The information in this post is the opinion of the writer and is not considered as financial advice. If you need advice of a financial nature, see your bank manager or other financial advisor.
Taking stock of your investment goals
The sharemarket will be volatile for the duration of the Covid-19 outbreak and even longer, possibly not until 2022 will there likely to be a settling down period when the markets will recover so what should your strategy be?
If you are close to retirement and have seen your funds dwindle, that is up to you. Myself I think it may pay to just ride it out because investing in the markets is a long term game.
To change funds from growth or balanced to conservative funds will be like closing the stable door after the horse has bolted.
The damage has already been done. To be panicked into selling during a bear market is to take a loss and miss out on the gains once the market recovers.
A bear market is a buyer’s market and that is when it is most profitable to purchase shares.
The fund you chose for kiwisaver or mutual funds needs to be the right one.
The three main factors for choosing the right fund for you are;
1. The number of years left before you reach your country’s retirement age.
2. Whether you are going to use your kiwisaver as a deposit for your first home.
3. Your risk tolerance
Another factor is any medical condition which will reduce your chances of reaching the retirement age.be
There are three time frames which need to be considered, namely;
The short term (up to 1 year)
The medium term (within 5 years)
The long term (more than 5 years)
The number of years you have left before being eligible to withdraw your retirement fund is dependant on your age. This for most people is the criteria for choosing your fund type, (growth, balanced, or conservative,) but not necessarily because in New Zealand anyone can use part of their retirement fund as a deposit for their first home at any age. Furthermore, homebuyers are eligible for a grant depending on how long they have been enrolled in kiwisaver which makes joining kiwisaver a no-brainer.
The markets are on a rollercoaster ride, they go up and down and the worst thing which can happen is to save hard for a house deposit only to discover you have less money than what you had actually deposited in kiwisaver by the time you withdraw the money for your house deposit.
This is the reason why those saving for a house deposit in the short to medium term are advised by financial experts to invest in conservative funds.
The flip side to this is the slow returns because if you are saving money during a rising market your savings can quickly grow.
If you have zero tolerance to risk then the conservative funds may be your answer to a good night’s sleep.
Those aged forty and under may be advised to invest in Balanced or Growth Funds because they have time on their side for the markets to recover losses after a crash.
Your fund manager may be in charge of your investment but it is still your responsibility to plan for your future and set your own goals. No one can do it for you. Your goals, age, and risk profile will all determine which fund you should be in.
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MUM & DAD SHAREMARKET TIPS
The article below is the opinion of the writer and does not constitute financial advice. If you require financial advice see your bank, financial advisor, or budget advisor).
Which companies to invest in?
Written by R. A. Stewart
A look at the sharemarket pages look depressing reading for those who have a sharemarket portfolio. Most people have a retirement fund of some sort. In New Zealand that is kiwisaver which most people in paid employment are enrolled in. The self-employed and those classed as not working are eligible to join kiwisaver by making their own voluntary contributions. Even minors are eligible to join and have done so.
KIwisaver as with mutual funds in other countries are structered to minimize the risk of loss by spreading your investment around several different companies and in different types of industries. When one industry is in a downturn then others that are doing well help compensate for the poor performers.
The current situation is that it is not just one industry in a slump due to COVID-19, it is most of them.
Your fund manager should really be smart enough to know what he or she is doing with your savings for that it is what they are paid for so it is best to leave them to deal with your investment but there are other options for investing in the markets where you are able to buy shares in individual companies and you do not need to have much money. In fact you only need $20 (NZ) to kickstart the investment.
SHARESIES
Has anyone heard of Sharesies?
This is a New Zealand managed fund where individuals are able to dripfeed money into the sharemarkets.
As with kiwisaver, Sharesies has several types of funds with various level of risk you can invest in. It also gives investors the opportunity to buy into various companies even with as little as $10 or $20.
This is a great way for Mum and Dad investors and their kids to learn about the markets and grow their wealth at the same time.
So which company or companies should you invest in during the current state of the market (2020) where there are falls across the board?
Answer this next question and it will give you the answer to the previous one.
Which sector is going to be unaffected by coronavirus (Covid-19) shutdowns by various countries?
