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Build your Wealth with Diversification

The Art of Diversification

Written by R. A. Stewart

“Invest your money in many places because you never know what kind of bad luck you are going to have in this world.”-Ecclesiastes 11:1-2

Diversification means that you invest your money in several companies in order to manage your risk. We all know that from time to time a company will collapse, leaving those who invested in them out of pocket. We sometimes hear of cases where one or two investors had their entire life savings invested in such companies and got severely hurt by their loss.

The big mistake these people made was that they placed all of their eggs in one basket. They have only themselves to blame and no one else.

It is important to ask the question of “How will the loss of this money affect my lifestyle? And invest accordingly.

If you are investing for the long term, ten years+ for example then the share market drops should not worry you. These dips are only temporary and you should not view it as a loss but rather treat share market volatility as a fact of life and just get used to it.

Life has its own concerns without being overly concerned with how your portfolio is doing. If you have invested according to your risk profile then there is nothing to be concerned about.

No investment is entirely risk free but in order to increase your wealth then it is necessary to take risks but that does not mean gambling with your money which is speculating on a certain outcome. Investing means taking calculated and sensible risks. 

What is a sensible risk?

Investing in cryptocurrency for your retirement fund is not a sensible risk, it is a reckless one. However, investing in cryptocurrency as a side interest and with only discretionary spending money is fine as long as you understand the risks involved and the loss of your capital in this way is not going to affect your lifestyle.

The same can be said to investing in individual shares as an interest. I have a sharesies account where I drip feed money into individual shares in the share market. I choose one company to invest in per year and drip feed money into this company throughout the year. The share price will go up and down throughout the year and I will get shares at the lower price when they are down.

Investing your retirement fund in this way is considered to be “Placing all of your eggs in the one basket,” and is not recommended, but investing speculatively with your discretionary spending money can provide an added interest and an extra string to your financial bow.

About this article

The contents of this article are of the opinion of the writer and may not be applicable to your personal circumstances, therefore discretion is advised. You may use this article as content for your blog/website, or ebook. 

Read my other articles on www.robertastewart.com

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Mistakes People make with their Money

Mistakes with Money 

Written by R. A. Stewart

Poverty does not just happen, it is the result of poor choices. That is barring unforeseen life events which can happen. I understand that others are forced into poverty for one reason or another. This article is aimed at those who have the means to make the most of the money they earn but choose to squander it. Here are their main mistakes.

1 They make poor life choices

The difference between the rich and the poor is because their choices in life are different. There is a stark difference between what a rich person and a poor person does with their discretionary spending money. All of those satellite dishes on council estates tell a tale. A rich person will find ways to invest their discretionary dollar so that it multiplies while a poor person will spend all that they have and more when you consider the consumer debt that they take on. It is also a fact that the poor tend to have more children and having kids does not come cheap, so this further compounds their vulnerable financial position.

2 They do not save 

People in a poor financial state do not save money. They fritter away their money with no thought for the future. Their financial situation is made worse because of their poor lifestyle choices. They borrow for stuff which is not essential to everyday living and spend money on things of no lasting value and this leaves them with nothing to show for their labors.

3 They do not invest

Wealth does not increase when money is not invested. Instead it loses its value due to the effects of inflation. Investing gives you a financial education and this leads to better decision making when it comes to money matters. This in turn leads to better financial outcomes for the future.

4 They do not take risks with their money

Investing involves taking some risks with your money but this does not mean speculating which is really just  gambling on some favourable outcome going in your favour. It is having a strategy of investing which enables you to make the most of what you have

5 They do not get financially literate

Lack of financial literacy is the number one reason why so many people are broke. Lack of ambition to rise above mediocrity is the main reason and there is little hope for the individual who lacks the will to improve their financial situation. I know that you are not one of those people otherwise you would not be reading this.

6 They hang out with the wrong people

People who are financially illiterate tend to spend too much time with like-minded people; those who have the same money mindset. “You are the average of the five people you spend most of your time with”. If you intend to be financially successful then spend more time with financially successful people. Read their books and pick their brains. Ask yourself, “What have I got to lose?”

7 They have a poor attitude

An attitude is something which every one has control over. No one can force you to adopt a certain way of thinking, you choose it and your circumstances have nothing to do with it. Having a good attitude will take you further than a bad one so you had better take responsibility for your own thinking and adopt a good attitude to financial affairs. I have heard all kinds of excuses why people have not joined a retirement scheme or have saved money. The real reason why they come up with excuses is that these people are unwilling to give up whatever it is which they are frittering their money away on. 

