwiSaver money in the future once inflation takes its slice. You are free can to change your provider and choose a fund that suits your future needs at any time, but it always helps to get some independent advice on the right choices for your circumstances and your personal risk tolerance.

Callum Forbes

Financial Adviser

NZFP Wellington

A Goal-Based Approach to Investing

Thu, 01 Jul 2021 02:48:29 GMT

Why some investors aren’t concerned by share market drops or changes to investment property rules.

We often think of investment goals in terms of one single investment strategy. In reality, reaching your overall financial goals requires several strategies, each tailored to a specific goal. With the current uncertainty around residential property investment, the ‘one size fits all’ approach to reaching financial goals often becomes redundant.

Factors that influence all financial goals

Various factors need to be considered in connection with any investment strategy, including risk tolerance, portfolio size, and your overall financial situation (which reflects the balance between income level, income stability, non-investment savings, cost of living and debt levels).

But these are general considerations — in order to get more specific with your planning, you need to focus on two primary factors.

Your drive and determination in creating the goal, and
The available time horizon to prepare for it.

With those two factors at the front of your mind, here's how to leverage your goals to create a tailored investment strategy.

Short-Term Financial Goals

We tend to think of financial goals as being long-term in nature, but it is more likely the majority of them are actually short-term goals that contribute to an overall end result. In other words, achieving your long-term financial goals is best served by completing a series of smaller, short-term goals along the way.

How you invest your money to reach your short-term goals will be very different from how you would invest towards medium- and long-term goals. Short-term financial goals tend to be recurring, so you’ll probably be working towards one or more of these at any given time. As your need for cash will be fairly immediate — within one or two years — you have to be conservative with your money.

Common short-term goals include:

Building or replenishing an emergency fund.
Saving money to pay for an upcoming holiday.
Saving for a minor home renovation.

To reach short-term goals, you can't afford to invest in higher-risk assets that have the potential to take a big loss that you won't be able to recover from in time to meet the goal.

Your primary strategy will be to avoid losing money, so you probably don’t want to invest your money in anything riskier than money in the bank – despite the very low interest rates, which show no signs of changing anytime soon.

Medium-Term Financial Goals

Medium-term financial goals are generally at least two years in length but not more than ten years. Some examples of medium-term financial goals include:

Saving for university education or similar for your child.
Buying a new car and paying cash rather than financing it.
Early retirement, within ten years.

Medium-term goals force you to balance growth with safety of principal, so in a very real way, the timing of each goal determines your investment strategy for it.

For example, if one of your children will be going to university in two or three years, you’ll want to stay with more conservative investments, such as interest-bearing assets. On the other hand, if you’re planning on retiring in ten years, you may want to take more of a middle-ground approach. To achieve this balance, you'll need to invest a portion of the money in growth and income type assets , with a smaller position in growth assets.

Long-Term Financial Goals

For most people, the ultimate long-term financial goal is financial independence - particularly if you are in your twenties or thirties and have decades to prepare.

Other long-term goals could include future education funding for a younger child, leaving paid employment and buying or starting a business, or paying off your 30-year mortgage in a shorter time frame.

Long-term financial goals are almost easier to build an investment strategy around because you have a longer period to save towards the goal. You also have more options, as short-term drops in the value of your investments are no longer the dominant factor. The greater concern is investment growth, which is the vehicle that enables you to reach long-term goals.

When you’re working towards a long-term goal, your investment strategy will favour long-term growth. This can include local and international shares and other assets such as listed property or direct investments like residential property.

Inflation is another factor when it comes to long-term investing. Though it may not be much of an issue when thinking about short-term goals, inflation is always a factor for investments that are held over decades.

Fixed-rate investments simply do not pay enough of a return to cover inflation and to grow your investment portfolio in real terms. Your investments will have to account for inflation, and that will require substantial exposure to growth assets such as shares and property.

The most relevant factor in determining your investment strategy for virtually any goal is how much time you have to prepare, save and invest.

If your investment goals have a long-term horizon, the current uncertainty around sharemarket, property and other growth-focused investments should no longer be an issue for serious concern.

Callum Forbes

Financial Adviser

NZFP Wellington

Helping Kiwi women win with financial knowledge

Wed, 09 Dec 2020 21:04:29 GMT

Take action to support the women in your life and see them enjoy a brighter future.

Compared with other OECD countries, New Zealand’s financial literacy levels are above average. However, we still fall short of where a progressive nation should be, especially when it comes to the gender gap. Kiwi women, in particular, rank well behind in personal finance knowledge and practice when compared to their male counterparts.

Many of us aren’t even aware of this on a daily basis. We receive a healthy salary, can afford the life we like, and manage day to day finances without much issue.

However, a lack of financial literacy doesn’t always present itself on the surface.

For many, it’s not until pre-retirement that they realise they haven’t done enough. For some, it’s the loss of a partner or support person that thrusts the responsibility of assets and money management onto their unprepared shoulders.

So what can we do to mitigate these problems?

With professional support and a generous attitude to sharing financial knowledge, together we can help New Zealand women win with their finances.

We all have someone we can guide.

You may not consider yourself expert enough to give the right advice, but the next best thing is to support and guide the woman in your life toward understanding her financial position and finding the resources to make informed decisions.

Even sharing a blog post can open a conversation and ignite a spark of awareness. You could guide your mother, sister, daughter, aunt, wife, or female colleague toward a better future where she can enjoy financial security and live the life she deserves.

If you’re reading this article, chances are you already have a degree of financial literacy. How could you use that privilege to raise up those around you?

Maree Gordon, Financial Planner at NZFP, has seen both ends of the spectrum when dealing with clients who need a financial plan:

“I see smart and successful businesswomen, and I see women who are completely oblivious to their financial situation. All too often I see clients in concerning situations that don’t need to happen, overwhelmed by stress that could have been avoided if we were to increase our communication around financial literacy.”

Good decisions are guided by knowledge.

Think of a significant woman in your life – how involved in her personal and household finances is she? Does she know where her Kiwisaver is, and how long it will last her in retirement? Does she know what her debt level is, and when her mortgage will be paid off?

Would she be comfortable and confident in making important financial decisions alone?

If you answered “No” to any of these, what knowledge, guidance or contacts could you share to support her toward a “Yes”?

In NZ, the average woman’s Kiwisaver is 19% lower than the average man’s, and she’s on track to retire with $80K less. Couple this with the fact that women tend to live longer and therefore need more funds for their retirement years, and you can see why financial education and planning are so important.

If you want to see the women in your life enjoy long, comfortable, financially secure lives, starting early and creating a plan are essential.

So, where can you start?

Maree Gordon believes the most important thing women can do, and the best way we can support the women in our lives, is to understand their situation:

“Ask questions, start to dig in and understand the details of your income, your expenses, your debt and how many years it will take you to be debt free. Understand what your surplus is, and how much extra could be saved or invested each year.”

Invite open discussions around shared credit cards, what steps you will take when your mortgage rolls over and costing out insurance for assets. Talk freely about what personal insurance your family has, who’s life is it on, who owns that insurance and why.

Understand what other investments you may have, who’s name they’re in, are they accessible now or locked until age 55, 60, or 65? What is the risk level of these investments?

Know what Kiwisaver fund you’re in, how much you contribute, and if you’ve paid enough to get the government contribution. Set a goal you want to reach, and figure out what it’ll take to reach that goal realistically.

Plan toward retirement with practicality, rather than trusting it’ll work itself out somehow.

An experienced financial adviser can support this process by knowing what to look for and where to start. Make the process easy with a trusted professional who will keep you on track toward your goals and actively facilitate better money management.

Your awareness is the seed of financial knowledge – so share it, and help it grow in others.

Share your knowledge widely and generously: speak with those around you about their financial situation, and guide them toward the knowledge that will set them up for success and independence.

Whether your loved one is 40, 60, 80, or 14, 16, or 18, use your financial awareness and understanding to share information or invite conversation.

Get those special women in your life to take ownership of their personal financial situation.

Help your daughter, sister, mother, or auntie to create a better financial future for herself. Help her to win.

Start now with a visit to NZFP, start creating your financial plan today.

Excerpts from Maree Gordon ,

Financial Advisor at NZFP

How will a recession affect me financially?

Wed, 02 Dec 2020 01:52:25 GMT

What you need to know, do, and avoid to get through unscathed

The recent Covid-prompted recession is hot in many minds at the moment, as daily headlines and political announcements warn us of deficits and dire futures to come if we don’t make a change.

But for everyday Kiwis, what impact will a recession have on our lives, and what can we do to get through it?

Read on to find out how an economic downturn will affect your finances, and what you need to know, do, and avoid as the markets rise and fall depending on the news of the day.

What you need to know about your financial situation in a recession

Recessions are not new and not totally uncommon, either. Occurring on average once every ten to fifteen years, in a lifetime you’re likely to experience several recessions of varying intensities.

Because of this, financial planners factor the potential for these events into your plan. We expect there to be a number of recessions over the time of a plan - they’re a fact of life that we can plan for.

In reality, though, a recession shouldn’t affect the average person’s daily life or financial goals in a tangible way unless they lose their job or their business takes a knock.

If you maintain your income you might not even notice a recession, aside from in the newspapers. Even if you lose your job, it will hopefully only affect you in the short term - you’ve still got your long term goals and long term plan, which should outlive the downturn. In addition, an essential part of any plan is to work towards building up enough of a financial buffer, which can give you comfort at difficult times.

What you need to do & avoid to get through this recession intact

The best thing to do in uncertain times can also be the hardest – nothing. Well, nothing immediate.

What we really mean is to avoid acting on any knee-jerk emotionally-driven reactions to the situation, which could potentially jeopardize your financial stability. In the short term, financial markets can be especially crazy as the impact of the possible recession is worked out.

When the markets took a sharp downturn in March 2020, people panicked. They thought they should be doing something to react, but the truth is the best thing to do was just to keep on as they were.

A good financial plan is designed to withstand all of these different conditions - the worst thing you can do is make a knee-jerk emotional reaction with your investment, like so many people did with their Kiwisaver portfolios in March, switching from growth focussed shares to conservative cash funds.

At NZFP, we get you to focus on your goals in order to make informed decisions and have an action plan for all eventualities. Are your goals still the same and are they still achievable given your circumstances? Are you still planning to work until you’re 65? If there are any changes to make to your investments and overall financial plan, it’s at this greater level of long-term goal, not at the micro level of day-to-day activity.

It’s human nature to want to control various aspects of our lives, which is why we feel like we should be doing something in uncertain times. The sensible thing to do is to understand what actions will have the best possible impact on your long-term security and often that means sitting tight and letting your plan do what it was designed to do.

Your plan gives you options, clarity and helps take the emotion out of decision making, usually at emotional or scary times.

What you need to reassess to create a stronger post-recession future

This advice to sit tight and stick to your plan of course depends on whether you have a financial plan in the first place, and whether your risk profile and ability to meet your goals still rings true in light of these events.

If you don’t have a financial plan in place to reach your long-term goals and create a comfortable retirement for yourself, get in touch with our team at NZFP to start the process today.

If you’re feeling overly uncomfortable or overwhelmed with the volatility of the market, you are probably getting your first real experience of what risk actually feels like and it may be time to have an open discussion with your financial adviser about your risk tolerance profile.

Are you in the right place? Have you got the right mix of investment assets? This is an ongoing discussion to be had with your adviser to ensure you’re in the right place with your money, to reach your goals at a level of risk you’re comfortable with.

Your risk profile comes down to your need for growth, time frame, and how you feel about volatility. This isn’t something to have an emotional reaction about and go back and forth over. After discussion with your adviser, you may need to adjust your overall portfolio risk exposure, but be aware this can have an impact on the viability of your longer term financial goals.

The dramatic changes in the economy this year have reinforced the importance of having a trusted adviser to lean on for reassurance and guidance. We aim to keep you on track toward your goals, no matter the economic weather.

Contact NZFP to discuss your financial plan today.

What to consider when helping your child buy their first home

Wed, 28 Oct 2020 21:00:02 GMT

The potential pitfalls to negotiate and avoid when making this big life decision.

With the cost of houses continuing to rise in New Zealand, it’s getting tougher for young people to buy their first home on their own. When your son or daughter is starting a family and looking to settle down, it’s natural that you’d like to help them on their journey to first-home ownership.

But what seems like a simple and generous offer can sometimes lead to bitter and unwelcome consequences if not clearly discussed and planned from the start.

At NZFP, Juliet Manning from the Christchurch branch has experience helping families to navigate the challenges of this situation. If you’re thinking of helping your children buy their first home, here’s what you need to consider before you say yes…

How will it affect your retirement or other long-term financial goals?

