We offered
our card to a courier recently & he returned it.
Good luck was our immediate response.
We were shocked & said to him that he was
the first to do so in 28 years in this business.
Why?
Because you can only rely on yourself.
That is very true & we agree with you but what happens when you stop?
Yes we all stop earning an income sometime
& then how do you meet your wants & needs.
It might be
a fatal accident as our client aged
28 had 3 weeks ago.
It might be
retrenchment notices from your work
as is happening to Lee’s * father &
to many when government cut payrolls as their incomes don’t meet their
promises.
It might be
retrenchment from marriage as
happens in 40% of cases.
It might be
a disability from a work accident.
In fact we heard from Lee* & Richard* that many of their friends had bought
their first house by disability claims. We wonder how much ‘the
crows on a wire’ skim from such
a rort.
When we
discussed Richard’s work disability cover through his industry super his
comment was ‘it’s nothing, it’s a joke’.
But there
is more as the exclusions & when you don’t have cover takes one half a page
& you have to spend quite some time on the website to find these exclusions.
If you know where to look.
e.g. Your account falls below $1,000 and you are no
longer employed by a BUSSQ employer, or
You
are no longer a member of BUSSQ, or
It simply
might stop because you are tired of working. You might be tired of government
regulations, customers who are always right or you have other more pressing
interests.
Whatever.
Where do
the funds come from?
Governments
are broke & we read today that the senate games have added an extra 8
billion to the budget blowout.
Can you
rely on family & friends or charities?
You know
the answer to that.
So it has
to come down to what you have saved?
If you save
it in term deposits then term
deposit rates have dropped from 5% to
3.6%
Is that a 28% Fall?
We had a newsletter from a NZL share broker
last week.
Lets note a key theme in it.
term
deposits are NZ’s most popular investment. What many investors are currently
unaware of is that new rules introduced by Australian regulators make term
deposits far more difficult to break. These changes include making investors
wait over 30 days before funds are released and also increasing break penalties
that apply to deposits (rabobank break fees can be as much as 50% of accrued
interest).
And
Investors in banking assets whether it be in
shares, bonds or term deposits need to be aware the that treatment of the these
assets in the event of a loss, has changed significantly and these changes
apply to not only new issues but ones currently in circulation, including term
deposits.
Haircut was mentioned as happens elsewhere.
If you save
for your retirement in a moderately
conservative portfolio then its value over a long time historically at
least means you would end up living
on much less than if you had ‘taken the risk’ in a more growth portfolio. There is plenty
of historical research demonstrating this.
However we
have to provide Richard with a moderately conservative portfolio because
otherwise the heavies will be onto
us as the advisor. Richard has come to us for advice but we are restricted by
the heavies.
Who does
Richard blame when he retires in 39 Years?
As Vanguard
says in their newsletter today
‘the research reveals that a great deal of value can be added to a
client's portfolio through services like strategy, asset allocation and
behavioural coaching of clients.’
We just now read a Christmas card that brightens our
day & refutes the courier.
Hello, I have been your postie
for the last 3 years. I would like to thank you for the times you came out and
said hello. It brightened my day. I have now moved and transferred. Wishing you
a merry Christmas and a prosperous New Year.
Cheers
Good luck Rewiina
& yes you have brightened our
day.
What goes around comes around.
If we were to sit down in three
years time & looked back what do we need to do today so that you are
financially & personally better off & happier.
As others do call us on
07 3848 1088 or email or visit our
website & action those new resolutions & goals.
John
McAuliffe