Here is a sample of various industries;
Banking (ANZ, BNZ, ASB, Westpac, etc)
Airlines (Air NZ)
Tourism (Tourist Holdings, Auckland Airport etc)
Retail (Briscoes, Hallenstein Glassons, Warehouse, Micheal Hill etc)
Insurance (Amp, Tower)
Telecommunications (Spark)
Power (Genesis Energy, Meridian Energy, Contact Energy, Trust Power etc)
Dairy Products (Fonterra, A2 Milk Company)
The banking sector is affected by the market downturn because they lose a customer each time a business goes bellyup which is the case in this business climate not to mention the job losses which will leave some unable to pay for their mortgage.
Airlines are an obvious no go for the investor since some countries have closed their borders to foreigners. In Air NZ’s case, they will have to be bailed out by the NZ government.
The collapse of the tourism industry has also left this sector a no go area.
Some retail outlets which are considered essential services will remain open during the New Zealand’s shutdown but those I have listed are not among them and will suffer financially during New ZEaland’s lockdown.
Insurance companies are subject to Mother Nature but may be worth a nibble.
Spark have experienced a huge increase in internet usage during the lockdown and so are worth including in your portfolio.
Everyone uses power to light and heat their home. It is one of life’s basic essentials. Even during a recession, people will still use power in one form or another. Even when the sharemarket is falling, the price of power companies will remain steady.
Dairy companies are subject to demand from China and the price Fonterra receive from abroad so can be volitile, however, they are a reliable company with a lot of safeguards against an economic downturn and just like power companies, provide one of life’s neccessities.
I have a FREE ebook titled “Financial steps,” and you can get it here: https://forms.aweber.com/form/72/892285272.htm
www.robertastewart.com
CORONAVIRUS NEEDS INVESTIGATING
Investigation into covid-19 needs to happen
Written by Robert Stewart
There is a lot of speculation online as to the origins of coronavirus with the most likely source being an animal market in Wuhan, China. It is understood that in these markets animals are kept in such unsanitary conditions that it would be considered animal cruelty in other countries. Yet it is not the first time such a virus has began its destructive life form in humans in this way. Sars being another.
Another theory being put forward is that coronavirus started in a Wuhan lab. This one has been suggested by some American politicians. There is an old saying, “There is no smoke without any fire,” so this one has possibly some merit but it is difficult to find proof without evidence and China is hardly going to cooperate with any investigation especially if it has done wrong.
America, and in particular President Trump are not afraid to point their finger toward China’s direction. It is a pity other countries will not follow suit. I suspect so many of them rely on China for trade and tourism that they are too afraid to speak out for offending their Chinese trading partners.
What seems to be at the heart of the world’s problems is that there is no country that is answerable to a higher authority. Sure some rogue nations have sanctions placed against them for their actions but many first world countries can hardly claim to be squeaky clean as far as human rights and other issues are concerned either.
Arrogance seems to be the problem. No one tells us what to do!
Is it any conincidence that the worst affected countries from covid-19 are the USA and UK, both considered parent countries to so many others. Some of the smaller countries had at least had rthe humility to look at what has happened in other countries with covid-19 and learn from how they have dealt with it; not just their successes but also their mistakes. Arrogance say, “We’ll do it our way.”
There is no doubt that an investigation needs to be conducted into the origin of coronavirus but who is going to force China to co operate?
Australian Prime MInister Scott Morrison made mention of the need for an investigation into how coronavirus started and China threatened to not take their meat exports.
What have they, (China) have got to hide?
How other countries behave affects others, one perfect example of this is the migrant crisis which was brought about by human rights abuses in certain countries.
The United Nations, World Health Organisation (WHO), Human Rights Commission, and Amnesty International do good work in the world but none of them have any authority to force a particular country to do such and such.
There needs to be an organisation which all countries are subject to.
As for China using it’s economic might to throw it’s weight around, I think New Zealand, Australia, and other countries need to broaden their horizons and seek new markets. Taiwan, Singapore, and South Korea have all been responsible in dealing with covid-19 so why not explore their markets and open tourist routes with those countries?
www.robertastewart.com
HOW TO PROTECT YOURSELF FROM COVID-19
COVID-19(Coronavirus)updates
How to protect yourself and others
Covid-19 is an illness that can affect your lungs and airways. It is caused by a virus called coronavirus. There are simple measures you can take to help spread the disease and protect yourself and others.
What are symptoms of Covid-19?
Symptom of CVID-19 are:
*a cough
*a high temperature
*shortness of breath
These symptoms do not necessarily mean you have COVIS-19. THe symptoms are similar to other illnesses that are much more common, such as cold and flu.