If you’ve had a financial plan for some time, as our clients have, you’ll be aware of how much you need to set aside in order to reach particular goals.

But when you want to provide a sizable sum to help your child buy a house, how much will that affect your ability to reach those goals?

You may realise you’ll have to stay in the workforce for several more years to make up the shortfall, or adjust your spending in retirement to ensure the new lower sum covers your needs for the rest of your life.

“The most important thing to understand is the impact this would have on your long-term planning and retirement. Once you understand what that impact is, you can start to look at the consequences and assess what actions you might need to take if you go ahead with it.”

“Some might say ‘That means I have to work for another five years, but I’m okay with that’. We work to get you that information so you can make those informed decisions.”

- Juliet Manning

Financial Adviser, NZFP

Is it a loan or a gift?

In some cases, parents will offer their help as an interest-free loan to be paid back as or when their adult child is able. What this vague payment schedule can often lead to, however, is the money not being paid back at all.

If you’re counting on your child paying back the loan and they never do, how will that affect your finances and your relationship? How comfortable would you feel chasing them to recoup the money?

Clarity is your ally in this situation, along with a lawyer and financial adviser.

Discuss openly and honestly what the two options would mean for you and your future – what are the conditions, consequences, and compromises that each option entails? How would your relationship with your child change in each situation?

A financial adviser will work with you to project the different outcomes from a financial perspective, while a lawyer would make sure that the right paperwork is completed so you, your child, and your money is protected.

Is it unfair to their siblings?

If you have more than one child, can you afford to help their siblings too?

While your other children may not be in a position yet to purchase a home, if your support is offered to one child but not their siblings it can cause intense feelings of resentment and bitterness within the family.

It’s important to discuss your decisions and the reasoning behind it as a family, to keep communication channels open and dispel any assumptions around favouritism before they begin.

What happens down the track?

To ensure that everything is properly recorded and protected, we recommend speaking to a lawyer who can help you draw up the necessary documents.

As well as recording the loan or gift from you, the parents, it’s important for your child to then know how to protect their asset in the event of a de facto relationship breakup down the track. Drawing up papers with the assistance of a lawyer can help to keep your child’s home safe, no matter what happens in years to come.

“If you’re helping your child into a house and their partner then starts living in the house, it’s important that your child has had the right legal advice and a heads-up about what that relationship could mean for the property.”

“If I give my child money to buy a house, then someone else comes in and a few years later they split up, the partner could be entitled to half the value of the house – that needs to be discussed and understood from the start.”

- Juliet Manning

Financial Adviser, NZFP

Secure your family with NZFP

No one can tell you what the future holds, but at NZFP we can help you prepare for both the planned and the unexpected. If you’d like to help your child into their first home, talk to us first to figure out what it means for your future.

Safeguard your investment and your family relationships with trustworthy financial planning.

Need advice for managing your financial goals to support your children? Contact our team to book your first meeting today.

Excerpts from Juliet Manning ,

Financial Advisor at NZFP

Why Women Need Financial Planning

Wed, 07 Oct 2020 01:18:42 GMT

The three reasons women often lose out, and how a solid financial plan can secure their future.

Women in New Zealand, as modern, educated, and independent as they are, can be their own worst enemy when it comes to creating a long-term financial plan and securing their future.

The main objection may be familiar to you - not enough time. However, we’re here to remind you why now is the best time to start. Don’t put it off any longer - a short-term investment of time now will reap handsome rewards in the long run.

Although women in New Zealand are likely to be involved in the day to day planning and management of household finances, they sometimes fall short when it comes to long-term financial planning, especially retirement planning.

There are a couple of factors already working against women aiming to match their male counterparts’ retirement investments - the gender wage gap and time off work for maternity leave and child-rearing - but this doesn’t mean there’s nothing you can do.

Given the fact that women are more likely to live longer lives than men, it’s important that women understand the need to create a financial plan now to set themselves up for a comfortable retirement, however long it is.

Maree Gordon, financial adviser at NZFP, has worked with women at all stages of life to develop personalised plans that provide a secure and comfortable future for them. As a professional woman and a mother, Maree understands the challenges facing women in New Zealand when it comes to managing their finances. She seeks to empower women through financial independence, education, and planning for the future.

With the support of a financial adviser like Maree, it’s easy to overcome the obstacles that are holding you back, and enjoy a sustainable journey toward financial independence.

What are the three common roadblocks that prevent women from engaging in long-term financial planning?

1. Women are often time-poor.

Where oh where will you find the time to look at your finances? There’s work to worry about, whether the children are passing exams, and the dog has been making some funny noises and might need a costly vet trip - how can you think about future planning when there’s so much going on in the present?

It’s easy to slip into the comfortable belief that as long as your Kiwisaver is ticking along and your nest egg or house is secure, that’s all you’ll need. But it’s not that easy.

When you’re comfortable in the present it’s hard to imagine things changing, but as recent months have shown, no one is immune to the sudden shock of redundancy or illness. An investment of time now to sort out your financial plan can ensure that you’re able to make the most of your earning years to set yourself up for stability and success in later life.

The confidence that comes with knowing where you stand financially enables you to say “yes” to that new house, taking a trip around NZ, or helping the kids through university, without worrying about your own future.

Once your plan is established, you can pay as little or as much care to it as you like - we’ll be taking on active management to ensure you’re getting the most out of your money, and reporting on progress to keep you up to speed on where your investments are at.

2. Some women put themselves last.

When you’re so busy keeping home, work, and social plates spinning, how often do you say “I should do this … I can do it myself”, but then end up prioritising tasks for other people over your own future needs?

Caring for yourself is part of caring for your loved ones. Ensuring your own financial stability now will serve as an anchor later in life, keeping you safely moored no matter what economic or personal circumstances come.

Putting yourself first can be as simple as gaining the professional help of an adviser. Just like in business, there are tasks in our personal lives that are worth getting professional advice for. Once you’ve been through the process of setting up your financial plan, you can continue enjoying your present and let us take care of your future.

Remember that as women live longer than men, we need more in our retirement pot to keep us satisfied and secure. While it’s easy to delay thinking about retirement now, now is the best time to set yourself up for security.

“I see a lot of women who are very good at their jobs, and very good at running the house, but not good enough at considering their own situation. They don’t see that putting themselves first also puts their family first.”

- Maree Gordon

Financial Adviser, NZFP

3. Women tend to be more risk-averse than men.

Women are generally more risk-averse than men, and while this doesn’t prevent them from making a long-term financial plan, it can lead to missed opportunities to maximise the growth of their funds over time.

It can feel like an uncomfortable trade-off - either keep your money in a conservative account and miss out on growth, or put it in an aggressive, high-risk portfolio that’ll see a steeper trajectory but also face a more volatile ride.

“It’s not about choosing either end of the risk spectrum, it’s about working out what’s right for the individual, according to their risk comfort level. Through discussion and education, you can choose comfortably what level of risk will be worth it for your goals.”

- Maree Gordon

Financial Adviser, NZFP

With the support of a financial planner, you can find the right balance of risk and reward to suit your risk comfort level and meet your financial goals. We see education and understanding as the keys to financial confidence that help us to find the perfect plan for you, so you don’t miss out on your potential.

How can a financial plan create sustainable security for your lifestyle?

With the help of a trusted financial adviser, you can create a personalised plan to enjoy your ideal lifestyle for years to come. It doesn’t have to be daunting or intimidating - our role as financial planners is to make it easy for people like you to create long-lasting security and a sustainable cashflow that reflects your life goals and values.

A quality financial adviser will do more than just manage your funds, our advisers at NZFP will:

Bring order to your finances and clarity to your current situation.
Work through your current financial incomings and outgoings to figure out your surplus, and how much you stand to have by the time you retire. We’ll break it down so it’s easy to understand and make sense of, so you know exactly where you sit with your finances.
Keep you on track toward your goals, even as they evolve with your life-stage.
Situations change, and goals can shift depending on what happens throughout your life. We’ll be here to keep track of where you’re at, and help you maintain progress toward those outcomes no matter what.
Anticipate the upcoming challenges and opportunities in your life-stage.
We’ve had decades of experience working with people at all stages of life to plan for a solid financial future, so we understand the different challenges and opportunities that each stage of life can present. We’re already looking ahead, so you can focus on your present.
Widen your financial education through understanding and facilitating good financial decision making.
We know that understanding your finances is key to making the best financial decisions for your future, so we work with you to make sure you understand exactly what the pros and cons are of each option available. It’s a gift you can pass down for generations.
Offer ongoing support and partnership.
We care about seeing you succeed, and witnessing the positive effects that security and financial wellbeing can have on people of all ages and backgrounds. We’re with you for the long haul, providing clarity and taking the burden of finance off your back. Partner with us, and feel the difference.

Call NZFP to get started on your personalised financial plan today.

Excerpts from Maree Gordon ,

Financial Advisor at NZFP

A Roadmap for Uncertain Times

Thu, 13 Aug 2020 03:55:38 GMT

Get back on the road toward your goals with the help of a financial planner.

You’re driving along the highway, heading to a beautiful bach on the coast. The car is loaded up and ready for a good long holiday, and you’re comfortably enjoying the scenery as you cruise along, hands resting lazily on the wheel.

Then, all of a sudden, your car starts to sputter and stall, before grinding to a halt altogether halfway up a hill in the middle of nowhere.

‘ This wasn’t supposed to happen ’, you think, ‘ What the hell do I do now?'

Sound familiar? If you’ve lost your income this year, you may recognise this feeling: shock from the abrupt loss of control, uncertainty about what to do next, and frustration at there being no clear easy-fix.

But when your car stops in the middle of nowhere, you know what to do, don’t you? You call for help.

A “breakdown” in your career is no different - when you find yourself facing redundancy or a sudden loss of revenue, the best thing to do to get back on the road is to call for help.

New Zealand Financial Planning (NZFP) guides Kiwis through life’s ups and downs toward financial wellbeing - a state of comfort in their finances that allows for greater freedom to live the life they want.

Let us be your mechanic, and get you back on the road to your destination.

What to do when things break down.

It’s natural to experience a range of emotions when things don’t go the way you’d planned.

“People are in this position of being overwhelmed by what has suddenly happened. The shock hits them, and they freeze, not knowing the next path to go to… they’re like a possum in headlights.”

- John Stickly, Air NZ Union

But don’t panic. The fastest way out of an unplanned situation is to get back to the drawing board and start creating a new one.

When you’re made redundant, it can feel like a lot is out of your hands, but making the choice to create a new future for yourself puts you back in the driver’s seat.

Through awareness of your current situation and planning for your future, you are able to restore your choices, your confidence, and control of your path.

Redundancy is a valuable time to reassess what you want and where you want to be headed. Perhaps there’s a better road you could take?

Life coach Vicky Evans has experienced two redundancies, both of which forced her to explore different avenues and look further afield than she’d planned. The first saw her move home from London to Newcastle in her mid-30’s to start a new job, while the second allowed her to receive a good payout that she used to train in a new industry and set up a business for herself in New Zealand.

“The first one was terrible, one of the worst times of my whole life. But it also changed my life entirely - from there I went into a new job, I met my husband, and had children. If I hadn’t been in that bad situation, I wouldn’t have ended up where I was.

The second time, I took voluntary redundancy as I was on maternity leave and planning a second child. I worked with a financial planner and invested my lump sum, saving it for a rainy day or important investment. That investment was myself - training as a life coach changed my life and enabled me to set up a thriving business in New Zealand that I can run around my children.”

- Vicky Evans, Life Coach

How to get back on the road.

Once you know where you are and where you want to go, it’s time to start finding the best route to get there.

A financial adviser can guide you through creating a new plan based on your values. They’ll sit with you to figure out the steps you need to take in order to live the life you want, and how to sustain that lifestyle for the long term.

With a financial plan, you can:

See what’s possible, and what it would take to reach those outcomes.
Remove the fear of uncertainty that’s holding you still.
Ensure you can enjoy a fulfilling retirement on the assets you already have.

“It’s about remembering your goals and focussing on what’s important - it’s about the life you want to live. The past is the past and you can’t change it, but you can control some aspects of your future.

Productive planning toward your future can restore your sense of control and direction. It may seem difficult, but getting on top of your finances can be very liberating.”

- Gwen Hoople

Financial Adviser, NZFP

Reaching your destination - the bach by the sea.

“We know that life is always going to send you some curveballs, some in a good way and some in a bad way. Life always changes. So, we plan as best we can, we prepare for changes, and then we identify gaps in that preparedness. If our clients are made redundant, it would be tragic but they’ve been coached by us to set aside some emergency funds which they can tap into to tide them over for exactly this kind of event.”

