wealth – Personal Finance

June 1, 2026

Late Life Relationships: Financial Risks

Late life love: Things to consider

Written by R. A. Stewart

Getting involved with someone new late in life may sound like a good idea but there are financial considerations to consider not for yourself and your own family.

If you are receiving government support then you will be on the married rate whatever that is. It is your obligation to notice them of your new relationship status. Failure to do so may result in legal hassles later on.

Your will is something which needs to be changed when a new relationship starts. This will have serious implications for your children or whoever you intended to leave your assets to when you pass on. Your new spouse or partner will be entitled to everything irrespective of any promises made prior to entering into a new relationship.

There could be a situation whereby your family’s assets will be transferred to your spouse’s family should you pass on first.

Men in particular have to be wary of gold diggers and scammers.

There are people out there who prey on the emotions of others. Stories appear on the news occasionally of men who fell victim to romance scams.

As for gold diggers, some women are more interested in what’s in your wallet than what’s in your heart. Someone with discernment and common sense will know the motives of potential partners.

There are some things which you need to consider when entering into a relationship late in life.

Has this person got a good credit rating?

This may seem an unromantic question but if you are dating someone with a poor credit rating then you expose yourself to their debts. It could alter your estate planning as your spouse’s creditors could take a chunk off your estate.

It can be difficult to change one’s existing lifestyle to accommodate someone else’s wants.
Marriage may change your tax status, therefore it will pay to get advice on this.
Marrying someone who has dependent children will make you equally responsible for child maintenance if your new spouse has children from a previous relationship.
Estate planning needs to be carefully considered because the new relationship status will change who gets what if one person passes on. Clear communication with family members is essential. It is also important to get legal advice. This needs to be done prior to entering into a new relationship.
Consider a prenuptial agreement in the event that the relationship turns sour.
Placing your assets in a trust may be right for you if your desire is to leave your assets to your own family.

It is worth noting that as far as retirement savings go. Any contributions made to your kiwisaver during a relationship are considered matrimony assets, but only contributions made during the term of the relationship. The rules may be different in your own country regarding pensions.

About this article

The contents in 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 website/blog or ebook.

Read my other articles on \www.robertastewart.com

May 17, 2026

Dividend Reinvestment Plan Explained

Written by R. A. Stewart

A Dividend Reinvestment Plan, (often called DRIP or DRP) is an automated way to grow your portfolio by reinvesting dividends into the same company instead of receiving cash.

It is the same principle as investing for compounding interest.

Think of it as putting your money to work as soon as it is earned.

How a DRIP works

When a company you own shares in pays a dividend, you have two choices:

Cash Payout: The money is paid into your brokerage or bank account.
Reinvestment: The money is used to purchase additional shares (or fractional shares) in the same company.

Most major brokerages and many individual companies offer these plans. In many cases you can “opt-in” through your account settings and the account settings handles the rest.

How it Grows Your Wealth

When you opt into a Dividend Reinvestment plan you are not just owning more shares-its in the snowballing effect over time.

There are three key benefits.

The Power of Compounding

Any dividends which are reinvested into the company will earn dividends during the next cycle which can accelerate your holdings in the long-term. An example is that you own 100 shares in a company. They pay a dividend and the dividend is converted into shares. You now own 102 shares.

Dollar Cost Averaging

DRIPS purchase shares at regular intervals and this means:

(a) When the market is down you purchase more shares-its

(b) When the market is up you purchase fewer shares.

It all balances out in a year which mean that you are practising dollar-cost averaging.

Reduced Fees and Discounts

There are reduced fees because you are purchasing more shares without the need for the normal transaction fees.

It will pay to check on the conditions of the brokerage firm or the online platform where you have invested your money because not all of them are the same.

Important considerations

DRIPS are a powerful tool for wealth-building, there are some things to consider.

Taxation: Dividends reinvested are still considered taxable income of the year that they are received even if you did not receive them in the form of cash.

Stock Imbalance: If a company pays a high DRIP then you could end up with a greater percentage of share in that company in your portfolio.

