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How to spend your money

This article was obtained from a PLR website. I have decided to share it with you. As usual the advice may not be applicable to your personal circumstances.

Improving how to spend your money

It is important to be aware of where your money goes in order to correct any bad habits

Money may not be with you all throughout the year. There are downs and ups when we talk about the financial resources and income of an individual or family. In dealing with financial difficulties, there is a need to have budgeting techniques as early as possible. There is a need for us on how to master the art of stretching the capacity of our available money. 

It is but normal to commit errors especially when you are not yet used to doing things your job calls for you to. But, do not make those mistakes that you would surely regret in the long run. As soon as you could, you have to develop a great way of managing to budget your money. There are some tips you could remind yourself of. These would be points you could use in making or establishing good means to improve the way you budget your money.

  • Make a list of your unwanted budgeting habits. This includes all those you think of being not useful or helpful for you and your financial needs and financial security.
  • You plan on what to do in order to take the first steps in changing your old habits or acts in which they made your budget method a failure.
  • Manage your income and the amount of money you spend by preparing a sort of tally sheet of such information.
  • Prepare your spend plan. This must include your foreseen expenditures.
  • Collect receipts and note bigger amount spent 
  • Limit spending by looking for some alternatives to it
  • As much as possible do not use many credit card or checks.

Those above-mentioned points are really a great reminder for you. If followed, you would clearly see the improvement in your budget techniques. It would surely result to better financial management capacities for you. 

When this is achieved, you would definitely live a more satisfactory life. The right way of how you budget what you need as a winning one in the field of financing one’s self.

It is important that you set personal goals that are your own and not be influenced by how others are living. People who have no goals or ambitions just fritter their money away and are left at the mercy of life’s misfortunes for stuff happens such as a car breakdown, dental emergency, house repairs, or some appliance such as the toaster, electric jug, dryer, or washing machine breaking down. An individual who manages their money well will be able to pay for these emergencies without using credit of some kind.

www.robertastewart.com

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MISTAKES MADE BY INVESTORS

Mistakes made by ordinary investors

MISTAKES MADE BY INVESTORS

Written by R. A. Stewart

We all make mistakes; none more so than when we are making investments but it is important to learn from your mistakes in order not to repeat them. It is also important for investors to note that a financial mistake should not be a deterrent to making further investments. Just keep saving and investing and that will make life easier later on.

Mistakes made by ordinary investors

If you have money invested in your country’s retirement plan then you are an investor whether you know anything about the markets or not. Chances are you have your money investyed in some kind of mutual fund which is managed by a fund manager who invests on your behalf. It is up to you to decide on which fund to invest in and for how long.

1-Too Conservative

You have got to learn how to be an investor and take calculated risks; there are no two ways about it. You can manage these risks to take into consideration you age, goals, and your timeline. If you have your money in conservative funds and you are in your twenties then your retirement fund will fall far short of where it is likely to be when you retire. Investing in growth funds is all about achieving capital gains.

2-Too inconsistent

Lack of consistency as far as contributing to your retirement fund will cost you in the long run. It is easy to be consistent in your contributions when the share market is going strong but it is when the markets are bearish that you need to motivate yourself to keep investing because during the low points is when there are bargains in the share market. If you are working in some type of job then a percentage of your gross wages will be deducted and deposited into your kiwisaver account.

3-Too Emotional

Fear and greed is what drives the share market is an old cliche which rings true. Many investors react to the market’s swings and roundabouts and sell when they should hang on to their stocks. Investing in the share market is a long term game; it is not a sprint, it is a marathon. If you have some kind of retirement fund then your fund manager invests on your behalf, however if you are in New Zealand you are able to switch funds which some investors do in reaction to what the market is doing. If you have some kind of financial goals then this should take into consideration a possible share market crash.

4-Too Greedy

Many investors are simply too greedy; they invest in something offering high returns without paying any attention to the risk they are taking on, or worse still, they place all of their eggs in one basket hoping to make a killing. This all or nothing approach has destroyed several retirement plans. This was certainly the case when several investors saw their life savings disappear with the collapse of several finance companies. Diversification minimizes your risk.