- Gwen Hoople

Financial Adviser, NZFP

Just like how a mechanic knows exactly where to look in your engine, an objective financial adviser can identify the parts of your situation that will make the most impact, and help you to see the places where changes can be made to maximise your lifestyle for the long run.

We don’t make decisions for you or tell you how to live - we empower you to make the best decisions for yourself, according to your own goals and values.

Feeling stuck? Talk to us, see what we can do to help get you to that destination.

Excerpts from Gwen Hoople ,

Financial Advisor at NZFP

Self-worth vs Redundancy

Thu, 13 Aug 2020 03:41:24 GMT

Advice from a financial adviser and a life coach to help you power through the personal challenges of 2020 and emerge triumphant.

Redundancy or a loss of income are high on Kiwis’ minds at the moment. Yet even when we know the economic circumstances that force them upon us, it’s hard not to take it personally.

For many, who we are is tied up with what we do, and our self-worth is linked with our salary.

When both of those disappear, it can leave us questioning our identity and value.

To help Kiwis through this challenging time, our Financial Adviser Gwen Hoople has joined forces with Life Coach Vicky Evans to offer guidance and advice to shift your mindset, reevaluate your goals, and forge your path to the other side.

When “who you are” is taken away.

It’s important to remember when you’re made redundant or are losing work that you are not your earnings, nor your job title. Those may be labels you identify with, but if you take them away, guess what… you’re still there.

Your skills, your value, your character and your experience are so much more than a position and a paycheck. Losing work stings, but it doesn’t take away from who you are.

Gwen explains: “Money is only there to enable you to have a life, or to enhance it. Who you are is totally separate from what you earn.”

Vicky also faced a loss of identity when she stopped work to have her first child, “I had defined myself by what I did, then suddenly I was at home and very isolated. This break gives you space to think about who you are, not what you are - you tend to lose sight of that over the years. Something like this happening means you have time to reevaluate your situation and think about your real gifts and talents.”

What new opportunities could come from this?

One thing we’re all increasingly aware of is that life won’t be going back to the way it was before. While there’s lots that we’ll miss from the pre-Covid days, it’s also an opportunity to reach for new goals and finally move on from what was holding us back.

A client of Gwen’s took voluntary redundancy a couple of months ago, and is now using his redundancy payout to pursue an idea he’s had brewing for a decade, but never had time to act on.

“He’s able to go full-steam ahead, spending all his energy on this big idea that really could have some legs. In the meantime, looking at the numbers has given him a sense of comfort that he can weather this, and even if he doesn’t make any money from his venture he won’t be destitute. We had a look at his cash flow, saw where he was over-insured, and saw where some savings could be had. This planning made him feel comfortable that even if he never found another full-time job, he was doing something that he loved and he would be fine.”

As Gwen’s client found, having awareness of his financial situation has given him the confidence and freedom to pursue a new passion without having to worry about whether he’ll run into problems five or ten years down the track.

Vicky agrees that the biggest thing you can do is focus on what you do have available at this moment, and what you can do with it.

“It’s hard when you’re feeling bruised and sore, you can’t force the optimism, but you can shift toward a more positive mindset by focusing on what you have, and counting your small wins! You have people around you who want to support you and help you do well - don’t be too proud to ask for help.”

“This is an opportunity to start something new for yourself - look at the new landscape and ask, how can I make my life better? What do I want to be, do, have and give? Some people might want to contribute more to their communities, some people might want to spend more time outside … it’s up to you now, what would you really enjoy and feel good about creating for yourself?”

Draw a line in the sand: what you can and can’t control.

One of the biggest challenges through the process of redundancy is trying to differentiate between what we can and can’t control, so we can focus our efforts where they’ll make a difference.

“The past is the past, you can’t change it. But you can control some aspects of your future,” explains Gwen.

“I know it isn’t easy, but getting on top of your finances can be very liberating and reduce the stress and anxiety you have around your cash flow.”

“We know that life is always going to send you some curveballs - life always changes, nothing stays the same. We plan as best we can, obviously some things we can’t predict, but we make sure we’re prepared to deal with the changes when they come.”

Our finances are one of the key elements of our future that we can control. You can’t go back and invest 50 years ago like you wish you could, but you can start now and make the most of the present to support your future.

“It’s about the life you want to live, and less about the dollars in your account.”

In order to plan and move forward successfully, you need to know what you’re moving toward. You need to be clear on your values and what is important to you - what is your passion, what do you want out of life?

Gwen advises her clients:

“There’s no point having a financial plan without knowing why you’re doing it. If you don’t know what you want, if you don’t know why you’re investing, you’re likely to spend that money at the first temptation. Remember the goals you made and why you made them. Focus on what’s important - think about the life you want to live first, and less about the dollars in your account.”

“Financial planning distils what a client really wants from life, and how they can achieve that. Although it’s great to get a high return on your investments, it’s more about making sure we can preserve your lifestyle, so you can have the life you want. We map out goals, values, how much you need to live on, and try to make sure you get to do the things you want to do.”

Life always has good times and bad times

- this too will pass.

Just as these challenges appeared from the blue, so they will pass eventually. We can’t change what has already happened, but we can map out the future we want from here.

As Gwen says, “In times like this we can easily become pessimistic and see everything as very bleak, but you need to remember that difficult times pass as well - life never stays the same. When you’re facing redundancy and in the depths of grief, just know that this too will pass.”

“We’ve all got that inner strength, but you only find it when your chips are down. When challenging circumstances come around, you realise how strong you can really be,” Vicky agrees.

Contact our advisers for support today to plan your future.

Excerpts from Gwen Hoople ,

Financial Advisor at NZFP

The Path to Financial Empowerment for Women

Mon, 22 Jun 2020 01:59:16 GMT

How to enter on the path to financial independence, and reclaim your strength after loss.

Financial adviser Maree Gordon has seen and heard it all over the years in her office:

A widow whose husband tragically passed away, with all of their financial records stored in a locked computer. She didn’t know how to access their joint accounts or transfer money for bills.

A divorcee who suddenly had to manage a new mortgage and household finances, after letting her ex-husband take care of it all in their last home.

Modern Kiwi women are more educated and independent than ever, yet many still rely on their partner to manage the household finances, mortgage and investments.

“Modern women are busy: we’re running businesses or holding senior positions in organisations, we’re running the house and managing the family, we’re pursuing our own passions and maintaining our social lives … many people don’t have time to manage their finances, or take an active interest in the bigger family financial decisions.”

- Maree Gordon

Financial Adviser, NZFP

However, this pattern of thinking can lead to trouble, as seen in the stories above.

Empowerment through financial independence is one of the best ways a woman can protect herself against the challenges of life, no matter what life stage she’s at.

It’s never too late to start learning, and it doesn’t have to be difficult. As Financial Advisers, we’re experienced in guiding women and men through their journey to financial freedom.

Women in New Zealand typically have lower financial literacy than men, but are more open to asking for help and direction. Wherever you are in your life, and whatever your marital status, the best time to start is today.

Discover the six steps on the path to financial independence for women:

Step 1: Ask questions

For women who are not already involved in the finances of their household, the first thing to do is ask questions – lots of them.

How many years until your mortgage is paid off? Who is your Kiwisaver with? How much are you on track to retire with? How secure are you in the event your partner or yourself lose your job?

These questions don’t have to be asked or answered all at once (in fact, it’s probably best you don’t bombard your partner without warning), but try to be mindful of the comings and goings of money within your house, and ask questions as things arise.

Questions about where your money is, how your money is being used, and why it’s being utilised in that way are good places to start. You may find that your partner becomes unstuck around some of these points, which can lead to a new learning opportunity for both of you.

Step 2: Get to know your situation

If you’ve been too busy to be part of the financial decision making in your home, it’s time to change that. You may have a lot on your plate already, but by starting early you can afford to learn slowly and avoid overwhelm later in life.

How well do you really understand your current financial situation? There are several areas to look into, to create a full picture:

Income

Despite sharing almost everything else in their lives, many couples still do not share details of their income with each other. If you are creating a financial plan together, however, it’s vital that you can be open and honest with each other about how much you earn, in order to accurately calculate how much you may need going forward.
Outgoings

If your partner is always the one paying the bills, your regular household expenses may surprise you. As part of creating your financial plan, we look at what your income and outgoings are to determine the surplus that can be invested toward your future to create the life you want.
Debt

Your family debt may include a house, credit cards, and a car or two. It’s important to be aware of your debt level, and repayment rates. When your mortgage is being renewed, be involved in that conversation, and don’t forget to ask questions if there’s anything you’re unsure about.
Assets

Your Kiwisaver may be your only asset, or you may have a trust and investments. Do you know how to find information about these, and what their value is? Do you need to take action on these, or do you have a trusted financial adviser who manages them for you?

Step 3: Work with your values

Surprisingly, not enough people make the connection between their wealth and their values, but for a couple, this can be one of the most important financial conversations you have: What is important to you, and why or how are you investing toward that?

“I’ve seen couples come in to create their financial plans, and they’ve spent years building their capital but have never really had a discussion around what they intend to use it for. For example, she might like to support the kids through university, whereas he believes they should pay their own way.

In order to make successful decisions, you have to have that discussion and decide what you are working toward together.”

- Maree Gordon

Financial Adviser, NZFP

NZFP believes in wealth for wellbeing – we create financial plans that enable you to live the lifestyle you deserve and support the ones you love. All of our discussions involve a dive into what you value, and what you need. Get started with a call to Maree today.

Step 4: Ask for help

For women who already have some awareness of their finances and values, this may be the first step they take on their journey to financial empowerment.

No matter which step you start at, asking for help from a trusted financial adviser can bring huge benefits for women of all ages.

Maree Gordon is passionate about helping Kiwi women to reclaim their strength, particularly after the loss of a loved one, by providing expert financial guidance and ongoing support. She knows, though, that it isn’t always easy for women to approach advisers, or to find the right one:

“For some people, speaking with a financial adviser may feel very foreign. Some women have commented that they don’t want to be condescended to, or judged for not knowing their financial details. A good financial adviser will not judge. A good financial adviser will listen and support.”

“In many cases though, it helps that as a woman I can understand their situations. I know what it’s like – we women have a lot on our plates, I’m a mother, I have a career, I can empathise with my clients. It’s easy to keep on putting ourselves last, and not carving out time for our own needs, which is why I partner with women to offer financial planning support throughout their life stages – because they need to be taken care of too.”

- Maree Gordon

Financial Adviser, NZFP

Search for an AFA (Authorised Financial Adviser) or a CFP (Certified Financial Planner) near you, and remember that each adviser is different, and you may not find the right one for you immediately. You may need to meet a few before you find one you want to work with.

Don’t settle, take the time now to find a good adviser and you’ll save yourself time and energy – and money – in the long run.

Step 5: Make a plan

Once you’ve engaged a financial adviser, the next step is to start creating your personal financial plan. Your first meeting will be a cost-free, obligation-free consultation to decide whether there is a good fit between yourself and the adviser.

From there, a financial plan will be personalised to your values, needs, goals, situation, and risk comfort level. Expect your financial adviser to ask questions around your current situation (think back to the points in step 2) and the life you’d like to live with your capital.

Think of these meetings to set up your plan as an investment for your future – a few well-spent hours of your time now will pay off exponentially in years to come. Book the time into your calendar, and set yourself up for success.

Step 6: Enjoy the security of financial independence

Whether you’re 26 or 62, partnered or living alone, the best time to set yourself up for future security and comfort is now.

With a growing understanding of your own financial position, awareness of household finances, and personalised plan in place, you can feel confident in your future, and confident in yourself.

Maree loves working with successful Kiwi women, to guide them toward a supported, confident future. Contact Maree directly , or get in touch with NZFP to find an adviser near you today.

Begin your journey to financial empowerment today with the help of NZFP.

Excerpts from Maree Gordon ,

Financial Advisor at NZFP

Financial planning for lifestyle changes – what to do if you’ve been made redundant.

Thu, 14 May 2020 03:29:11 GMT

Andrew Doak explains the common mistakes people make with their redundancy pay and how NZFP can help.

As New Zealand adjusts to life in some form of partial lockdown at the various Alert Levels, businesses of all sizes are reeling from the economic impact of COVID-19. Despite Government wage subsidies and support packages for businesses, it’s speculated that up to 200,000 Kiwis will be made redundant.

Being made redundant is an immense challenge to overcome under any circumstance, but in the dark shadow of the current crisis it might feel even more overwhelming to those who are facing redundancy right now.

As you experience being made redundant you will be feeling a wide spectrum of emotions – fear of the future, anger at an employer you might feel has let you down, stress over making correct decisions with your redundancy pay, and general confusion as you attempt to answer the question “what do I do now?”.