However, infections with mild symptoms such as cold-like symptoms or no symptoms are likely, but it is not known how common this is.
How to protect yourself and others
*Cough or sneeze into your elbow or by covering your mouth and nose with tissues.
*Put used tissues in the bin or a bag immediately.
*Wash your hands with soap and water often.
*Try to avoid close contact with people who are unwell.
*Don’t touch your eyes, nose, or mouth if your hands are not clean.
*Clean and clean frequently touched surfaces and objects, such as doorknobs.
*Stay home if you feel unwell and call Healthline 0800 358 5453 (New Zealand only)
Visit www.health.govt.nz/covid-19 for more information.
New Zealand News updates
*All those arriving into New Zealand MUST self-isolate for fourteen days.
Action will be taken against those who flout this rule including deportation for foreigners.
*School sport canceled indefinitely
*The New Zealand government urges its citizens abroad to return home.
*Jacinda Ardern says, “Do not travel overseas.”
*The New Zealand border is now closed to non-NZ citizens & non NZ residents with exceptions for some essential health workers.
*39 cases people have tested positive for COVID-19 in New Zealand with 11 new cases reported yesterday. All with a link to overseas travel.
PROFESSIONAL SPORT AFFECTED.
*The NZ Warriors rugby league team is based in Australia indefinitely
*The Wellington Phoenix football team will base themselves in Australia.
*Horse racing will take place without race goers
*Super rugby on hold
NEW ZEALAND’S WEED REFERENDUM
Marijuana referendum in September
Whatever your attitude to weed you have the opportunity to have your say in the referendum on the legal status of marjuana. I think this is the most applicable description of the weed referendum because if enough voters say yes to it, there will be so many restrictions on its use that for some folk who have no respect for the law it will be business as usual.
As I understand it, if passed, it will mean users of this drug will be able to grow a maximum of two plants for their own use but will not be allowed to sell it.
It will be available for medicinal purposes through pharmacies but the question is “Where are they going to get it from?” and “How many people would be prepared to pay pharmacy prices when they may be able to get it from their neighbour at a fraction of the price?”
My view on all this is, you cannot have one rule for one group of people and another rule for everyone else.
I also wondered if this referendum is an attempt to get the young to cast their vote because voter turnout among the young is quite low.
If there is an improved turnout among the young then it is likely this government will be returned to power.
Why?
It is because they are more likely to vote for the greens and guess who is responsible for the referendum?
The greens of course.
I have never smoked weed even though I have had the opportunity to. I guess I am not a people pleaser.
But my view is that if you want to do that kind of thing then it is your choice but I don’t want to breathe in that stuff so don’t do it near me.
Here are a couple of ebooks about marijuana which were sent to me from Family First which are educational and designed to help New Zealand voters make an informed choice in the referendum which will be included with the voting papers at the general election which takes place 19th September.
Marijuana-Facts-Teens-Need-To-Know-NIDA
COOL HEAD NEEDED DURING THE MARKET SLIDE
Important not to panic during sharemarket downs
The markets will be on a rollercoaster ride for the duration of coronavirus, it is important to keep a cool head and not rush into a decision which could undermine future returns on your investment.
It is all down to your risk tolerance. Those who have invested in more conservative funds may be less affected by the falls in the markets but in the long term lack of exposure to risk will prove costly.
Companies connected to tourism will be most affected by the coronavirus outbreak and these include hotels, airlines, and airports.
Of these I think airport stocks when they bottom out will be a good buy with Auckland Airport being worth a punt. The airport is not going anywhere anytime.
Some of the markets were down by 3% this week; this sounds a lot but it all depends on how much you have in your retirement fund, (Kiwisaver in NZ).
Here is a table;
INVESTMENT 3%+ 3%-
$1000 $1030 $970
$5000 $5150 $4850
$10,000 $10,300 $9,700
$20,000 $20,600 $19,400
$30,000 $30,900 $29,100
$40,000 $41,200 $38,800
$50,000 $51,500 $48,500
The ups and downs of the sharemarket become more noticeable as your retirement fund balance grows. In New Zealand, the government’s contribution of $520 per annum to your kiwisaver will help offset losses as will your employer’s contributions which are 3% of your gross income.
When your balance drops by say 3% then your balance needs to grow by more than 3% to regain those losses.