5-Too Impatient

Patience is the name of the game in investing. It is time and not timing which will build your retirement riches. There will be ups and downs in the markets but a bit of patience will pay off in the long run. Something some people do not have so the invest in risky stuff offering quick returns and end up ,losing more often than not.

6-Too Gullible

There are offers or as the are called “opportunities,”promoted online mostly and sometimes in the print media as a way of making quick profits. If an investment seems too good to be true then it mostly certainly is. Usually the person or company promoted such offers are the ones making money out of it. You may have read stories about the amount of money such people have made from whatever it is being promoted but tey are in the minority.

It is up to investors to take responsibility for their own decisions and not try to find a scapegoat if things turn to custard.

ABOUT THIS ARTICLE

This article is based on the writer’s own experience and opinion and may not be applicable to your personal circumstances. Please do your own due diligence when investing. You may share this article or use it as content for your ebook or website.

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Your goals and investment strategy

Here is an article I posted on the site three or four years ago. If you are not from New Zealand then Sharesies and kiwisaver may be foreign to you. Sharesies is a share trading platform similar to Robin Hood in the US. Your own country may have its own version of Robin Hood and Sharesies.

Kiwisaver is the New Zealand retirement scheme with its own unique incentives to encourage people to contribute. Your own country will have its own scheme with its incentives.

Your goals and investment strategy

The type of investment you place your savings in all depends on your goals and the time frame for achieving your goals. Investing in low interest accounts is not the best strategy for long term goals while investing in growth funds in the share market is not necessarily the best option for achieving your short term goals. Your investment platform has to be tailored to suit your goals. This table will give you a better idea of what I am going on about.

SHORT TERM GOALS

A short term goal is any goal which can be achieved within a year. This may be for a holiday to the West Coast (if you are from another district) or saving up for a car (if it is cheap enough).

MEDIUM TERM GOALS

A medium term goal takes between a year to 5 years to achieve and can be saving for a house deposit or an overseas trip.

LONG TERM GOALS

A long term goal may be saving for your retirement or paying off your home mortgage.

Lets look at some investment options.

SHORT TERM GOALS.

If you already have the money saved up but won’t be needing the money for 3-6 months then investing in fixed term accounts with one of the high street banks is a good option but if you are actually saving up the money then opening up a special account for this is one but not ther only option. I understand that one is able to drip feed money into bonus bonds and it is easily accessible. Investing in Sharesies may be another option worth taking a look at

MEDIUM TERM GOALS

Investing in Sharesies is a good option I believe because your savings has potential for growth while you are saving but another option is to use an everyday savings account to save and once you have saved a certain amount invest in a 90-day investment with a high street bank. 

It should be pointed out that if you are saving for your first house deposit then joining kiwisaver is a must because you are able to withdraw part of your kiwisaver for a first home deposit provided you have been in the kiwisaver scheme for at least three years.

LONG TERM GOALS

Investing in kiwisaver is your best option here irrespective of the date of your birthday because even if the  retirement age of 65 is just around the corner, you can scale back the type of funds you are in from growth/balanced to more conservative however people may have 20 years or more left after they retire so this may not necessarily suit some people. Once one reaches 65, those in kiwisaver are able to withdraw their retirement savings in one hit or whenever they need it. 

There are so many investment options available to you and you do not have to be rich to get involved but you do need to invest to get rich, one investment I am in favour of is Sharesies;

If you have read my previous posts about explaining Sharesies, you can sign up on the link below;

https://sharesies.nz/r/377DFM

ABOUT THIS ARTICLE

This article is of the opinion and experience of the writer and may not be applicable to your personal circumstances. Seek independent finance advice if you require it. Feel free to use this article as content for your ebook or website/blog.

 

www.robertastewart.com

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Investing facts of life you must accept

Investing facts of life you must accept

In every aspect of life there are some cold hard facts that you need to get your head around. Investing your savings is no different. Here are seven facts of life when it comes to investing. Understand these and you will be better equipped to make better choices.