For financial planner Andrew Doak, this critical situation requires financial advice that leads with empathy and experience.

Working as a financial adviser for over 30 years, Andrew has helped many clients to process their situation and form a strategy to get back on their feet after being made redundant. With a deep understanding and empathy for the impact of redundancy on one’s wellbeing, Andrew stresses the importance of seeking expert financial planning advice before making any rash decisions triggered by stress or panic.

“It often surprises and reassures people that the first thing I advise them to do when they’ve been made redundant is… nothing. If you are in the possession of redundancy pay or company payout, just stick it in the bank. Do not do anything until you’ve sat down, evaluated your position, and made a plan with your financial adviser.”

- Andrew

Financial Adviser, NZFP

Even if you’ve never sought expert financial advice, it's never too late to begin the financial planning process. Here’s how you can make a start:

Evaluate your current position:

It is so important that, even if you’re feeling stressed and panicked, you give yourself space to breathe and work out the essentials. This means assessing your priorities, distinguishing between needs and wants, and establishing your absolute minimum budget for cash flow requirements. Simply taking the time to sit down and evaluate your situation could save you from making rash decisions and creating a downward spiral.
Establish what resources are available to you:

Usually the biggest resource we have is our ability to earn an income, and when this asset has been taken away or diminished it’s vital to work out alternative means of cash flow. Do you have savings? Can you rely on your savings and your redundancy pay to meet your minimum cash flow requirements until you’ve found alternative employment?
Seek impartial and expert advice:

This doesn’t mean having a yarn with your neighbour over the fence! While your friends and family will want to support you and offer advice that may have helped them in the past, now is the time to seek support from an unbiased professional. Financial advisers at NZFP offer an empathetic understanding of what you’re going through, with the expertise of tailored planning and informed processes that have helped many others in your position.

Consult with our team directly to find out more about how we can help you with tailored advice and a holistic approach to financial planning.

What mistakes can people make when using their redundancy pay?

Andrew Doak has had plenty of experience consulting with people who have been made redundant in the past and is glad to pass on this knowledge on to others, especially during times of economic pressure such as what we’re experiencing today.

“Some people have never had a lump sum of money given to them like this, and when it’s happened in the middle of a crisis the pressure of making the right decision is compounded tenfold. I’ve witnessed so many different scenarios where people have made mistakes – from average employees to CEOs of major businesses – and am able to share these to help others now. People make these mistakes because they are under stress and typically can’t see the wood from the trees.”

Here are some common scenarios that you can avoid with proactive financial planning:

Using your redundancy pay to clear debt.

Unfortunately, many people make the mistake of rushing to use their redundancy pay to clear their debt, thinking that this will save them financial stress in the long run. It’s important to remember that redundancy payouts are provided in lieu of wages to cover day to day expenses when you have no other source of cash flow.

Andrew recalls a sad case of one person who could no longer afford to run their car after using their redundancy pay, which was worth hundreds of thousands of dollars, to retire his debt and become debt-free.

“I remember him being very late to our first meeting, and apologising profusely because he was having to use public transport for the first time. How could he attend job interviews without being able to get to places on time? He may be debt-free, but this person then had no cash flow to take care of his day-to-day expenses.”

Redundancy pay is there to be spent, and to help you sustain your lifestyle until you’ve found alternative employment. This example demonstrates the unfortunate consequences of making rash decisions with your redundancy pay before seeking professional guidance and evaluating your overall position.

Becoming complacent in your financial disciplines.

The pendulum swings the other way when people are well set-up financially and find good employment shortly after being made redundant, but become let their financial disciplines and focus drift off target leading up to retirement.

Andrew remembers one case where a person lost their job in a successful senior position. They had been preparing themselves well for retirement up to this point and had alternative means of cash flow, so Andrew advised that they prioritise investing and retire debt with their savings – on the condition that when they find another job they resume saving for retirement.

Unfortunately, this person lacked the discipline to return to good financial behaviour once they found another high-paying job.

“This person was lucky enough to find another excellent job after being made redundant, but every time he returned to my office he had something he wanted to save for other than retirement – first it was a new car, then home renovations, then a pool and a big holiday. Although I gave him objectively good advice in the short-term, this person did not have the discipline to return to good financial behaviour and became complacent with his retirement savings.”

This scenario shows why it’s important to stick to your financial plan and be disciplined. It’s essential to put time frames and conditions around your financial plan and stick to them, otherwise you can become complacent and be unprepared when your situation changes.

Why is talking to NZFP the best option for financial clarity when you’ve been made redundant?

If you’ve been made redundant, you might be feeling totally lost and unsure of who to trust. NZFP is proud to offer financial planning and advice that is not only empathetic to what you’re experiencing, but is realistic and achievable for your specific situation.

“We don’t make outlandish promises and we don’t have a crystal ball. We provide our clients with objective advice based on decades of experience helping people through similar crises and watching them succeed. We’ve found that, through applying a disciplined approach and showing compassion, we reduce stress and minimise the bad decisions that get people into tricky situations.”

If you’re facing the possibility of redundancy, or have been made redundant recently, remember to stop and evaluate your position before making any rash decisions with your precious redundancy pay. NZFP is here to help you, with financial planning and expert advice to help Kiwis regain their financial security.

If you’re facing redundancy, seek financial advice from a team of experts who understand your challenges and goals. Talk to NZFP today.

Excerpts from Andrew Doak ,

Financial Advisor at NZFP

Financial security – helping you ‘stay safe’ no matter what happens.

Fri, 24 Apr 2020 02:43:53 GMT

Callum Forbes reflects on how NZFP’s advice withstands market volatility and safeguards client goals.

The nation’s response to coronavirus is being praised by leading newspapers, as we settle into the ‘new normal’ of living in some form of lockdown for some time yet, working from home, and connecting digitally.

This has been a huge shift for New Zealanders, and many of us have faced considerable challenges adapting to this environment. Our language has shifted, too, with new words and phrases circulating in emails, news articles, and government announcements.

‘Stay safe’ takes on new meaning during this time, with one article summing up our increased use of the phrase as our new way of saying ‘goodbye’. With the public’s attention refocused on safety, we’re reflecting on how this resonates with our approach to financial and investment security at NZFP.

How have our clients responded to the situation?

Despite media speculation around the doomsday-like financial impact of COVID-19, NZFP and our clients have remained calm and steadfast.

While the lockdown has meant working from home on his 50-acre farm in Wellington and contacting clients online, Callum Forbes has continued with the same approach to financial planning that has withstood the test of market volatility for decades.

“We educate our clients on market volatility and situations like this one, so we haven’t had panicked calls from clients who are concerned about their financial plan because of COVID-19. Many of our clients have been with us for decades, so they’ve experienced the benefit of our advice through several situations similar to this.”

- Callum Forbes

Financial Adviser, NZFP

For advisers like Callum, approaching financial planning with a focus on financial security means that clients have peace of mind that the advice they receive is future-proof and built to withstand any changes – fluctuations in the market, or changes to personal circumstances that might impact financial wellbeing...

Are we changing our strategies?

While those feeling insecure at the moment might turn to reactive financial advice in the media, clients of NZFP benefit from financial plans that are backed by traditional, proven expertise.

“The advice we give at NZFP has been tried and tested – it’s applicable to my generation, generations before me, and clients of mine who are in their twenties.”

Put simply, because NZFP prioritises long-term financial security regardless of the state of the market, strategies don’t need to be reactive when the economy takes a slight downturn. Instead, times like this are showcasing the value of future-proof financial planning for clients seeking long-term financial security.

While this doesn’t mean clients are completely immune to negative market changes, it means they are equipped and empowered with a plan, a sensible strategy and an adviser by their side. With the ability to ride through unexpected changes more confidently and securely, our clients are always in a better position than those who are reactive and ‘taking a punt’.

When it comes to popular investment strategies , more aggressive investors or those who are new to the stock market have been tempted to ‘have a go’ by using popular investment apps such as Sharesies. This can be exciting as the market is on the way up, and a few may even be bold enough to ‘buy the dip’ on the way down, but when people are looking for an investment strategy that can provide long-term financial security, the tortoise always wins the race.

“If you invest aggressively to chase high returns, you’re bound to bail when the market goes south – and we’ve all dabbled in that, perhaps when we’re younger. But for our clients who are looking to use their portfolio to sustain their lifestyle or retire early, we provide them with a future-proof strategy that can withstand any ‘blips’.”

Is there a silver lining to this situation?

When media outlets present worst-case scenarios and grim predictions of the future, it can be hard to appreciate the opportunities that situations like this can bring. Perhaps those who feel more secure with their finances are better able to embrace the new world that is taking shape.

Callum reminds us that positive change and innovation comes from the most challenging scenarios, and this lockdown could offer a meaningful shift in perspective for those spending more time at home with their loved ones.

“The media can present dystopian images at the moment, just like they did with the GFC. It’s important to be vigilant, but also think of the innovative and more sustainable technologies and business practices that are being created. There could be a better world emerging out of this.”

At NZFP, we’re dedicated to ensuring that our clients feel safe despite the current shifts in the market and in our lifestyles. We’re proving that our processes work, just like they have in the past and will continue to work in the future.

For future-proof financial advice that supports your financial security, talk to NZFP or contact Callum Forbes directly.

Excerpts from Callum Forbes ,

Financial Advisor at NZFP

Financial wellbeing – it’s about behaviour.

Thu, 26 Mar 2020 22:13:18 GMT

Wellbeing is a practice, and research shows financial wellbeing is more about informed behaviours than the figure in your bank account.

Wellbeing is a growing talking point, with widespread initiatives across the country – from Wellplace to Movember – encouraging us to be open about our state of mind.

As more people talk openly about their wellbeing – from the All Blacks on TV to colleagues in the workplace – structural changes are reflecting this increased awareness and appreciation for how our mindset affects us.

What does wellbeing mean?

Wellbeing is about more than just health. To have good wellbeing is to:

Feel happy and prosperous
Have meaningful relationships with others
Know what behaviours and activities will increase your happiness
Consciously seek to improve your happiness

If you’re interested in evaluating your own wellbeing, you can take quizzes like this one.

The 2019 New Zealand government’s “Wellbeing Budget” demonstrates a societal shift , where wellbeing is regarded as a key indicator of success alongside traditional data-driven measurements.

With this powerful political statement, it seems that wellbeing is more than just a default state, or an empty conversation about emotions. Wellbeing is a skillful practice , a set of positive and productive behaviours we need to do in order to feel happy and satisfied.

This could involve:

A daily gratitude practice
Weekly yoga
Regular catch-ups with friends
Taking regular breaks outside during work
Eating wholesome, home-cooked meals
Trying new activities that are out of your comfort zone

Wellbeing practices provide structure, and this is key to ensuring our positive state of mind is consistent – not up-and-down.

Turns out, just as the happiest people engage in positive behaviours to support their mental wellbeing, having good financial wellbeing also depends more on your skills and behaviour than the figures in your bank account.

Two people with the same income could have very different financial health experiences, and even those in the highest income bracket could require more guidance with the behaviours that improve their financial wellbeing.

With this in mind, we’re taking a look at how a behaviour-driven approach can boost our financial wellbeing.

Financial wellbeing is about behaviour.

Wellbeing isn’t just about where you’re at today, it’s about the behaviours you use to interact with the world and prepare for the future. Put simply, people who are unclear about their finances can’t adequately determine the lifestyle they want to sustain in the future – and they lack clarity around the actions necessary to achieve it.

In an ANZ survey of New Zealanders’ financial wellbeing, they discovered that the contributors to financial wellness were far more nuanced than just one’s income and attitude to money.

The results showed that the biggest indicator of financial wellbeing was a person’s financial behaviour, where being able to actively save for the future – as well as not borrowing for everyday expenses – accounted for 43% of overall financial wellbeing.

This illustrates that, just like how we need to invest time in learning and enacting practices that promote our wellbeing, the same behaviour-focused approach is fundamental to achieve good financial wellbeing.

Financial planners can guide you on the path to financial wellbeing. As you engage in practices and behaviours in your daily routine to improve your state of mind, NZFP guides clients toward the financial decisions and saving behaviours that will improve their financial wellbeing.

In ANZ’s Financial Wellbeing survey, only 30% of respondents claimed to have good knowledge about investments and retirement. The rest are unsure of what to do

When people are unclear about their finances, or lack direction with positive financial wellbeing behaviours such as saving or investing, they tend to build an exaggerated perception of the challenges they’re facing.