On the news this week, financial expert Sam Stubbs made the point that in 1918, I think it was, the sharemarket dropped by 11% yet was up by 13% a year later, and it was the same with Sars and 9/11.
If you are investing in individual companies in the market then it will pay to invest in companies least likely to be affected by Coronavirus such as power companies such as Genesis, Mighty River Power, and Meridian Energy. Everyone uses power so they are worth investing in.
Companies to avoid are those connected with the tourist industry but I think Auckland Airport when they bottom out are worth a punt.
Most people do not have the means to invest in individual companies but there is an option for doing just that and it is with sharesies where you are able to dripfeed money into the sharemarket. You can start with just $20 and invest $10 at a time. With Sharesies you can invest in managed funds or individual companies.
Sharesies is an excellent way for youngsters and the not so young to get some practical knowledge of the markets. There is no substitute for hands on experience when investing.
You can join Sharesies here; https://sharesies.nz/r/377DFM
And my God shall supply all your needs according to his riches in Christ Jesus. Philippians 4:19
This article is the sole opinion of the writer and is not intended as financial advice.
10 sites where you can sell your skills
Sites where you can sell your skills
Do you have some skills which others are prepared to pay you money for?
We often take our own talents for granted and not realise that our skills are a potential goldmine because there are others who are prepared to pay money for something which we can do well.
On the internet your market is global and there are lots of sites where you are able to offer your services.
Check out this list.
- Fiverr
This is a very popular site. It started off as a site where gigs were offered for $5 US but now you see gigs offered for $1000+. This is a great site to find some cheap jobs which require technical skills such as website design, logo design etc.
- Zeerk
This site is much the same as fiverr where you offer your skills at whatever you are good at.
- Digital Point
This site has a different kind of format from Fiverr and Zeerk in that it is a bit like a classified site where you offer articles, ebooks, and your computer services for sale.
- Freelancer
Another site where you are able to sell your skills
- The Free Ad Forum
This one is similar to digital point in that it is like a classified ad site where you are able to offer your skills/services. It is a US based site.
- Adland Pro
This site is like thefreeadforum and is also US based but you are still able to place ads on the site even if you are from New Zealand.
- Craigslist
This too is a US based site but if you are from other countries, you can still join as each country has there own section but that does not mean you are not allowed to offer your services to people from other countries. I find that the volume of ads from countries outside the US is a lot less.
- Task Army
This site is similar to Fiverr and Zeerk in that you offer gigs for sale. It is worth a try.
- Ebay
Ebay is more than just an auction site. It has listings from members offering skills such as logo design. There may be an opportunity for you on the site to offer your particular skill.
- Gigbucks
Another site similar to fiverr and zeerk were you offer your skills for x amount of money.
Whatever skill you have it is always a good idea to upskill in order to add extra strings to your bow but that does not mean you should try to be skilled at something you are not naturally gifted at. It is all a matter of digging for gold in your own back garden rather than in your neighbours.
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SAVING FOR WHATEVER
Saving for whatever…
Written by R. A. Stewart
Establish your savings goal. Are you saving for your retirement, a new car, a deposit for a home or whatever. This will be the determining factor when choosing where to invest your money. It is important to note that you can have several different savings/financial goals at the same time with a different type of investment with each goal.
For example, you may have a short term goal to pay off your TV set, a medium term goal to save for your car, and a long term goal to put away money for your retirement.
Your financial goals should be split up into three categories; short term, medium term, and long term.
The category will determine where it is best to place your money.
- SHORT TERM
Oncall-6 months
This is money on standby and used for general household bills such as power, car running expenses rent, and so forth.
Where to keep this money; Ordinary savings account or bonus bonds
- MEDIUM TERM
6 months-3 years
This is money being saved for a car, appliance, overseas trip.
Where to keep your money; Bonus Bonds is a good option but mutual funds is an option but invest conservatively.
There are a number of managed funds which are cropping up and you do not have to have much to get started with them. A good one for the beginner is sharesies (in NZ). If you are from another country there will be companies similar to Sharesies you are able to invest with.
- LONG TERM
3 years+
Saving for a house deposit and building a nest egg for your retirement are examples of long term goals.
Where to keep your money; kiwisaver is an ideal investment to drive you to your savings destination because the incentives will help your savings grow.
Some tips.
Pay off debt first because if you are able to pay off a debt where you’re paying say 10% interest on the debt then the interest saved from the paid off debt is just as if you had been paid the 10%; as the saying goes, “A dollar saved is a dollar made.”