Income needs: If you may need the money for living expenses then taking your dividends in the form of extra shares may be impractical.

Summary

Feature Benefit to you

Automation “Invest and forget” helps to build discipline

Fractional Shares You own more shares even if it is a fraction of a share.

Compound Interest You accelerate your savings through compounding.

Why companies offer a DRIP

DRIPS are one way companies can generate more cash. Companies have a good idea of how much money they are likely to generate with DRIPS so it is a cost-effective way of raising capital. Reinvesting future dividends into the company means that an investor has confidence in the company’s prospects.

About this article

The contents of this article is based on the writer’s own opinion and experience 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

May 10, 2026

Fear of Loss will kill your chances of prosperity

Fear of Loss will hinder chances of prosperity

The fear of losing money will cause people to play it safe by not stepping outside their comfort-zone and not investing their money for greater returns.

Leaving your money in an ordinary savings account will mean that inflation will erode the value of your money yet that is exactly what a lot of people do. They are afraid to take risks.

Some of this fear comes from those who had experienced the crash of 1987, better known as “Black Monday” when portfolios were hit hard. Some people lost their life-savings and more tragically, a lot of the money which went down the drain was borrowed money.

In these situations, shares were worth less than the money borrowed to purchase them.

There are risks which are worth taking and risks not worth taking. It takes discernment to tell the difference.

I remember once (about 2001) I bought shares in Air New Zealand and they almost went bust, well they would have if the government did not bail them out. The shares dropped to a low of fourteen cents a share. I bought my shares in the company at around $2 a share.

This was the last time I bought shares in an airline. It was an expensive lesson.

I have known some people who never invest their money for fear of loss; they cannot handle the volatility of watching their balances go up and down yet they have no problem with buying their weekly lottery tickets. If they had deposited that same money into their kiwisaver then these people would have a fortune waiting for them once they reach the age of 65.

“You make your choices and your choices make you.”-Jim Addison, Scottish Pastor

It is all about choices.

The choices you make today will determine which choices you are able to make in the future.

If you have been sensible and joined a retirement scheme and contributed to it all of your life then this choice will give you more options in your later years.

Ask yourself these questions, “What action can I take today which my future self will thank me for?”

There will not be a single person who reaches the age of 65 or whatever the retirement age is in your country, who will regret ever joining and contributing to a retirement fund.

It is everyone’s responsibility to get a financial education. This will help you to make right choices for your money. Apply what you have learned which are applicable to your personal circumstances.

Getting over your fear of loss will enable you to grow your wealth rather than just leaving it in the bank where inflation will steal the purchasing power of your money.

About this article

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

The contents of this article may not be applicable to your personal circumstances, therefore discretion is advised.

Read my other articles at www.robertastewart.com

April 13, 2026

What are you Saving For?

Written by R. A. Stewart

The ASB television ad asks the question, “What are you saving for?”

When you know the answer to that question it becomes your goal. It leads to another question, “Where to invest your money until it is needed.”

In the TV ad, a boy was saving up to buy his favourite girl a gift.

Developing the habit of saving for something specific from a young age is a good habit to get into. It teaches young people to be smart and strategic with their money.

As we get older, the things we are saving money for are in the hundreds, then thousands of dollars. As they say, “The difference between men and boys is the price of their toys.”

Choosing the appropriate kind of investment for your savings goal is important and the number one factor to consider is your timeline.

If you are saving for something long-term then just leaving your money in an ordinary savings account is not a smart way to save because inflation will erode the value of your money.

Long-term is 5 years and more.

If you are saving for the medium term then you can be a little more conservative with your investing because you don’t want to invest in something volatile and find that there is a market meltdown just when you need that money.

Medium-term is between 1-5 years.

If you are saving for the short-term then you may need that money within the next twelve months then you can take a no-risk approach and just leave it in an ordinary savings account.

Short-term is up to 12 months.

Here are some long-term, medium-term, and short-term goals which you may be saving for.