If your financial affairs are in a poor state then it is likely that you will have to make some changes. A budget advisor may be needed, but not necessary for if you just paid a visit to your local library then you will find some good books on personal finance which will help you.

About this article

The contents of this article are of the opinion of the writer and may not be applicable to your personal circumstances, therefore discretion is advised. You may use this article as content for your blog/website or ebook.

Read my other articles on www.robertastewart.com

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The Prodigal Son and its Money lessons

The Prodigal Son and its Money lessons

Written by R. A. Stewart

The parable of the prodigal son may have been first told over two thousand years ago but its lessons are timeless and are worth noting. In this parable a young man asks his father for his inheritance while his father was still alive. The Father then divides his estate between his two sons, and then the younger son,the one who asked for his inheritance gathers all of his things and goes to a faraway land where he fritters away his inheritance on loose living.

During this time the younger son had more money than he ever had in his life but was not responsible or mature enough to handle all of that money. In fact he was just a baby with too much money.

As so happens when young people get a lot of money, he became arrogant and displayed his wealth with his generosity. 

He had lots of friends when he had all of this money but they were not true friends as we will discover later on in this story.

We sometimes hear stories of people who won the lottery, then were broke a few years down the track. It is important for people to learn how to handle their money from a young age. This is called, “Financial literacy.”

Learning to be an investor is part of being financially literate. Some people are good at saving but they save to spend, not to invest.

Back to the prodigal son.

When one is living beyond their means the result is debt and with interest repayments on top of that financial disaster looms. The prodigal son, the younger of his father’s two sons, spent all that he was given and had nothing coming in so that it was only a matter of time before he was left with nothing.

The parable puts it this way, “There was a famine in the land”

This means that he was living in poverty. The money was all gone so what did he do?

He got himself a job working among the pigs. He wished he could eat what the pigs ate but no one gave him anything.

Strange; he had lots of friends when he had lots of money but as soon as he needed help, no one would help him. 

You will only find out who your real friends are once you hit rock bottom.

Next thing, something happened inside the mind of this lad because he came to his senses. In other words, The Penny Dropped.

He figured out in his own mind that if he returned home then he would be better off than his current circumstances. 

The main lesson from this story is that despite all of the stuff offered by the world system, it only leads to emptiness. There are things which he will never get back and that is time that he never spent with his family. His behaviour was a stain on his reputation. There are some things which money cannot buy; a good reputation and time with his family. It is all very well, going out and exploring new opportunities and working hard to make a life, but these things need to be kept in its proper perspective.

www.robertastewart.com

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Don’t just hoard your money-put it to work

Written by R. A. Stewart

Saving money is a good habit to get into; it will put you in a better position to thwart some of the unforeseen setbacks which life has in store for us. It will also mean that you are able to pay for those major items in life which will crop up such as, a car, wedding, kids,or  retirement. This all requires vision. Planning for those things which are unseen but will likely occur in the future.

A person with no vision will spend their money without any thought for the future; they live for today as though tomorrow does not exist.

Saving money is one thing but investing is another thing altogether. Investing your money can multiply your wealth and help you to achieve your goals faster.

Investing needs to be strategic. Most importantly you need to know whether what you are saving for is short-term, medium-term, or long-term.

Your rainy day fund is considered short-term because you could need the money anytime, whether that be for car repairs, insurance, dental or medical bills.

Saving for a car can be considered short or medium term depending on how long you have given yourself before you are buying a car. 

Your retirement fund and saving for a house deposit are considered to be long-term savings goals.

Here is a breakdown of Short-term, medium-term, and long-term goals.

Short term is under one year

Medium-term is one-five years

Long-term is more than five years.

This determines your risk profile but you can fall into more than one category depending on what your savings goals are.

Your rainy day account is money which should be invested conservatively such in an ordinary savings account or a conservative fund in say sharesies or robinhood.

You’re saving for an overseas trip or car within five years in the medium term so you could consider having that money in a conservative or balanced fund.

Your retirement fund is considered long-term so that money could be in a growth fund if you can stomach the volatility of the markets.

As an investor you can fall into all three categories.

There is another category which I will include here and that is discretionary money, but if you are planning to save for something special then you can simply redirect your discretionary spending money into whatever you are saving for.

What you spend your money on is what takes priority in your life. It should not be at the expense of your future plans. If you are spending all of your discretionary money on your hobbies but have nothing to show for all of the money you have received from whatever source your income comes from then there is a problem. 