  1. Whenever there is a chance for a capital gain there is also a chance for capital loss

Whether you like it or not, if an opportunity for a capital gain arises then there is also the chance for a capital loss. It is easy to invest when all is going well and the money you have invested has grown but most of your capital gain will come when you are investing while others are selling. It requires patience and self control to stay with your financial plan when the markets are heading south. Your financial plan has to take into account the possibility of a bear market therefore, invest according to your timeline.

  1. It is time not timing which is the key to growing your wealth

The key to prosperity is to start saving early. Once you get into the habit of saving and investing from an early age then things will become easier for you years down the track. Saving a portion of your income means living within your means but that does not mean that you have to be very stingy. It means not frittering away your spare cash on items which are not going to help you financially in the long term. If you are on the verge of retirement or already retired then you have less time to recover from financial setbacks therefore cannot be as aggressive with your investing as the young ones but that does not mean that growth funds are out of bound but rather just balance your strategy depending on how soon you are going to use the money.

  1. Your investments are your responsibility

You may be using a financial adviser to deal with your investments but they are still your responsibility because an adviser cannot think for you; it is up to you to set your own goals which match your personal situation. It is then up to you to tell your adviser where you wish to invest your money. Some investors like to have someone to blame and during a market downturn the first person to blame is their fund manager. In the case of retirement schemes such as the New Zealand Kiwi saver, investors have the choice as to whether to invest their money in growth, balanced or conservative funds. If balanced funds are chosen then there is the choice of what percentage of your savings will be invested in growth funds. Balanced funds are a mixture of growth and conservative funds.

  1. Value is determined by what others are prepared to pay for

Have you ever stopped to ask yourself the question, “What will this be worth in x years time?” The answer is quite simple!

What gives something value is what others are prepared to pay for that item whether it is a painting, someone’s stamp collection, shares in a particular company, cryptocurrency, property, gold, or whatever. 

None of us can know for certain what the market will do, therefore we take calculated risks based on our knowledge and expectation. 

As with anything in life there is no guarantee but if you do your homework and put a bit of thought into your strategy then you can have a nice nest egg to call upon when you need the money.

  1. Life is one big pyramid

One fact of life you need to accept is that life is like a pyramid. Using sport as an example; few ever make it to the elite level, comparatively few that is compared to the numbers taking part. It is the elites who make the most money, then as you go down to each level there are more and more participants. At the grass roots level you will find the highest number of participants, these are the sports men, women, and children who take part in sport for no other reason other than the enjoyment they derive from their chosen sport. 

If you have the ability to make money from your sport then it certainly will pay to have a backup plan by adding another string to your bow.

As for investing, well, there can only be one Warren Buffet, Robert Kiyosaki, or Anthony Robbins. It is important that you be the best at being you and not try to be a second rate version of someone else. Your personal financial choices must be what is applicable to your own circumstances.

 

  1. Life is all about percentages

Most people have played the lottery and most of us whether we have played it or not have heard about the absurd amounts of money which some lucky lottery winners have won; sometimes running in the millions. There is something which you must understand and it is this; For every person who won the lottery there are countless thousands who have lost their money trying the same thing. This is also true of many aspects of investing. You may have heard about someone who made a killing on the share market, on bitcoin, or some other investment but you seldom hear of those who lost everything while trying the same thing. My advice to those who are thinking about taking on high risk investments is to only do so with discretionary spending money and not with your retirement savings or money set aside for a house deposit or a car.

  1. Life is a numbers game

In life you cannot expect to win every single time. That is unrealistic. But making mistakes is just part of the learning process. The fact is that the more mistakes one makes the more likely one is going to win. Some people avoided risk after the 1987 sharemarket crash having got their fingers burned during Black Monday. 

If you do not take risks then nothing may happen to you but then you will also miss out on some of life’s experiences. When it comes to investing you need to take some kinds, albeit calculated ones in order to get ahead of inflation and the cost of living, otherwise the value of your money.

www.robertastewart.com

ABOUT THIS ARTICLE

This article is of the opinion of the writer and is not necessarily applicable to your personal circumstances. Feel free to share this article. Users may also use the article as content for your blog/website/ebook.

