Automatic saving – it works. “I will save when I build up some money” doesn’t work.
Averaging – use averaging to avoid buying the sharemarket at the top. Can prevent pain.
Bank - an organisation that often makes $1 billion pa. profit.
Bank teller – nice ladies well trained to give good service, but they don’t get the profits.
Business advice - ask successful businessmen who advised them not to have a go.
Certainty - not available on planet Earth.
Can’t miss – an opportunity where the possible downsides have not been considered.
Debt - OK in small doses, if for the right reasons. Can kill you if not.
Despair – if you plan and review annually, you might not.
Elder abuse - really does happen but we can stamp it out – needs all Kiwis on board to do so.
Emergency money – antidote to lots of pains, especially a mortgagee sale.
Entrepreneur - a person who organizes an enterprise, usually with considerable initiative and risk.
Exchange rates – the man who can pick them lives at the end of the rainbow.
Gearing – borrowing (mortgage) on residential property investments works very well when markets are rising. Whatever happens it has to be paid back.
Get 5 for 2 – work 2 years longer, your money might last 5 years longer. Ask us how.
"Those who have knowledge, don't predict. Those who predict usually don't have knowledge. " - Lao Tzu
Hedging - a bob each way ? No , not quite, handy tool to protect against painful exchange rate losses.
Insurance - usually set up and then paid monthly by auto payment. Thereafter often ignored and money wasted.
IRD - we have what it takes to take what you have.
IRD inspector - look at it this way. It’s our money, not yours.
Invest in your parents house - you need to save for retirement. Your retired parents might need more cashflow. Buy their house with monthly payments, they get more income, and your inheritance is protected. Good paperwork a must. Ask us for a model.
Life insurance – gets real expensive as you get older, just when your family might need it. Plan ahead or waste thousands.
Liquidity - access to emergency money in a hurry. Never met anyone who never needed that once or twice.
Losses - emotion says invest in something hot. Logic says you’ll lose money if you do that often enough.
Mistakes – the average 18 to 35 year old says “let me make my own mistakes.” And the parents sit, watch, cringe, and sometimes have to bail them out.
Plan to fail – fail to plan.
Pre nuptial - I can’t ask for one, I’m in love.
Predator - money here, he/she is here. Money gone, he/she will be gone.
Rest home - let a few dollars go out paying for care at home sooner, and you might avoid one.
Retirement – many are not – personal choice. Activity seems to extend longevity.
Risk - hides everywhere, can be partially controlled by common sense, diversification, insurance and emergency money.
Rose coloured glasses – a lot around, especially in the poor house & bankruptcy court.
Saving - not now, too hard, too risky, I want to have fun, who cares about tomorrow, maybe later, oh dear, too late.
Scam – even lawyers have lost hundreds of thousands. If it’s too good to be true, send it to a deserving terrorist group.
Will - who will I leave my money to ? who will deserve it ? will they use it wisely ? Wisdom oh wisdom, wherefore art thou ?
Will 2 - it might not be you who dies. Take your spouse to the lawyer and make one each. If you are the survivor, your lot will be a bit easier.
Woman - women are often not as well informed about their money and assets as they should be. Don’t let the old boy run the show, make sure you know what you own, what you owe, what your risks are, and put wills and insurances in place. Then ensure you know where everything is, and who to contact if things go wrong.
Supplied by Alan Clarke, financial & retirement adviser, & author. He also writes regular articles for the media and on line.
His second book “The Great NZ Work, Money & Retirement Puzzle” is now available.
You can buy it on line at www.acfs.co.nz
Alan is an independent authorised financial adviser (AFA) FSP26532
His disclosure statement is available on request and free of charge.