This is a behaviour we can probably all relate to – with our finances and with our general sense of wellbeing – where we tend to put off the task of tackling important tasks and allow them to balloon out of proportion.

This is something Jordi Garcia sees all the time. Having worked as a financial advisor for NZFP for nearly 30 years, Jordi sees how often people ignore or dismiss the important financial decisions they need to make for the future.

“Without a clear picture in our minds of what is important in our lives and what sort of lifestyle we want, it is easy to let our finances become the ‘boogie man’, especially when heading to retirement. I help people identify what they actually want with their lives and how to get there , reducing the ‘boogie man’ into a tangible and achievable picture. Rather than a depressing indefinable fear, their finances and direction are now tangible and clear.”

Jordi Garcia

Financial Advisor

Clarity and structure are as important to our financial wellness as they are to our overall wellbeing. Jordi explains that he provides clarity and structure to his clients, which is invaluable to those who for so long have only had a vague idea of what their financial goals were. Empowering his clients with a financial plan, and the behaviours that will get them there, has dramatically improved their financial wellbeing.

NZFP’s life-first approach to finances.

At NZFP, a holistic view of a client’s lifestyle goals are at the centre of all financial advice. This wellbeing-centric method combines trusted discussions around financial and life goals, with the informed saving and investment decisions that get clients to where they want to be. A big part of this is also empowering clients in retirement with a sense of confidence and security to enjoy life without financial worry by showing just how their financial resources can support them for the remainder of their lives.

It’s a philosophy that has enabled NZFP to tailor their services to each client, using their expertise to create financial plans that advocate for their client’s long-term goals.

With a financial plan as a clear roadmap, clients are supported to learn and enact the financial behaviours that will get them to where they want to be.

Take a sensible approach to your financial affairs

If you have a KiwiSaver portfolio, it will have also been impacted by recent market moves. But don't rush out to see if you can shift it to a low risk or cash strategy right now. The time to do that was before it all started, but no-one knows in advance when things turn or how quickly.

If you can resist the temptation, avoid looking at your KiwiSaver values every day completely. They’ll be volatile and seeing that won’t help you sleep any better at night.

Rather than making a rash decision, speak to your advisor and make sure you aren't in a fund that is too risky for your profile. Ideally, your fund is suitable for your longer term KiwiSaver needs and is properly diversified so that you’re not putting all the investment eggs into one basket.

Your financial advisor will help you take care of your insurance needs and make sure that your life, health, income and assets are appropriately covered.

If you haven't reviewed your insurance in a while, now is the perfect time to review this with your advisor so that you can minimise the stresses that events such as this may bring. The same goes for having your wills, enduring powers of attorney, and trusts all up to date and properly documented. It’s about focussing on the things that you can take control of and removing stresses where you can.

With an understanding of your lifestyle goals and the behaviours that help you achieve them, NZFP prioritises financial wellbeing. Talk to our team today.

Excerpts from Jordi Garcia ,

Financial Advisor at NZFP

Life stories – the people at the centre of our financial plans

Thu, 26 Mar 2020 22:13:15 GMT

After 30 years of dedicated support from Jordi Garcia, a once-cautious couple now enjoy financial security in retirement.

Because they wish to remain anonymous, we’re referring to the clients in this article as David and Adele.

Many NZFP clients have benefited from our services for decades, and develop a trusted relationship with their financial advisor.

David and Adele met Jordi Garcia in 1991. With the financial plan that Jordi created and regularly tailored to their needs, the Auckland couple have been able to carefully manage and invest their finances to enjoy an early and comfortable retirement with their family.

Read on to hear their story...

From mortgage repayments to a secure investment strategy

When David and Adele met their financial advisor, Jordi Garcia, Adele was working as a music teacher and homemaker, and David worked as a dentist with a large dental practice in Auckland.

In 1991, David ran a dental practice with four dentists, the couple had two children, and purchased a beach house whilst paying off the mortgage on their family home in Onehunga.

They enjoyed their success and knew that they should save for the future, but David and Adele needed guidance as to what their options were, and the best strategies to use.

“We sought security. With young children and a big business to run, we realised we needed to focus on long-term financial planning and create a serious savings plan for the future.”

With the financial plan Jordi created for them, David and Adele were able to make the most of their income to pay off their mortgage. Once the mortgage was gone, and with Jordi’s guidance, the payments that had gone into the mortgage were then turned into an investment strategy.

David and Adele continued living their normal lives with the outgoings they’d grown accustomed to while paying off a mortgage, but the money was now going towards their long term financial security with investments that were carefully tailored to their risk profile.

“Whenever our income increased, we simply increased the payment into our investments. We’re very cautious investors, and we sought to retire early. When you retire early, you have no means of replenishing anything that’s lost through a risky investment. So Jordi made sure we were comfortable with every decision!”

NZFP’s holistic approach to financial planning

NZFP follows a life-first approach to financial planning, tailoring our expertise to our clients’ unique goals. This means that our advisors tend to develop a very personal and trusting relationship with their clients, and David and Adele’s relationship with Jordi Garcia is no exception.

Enjoying Jordi’s open yet professional approach that enabled herself and David to comfortably discuss their spending, Adele recalls connecting with Jordi on their shared passion for good bookkeeping:

“Financial planners have to calculate what your lifestyle costs are, and for Jordi I imagine that’s usually quite a complicated job. But he liked me because I already had a big spreadsheet of our monthly and yearly spending!”

Jordi worked with David and Adele to achieve their goal of maximising their investment portfolio whilst effectively managing risk, tailoring the financial plan and following support to suit their needs and comfort.

“Right from the start, Jordi understood us as people and had our best interests at heart. He always explains everything very clearly and makes sure we completely understand his advice and any changes that need to happen to our investments or our financial plan. After 30 years, we fully trust that what he thinks is best.”

An award-winning relationship

When Jordi Garcia won an industry award in 2001, it was David and Adele’s comprehensive financial plan and its implementation that was reviewed by a panel of judges – including then Retirement Commissioner, the Deputy Governor of the Reserve Bank, and a well-known financial journalist.

“We thought it was great that Jordi was prepared to put our plan and investment portfolio to others in the industry to scrutinise – if they had criticisms on our financial plan, we could have made further improvements, but it turns out they didn’t! Jordi winning the award shows how good our financial plan and investment portfolio must be!”

Looking ahead

David and Adele enjoyed successful careers, but needed guidance to ensure their comfortable lifestyle could be sustained long after they retired. After 30 years with Jordi’s guidance and financial planning, David and Adele had the security and the confidence to retire early.

Having made Jordi a trustee to their family trust, David and Adele are an example of the level of trust and confidence that NZFP’s financial planners establish with their clients.

Now in their 70’s, David and Adele are enjoying their retirement and the freedom to spend quality time with their family.

“We’re going to continue to enjoy the best possible health that we can, support our friends, and spend quality time with our family. Our children live overseas, and thanks to our financial plan we can comfortably visit them whenever we like.”

Seeking guidance with your retirement planning or investment portfolio? Talk to NZFP today , or contact Jordi Garcia directly.

Excerpts from Jordi Garcia ,

Financial Advisor at NZFP

It's a pandemic – is my financial plan at risk?

Tue, 17 Mar 2020 19:28:01 GMT

With widespread financial fears around coronavirus/COVID-19, Craig Dealey shares advice and insights from the team at NZFP.

Right now, the best antidote to coronavirus or Covid19 is a good dose of common sense:

Take sensible actions
Increase levels of hygiene
Prepare for self-isolation
Ensure you are self-reliant in case this goes on for longer than expected

Until a vaccine for the virus is available, we live in a world where Covid19 is prevalent and racing through the population, but this is not a reason for panic.

Our best-case scenario right now is to slow the spread, and protect the vulnerable so that we don't overly strain health systems and put more people at risk than we need to. We all have a part to play in "flattening the curve".

How NZFP is adapting to the situation:

As a business, NZFP is well positioned to do our part to reduce the spread of coronavirus:

All of our offices and staff are set up to work remotely as needed, while still keeping in contact with clients.
While we prefer to work face to face, we can do so electronically or over the phone as a stop gap.
We are avoiding unnecessary business travel and risky contact where we can.
We have robust health and safety protocols in place along with business continuity plans in the face of natural disasters and events such as this.
Clients’ funds are all held in trust with separate custodian and registry providers overseeing values and regular transactions.
The systems that administer client portfolios have continuity plans in place. These systems are regularly tested to ensure client access to funds, accurate pricing, and integrity of the assets can be maintained.

Will my financial plan implode?

In short, no.

A properly constructed, comprehensive financial plan is exactly what everyone should have right now.

If you already have a financial plan with NZFP, you have a clear picture of your long-term position. Our plans help take the emotion out of financial decision making and ensure you stay on track to get to where you want to be.

By having a plan and working with your advisor, you’re in the best position to put significant events, such as this one, into context – and understand how they impact your ability to meet the goals you have set.

The coronavirus outbreak reinforces the need for good financial advice.

Our advice process helps you:

Understand and manage risks
Take care of day to day needs
Insure the things you can’t afford to lose
Put aside sufficient savings to see you through in the future if/when your working income ceases.

One of the key elements in our advice process at NZFP is to identify your risk profile .

Knowing your risk profile allows us to assess what your comfort levels are around investment volatility and exposures – then test this against the amount of risk you need to take in order to achieve your goals.

This process allows you to make better informed decisions, and have peace of mind that you can withstand portfolio movements at times when there are sudden changes in the market.

Talk through your concerns and decisions with your advisor .

Given the recent dramatic movements in financial markets, you might be getting to a point where your comfort levels are being tested. Fear and concern can lead many to make rash decisions about their money, more often than not at precisely the wrong time.

NZFP’s advisors are positioned to offer informed and realistic advice during tricky financial times.

Whilst our advisors might not be able to solve all the problems immediately, and the current situation is certainly daunting, our clients have the peace of mind that an expert has their best interests at heart.

Your financial advisor will look at the bigger picture for you – and make sure you’re still on track to reach your goals.

Things will look scary right now.

Unless you've got all your cash in a term deposit or hidden in a box under the bed, you will have no doubt seen a rapid fall in the value of your financial assets over the past few weeks.

Will things get worse before they get better? Yes, possibly.

Will the crazy times be over soon or last a long time? No one can know for sure.

The best thing to do is check to see what the impact may be on your plan and goals right now. By reviewing your plan with your financial advisor to assess where you’re at, you will either know that you are in a relatively stable position even after a major event like we have experienced, or you will know that there are some potential shortfalls that will need to be addressed through adjustments to your plan.

Either way, you have taken back control and can feel more secure knowing that things are either:

OK, or
By modifying some behaviors and adjusting your financial plan with new saving and spending levels, you can get back on track.

Other potential scenarios:

If you have time on your side, you have the luxury of being able to ride out the crisis and benefit from the eventual recovery.
You also have the capacity to continue saving, which will mean you'll be buying into markets on the way down, in essence getting more for every dollar as things get cheaper.
If you're no longer saving, then now might be a good time to consider delaying some of those big-ticket item expenditures.
Don’t cash up investments just at the time when they are worth less than they should be.
Once your investments are sold, you can never benefit from a recovery in prices, so in essence you'd be locking in a hard cash loss.

For all of the above scenarios, your advisor can help you model the likely outcomes and effectively plan your spending and saving activities. Just like the process of creating your financial plan, all ongoing advice and adjustments are tailored to suit your unique goals, requirements, and risk profile.

Take a sensible approach to your financial affairs

If you can resist the temptation, avoid looking at your KiwiSaver values every day completely. They’ll be volatile and seeing that won’t help you sleep any better at night.

Your financial advisor will help you take care of your insurance needs and make sure that your life, health, income and assets are appropriately covered.

Even during today’s crisis, we’ll maximise your chances of getting to where you need to be.

From an investment perspective, NZFP’s approach has always been focused on long-term success, managing risks as effectively as possible.

While no one has a crystal ball to foresee extreme events, especially global health shocks such as coronavirus, we can avoid taking unnecessary or unintended risks. With a properly researched and focused process for investment, we identify risks and diversify away from them where possible.

By regularly rebalancing portfolios, we effectively buy more good assets as prices get cheaper, like now, and sell them as the prices are going up. This has the effect of reducing the overall risk that clients need to take on whilst potentially achieving a better overall outcome for investors.

“In situations like what we face today, NZFP’s disciplined approach to financial planning is our secret weapon.

While that doesn’t mean we’re immune to the economical effects of coronavirus, our attention and understanding of risks, proper diversification, and a disciplined process supports our clients with a journey that is as smooth as possible.

By sticking to your plan and working with your advisor, you have the capacity to reach your goals and sustain the lifestyle you want to enjoy long-term.