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Investing for seniors

Investing for seniors

Written by R. A. Stewart

 

Your age is a crucial factor in establishing your savings and investing strategy. Your 20s, 30s, 40s, and 50s are your savings years. It is these years when you build up your assets. 

Your 60s and 70s can be considered your spending years. It is when you tick off items on your bucket list while you are able to.

That does not mean that you do not have to work, a lot of older people are taking this option, not because they cannot make ends meet on their pension, but because they enjoy what they are doing.

In New Zealand, retirees will have access to their kiwisaver account once they reach the age of 65. Money invested in kiwisaver will be in growth, balanced, or conservative funds. Most people during their working life opt for growth or balanced funds.

It is time to decide whether to stay with the status quo or invest in more conservative funds. 

Your age and your health are the two most important factors in deciding which fund to invest your money in. 

Older people do not have time on their side to overcome financial setbacks such share market falls and so forth, therefore if you are 60+ it is a good idea to lean toward more conservative investments but still retain some exposure to risk.

It is worth mentioning at this point that New Zealand financial advisor and writer Frances Cook has a formula for calculating how much exposure you should have based on your age, and it is this…

Subtract your age from 100.

If for example you are aged 60 then only 40% of your portfolio should be invested in the share market.

I do not necessarily agree with this formula and my exposure to the share market is more than her formula suggests I have.

However, that is a personal choice; one that I do not necessarily recommend to you because your circumstances will be different as they are for different people.

If you are connected to the internet and you have a lot of spare cash in your account then I suggest that you place most of your money into an account that is not connected to internet banking. This is to reduce your chances of becoming a victim of internet scammers. 

With internet banking being the norm, this could be difficult in the future though.

In any case I still believe that it will pay to arrange your finances so that if you fall victim to a scammer then not all of your money will be lost. 

Don’t leave all of your money in the one account for goodness sake as some victims of scammers have.

If you are traveling then make sure you don’t have access to your life savings because if you do then so will be a scammer if they manage to get hold of your login details.

Scammers have all kinds of ways to trick people into handing over their login details.

Anyone can be a victim so don’t be proud by saying “I am not that stupid.”

As you get older you will have to invest more conservatively; that does not necessarily mean transferring from growth to conservative funds but investing some of your current savings into low risk accounts. The deciding factor is your timeline. How soon you need the money and funds which are going to be used within 12 months are best invested conservatively.

 

www.robertastewart.com

 

ABOUT THIS ARTICLE

This article is of the opinion of the writer and may not be applicable to your personal circumstances. Feel free to share this article. You may also use this article for your website/blog or as content for your ebook.

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Investing-Making a start

Here is an article I found on one of my old USB sticks. Thought I would repost it if you have not seen it yet.

Investing-Making a start

You do not have to be rich to invest but you need to invest to be rich.

The key to developing a financial plan is to make a start irrespective of your financial position. So many people just want to bury their head in the sand and carry on as they have been doing for years, living from one payday to the next. Their only hope of getting ahead financially is to win the lottery. You can only start from the present irrespective of your financial situation. A savings plan starts with just the first dollar which you save. If you have absolutely nothing from your pay day each week and save one dollar this week then you are financially better off this week. Saving money becomes a habit and it is a habit well worth developing because in the long run it will make things easier for you. Think of your money as a seed, you have to sow it before you can grow it. People tend to come up with all kinds of excuses for not saving for their future. There is always something which has more priority, a new television, a holiday, debts etc.

In short such people are professional procrastinators when it comes to saving money, it is always something they intend to do in the future but never get around to it. Saving money or spending money becomes a habit and they are habits which will result in consequences decades from today. It is all very well saying “You can’t take it all with you” (when you die) but leaving your family in financial trouble when you die is irresponsible and selfish. You will reap what you sow therefore in order to reap a financial harvest when you retire, you need to sow into your retirement fund. 

Developing the savings habit when you have been a spender all your life is going to mean developing new habits such as doing without rather than borrowing for items you do not need and buying from thrift shops. It will take will power on your part, many people just do not have will power and will spend whatever is in their bank account and when the power, phone, or rates bill arrives in the mail, they don’t have the money to cover it. 