It all boils down to choice and how you manage your money. It is not how much money you make which determines your financial outcome but what you do with what you make.

With the right financial strategy in place you can weather some financial storms which may come along. As for investing, if you choose the correct investments for your risk profile then what the markets are doing will not be an issue. Don’t let the possibility of loss scare you off investing. You need to be an investor if you want to grow your wealth.

About this article

The opinions expressed in this article are of the writer and may not be applicable to your personal circumstances, therefore, discretion is advised. You may use this article as content for your blog/website, or ebook.

Read my other articles on www.robertastewart.com.

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Don’t follow the crowd

 

Written by R. A. Stewart

Prior to the 1987 sharemarket crash, which was named “Black Monday,” investors were rushing to buy shares and as the price rose and the value of their portfolio increased, people borrowed money to purchase shares using the value of their holdings as capital. When Black Monday arrived, the value of their portfolio dived, the result being that investors who borrowed money found themselves in the position of owing more money than their shares are worth.

The problem with using borrowed money is that the crunch comes when you have to pay it all back plus interest.

Jumping on a bandwagon can be very costly. In the case of the 1987 sharemarket crash, the price of shares did not reflect their true value but rather the amount of money which went into the market.

It reminds me of the old saying, “Something is only worth what others are prepared to pay for it.”

We have seen similar examples of companies on the share market which have seen their price rise then come crashing down quickly. Many who jumped on the bandwagon got their fingers burnt.

If you are going to try your luck at making a killing, then this needs to be done with your discretionary spending money and not with your retirement funds or your deposit for a house fund.

The reason being that investing for a killing is a short term speculative investment.

Once in a while you will hear stories of someone who made a killing by investing in such and such but you never hear about those who tried the same thing and lost. It is likely that such people ended up losing their profits.

Here is another saying worth keeping in mind, “Whenever there is an opportunity for a capital gain there is an opportunity for a capital loss,” that is the nature of the markets.

But with the right investing strategy you can achieve your goals whatever the markets are doing. If you have invested according to your risk profile then the state of Wall Street should not be a concern to you.

A windfall is only as good as how it is being used. It is not much good if it is being frittered away. Use it to your best advantage according to YOUR OWN GOALS and not what others think you should do with your life.

Following the crowd can destroy one’s chances of financial prosperity; Just take a look at how much money smokers are paying for their addiction. And where did it all start?

As a teenager when someone was offered a cigarette by their peers and because they were people-pleasers they accepted.

It is rather mind-boggling the amount of money smokers are burning through per annum. That money could have been put to better use. Not to mention the health aspect of smoking.

Set goals that align with your values and not ones which others have tried to impose on you. If someone has limitations then they will impose their limitations on you. Take heed of wise advice but use your common sense to discern whether the advice is good or bad. If you are unsure then ask a number of adults for their opinion. Don’t be afraid to ask and never be so puffed up with pride that you never take advice from anyone. “Pride always comes before a fall.”

About this article

The content of this article is the writer’;s own opinion and may not be applicable to your personal circumstances, therefore discretion is advised. You may use this article as content for your blog/website, or ebook.

Read my other articles on www.robertastewart.com

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Investing with a Vision

Investing with a Vision

Written by R. A. Stewart

“He who lacks vision will perish.”-Proverbs 29:18

Financial planning requires vision. What does vision mean? It is the art of preparing for the unseen. People will go through life stages. They buy a car, get married, have kids, and retire. A person with vision will make provisions for these life stages. A person with no vision will spend all of their discretionary spending money without giving any thought to the future.

This is irresponsible and selfish because there are consequences to spending now and burying your head in the sand mentality and that is often poverty. 

If you enter into a relationship with someone then you will take your financial situation into that relationship. If you have a bad credit rating then you and your partner may have difficulty obtaining a mortgage.

Someone who is a good money manager will make provisions for the future which will help them to withstand financial shocks which may not have been predicted such as a job lay off or health issues.

Financial planning does not end with saving money, but rather it is the beginning. Investing that money so that it is working for you can increase your savings and certainly your financial literacy. Your risk profile is the factor which determines where you should invest your money.

Your risk profile is the amount of risk you can take on in relation to the term of the investment. 

If you are in your twenties or thirties then investing in growth funds may be right for you because you have more time to recover from a market meltdown. Someone in their sixties may need their retirement funds within five years or less and the last thing you need is for the markets to take a dive just when you need the money.