Long-term

Retirement fund (Kiwisaver in New Zealand)

Education fund

Home deposit

Medium-term

Saving for a car

Overseas holiday

Marriage and kids

Short-term

Your emergency fund

Money set aside for rates, power, and other household utilities.

Once you have classified which category each fund belongs to it is then a matter of choosing the correct investment for each fund.

In managed funds there are three categories of investment, growth funds, balanced funds, and conservative funds.

Growth funds are suitable for long-term investments because they can be volatile but at the same time have the potential to grow your wealth. Young people have more time on their side to recover from market crashes, therefore, growth funds are appropriate for them, but that does not mean that retired people should not invest in growth funds as long as you are aware of the risks and that a market fall will not affect your lifestyle.

Balanced Funds are suitable for medium-term investing. They are not as volatile as growth funds but you are still exposed to the share-market which means your savings have the potential to grow but not at the same rate as growth funds.

Conservative Funds are less risky. You have a little exposure to the share market but not as much as with balanced and growth funds. Conservative Funds are more suited to short-term investing.

An ordinary savings account is appropriate for money set aside for rates and other house-hold expenses. Making the most of your discretionary spending money and using it for your savings goals can help you achieve them faster. A person who is poor with their money will fritter everything they have and then borrow for things they need.

It is important to avoid becoming fixated with your balances in whichever funds you have chosen. Balances will bounce up and down. That is the nature of the markets.

There are plenty of opportunities to invest in this day and age with so many online investing platforms available in New Zealand. Sharesies, Hatch, and Kernel Wealth are three which I personally use. If you are from the US then Robinhood is a well-known one over there.

About this article

The views expressed 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

April 6, 2026

Breaking into your Retirement Savings Early can be costly

Written by R. A. Stewart

New Zealand’s retirement scheme is called Kiwisaver. There is one thing which makes this scheme unique to retirement schemes of other countries and it is this:

There are circumstances when people can access their money prior to reaching their retirement age, 65 in New Zealand. People can access their money early for any of the following reasons:

Terminal illness
Going overseas permanently
Purchasing their first home.
Hardship.

Numbers 1 and 2 are quite understandable. Number 3 is that if you are purchasing your first home you may be able to use part of your kiwisaver for a house deposit.

Reason number 4 is the most common reason for premature kiwisaver withdrawals. In 2025 58,000 people withdrew money from their kiwisaver for hardship reasons.

Breaking into your Kiwisaver early is not easy. You have to prove undue hardship, something which 58,000 people have managed to do.

It is the fund manager’s supervisor who makes the decision to release your funds. They still have to follow a set of strict guidelines and a lot of people will have their application to withdraw early declined as a result.

Some people will see their Kiwisaver balance and think, “You can’t take it all with you, I can do a lot with that money,”

Kiwisaver is earmarked for your retirement or for your first home purchase and should not be touched otherwise you will be paying for it later on down the track.

The whole point of kiwisaver and any other retirement scheme is that you are saving money for your retirement and do not withdraw and keep contributing.

Consistent long-term savings work well thanks to the magic of compound interest.

Any break in savings will interfere with this process.

With compound interest you earn interest on the interest and this helps your savings to grow faster.

At retirement there can be a big pot of money waiting for you thanks to compound interest which is a friend of the long-term saver.

Making right choices

It is important to make the right choices when making important financial decisions, whether that is entering into a new relationship, purchasing a car, taking out a loan, or making major home improvements. The pros and cons need to be explored thoroughly and not to be rushed into.

All of these major decisions will have consequences, which will eventually lead to an outcome.

One big mistake is to make major decisions based on today’s circumstances as if today’s circumstances will remain the same forever. Investing some if not all of your discretionary spending money in a share market fund other than kiwisaver will improve your financial know-how. There are several online share-market investing platforms available to begin your investing portfolio if you have not already started one. It is just a matter of being consistent with your investing and letting compounding interest do its work.

