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Welcome
Hello,
 Autumn is here and it is quite exciting. The changing colours of the leaves, the days are shorter, kiwifruit and apples are in season... Soon we will be snuggling up with cups of soup watching far too much Rugby. If you are anything like me, you're probably wondering how the first quarter of the year has gone by so fast, and that the next three quarters better slow down.
This month, we have the latest super amounts for our over 65’s. It is a tough job to be able to budget on those amounts. If you are concerned that you could not live on $340 a week in your retirement years, please do not hesitate to call. There is no time like the present to face reality that, unless you don’t make it to retirement, you will need to prepare for it. A few years of saving now will have an enormous impact when you are no longer working.
Here is a quick example of how savings can work using pies:
How much does a pie cost? Would you believe nearly $65,000? If an ordinary pie costs $2.00, and you buy one every week until you are old enough to retire, you will spend $5,200 on pies. If you give up that pie and invest the money instead, earning 8% interest compounded every year for 50 years, you'll get an even BIGGER gain worth $69,469 back!
Hope you have a fantastic month. Remember to call if you have any questions.
Regards,
Jamie Coltman
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April Articles
The New Zealand Super Rates Increased April 1
Here's a summary of the new (maximum after tax) rates for NZ Super from 1 April 2011:
|
Status |
Weekly |
Annual |
|
Single, Living alone |
$339.92 |
$17,675.00 |
|
Single, Sharing |
$313.78 |
$16,316.00 |
|
Couple, Both Qualify (Combined Total) |
$522.96 |
$27,193.00 |
|
Couple, Both Qualify (Each) |
$261.48 |
$13,596.00 |
(Net rates after tax at 'M' tax code. If you have other taxable income, you may be taxed at a different rate.)
For the full list of weekly gross and net rates visit the Work and Income website. (Click here...)
Note these figures are a guide only. If you are looking at these figures and wondering how the elderly are surviving in NZ, you are not alone. It is a scary thought to try and pay the bills, food, and rates on less than $340 per week. Please contact us, we are happy to help you work out what you will need to live on and make a plan to help you get there.
Fight Rising Food Prices
We all know that the cost of food is rising. Global factors such as droughts in Russia, floods in Australia, and rising populations throughout the world will cause the price of food to continue to rise for years to come. I am sure nobody is happy handing out hundreds of dollars a week to the supermarkets. If we want some style with our lives, we have to be smart consumers.
Make a List
It is simple. Plan what you need and do not get sucked into the supermarket psychology of their strategic placement of specials and their reward point promotions. Remember, they have devilishly talented people coming up with strategies to get your money off you. Make a policy to only spend what you need. Make a List and Stick to it.
 Buy Local
Save the world, buy local - it is true. With rising fuel costs, food that has to be transported from distant places are going to cost more. Centralized manufacturing of perishable food items such as bread and dairy are not going to be profitable as they once were, unless they go up. Who ends up paying to keep their shareholders happy? Go to your local farmers market, get to know who makes the bread, or grows the tomatoes. You can get some genuinely reasonable prices for fresh produce.
Buy in Bulk
Countries have started hoarding rice. Thailand has started importing rice and storing it even though they grow rice. Why? They do not want their people to have to bear the costs of rising rice costs. If countries are buying in bulk, so should we. Instead of buying 500g of rice, buy 10kgs and store it. Instead of buying one serving of meat, talk to your local butcher and buy a cow. The prices will amaze you. Instead of paying $25 a kg, you might only need to pay $4-$5 a kg. By buying in bulk, you can save around $20-$50 a week, depending on what you buy.
Are “Supermarkets” Super?
Supermarkets are convenient. They know how busy we are and that we do not want to drive around looking for specials at smaller shops. It is, sometimes, worth going to your local Asian Supermarket, the little Vege shop, or even the Butcher’s shop. They might look less glamorous and they might even have brands that you have not even heard of; but, you can save a pile of money there. A few weeks ago, my local vege shop had broccoli for 2 for $1.50 while at my local Countdown, broccoli was $3 a head. If you drink milk, local dairy’s often have deals that are a few dollars cheaper than the "Supermarkets”. People think that we have a duopoly in this country: Pak ’N Save & New World or Countdown & Foodtown. We do not. There are hundreds of family-run businesses that can offer genuinely terrific prices on food. They just don’t yell and scream through our TV’s each night.