Setting up a retirement fund is a great idea for building up a future nest egg for your retirement years. The money is left to accumulate where you have no access to it which removes the temptation to spend it.

Money gives you options

Even if you had just one thousand dollars saved up you have more options than the person who has no savings at all, the person who has ten thousand dollars saved up has more options than the person who has just a thousand dollars saved. Options in terms of where to invest the money, where to holiday, and whether they can afford to move to another town for a job.

Advantages of joining kiwisaver

If you are wondering what advantages there are in joining kiwisaver then here are the main ones.

1–There are the $520 per annum tax credits. In order to gain the full amount of tax credits you must contribute at least $1,040 per annum to your kiwisaver account.

2-The employer contributions, this is at least 3% of your gross wages.

Other advantages are;

3-Having your funds locked away until your retirement removes the temptation to spend your savings.

4-Income received from your kiwisaver account will not be assessed as income by WINZ if you lose your job and are going on a benefit.

5-Having your money locked away prevents family members or so called friends from taking advantage of you.

Employees have the choice of whether to contribute 2%, 4%, or 8% of their gross wages into kiwisaver.

What happens to your kiwisaver fund if you die before you reach 65?

Your money is allocated to your estate in accordance with your last will but the government’s contributions will return to the crown. It is important for you to make out a will otherwise any money belonging to your estate could be reduced by legal fees and leave your heirs financially worse off especially if there is not enough money in the kitty to pay for your funeral. It is all about being responsible about your finances. 

The question should be “How will I fund my later years if I am unable to work?”

Kiwisaver could be your answer. Making provisions for you in later years is the responsible thing to do and kiwisaver is an excellent tool for achieving your financial goals.

www.robertastewart.com

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Financial language

Financial language

Written by R. A. Stewart

It is important to familiarize yourself with financial jargon and their meanings. Do your research on the internet for further information on what these terms mean. This increases your financial literacy.

ASSET RICH-CASH POOR

This refers to people whose wealth are tied up with their property but have little cash in the bank.

BAD DEBT

Usually described as consumer debt or dumb debt, bad debt is when one purchases consumer goods on credit. It is bad debt because the item which has been purchased loses it’s value over time.

CAPITAL GAINS.

This is the increase in value of your asset. It is important to keep in mind that if there is a chancre for a capital gain there is also a chance for a capital loss.

CASH ASSET

A cash asset is money in the bank, stocks and shares, and any investment invested with a financial institution.

EQUITY

When someone refers to the equity in their property, they mean how much equity is left after deducting the money owing on the property from it’s value.

DEPRECIATION

Depreciation is the reduced value of any item purchased. A vehicle is a perfect example of something which reduces it’s value over time.

FINANCIAL PLAN

A plan for your money. To address money issues.

GOOD DEBT

Borrowing money for something which increases in value is considered to be “good debt,” however, it is needs to be stressed that if something can increase in value then it is just as likely to decrease in value; shares and cryptocurrency are typical examples.

INFLATION

The is based on the average increase of prices of consumer goods. If your investments are earning less than the inflation rate then you are losing money. 

LIABILITY

This is anything which you have bought on credit and pay interest on. It is said to be a liability. A vehicle is a typical example of a liability. A house could be a liability if it is costing you money but it could be said to be an asset especially if it’s value is increasing per annum.

NON-CASH ASSET

A property is an example of a non-cash asset. 

RISK PROFILE

This is your temperament to risk and is one factor in determining where to invest your money.

www.robertastewart.com

 

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share market crashes

I posted this article on the site a year ago. Thought I would repost it.

INTRODUCTION

It is not a secret that the stock market can be volatile; history has shown us this. There are many factors which are the cause of a falling market; they could be a change of President in the US, correction in the market, or nervousness by investors resulting in them selling off their stocks. Whether a 1929 or 87 style crash occurs this decade or not, one thing is clear; it is still important to save and invest for the future because one thing is certain; you will cease working one day and need something to fall back on.