A financial plan with NZFP is an undeterred focus on your future wellbeing, while giving you enough peace of mind right now to navigate through challenging times and events – making only the necessary well-informed adjustments as you go.”

Craig Dealey

General Manager, NZFP

Before making any reactive decisions around your finances, discuss your concerns with your financial advisor. We’re here to help.

Excerpts from Craig Dealey ,

General Manager at NZFP

Let’s review your insurance

Fri, 28 Feb 2020 00:54:00 GMT

As part of a comprehensive financial plan, our insurance needs-analysis helps you fill in the gaps and future-proof your financial wellbeing

Insurance needs change over time, and New Zealanders are becoming increasingly underinsured.

A ‘set and forget’ approach without regular reviews of your cover could leave you under-insured, over-insured, or inefficiently insured in areas that now need more attention – especially as you approach retirement.

In the same way that a family trust should be reviewed regularly, your insurance policies should be assessed to make sure they are meeting current and future needs for you and your family.

When putting together your tailored financial plan, your adviser will also review your insurance and ensure your cover reflects and protects your current and future lifestyle – because you might need to make changes!

“When it comes to financial planning for insurance, there is no one-size-fits-all approach.

As financial planners, we work out exactly how much cover our clients need based on their lifestyle, and incorporate those expenses into their tailored financial plan."

– David Carter

Financial Adviser, NZFP

As part of your financial plan, an advisor will help you review your insurance to:

1. Reduce unnecessary cover and prepare for retirement savings

An insurance plan that was appropriate a few years ago might need to be changed to meet your current lifestyle – because things have changed since you got insured. You might be earning a substantial amount more than when you first set up your policy, or you may have another child to consider under your insurance.

Chris & Amy:

Chris is a medical professional and is excited to be expecting a second child with his wife, Amy.

With a successful medical career and a new baby on the way, Chris and Amy sought advice from an NZFP adviser to help with their planning and to make sure their family was sufficiently protected in the event of their death, critical illness, or loss of income.

While putting together a comprehensive financial plan, our adviser found that Chris and Amy's personal insurances were put in place a while ago and didn’t reflect the increase in income, family needs or level of debt. They needed to adjust their insurances to reflect these changes and to give them adequate protection in the event of death or disability.

Using analysis tools to compare types of cover against different providers, Chris and Amy’s adviser presented them with options to increase their insurances cost-effectively, gaining more benefits and with more comprehensive cover.

Chris and Amy now have the peace of mind that their family are fully protected and can sleep easy knowing they have a plan in place!

1. Identify shortfalls and consider a more cost-effective option

Included in your financial plan, your advisor can help you review your insurance and identify if the insurance is now unnecessary, or reduce premiums that may be getting expensive. Health insurance is a prime example as it gets dearer as we age.

John & Melissa:

John and Melissa are in their late fifties and starting to think about retirement. They've both worked hard throughout their careers and are proud to be debt-free – plus, their children are now financially independent.

During their working lives, John and Melissa had comprehensive life insurance plans in place to protect themselves and their children in the case of death, critical illness, or loss of income.

These comprehensive insurance plans served them well during their working lives when their insurance protected mortgage repayments and childcare responsibilities.

But times have changed and this amount of cover is no longer necessary. John and Melissa actually risked neglecting their retirement savings due to expensive over-insurance that didn't reflect their lifestyle shift.

By reviewing their insurance with a financial planner, John and Melissa successfully reduced their life cover to accurately fit their current situation. The savings in insurance premiums gave them the extra funds needed to add to their savings, so John and Melissa can enjoy a few added luxuries when they retire!

NZFP are here to help you review your insurance and provide expert advice that is tailored to your personal goals

“As a country, we are underinsured. At NZFP, we offer end-to-end support for our clients’ insurance – from basic personal insurance and health insurance to more complex insurances for small and medium-sized businesses. I take care of the whole process, using a comprehensive needs-analysis to accommodate my clients’ financial plan for future insurance premiums. This builds an action plan based on my clients’ current lifestyle and future retirement goals.”

– Callum Forbes

Financial Adviser, NZFP

With a financial plan from your advisor, you can adjust and accommodate your insurance policies based on your holistic lifestyle goals.

Let’s get started.

Safeguard your future financial wellbeing with insurance that is personalised and part of a comprehensive financial plan. Talk to NZFP today.

Excerpts from David Carter ,

Financial Adviser at NZFP

Excerpts from Callum Forbes , Financial Adviser at NZFP

The benefits of working in retirement – and it’s not just about the money!

Tue, 11 Feb 2020 01:57:17 GMT

Why working in retirement is great for your social life, your wellbeing, and even your longevity.

Retirement is still perceived by many as an abrupt end to working life. The stereotype is that one day you’re striding into work with your briefcase and latte, the next you’re watching daytime TV and twiddling your thumbs.

In a country like New Zealand, where a higher standard of living means people now live at least 20-30 years after retirement, becoming a retiree is no longer such a dramatic shift from full-time work to full-time golf.

“My parents’ generation retired in their 60’s and had quite a short retirement. But these days people retire and live for 30 years afterwards, that’s a lot of time to fill with things to do now that people are healthier and their horizons are broader!”

- Financial Adviser, NZFP

As more people decide to continue working during ‘retirement years’, we thought we’d explore the reasons why – and share the holistic benefits of working later in life!

The changing retirement landscape

Life expectancy in New Zealand has been steadily rising. While 71 was considered a ripe old age in the 1970’s, today the average person lives until they’re around 82!

With this increase in life expectancy, we’re seeing people continue to live healthy and active lifestyles, and also continue to work long after the traditional retirement age.

So why would someone choose to continue working, even if they don’t have to?

Social contact
More than 40% of seniors reported experiencing loneliness in retirement, and being isolated in your later years can pose significant health risks.
People often forget that their jobs are a central part of their social lives, and these connections can be lost once they reach retirement (or retire early!).
Continuing to work, even part-time, in retirement nurtures the social connections that are so important for our wellbeing.

Job satisfaction
Those who are lucky enough to work in an industry or job that inspires them might want to continue working well into the ‘retirement years’, purely for the joy if it.
They might be a respected and knowledgeable employee, entrusted to train and support new staff. Or a university lecturer at the top of their field, committed to continue their research and teaching.
If your job still inspires you, you’re healthy enough to work, and not ready to move on or give it up just yet, why not continue?
Community involvement
Even those who can easily afford to retire early, might choose to volunteer for their local charity. The community involvement and social connections can be just as rewarding as a wage!
Retirees make up a huge portion of the voluntary working population, and participation in community altruism efforts has a positive impact on health and wellbeing.

Mythbusting: despite assumptions that working in retirement is detrimental, more studies are showing that those who continue to work later in life are living longer, healthier lives!

How NZFP can help

As financial planners, we pride ourselves on taking a holistic approach to financial security and wellbeing in retirement.

– Financial Adviser, NZFP

Even if you can afford to retire early, you may wish to consider the benefits of working in retirement – even part-time or voluntarily.

As part of your financial plan, an adviser can show you the choices you have available based on your lifestyle goals – whether that means scaling back your working hours to allow for leisure activities, volunteering for a charity you’re passionate about, or working for some extra cash flow to spend on yourself each week!

Gain clarity and peace of mind by talking to one of our team of advisers.

“At NZFP we follow our own advice, too! I don’t see myself retiring anytime soon
because I enjoy the social contact and sense of purpose that comes with working as
a financial planner.”

- Financial Planner, NZFP

Wondering what your retirement will look like? Talk to a financial planner from NZFP.

Health is wealth: financial planning for physical health in retirement

Wed, 22 Jan 2020 20:05:55 GMT

When it comes to preparing for your future wellbeing, physical health and financial health are inextricably linked – and we believe it is equally important to focus on both!

You likely have a number of tangible goals for your retirement – such as travel, spending quality time with your grandchildren, or moving to a beautiful property on the beach!

Financial planning is essential to achieve these goals, but your future physical health also plays a huge role, as it influences:

The extent to which you enjoy and embrace your retirement lifestyle, and
Your ability to afford lifestyle costs alongside potential healthcare expenses

“All too often, people forfeit their health to make their wealth – then lose their wealth to get their health back.”

– Callum Forbes

Financial Adviser, NZFP

As you start to plan for your retirement, it’s vital to consider your health as you are today. Then, with the guidance of your financial planner, you can start forming a financial plan through the lens of your future physical health.

To get started, consider these 3 questions:

1. Are you attending regular health checks with your doctor?

All too often, people neglect their health throughout their career. Once they retire, they find they’re not prepared for the financial implications of potential health problems.

Attending regular health checks with your doctor, and then discussing your future health with your financial planner, can ensure you are prepared for any potential problems - such as:

Surgeries:
An active working life (and pursuing contact sports such as rugby!) can leave you with joint problems that are bound to affect you during your retirement.

Ask your doctor about your joints, and whether you may need to have surgery - such as a knee or hip replacement. If you get a headstart, and know what factors improve joint mobility, you can also enhance your quality of life for longer.

This will help prevent any unpleasant surprises and stresses during retirement, especially with long waiting lists for funded surgeries!

Family history:
Discussing your family history with your doctor is important when planning for a healthy retirement. Future health problems may require you to make changes to your lifestyle, either to maintain your physical health or prevent injuries.

By having conversations with your doctor about your family history, you may find you are at risk of developing certain illnesses or conditions that require a lot of health care and treatments. You may also learn about some preventative steps you can take now.

These conversations may be awkward at first, but the peace of mind gained is invaluable! Your financial planner can then help you prepare for any potential future changes to your physical health when developing your retirement plan.

2. Do you wish to travel or pursue certain activities during retirement?

A popular retirement goal is to travel the world, play a sport, or start a new hobby! But many people don’t realise until they are retired that these round-the-world holidays and activities do require considerable physical fitness and good health.

When discussing your retirement preparations with your financial planner, we’ll help you factor in the holistic elements that are involved in ensuring you enjoy the next chapter of your life.

This could mean:

Planning your future holidays:

Maybe you’ll have a much more active holiday earlier in retirement, but opt for a relaxed luxury cruise as you get older!

Setting financial expectations around your fitness:

How much does a quality road bike cost? Or a membership at your gym?

3. Have you considered how long your retirement will be?

With advances in modern medicine and higher standards of living, people are living much longer than ever before. We want to help you plan effectively with this in mind - because you don’t want to run out of money when you’re 90, but still feel fit and healthy to get more out of life!

It might be a hard conversation to have at first, but taking the time to consider how long your retirement will last is vital to ensure you’re content and financially secure for the rest of your life!

“We help our clients plan for their physical health in retirement so they can maximise their independence, travel opportunities, and overall longevity.”

– Callum Forbes

Financial Planner, NZFP

With physical health in mind, we’ll help you paint a picture of the life you want to enjoy and sustain throughout your retirement - and make the financial preparations you need to ensure you enjoy the next chapter!

Looking after your physical health is crucial to achieve your lifestyle goals in retirement. Start attending those regular check-ups with your doctor to gain more insight into your future physical health.

At NZFP, we’re used to guiding people through these difficult yet important aspects of retirement planning. We consider the bigger picture beyond your finances, such as your potential longevity and the sort of lifestyle you wish to maintain as you get older.

With a holistic approach to financial planning, NZFP can help you prepare for a physically healthy retirement too!

Excerpts from Callum Forbes ,

Financial Adviser at NZFP

It’s more than just the numbers – guiding you to financial wellbeing

Wed, 11 Dec 2019 04:25:28 GMT

How a financial adviser helps alleviate worries about
your financial future

There’s now a substantial body of research that shows how stressing about your finances and future lifestyle needs can impact your overall health and wellbeing. Studies have found that people experiencing this kind of stress are at a higher risk of insomnia, depression, and even high blood pressure.

Feeling the pressure of low interest rates?

In our current financial climate, with the official cash rate at an all time low, there’s a significant lack of return from traditionally ‘safe’ investments. What we’re seeing is that, in this low interest rate environment, people are pushed into unknown territory in the pursuit of higher investment returns.

Perhaps you’re looking towards retirement preparation, and feel anxious about how you’ll sustain your standard of living in the next chapter of your life. Like many others in your situation, you might be seeking high-return investments – but you’re unclear about the risks and how to proceed.

Reviewing your finances for retirement can be overwhelming, not knowing whether you have enough to sustain your lifestyle can be stressful .

A financial adviser is here to help alleviate your stress during the planning process.

The financial world is complex and can be daunting. The team at NZFP is committed to help you navigate a path through the noise. We aim to empower you with a financial action plan and a toolkit of skills – so that we can support you on your journey towards, and throughout, a secure and enjoyable retirement.