Prepare meals from scratch
Preparing food from scratch can save a considerable amount of money. Making a few batches of biscuits for the kids' lunches on a Sunday afternoon, baking a couple of loaves of bread, then freezing them to use through out the week does not take long and can easily save a family $30-$40 a week. Homemade pizzas are a million times yummier than the bought ones and only cost a couple of dollars to make from scratch. A bonus is that you know exactly what is going into your food. There is not a whole lot of preservatives and artificial flavours either. With a bit of practice, you can get fast and skilled in no time. I bet your family and friends will love you for it.
Eat Less
New Zealand is the 7th fattest nation in the world. Maybe, we have forgotten how much food it takes to feed ourselves? Eating less could not only be beneficial for your belt line, it could also be good for your bank balance.
Funny Story of the Month
A lawyer in Charlotte, NC purchased a box of very rare and expensive cigars, then insured them against fire among other things. Within a month, having smoked his entire stockpile of these great cigars and without yet having made even his first premium payment on the policy, the lawyer filed a claim with the insurance company.
In his claim, the lawyer stated the cigars were lost "in a series of small fires." The insurance company refused to pay, citing the obvious reason: that the man had consumed the cigars in the normal fashion. The lawyer sued....and won! In delivering the ruling the judge agreed with the insurance company that the claim was frivolous. The judge stated nevertheless, that the lawyer held a policy from the company in which it had warranted that the cigars were insurable and also guaranteed that it would insure them against fire, without defining what is considered to be "unacceptable fire," and was obligated to pay the claim. Rather than endure lengthy and costly appeal process, the insurance company accepted the ruling and paid $15,000.00 to the lawyer for his loss of the rare cigars lost in the "fires."
But... After the lawyer cashed the check, the insurance company had him arrested on 24 counts of ARSON! With his own insurance claim and testimony from the previous case used against him, the lawyer was convicted of intentionally burning his insured property and was sentenced to 24 months in jail and a $24,000.00 fine.
The Auckland Plan
The Auckland Plan - did you know?
International Monetary Fund Report on the State of New Zealand's Economy
New Zealand’s recovery has stalled since mid-2010. Domestic demand has remained soft, as cautious households and businesses look to strengthen their balance sheets by slowing debt accumulation amid a weak housing market and an uncertain outlook.
To find out more about this Article, please click here...
Reading Round-Up
Tax changes will reduce supply of rental property (Click here to read more...)
Changes to the tax treatment of rental property are proving confusing for accountants and there are signs that the changes are deterring landlords from further investment. (Stuff)
Housing market resilient despite upheaval (Click here to read more...)
The February Christchurch earthquake provoked uncertainty in much of the country's residential property market, which is hardly surprising as the family home is most people's main investment. (Stuff)
Bank customers not at risk (Click here to read more...)
Banks that have provided customers with RSA SecurID devices to secure access to internet banking are not asking customers to take additional precautions following a security scare. (Stuff)
KiwiSaver hardship rules need to be 'level' (Click here to read more...)
KiwiSaver providers and trustees are calling for consistent rules and clearer processes when members seek to withdraw funds in cases of significant financial hardship. (Stuff)
Bank depositors don't need a haircut, executives do (Click here to read more...)
"If you have a paranoid disposition and worry about banks going bust then read on, because this concerns you." (Stuff)
Buy doubles Fisher's KiwiSaver (Click here to read more...)
Fisher Funds has bought Huljich KiwiSaver, doubling Fisher's KiwiSaver business and putting it in the major league for providers. (NZ Herald)
Sam Stubbs: Tighten belts for long-term gain (Click here to read more...)
"Three months into the year and we have suffered an overload of bad news from both home and abroad. Kiwis could be forgiven for lacking confidence in the doom-and-gloom atmosphere."
(NZ Herald)
Event of the Month
Stream and Glow-worm Night Time Walk
Stream and Glow-worm Night Time Walk, Birkenhead, 28 April 2011
Where: Le Roys Bush, Glade Place, Birkenhead
 Note - the above time is approximate. You will be advised of the time when you register. Children welcome but must be supervised.
These events are run by the Le Roys Bush and Little Shoal Bay Management Committee in association with Birkenhead-Northcote Community Facilities Trust.
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