History of share market crashes

When one thinks of share market crashes two years spring to mind, 1929 and 1987, hopefully, such crashes on the scale which wiped out life savings are not going to occur in the foreseeable future. It is not guaranteed that it will not happen, but then nothing in this world is guaranteed apart from death and taxes.

There have been other financial meltdowns outside of the two main ones. Asian Financial Crisis of the 90s and the GFC of 2008 wiped billions of dollars off share values. 

The next major financial meltdown in the markets could be caused by the very people who will be most affected by it, Baby Boomers.

Why?

Because as more and more of them retire, they will withdraw their savings out of the stock market causing a major selloff.

This has been predicted in the past but there has not yet been any sign of this happening with the markets at record levels, however, who is bold enough to predict which direction the stock exchange will head in the future?

One thing you can guarantee is that there will be another market crash in the future; investors just need to be prepared for it.

Here are the most notable share market crashes within the last 100 years.

1929-The Wall Street Crash

The Wall Street crash lasted for over four years. Investors borrowed money to buy shares and when shares were sold off to repay the money to their creditors investors were left out of pocket. The 1929 crash led to the 1930s Great depression.

1962-The Kennedy Slide

The stock market had enjoyed a steady rise since the 1929 crash with the ten years prior to 1962 being good ones for the stock exchange. This all changed in January when share prices plummeted. President Kennedy attributed the decline as a correction for the rises of the past ten years.

1973-74-Stock market crash

The Dow Jones fell by 45% during the stock market crash which lasted two years between January 1973 and December 1974. The UK markets feared even worse losing 73% of it’s value during this time. The collapse of the Bretton Woods System was to blame. This is a system devised many decades earlier on an agreed fixed currency rate. 44 countries met in Bretton Wood to discuss the currency issue in 1944 hence the name Bretton Woods System.

1987-Black Monday

19th October 1987 will always be known as “Black Monday,” after the biggest one day fall in the stock market in history took place. Leading up to the crash many traders borrowed money to purchase shares and as share prices rose they borrowed more money using the value of their shares as security, however, when the stock market dropped by 20% in one day many investors owed more money than the value of their shares and found themselves in financial turmoil.

1997-Asian Financial Crisis

Many stock markets in Asia fell dramatically between July and October due to an overheated market. Many who bought shares on credit or with borrowed money were hit hard by the crash.

2007-2008-Global Financial Crisis

The failure of several financial institutions in the United States.

2020-The Covid Market Crash

Stock markets dropped 34% in one day on March 23 2020 as Covid-19 was starting to take hold. This started a worldwide recession caused by the Covid-19 pandemic.

Who knows when the next share market crash will occur; one thing is for certain, it will be out of the control of investors. It is up to each of us to plan our finances in such a way as to minimise the effect of a financial meltdown in the markets. This can be done by diversification; that is by having your money invested in a range of industries. This way you are not placing too many eggs in the one basket.

ABOUT THIS ARTICLE

This article does not represent financial advice, but rather is the opinion of the writer. It is strongly advised that you seek independent advice from a qualified person. Feel free to share this article. You may use this article as content for your ebook or website. Visit my site www.robertastewart.com for other articles.

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Share Market tips

Here is an article I put on the site in 2020 and I thought I would repost it but have made some changes to it.

This article is solely based on the writer’s own opinion and knowledge and is not to be taken as financial advice. If you need the advice of a professional see your bank manager or financial advisor.

Share Market tips

Written by R. A. Stewart

It is crucial for investors to invest in companies which are going to withstand the covid-19 recession which could last for two or three years. It makes me wonder how many companies are still going to be around after this pandemic is over.

So which companies are worth investing in and which ones to avoid?

My picks are:

Genesis Energy

Power companies have to be a good investment since everyone uses power.

Trustpower

Same as for Genesis

Meridian Energy

Same as for Genesis & Trustpower

Spark

Have hosting rights to several sporting events and most people use cellphones. Has to be a good investment.

Fonterra

The milk payout is expected to be low next season so this is a share to snap up when they bottom out.

PGG Wrightson

Farmers are propping up the economy so expect Wrightson Shares to be steady

Westpac Banking

Long term investment. The banking selector thrives off the back of a thriving economy so they are a long term investment.