If you are putting money aside for a mortgage deposit, car, your child’s education, then you may want to take a more balanced approach with your investing.

It is worth pointing out that you could fit into more than one risk profile category.

If you are young then financial advisors suggest that investing in growth funds is the way to go for your retirement fund because you may have more than forty years before you retire.

However, you may also be putting away money for a mortgage deposit and need that money within 5-10 years so taking a more conservative approach to your house deposit funds may be best. Again, if the markets took a dive just when you needed the money then your house deposit funds will be short of where you intended it to be.

Having the right kind of attitude to your money will pay dividends in the long term. Some people scoff at those who are prudent with their money, calling them selfish and money hunger yet go out and purchase lottery tickets in the hope of winning a quick million. If that is not a contradiction in their philosophy then I don’t know what is. Gold Diggers are notorious for this. A man is their only financial plan; they have no interest in gaining any kind of financial knowledge. There is an abundance of it out there. You just need to pay a visit to your local library to find such books. Even your local charity stores will have some of these books in stock. 

My favourite authors are Frances Cook, Mary Holm, and Martin Hawes. These financial advisors are from New Zealand. Their advice is just as applicable to other countries, well, most of it. It is just a matter of acting on what they say. That is, if it is applicable to your personal circumstances. 

Having some kind of vision for your life will make it meaningful and fulfilling and that requires a degree of vision. Just Go For It and take no notice of your detractors.

About this article

This article is of the opinion of the writer and may not be applicable to your personal circumstances, therefore discretion is advised. You may use this article as content for your ebook, website, or blog.

Read my other articles on www.robertastewart.com

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Who do you take Money advice from?

Who do you take Money advice from?

Written by R. A. Stewart

Everyone has some form of advice on what you should do with your money. From co-workers and family members to bloggers and those who are qualified to provide financial advice. A lot of people will have some form of opinion on what you should do with your money. So much so that it pays to not speak about your financial affairs with anyone; not that it is any of their business.

There are some red flags to note from any of these so-called financial experts. These red flags are just as applicable to the man in the street as they are to a qualified financial advisor.

Red Flag number one: The advisor has no money

I knew someone who turned a couple of hundred dollars into $6,000, then $10,000, then $20,000, and more. In the early stages when he had $6,000, his colleagues suggested to him that he should get a deposit for a new car with that money. I said “That is the stupidest advice you could ever get because not only will you end up with nothing but you will have a debt.” 

He ignored his colleague’s advice.

I told him that he should at least deposit at least $1040 in his Kiwisaver in order to get the $520 government money in July. I don’t know if he followed that advice.

Red Flag number two: They do not know anything your your personal circumstances

If you receive financial advice from someone who does not know a thing about your financial situation then treat that advice with some kind of scepticism. The advice and acting on it must be based on your personal circumstances and your goals for the future. Your age and health are other factors which have to be taken into account. It is your responsibility to make it known to a financial advisor what your future plans are but that does not mean that you should just reveal all to a random cold caller. Use your discretion and common sense when discussing anything with others. 

Red Flag number three: They advise you to invest your life savings in one company

This is a major red flag! Diversification spreads your risk but plunging all of your money in the one company can lead to financial ruin and affect your lifestyle big time. It may be true that there are some people who made a killing by plunging but it is equally true that a lot of people lost everything they invested. The only reason why a paid financial advisor would tell you to invest all of your money in the one company is that they are more interested in their commission rather than your financial well-being.

Red Flag number four: You are advised to invest in cryptocurrency

This is a major red flag. No one should ever advise you to invest in any kind of cryptocurrency. This is a high risk speculation rather than an investment. Only discretionary spending money should be used for purchasing Bitcoin. If you are young and have no commitments then buying Bitcoin will provide you with a bit of excitement, but it is certainly no substitute for your retirement fund.

Red Flag number five: The advice is unsolicited

If you receive a cold call from someone claiming to be a financial advisor then hang up or delete the email. Tell them that you already have an advisor. Whatever you do, don’t engage with them. If you have responded to anything they have said, then say, “Let me talk to my financial advisor first.”

A typical scammer does not want you to talk to anyone else about their so-called opportunity.

Learn to spot the terminology these scammers use in their correspondence and it will help you to avoid becoming their next victim.

About this article

This article is of the opinion of the writer and may not be applicable to your personal circumstances, therefore discretion is advised. You may use this article as content for your blog, website, or ebook. Read my other articles on www.robertastewart.com

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Your Money Your Responsibility 

Your Money Your Responsibility 

Written by R. A. Stewart

Your money is your responsibility. It is your choice what you do with it once it becomes yours, but you have the responsibility of how you manage your money. Being a good steward of money means being responsible for how you use it. This requires maturity.