Stuff happens in life where circumstances change therefore you need to be prepared to be flexible.
Take a long term view of your investments. It is time and not timing which is the key to investing. As you gain more experience with investing, your risk profile will improve.
Read all you can about finance and the sharemarket. Knowledge will help you overcome your fears when investing.
PLEASE NOTE; The information in this article is the writer’s opinion based on his experience. If you require financial advice see your bank.
BENEFITS OF JOINING KIWISAVER
The advantages of joining kiwisaver
Kiwisaver is New Zealand’s retirement scheme. As a savings tool, it is a no brainer for ordinary New Zealanders who want a more prosperous future. There are numerous advantages in joining kiwisaver. If you are not from New Zealand, your country’s own retirement scheme will have its incentives, so it would pay to do your research and check them out. If you are a resident in New Zealand, here are the main reasons for joining kiwisaver.
1. The annual tax credit of a maximum of $520 will help boost your savings. This is paid out in July and to receive this full amount you must invest at least $1040 in the previous 12 months. For example to receive the $520 in July 2020, you must deposit $1040 into kiwisaver between 1st July 2019 and 30th June 2020. If you deposit less than $1040 during this period your tax credit will be 50% of your contributions.
The government contribution is tax free!
If I told you it is possible to make 50% profit on your investment, what would you be thinking? Perhaps you would be sceptical and wondering if its too good to be true. Yet it is true that the government’s contribution to your kiwisaver account is tax free.
2. The employer contributions of 3%.
Again this is money available but only if you have joined kiwisaver.
3. You are able to use a portion of your kiwisaver funds to help purchase your first home. There are rules surrounding this. I believe that you have to have been enrolled in kiwisaver for at least 5 years. If both husband and wife are both in kiwisaver, this can be a big help toward getting your first home.
4. Another advantage of having your retirement funds in kiwisaver compared to other types of investments is that if you need to go on income support then money earned by your kiwisaver account will not affect your benefit whereas any income derived from investments such as dividends from shares and fixed term interests will affect your benefit. It must be stressed that it is not the amount of savings in these investments that is of concern but the income from them.
5. Your savings with kiwisaver are locked in until you reach the retirement age of 65; this means that there is no temptation to dip into your savings, however, there are some circumstances where you may be able to access your funds prior to your 65th birthday. They are;
(a) To use the money for a deposit on your first home (conditions apply)
(b) Undue hardship
(c) Terminal illness
(d) A condition which makes it unlikely that you will live beyond 65.
6. If you die an untimely death your kiwisaver funds can pay for your funeral. It is important though to make sure you have a will otherwise lawyers fees will take up a good percentage of your estates finances.
INTERNET PENFRIEND CLUBS
Online friendship/pen pal clubs
There are a lot of ways to contact others online, some free, others require some kind of subscription. It is best to check whether how many members they have in the country you are seeking pen pals before committing yourself to joining, however, some of these clubs cost nothing to join, so you can sign up and see what happens.
Global Penfriends
This one is based in Scandinavia but is a worldwide site with a large number of members from most countries. It does not cost a lot for a full membership. Global Penfriends cater for both email & snail mail pen friends. Check it out on
Interpals
Another internet penpal club, Interpals is relatively easy to sign up, and has a good selection of people to choose from.
International Penfriends
This club is based in Finland but does cover all countries. I have been a member of this club. How it works is that you supply a list of countries you are seeking penfriends from and they will send you people to write to. I also received letters from those who received my details from the club.
Kawasaki Penfriends
As its name suggest Kawasaki Penfriends is based in Japan. It is useful for those who want to learn Japanese. Most of the ads are from Japan with a sprinkling of listings from other countries. You are able to place an ad every month in their newsletter.
http://kawasaki-int.net/japan_penpal/
Penfriend Club
This is a club with a worldwide following. I have never joined but it does not seem to be any worse or better than any of the others
Letter Exchange
This club publishes a print version of their magazine which you can obtain by paying by paypal. Single copies are also available.
Penpal World
A good selection of members to choose from and easy club to join.
Sassociations
Sassociations has an email and snail mail part to it.
Christian Cafe
This is not a penpal club but rather a dating site, if you are looking for someone. Check out the link below;
https://shareasale.com/r.cfm?b=30609&u=2162440&m=6244&urllink=&afftrack=”>