Warehouse Group

Best of the retail outlets but likely to be affected by the buying online trend.

Fletcher Building

This is one company I am looking at to add to my sharesies portfolio. It is affected by a shortage in building materials but still a good investment.

The companies I am a bit hesitant to invest in are those connected to travel and tourism, insurance, and manufacturing. The travel industry is rebounding but it is still a volatile industry to invest in. Insurance companies are prone to taking a hit from climate change events while manufacturing often suffers from cheap imports.

Most people have retirement savings scheme of some kind and in New Zealand that is called kiwisaver which are managed funds or mutual funds as they are called in America. The fund manager is making the investments on behalf of the fund owner but there is one kind of investment where you are able to make your own decisions and that is www.sharesies.nz This is a New Zealand share trading platform where you are able to join for as little as $1 as their TV ads state. The beauty of sharesies is that you can invest in managed funds or individual companies. It is a great way for the young and not so young to add another string to your financial portfolio and gain some knowledge of the markets at the same time. In the US there is www.robinhood.com There are other share investment platforms which are  cropping up. In NZ there is also Hatch, Kernel, Invest now, and Tiger Trade. They are a great way to get involved in the sharemarket for little outlay and gain experience. 

MY STRATEGY

My strategy with sharesies is to choose a particular share to invest in that throughout the year. I purchase some shares every two weeks in that particular company. That way I will have bought some shares when the price of it is low. This year the company I chose was Fonterra; in 2021 it was Spark, and 2020 Genesis Energy. I am looking at Fletcher Building for next year. All of these are New Zealand companies.

www.robertastewart.com

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Retiree scammed out of $100,000

Banking fraud is a major problem in the age of technology and there are some very sad stories of people being scammed out of their life savings. This is one of these stories and this could happen to your elderly relative. At the bottom of this article I have included some steps to take in order to protect yourself against banking scams.

Retiree scammed out of $100,000

A New Zealand bank refused to reimburse a New Zealand retiree after cyber criminals gained access to his account and transferred $100,000 from his accounts to an overseas account.

The 71 year old victim believes the scammers hacked into his banking app.

He claims the bank should take responsibility for his loss.

Three unauthorized transactions were made from the pensioner’s account; the first of 49k and two others of $11k and 38k and while the bank was able to stop the $11k and $38k transactions it was unable to prevent the $49k withdrawal which occurred the day before the other two.

Some of the money was set aside as an inheritance for his grandnieces. It is likely they will now miss out on their inheritance.

The bank’s customer who has been with this particular bank for years described the bank’s position on this situation as harsh.

Police had investigated this matter but believed it was between the bank and their customer to deal with. 

The bank had communications with the beneficiary bank in regards to the stolen money and say if they are unsuccessful in recovering the funds then they will not reimburse their customer for the loss.

There was no evidence to suggest that the bank’s own security system was breached and this was made known to the customer. It tends to suggest that somehow the customer’s to blame for this scam. However, he maintains that he did not share his internet banking login or password with anyone or divulged his personal banking details in response to an unsolicited email.

Unfortunately what happened to this pensioner is not an isolated incident. 

Another pensioner was scammed out of $134,000 and his bank refused to reimburse him after they claimed that he did not take adequate precautions.

Precautions against banking fraud

Here are some basic precautions to take to protect yourself against banking fraud:

1 Do not put all of your eggs in the one basket

The pensioner in this story should not have just left all of his money in the one bank account. He should have opened an account with a separate bank and NOT linked it to internet banking and invested his grand neice’s inheritance in this account. 

2 Do not click on links

Do not click on any links on any email you receive even if you believe it is from your bank because it may be from an internet scammer instead. It is safer to type in the URL address instead and just type in the URL address and log in.

3 Do not link your debit card to your personal savings account. Someone I know had $3,000 NZ go missing from his account when the website that had his banking details was hacked. Fortunately the bank reimbursed him the amount.

4 The other precautions are basic common sense ones such as not sharing passwords and changing passwords occasionally.

5 When signing up to a dating or other sites it will pay to use an email address which is different from the one which you do your banking. 

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