Here are the main factors which will help you become a good steward of money.

  1. Gaining a financial education

It is your responsibility to become financially literate. In this day and age where there is so much information available on making the most of your money, it is inexcusable to be financially literate. 

All it may take for you to find books on personal finance is to just visit your local library. If you are prepared to spend a bit of money then you may find some good books at your local bookstore.

Frances Cook, Mary Holm, and Martin Hawes are excellent New Zealand authors of Financial books.

  1. Make your own decisions

Some people will get others to make decisions on their behalf, so that whenever something goes wrong they always have someone to blame. “You told me to invest in such and such company and now I have lost my money.” It is your money so that it is your responsibility to make the most of it. 

  1. Accept your own mistakes

Investing is a learning process. In order to become a good investor you need to invest and gain experience doing so. Mistakes will be made. The important thing is to learn from them and move on. 

  1. Living within your means.

It is your responsibility to live within your means. This means that if you choose to get married, have kids, or buy a car, then it is your responsibility to ensure that you are in a suitable financial position to do these things. 

  1. Pay all of your bills

Everyone has fixed costs such as utilities, phones, and whatever. It is the responsibility and the mature thing to pay all of these on time. A bad credit rating can hurt your chances of obtaining a mortgage in the future.

  1. Save a portion of your income

It is your responsibility to save a portion of your income to provide some kind of cushion for a future financial setback. Establishing a rainy day fund is always suggested by financial experts.

  1. Listen to wise advice

The markets went up and down and they were all down after President Trump announced tariffs on overseas imports to the US. The experts in New Zealand were advising investors to remain calm during this time and not to react to the market slide by changing funds. “This is the nature of the markets,” they said. Many did change funds and when the markets recovered the losses, these people missed out on the gains. As a result, their kiwisaver balances took a hit. 

Your financial plan has to take into consideration the market volatility. The question is, “If the market dropped 5% or whatever, how will this affect my lifestyle?”

If you have ten or so years remaining till you retire then the answer is that it won’t in the short or medium term. 

It is your responsibility to heed advice when it is given but at the same time have the common sense to know whether the advice is good or bad.

Once you have gained enough experience at investing you will have the know how to discern whether advice is good or bad and what the motive is behind the person giving the advice.

About this article: The opinions expressed are those of the writer and may not be applicable to your personal circumstances therefore discretion is advised. You may use this article as content for your blog/website or ebook.

Read my other articles at www.robertastewart.com

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9 Things you should never borrow money for

 

Written by R. A. Stewart

There are some things which you should never borrow money for because they are considered to be bad debt. The reason why they are considered to be bad debt is that they do increase your wealth but rather decrease it. The value of the item which has been purchased with borrowed money decreases over time. 

Another thing which you should not borrow money for is risky investments which may or may not make you rich but also have the potential to send you to the poor house if the value of the investment plummets. Purchasing crypto currency is a classic example.

Here is a list of items you should never borrow money for.

  1. Cryptocurrency

Only discretionary spending money should be used for purchasing cryptocurrency because of its volatile nature and that nobody really knows what the future holds for crypto. The problem with borrowing to invest is that the liability (the loan) is sometimes more than the value of the investment. This occurrence is on the cards if you borrow to purchase Bitcoin and then the price of Bitcoin crashes.

It is exactly what happened to a lot of investors after the 1987 sharemarket crash. One man in our town borrowed money for shares using the equity in his home and when the market crashed in 1987 he was left with a debt.

  1. A wedding

A wedding is something you should never borrow money for. If a couple cannot even afford to pay for their own wedding you have to question whether they can afford to get married at all. A debt is a bad start to a married life that couples can do without.

  1. An overseas holiday

This is just dumb debt! Taking a holiday with someone else’s money is just irresponsible. There is nothing to show for the money apart from a debt which will be made to get ahead.

  1. A wedding ring

Another thing which is a no go area for borrowed money. If a person cannot even save for a wedding ring then getting married is not a wise decision. If the recipient of the ring expects something expensive then you have to question her motives. This is something that needs to be discussed between the families involved. 

  1. Gifts

Thousands of people go into debt at Christmas time and most of it is spent on buying gifts for others.  Advertisers encourage people to spend, spend, and spend more money and very often it is borrowed money that is being spent. No one should be pressured into spending money in this way or anything else for that matter. If you are then you can always plead poverty to your family.