And it's not just about the numbers.

It's about focusing on what's important, and what will have the most impact to get you where you need to be.

The support and expertise of a financial planner helps you sustain financial wellbeing, giving you the peace of mind of informed investment decisions – so you can worry less!

How we help you: 3 ways financial planning empowers our clients to focus on future financial wellbeing

1. We consider the bigger picture too

At NZFP, we’re breaking the mould of traditional ‘product-focused’ advice by instead taking a holistic approach to financial planning. When working with a client, this gives us a ‘helicopter view’ of all their influences, goals, and values.

It’s about understanding what matters most to you – such as supporting your children, seeing the world, or simply being able to live comfortably – then forming a plan to align your finances with your goals.

Quality financial planning isn’t just about pushing for investment returns or capital gains – it’s about focusing on the lifestyle that will give you the most quality of life, and how that lifestyle can be sustained.

Supporting clients to prioritise what matters most is a huge step in fostering good financial wellbeing. Knowing exactly what you need to maintain your lifestyle is essential to manage financial worries, because now you have clarity and the security of an action plan!

2. Learn invaluable skills for informed decisions

The most stressful and overwhelming part of planning your finances is not knowing what to do. It’s not uncommon to feel lost, or even helpless, when facing the task of reviewing your finances in preparation for retirement.

With the support of a financial planner, you can gain invaluable insight and awareness to make sound financial and investment decisions. It’s normal to have biases and misguided perceptions around financial decisions – especially when it comes to investment risk!

At NZFP, we’ll guide you to approach these decisions objectively and match the appropriate investment solution with your needs and your risk profile.

It’s about understanding the importance of investor returns over investment returns. Investment returns are a backwards-looking measure of a short-term gain, whilst focusing on investor returns allows for a long-term future-focussed goal of financial security.

At NZFP, we prioritise investor returns over investment returns, because your future financial wellbeing is what’s most important.

We equip our clients with a toolkit of skills and behaviours, empowering you to foster financial security long-term.

3. We’re in it for the long haul

At NZFP, we’re committed to supporting our clients long-term – offering guidance past major milestones, support during difficult times, and celebration for every success!

Within our team, it’s not uncommon to see a client-adviser relationship span over 30 years, and one adviser may continue to provide financial support to the next generation. It’s this ongoing dedication that allows you to develop confidence and security, especially in retirement.

Developing a personal and trusting relationship with a financial adviser will help you ease financial stress. Having expert guidance throughout important financial decisions, and building a plan for financial security, is fundamental to enjoy healthy financial wellbeing.

“Find an adviser that looks beyond the numbers and sees you. That way you can be sure you will be well guided along your path to financial wellbeing”

Mark Hubber

Financial Adviser, NZFP

Studies show that greater financial wellbeing leads to a healthier and happier lifestyle. With a financial adviser and a retirement plan to guide you, you can enjoy the all-encompassing benefits of better financial security.

Talk to NZFP to create financial wellness and security in retirement.

Excerpt from Mark Hubber ,

Financial Adviser at NZFP

Enduring power of attorney: are you prepared in case the wheels fall off?

Mon, 28 Oct 2019 20:45:13 GMT

What is an enduring power of attorney, and why is it important for your financial wellbeing?

Many people come to NZFP with a fulfilling career and a reasonably healthy lifestyle. We all like to think we’re bulletproof, but it goes without saying that we don’t appreciate our health and wellbeing until something unexpected happens.

Your financial planner helps you ensure that, in the event of an accident or sudden health issue, there is already a plan in place to secure your finances – whilst supporting you and your loved ones during a difficult time.

Your EPA is essential for financial and emotional security – for you and your loved ones

An enduring power of attorney (EPA) is a legal document granting a trusted person the power to act on your behalf, in the event that you’re physically or mentally incapacitated – such as from a car accident or a stroke.

To create your enduring power of attorney document you’ll need the guidance of your lawyer.

At NZFP, we ensure clients seek legal advice as they establish these fundamental documents that are the foundation of a healthy financial plan. Your financial planner will point you in the right direction, and it’s often helpful to review your will and your EPA together with your lawyer.

You can appoint 2 attorneys within an EPA document:

Personal care and welfare: your appointed attorney is authorised to make important decisions regarding your health and wellbeing, such as treatments or hospitals if you experience a medical event
Property and assets: your appointed attorney is authorised to manage and make financial decisions with your property and assets, on your behalf

At this stage you may just want to appoint one person as your attorney for both – such as your partner. But when you’re older it may be more appropriate to appoint your children or another trusted person – and possibly split the personal and property roles.

Your lawyer will guide you to make the right decision about who to appoint as your attorney. If you don’t have a current relationship with a lawyer, NZFP can help you find someone suitable.

An enduring power of attorney is fundamental to your financial plan

Along with your will, an enduring power of attorney is one of the key things your financial planner will discuss with you, before encouraging you to seek legal advice.

This is because your financial planner takes a holistic approach to creating your plan, dedicating time to understand you as a person before evaluating your current and future goals.

It may seem like a morbid conversation, but being prepared for the ‘worst-case scenario’ will make sure that you and your loved ones can overcome any future hardships – and your financial planner will guide you.

“My husband would cycle to and from work. Four years ago he was found unconscious on the roadside after a serious accident, and was in the ICU for ten days.

With my husband incapacitated, one of the first questions I was asked by the hospital was “Do you have an enduring power of attorney?”.

Because my husband and I were prepared, it smoothed the process for the hospital taking care of him – but it also allowed me to make swift decisions and to cope with a frightening situation.

It’s been a long road to recovery, but my husband has returned to work and I tell my clients our story to share the importance of having an enduring power of attorney within their financial plan.”

Juliet Manning

Adviser

Taking the time to establish your EPA with a lawyer will help your loved ones look after you

It’s a task that’s easy to put off. We all tend to think that these things either won’t happen to us, or are too far in the future to need attention today. But developing a financial plan without an enduring power of attorney document is like building a house without proper insulation. It may be fine for now, but when winter comes, the house will be freezing and cost way more than necessary in heating bills.

Addressing your enduring power of attorney with your financial planner and your lawyer will offer invaluable security and peace of mind to you and your family. With this important document in place, you can start building your financial plan knowing that things will continue to be taken care of even if you aren’t able do it yourself one day.

Your financial planner is here to help ensure your financial wellbeing as you enter the next chapter of your life.

Get in touch with NZFP to build an action plan for your ongoing financial security.

Excerpt from Juliet Manning ,

Financial Adviser at NZFP

Cash flow vs. income: retirement planning when interest rates are low

Mon, 28 Oct 2019 20:44:29 GMT

Why cash flow, not just income, should be your focus when retirement planning in a low interest rate environment

If you’re thinking about retirement, and how you’re going to sustain your lifestyle in the next chapter of your life, you’re probably worried about retirement income –especially given today’s low and falling bank term deposit rates.

Quite often, investors will try to meet all of their retirement expenditure needs solely from the income that their investments can produce. But in today’s low interest environment, where the OCR is at an all time low, r etirement spenders need to be savvy and understand how their whole portfolio can work for them.

But don’t let low interest rates send you straight to the share market

As we move through a low-interest environment, it’s always tempting to chase riskier investments (such as shares) in the hope of earning just a little bit more income.

But many people facing retirement pursue these higher-return investments without understanding the increased level of risk.

A much more sensible approach to retirement planning is to first review your financial goals, create a financial plan, and understand whether you can take the risk – or if you even need to!

Pursuing a higher-risk investment comes with two potential problems:

Losing some (or all!) of your money:

If you take on a high-risk, volatile investment and things go wrong, it’s much harder to recover now than if you were a younger person with more time on your side.

Heading into retirement means you have to be far more careful with financial risks, because you don’t have the same secure earnings capability to help you rebuild and recover from losses.

However, that doesn’t automatically mean taking on no risk either. As most people will spend 20+ years in retirement, having enough growth potential in your portfolio will help you keep pace with inflation and make sure the money lasts the distance.
Getting carried away with unnecessary risks:

It’s easy to get sucked into the herd mentality of “go big or go home”, and it’s not uncommon for people to get carried away with investments without assurance that they need to take such risks in the first place.

After consulting with a financial planner, many people find that they don’t require as much investment income as they initially thought. They also start to understand how their capital can be used to fund some of their desired spending needs.

However, it is important that your process is closely monitored and reviewed regularly with your financial planner to make sure everything stays on track.

With expert guidance, clients are able to measure the lifestyle they wish to maintain and form an accurate plan for how these expenses or goals will be met – and a higher-risk investment is not always required! But if you do take on risk, it is with eyes wide open and your overall financial wellbeing in mind.

When retirement planning, focus on cash flow to build a solid financial plan for the next chapter

You’ve likely spent most of your working life with an income-oriented mindset. Afterall, that’s how you’ve managed to afford all the nice things you’ve become accustomed to – and also how you were able to save up for your retirement.

Like many people thinking about retirement, it may be difficult or daunting to plan for a lifestyle without the same reliable income you’ve had throughout your career.

But instead of asking “How much income can I get from this investment?”, step back and ask yourself “What do I enjoy doing, and how much does that cost?”

With the guidance of your financial planner, focusing on the cash flow necessary to meet your ongoing expenses is key to ascertain exactly what you need for the next chapter of your life.

By reviewing your current lifestyle, and better estimating your expenses and quantifying your future goals (such as a holiday or supporting your grandchildren with university), you can then start to gauge exactly how much cash flow is necessary to meet those requirements.

Shifting your focus from income to cash flow enables you think more about what you’ll need to meet your goals, rather than letting your investment income dictate your standard of living or potentially rushing into an unnecessarily higher-risk investment just to boost the income.

A financial planner helps you focus on what matters most in your life

One of the most common ‘light bulb moments’ clients have when they are presented with their financial plan is the realisation that just focusing on income and chasing higher return investments is not always required for them to meet their goals.

When retirement planning in a low interest environment, the most important thing to articulate is what is important for you and your lifestyle. Then you can work backwards to find the most sensible and comfortable solution to meet those needs.

Avoid rushing into investments and income strategies, and focus first on what matters most to you and your future goals.

Your financial planner is here to help with your retirement planning. Protect your future financial wellbeing as you enter the next chapter of your life!

Get in touch with NZFP to review your financial goals and start retirement planning with confidence!

Managing financial risk: do you know your risk profile?

Mon, 28 Oct 2019 20:43:54 GMT

When making investment decisions it’s crucial to understand the risks involved, your capacity to take them, and how much risk you actually need to take

As you start to roll back your working hours and consider your retirement, you may be seeking investment opportunities.

Like many approaching retirement, you see investing as a way to generate the cash flow needed to sustain a fulfilling lifestyle and achieve your personal goals.

But you also know that with current interest rates, it’s hard to generate income from bank deposits.

Everyone understands that with investment comes financial risk – but how do you decide what risk you should take?

Many investors don’t consider their perception or biases when taking investment risk, their capacity and tolerance to handle subsequent losses or volatility in the market, or whether that risk is actually necessary to attain their financial goals.

We call this ‘understanding your risk profile’.

Knowing your risk profile allows for better informed investment decisions

Handling risky investments seems practically effortless when the market is favourable and you’re gaining from financial risk exposures. But suffering a loss can be much more impactful.

Establishing a risk profile with your financial planner will enable you to make informed decisions for your future heading into retirement – financial risks that you’re comfortable with, and that are appropriate to meet your goals.

You have to understand what risk you are comfortable with, what you’re able to take, and what you need to take if you’re to achieve your financial goals.

Talk to your financial planner to review your risk profile

In order to form a strategy for future investments it’s vital to understand your risk profile. With a clear risk profile, you can review the financial risk required to achieve your financial goals and maintain your lifestyle during retirement.

Your Risk Profile is made up of the following 4 factors:

Risk perception

How risky do you see an investment to be, and what do you think is a significant financial risk?

What you might perceive to be a large risk could be interpreted differently by someone else, such as your spouse. We always remember the bad experience of a loss, and that influences our future decisions with investments.

If you feel things are too risky, you may be afraid to take on the risk you need to, and conversely, if you think there is little or no risk, you might take on too much risk and get burnt when things turn sour.
Risk capacity

Can you take a loss? And how much of a loss can you handle before making a return?

Your ability to manage and recover from a loss may vary depending on your age, amount of surplus capital you have, or how long it is before you need to spend any of the money.

It’s important to consider the capacity you have to respond to significant market changes.
Risk requirements

What do you need to achieve your goals, and are you willing to take a bigger risk in order to reach them?

After assessing your risk profile alongside your financial plan, you might prefer to reevaluate your goals to be able to favour lower-risk investments.
Risk tolerance

How much volatility can you withstand before getting nervous and bailing out? Is the promise of making a significant return enough to keep you invested through the tough times?

Understanding your tolerance to investment risk allows you to gauge whether you’re comfortable pursuing a volatile investment for larger returns, or a steady investment that is lower-risk with a less significant return.

The biggest danger of taking on more risk than you’re comfortable with is that you may end up cashing up your investments at the worst possible time, thereby locking in a permanent loss and potentially doing irreparable damage to your future financial wellbeing!

Expert guidance will help you to make sound decisions

It’s easy to think a significant investment is required to secure sufficient income for retirement. But this is not always the case! It’s about structuring an investment portfolio in line with your overall risk profile and needs.

A financial planner will help you assess what your future retirement lifestyle looks like, what your future expenses will be, and whether your financial goals are attainable.

With expert guidance about your risk profile, you’ll make better informed investment decisions to help make financial security and enjoyment during retirement much more attainable.

Consulting with your financial planner to determine your risk profile will ensure an informed foundation. From there, you can build an investment plan for retirement that is relevant to you.

Get in touch with NZFP to establish your risk profile and make informed investment decisions

Family trusts: have you reviewed yours?

Tue, 08 Oct 2019 01:06:21 GMT

The new trust law could change the way your family trust is managed – how is it relevant to you?

The Trusts Act 2019 is one of the most all-encompassing reforms to trust law and could impact the way your trust is managed.

There are a number of changes in the new law, but one that seems to have come as a surprise to most clients we have spoken to is the need for greater transparency and disclosure to trust beneficiaries.

The “traditional mindset” of family trust management

Many family trust trustees have traditionally managed the trust affairs as if they still owned the assets outright and in their own name and had absolute personal control, which is technically not correct.

As such, more often than not, they haven’t been providing the other beneficiaries (typically their children) with information on the trust’s ongoing administration and financial details.

The new Act makes it clear that the “traditional mindset” must change

With this new trust law, beneficiaries may need to be made aware of their position and rights to information.

On the positive side:

Capable and knowledgeable beneficiaries will have the potential to hold trustees to a higher level of accountability in the discharge of their duties.

However

Many ‘Mum and Dad-type’ family trust clients are not happy about the prospect of having to provide their children with an insight as to “what’s sitting in the trust”.

This wariness from many family trust clients comes from a desire to encourage prudent savings and spending habits, rather than allowing their children to simply rely on what they may get from the trust.

Some feel so strongly about sharing “otherwise private information” with their children that they are seriously contemplating the wind up of their trusts.

But it is important to not make a rash knee-jerk reaction to these changes

It is always prudent to seek professional advice about your trust. Be sure to talk with your financial planner to review your objectives and goals to ensure that the trust is still relevant and is being properly managed.

When did you last review your family trust, and is it still set to provide the benefits that you initially envisioned?

Over the years, people have established family trusts for a multitude of reasons: to secure assets for future generations, to protect assets from claims and creditors, rest home subsidies or for tax minimisation. As circumstances change, so may the motivation behind these reasons.

Reviewing your trust in the context of your overall financial plan will give you a clearer picture of the outcomes you wish to achieve from a trust – from both a financial and a lifestyle protection perspective.

Family trusts are just one of a whole toolkit of estate planning choices to consider

Estate planning and personal financial planning are inextricably linked.

That’s why it’s important to regularly review them with your financial planner, not only in light of regulatory changes, but in the context of your overall financial plan in alignment with your financial wellbeing, your lifestyle, and your values.

Review your options with expert guidance. Get in touch with NZFP to discuss your trust in the context of your financial plan

Once you have discussed with your adviser, we also recommend consulting with your lawyer or

a trust expert

Financial freedom gives you choice: are you thinking of your next chapter?

Tue, 08 Oct 2019 00:57:10 GMT

Plan for your future lifestyle and consider your financial goals now

By now, you’ve likely had a full career; you’ve invested in property or other assets and have a fair bit of savings. Retirement is within arms reach…

With the changes that this next chapter brings (including income); there’s a little more planning required to have the freedom of choice in your lifestyle.

What will get you there? Setting goals and organising your finances .

Planning for the future starts with goals

Have you envisioned your next life chapter? Do you know where you want to be?

Setting lifestyle-oriented financial goals ahead of time will reap clarity and comfort in your next stage in life.

Whatever you envision yourself doing – whether it be travel, charity work, or simply relaxation – setting those goals now will lead you on the track to achieve them.

Take our client Matthew for example; as a life-long hobby, Matthew has invested time and money into travelling internationally, and collecting model trains. But as an expensive hobby, he needed to structure his finances in order to turn this passion into a goal and continue this enjoyment in the future.

So, how will you set your goals to achieve a financially-sound future – and continue to enjoy the lifestyle you choose?

Secure your future; turn your vision into achievable goals

How can your ‘today’ help your ‘tomorrow’?

They say nothing is impossible , and when it comes to your future, this can be all too true.

But this won’t come without thought – start thinking about tomorrow, but don’t forget today.

Strategise tomorrow : where do you want to be?

Taking your first step involves considering where you want to go in life. More specifically; setting those lifestyle and financial goals you want to achieve for your next life chapter.

But how?

Start thinking about what you would like to accomplish in the next 10-20 years before you retire.

It could be as simple as:

Paying off your mortgage
Travelling the world
Charity or volunteering
Spending time with family

Whatever these goals may be, taking the time to assess your finances and figuring out your direction will help you achieve your aspirations and create a future of financial freedom of choice.

Assess today: where are you now?

When it comes to goal planning, in order to turn your goals into reality, it is important to consider your ‘today’ . This means thinking about where your finances sit, but also, where your life is – do you feel you’re already en route to the goals you’ve put in place?

Starting with an assessment of your future lifestyle and financial goals, you’ll need to consider how much capital you have now, and how much you think you’ll need to accomplish these.

To help you grasp the financial freedom you dream of, you’ll need to then review and refine your financial status, savings and thought-process.

Our tips to follow will help you break down your ‘today’ in order to improve your ‘tomorrow’.

Break down your assets and liabilities and grasp your goals

Now that you’re heading into the stage in life where you’re thinking of ‘ the next chapter ’, taking the time to organise your finances will help you reach your goals and reap value for your future.

Put thought into the following financial elements now and build the lifestyle you aspire to!

Evaluate your income

Other than more free time and hopefully relaxation, when it comes to moving into your retirement chapter, income will be your most prominent financial change.

Start thinking about your income now, and ask yourself these questions:

How much discretionary income do I have?
Is my income likely to change between now and retirement?
Once my working income stops, will the NZ Super be enough for my goals?
Do I, or will I have another source of income in the future? (E.g. through investments)

Make use of your Kiwisaver

Unlike many countries, here in New Zealand, we’re lucky to have the KiwiSaver scheme to help encourage people to save for their retirement!

Retirement planning is the perfect place to make use of your KiwiSaver and secure your path towards financial freedom.

Utilise your KiwiSaver savings and ponder these thoughts:

What percentage of your income are you contributing to your KiwiSaver currently?
Will your KiwiSaver future balance be enough to fund your retirement or do you need to save more elsewhere?
Are you invested in the appropriate fund for your needs?
If you’re self-employed, are you putting enough away to be be eligible for the Government contribution?

Keep in mind funds invested

“Invest in your future, because that is where you are going to spend the rest of your life.”

- Habeeb Akande, author and historian

It's time to start thinking about the investments you’ve made over the years and the value they will add to your future.

Your home, bach, shares, apartment, office, or business – whatever the type of investment; if invested well, can benefit your future.

Take for example, if you own a business; by retirement, this investment – along with related investments outside your business – would have likely built a solid foundation for wealth.

Each of these investments could continue to support your choice of lifestyle, both now, and into your future.

Determine your net worth

As you create your future path, considering your net worth will help you plan accordingly.

Your home, car, art – all of your belongings – along with your investments and cash in the bank have value. Assessing this now, will add value to your future later.

For example, if you’re paying off a mortgage, we’ll help you strategise your finances to sort this pre-retirement.

Finding clarity in your finances now, will be invaluable for your future

Financial planning helps evaluate the goals you have now, and the capital you’ll need for this later – it’s about enjoying now, all the while looking towards the future.

Remember Matthew? By taking the step to ground his lifelong hobby into a future financial goal, he was able to achieve the joy of travelling internationally with his elderly father to a renowned model train convention – adding to his collection, and more importantly; fulfilling his lifelong passion.

nzfp

How will inflation affect me financially?

At the time this article was written, inflation had reached 6.9% in New Zealand - the highest inflation rate we’ve seen in over 30 years .

What causes inflation?

What does this mean for everyday Kiwis?

What should you do?

KiwiSaver Changes - What do you need to know?

There are some changes coming to KiwiSaver, and while they’re designed to improve long term outcomes, they could cause some scary moments for investors who aren’t prepared.

Recently, the Financial Markets Authority made some changes to the default KiwiSaver providers.

A Goal-Based Approach to Investing

Why some investors aren’t concerned by share market drops or changes to investment property rules.

Short-Term Financial Goals

Medium-Term Financial Goals

Long-Term Financial Goals

Helping Kiwi women win with financial knowledge

Take action to support the women in your life and see them enjoy a brighter future.

We all have someone we can guide.

Good decisions are guided by knowledge.

So, where can you start?

Plan toward retirement with practicality, rather than trusting it’ll work itself out somehow.

Your awareness is the seed of financial knowledge – so share it, and help it grow in others.

How will a recession affect me financially?

What you need to know, do, and avoid to get through unscathed

What you need to know about your financial situation in a recession

What you need to do & avoid to get through this recession intact

What you need to reassess to create a stronger post-recession future

What to consider when helping your child buy their first home

The potential pitfalls to negotiate and avoid when making this big life decision.

How will it affect your retirement or other long-term financial goals?

Is it a loan or a gift?

Is it unfair to their siblings?

What happens down the track?

Secure your family with NZFP

Why Women Need Financial Planning

The three reasons women often lose out, and how a solid financial plan can secure their future.

What are the three common roadblocks that prevent women from engaging in long-term financial planning?

1. Women are often time-poor.

2. Some women put themselves last.

3. Women tend to be more risk-averse than men.

How can a financial plan create sustainable security for your lifestyle?

A Roadmap for Uncertain Times

Get back on the road toward your goals with the help of a financial planner.

What to do when things break down.

How to get back on the road.

Reaching your destination - the bach by the sea.

Self-worth vs Redundancy

Advice from a financial adviser and a life coach to help you power through the personal challenges of 2020 and emerge triumphant.

When “who you are” is taken away.

What new opportunities could come from this?

Draw a line in the sand: what you can and can’t control.

“It’s about the life you want to live, and less about the dollars in your account.”

Life always has good times and bad times - this too will pass.

The Path to Financial Empowerment for Women

How to enter on the path to financial independence, and reclaim your strength after loss.

Empowerment through financial independence is one of the best ways a woman can protect herself against the challenges of life, no matter what life stage she’s at.

Discover the six steps on the path to financial independence for women:

Step 1: Ask questions

Step 2: Get to know your situation

Step 3: Work with your values

Step 4: Ask for help

Step 5: Make a plan

Step 6: Enjoy the security of financial independence

Financial planning for lifestyle changes – what to do if you’ve been made redundant.

Andrew Doak explains the common mistakes people make with their redundancy pay and how NZFP can help.

For financial planner Andrew Doak, this critical situation requires financial advice that leads with empathy and experience.

Even if you’ve never sought expert financial advice, it's never too late to begin the financial planning process. Here’s how you can make a start:

What mistakes can people make when using their redundancy pay?

Using your redundancy pay to clear debt.

Becoming complacent in your financial disciplines.

Why is talking to NZFP the best option for financial clarity when you’ve been made redundant?

If you’re facing redundancy, seek financial advice from a team of experts who understand your challenges and goals. Talk to NZFP today.

Financial security – helping you ‘stay safe’ no matter what happens.

Callum Forbes reflects on how NZFP’s advice withstands market volatility and safeguards client goals.

How have our clients responded to the situation?

Are we changing our strategies?

Is there a silver lining to this situation?

For future-proof financial advice that supports your financial security, talk to NZFP or contact Callum Forbes directly.

Financial wellbeing – it’s about behaviour.

Wellbeing is a practice, and research shows financial wellbeing is more about informed behaviours than the figure in your bank account.

With an understanding of your lifestyle goals and the behaviours that help you achieve them, NZFP prioritises financial wellbeing. Talk to our team today.

Life always has good times and bad times

- this too will pass.

How a financial adviser helps alleviate worries about
your financial future