  1. A new car

Borrowing for a new car is a complete no no because once you take possession of the car its value has dropped considerably and the vehicle is worth less than the amount owing on it. This is called “Dumb Debt.” If you cannot even save for a vehicle then you have to ask yourself this question, “Can I afford to run a vehicle?” The costs of keeping one on the road will drain you of your finances like nothing else will.

  1. Electronics

This is a complete No No as far as borrowing money for. Electronics such as TV sets, radios, smartphones and the like are stuff that you only buy with your discretionary spending money. Follow this rule, “If you don’t have the money you don’t buy it.”

  1. Hobbies

This is something you only do with your own money, not someone else’s money. Some hobbies can pay for themselves, such as stamp collecting. If you are able to swap with other collectors or even sell some surplus stock it can at least be self funding. Other hobbies can cost you an arm and a leg and be a hindrance to your financial goals.

  1. Vet bills

Keeping pets is not cheap and becoming too attached to them can be costly. Many people have spent a fortune on vet bills for their cat or dog when the sensible thing to do is to have it put down.

“If you don’t have the money you don’t buy it” is a good rule to live by. It is called “Living within your means.”

About this article: You may use this article as content for your blog/website or ebook. Feel free to drop me a message and give me other things which you should never borrow money for. Read my other articles on: www.robertastewart.com

 

The Benefits of Having a Travel Card

A dedicated travel card makes trips smoother and more secure. Unlike regular debit cards, travel cards often offer competitive exchange rates, low foreign transaction fees, and multi-currency support—saving you money on conversions.

If lost or stolen, travel cards can be frozen instantly via an app, protecting your funds without affecting your main bank account. Many also provide emergency cash replacement and 24/7 support.

Preloaded with a set budget, travel cards help control spending and avoid overspending. Some even offer rewards or insurance perks. For worry-free travel, a travel card is a smart financial companion.

Join Wise Here

https://wise.com/invite/dic/roberts10486

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Kiwisaver Benefits for KIwis

Are you throwing money away?

 

Written by R. A. Stewart

 

New Zealand’s kiwisaver scheme is a retirement scheme for New Zealanders. There are many features and benefits of joining kiwisaver.

What is the difference between a feature and a benefit?

A feature of kiwisaver is that the money is locked up until you reach the age of 65.

The benefit is that you will have a nest egg waiting for you when you retire.

Here is the main benefit of kiwisaver. 

The government will deposit $520 into your kiwisaver providing your contribution is at least $1040 during that financial year.

People who are not contributing to kiwisaver or have not even joined are missing out on all of this money.

Why?

It is hard to fathom why anyone would not join kiwisaver. 

There will not be a single person who reaches the age of 65 who regrets that they contributed to kiwisaver all of their lives.

It is a matter of asking the question, “What will my future self thank my present self for”?

The key to kiwisaver is to keep contributing irrespective of what the markets are doing. 

Investors will be rewarded for their consistency.

Some people have prioritized other things such as sky TV, cats and dogs, lotto, smoking, and booze over their future prosperity.

It is all about choice and it is something everyone has. 

Any New Zealander is able to join kiwisaver.

Any one of any age, from the day a baby is born to those already retired. 

It is important to point out that only those aged from 18-65 are eligible for the government money. It is still worthwhile for those age groups which are not eligible for the government top up to join kiwisaver because it will give the young ones a head start in life and who knows, a rich uncle may leave them some money in his will. It doesn’t pay to fall out with your family by making false allegations about your cousin.

The retired folk can treat kiwisaver as an investment; one which you have access to.

There are circumstances when you are able to withdraw money from kiwisaver, they are:

(a) For bond money if applying for a flat to rent, but only under thirty year olds are eligible to apply.

(b) You may use a portion of your kiwisaver as a deposit on your first home. Most people who take this option are in their thirties.

(c) Moving overseas permanently.

(d) Terminal illness

(e) Hardship

There are some hoops to jump through when trying to withdraw your kiwisaver for hardship reasons. 

There are several books on personal finance which I recommend with my favourite New Zealand authors being Frances Cook, Mary Holm, and Martin Hawes. Check them out. Maybe your local library will stock their books.

With so much information on personal finance available there is no excuse for being financially illiterate. Not joining kiwisaver when you have the means to is just stupidity.

If you are one of these people then you are just throwing money away

About this article:

You may use this article as content for your blog, website, or ebook.

Read my other articles on www.robertastewart.com