About this article

The contents of this article is of the experience and 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

March 15, 2026

Share market slumps

Notable share market falls

Written by R. A. Stewart

The share market has weathered several major storms in the past. While the pandemic was indeed a “Flash Crash” other downturns such as the “Dot-com Bubble” and the “Global Financial Crisis” (GFC) took much longer for investors to recoup their money. Here are some well-known share-market tumbles since 2000.

Year Crash % fall Recovery Time (to previous peak)

2000: The Dot-Com burst -49% 7 Years

2007: The Global Financial Crisis -56% 5.5 years

2020: The Covid Pandemic -34% 5 months

2022: The 2022 Slump -25% 2 years

The Dot-com slump hit the tech sectors hard. The Nasdaq which is tech-heavy actually took 15 years to recover. The severity of the losses are dependent on which sectors investors had their money in. It is a stark reminder of the value of diversification.

The Global Financial Crisis was referred to as “The Great Recession.” It took steady gains for five years for the market to finally surpass its 2007 level.

The 2020 pandemic was described as the fastest bear market in history. It dropped 34% in just over a month then recovered quickly due to government stimulus and the rapid shift to a digital economy.

The 2022 slump was due to high inflation and high interest rates. This was a “grinding” beat market rather than a sudden crash. It took until early 2024 for the market to reach new all-time highs, largely fueled by the boom in artificial intelligence.

Managing your assets

During these times when the markets are falling, investors find themselves in the “Asset rich, cash poor” trap. They do not want to sell their shares on a falling market in order to cover basic living expenses. This happens when you have all of your wealth tied up in a share portfolio or a retirement fund and little money elsewhere.

It highlights the importance of diversification.

Strategies to weather the next share market tumble:

Keep a buffer fund for emergencies. This is for unexpected expenses which crop up from time to time. It ensures that you are never in a situation where you need to sell shares when they are at the bottom.
Diversify for assets. Not all of your assets will fall at the same time. Some of them such as bonds may hold steady during a share market slide.
Check your investment settings

Changing from growth to balanced, or balanced to conservative funds during a share market tumble will lock in losses and make them permanent, but when you are making new investments, choose where to invest according to your timeline and the purpose for the money.

If you are looking to purchase a car within the next three years, then growth funds are not recommended. Balanced or conservative funds is a better option, but if you want to be safe then a separate personal bank account will do the job.

Share market ups and downs will occur from time to time and every decade has its events which triggered a fall in stock prices, but if you have organised your finances smartly you can weather any storm which any world event throws at you.

About this article

The content of 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 website/blog, or ebook. Read my other articles on www.robertastewart.com

February 22, 2026

Investing in New Listings

Written by R. A. Stewart

Is it worthwhile buying shares in New Listings, also known as Initial Public Offerings?

I have read that these have the potential for significant early gains, but they can at the same time be risky.

Pros

There can be benefits in investing in new listings. They are:

High growth potential if the company performs well in the early stages
You get the chance to invest at the offering price before the company lists on the stock exchange.
The IPO process has stringent rules meaning there is increased scrutiny on the company prior to listing.
Newly listed companies are often hyped up meaning that the share price rises sharply soon after listing.

Cons

There are some downfalls of investing in these new public offerings. They are:

There is limited data to use for making a future prediction.
Shares can be highly volatile if the market is down or the company fails to meet its expectations.
If the New listing is oversubscribed you may receive fewer shares than you requested.
The new listing can be overhyped by its promoters that the price per share is set too high leading to a drop in the share price once the trading starts.

Things to consider

Read the prospectus and do your research online to make sure you understand the risks involved.
Company insiders may not be able to sell their shares for a set period of time and when this set period ends there may be a considerable drop in the share price.
Access to new listings may not be available unless you have a brokerage account, however, they may be available through online platforms such as sharesies and robinhood which allow you to purchase shares with a minimum of investment.
If you don’t have the time to research individual IPOs then maybe you can invest in an Exchange Traded Fund (ETF). This way you are able to invest in a range of IPOs without trying to pick a single IPO.
Monitor the stock after purchasing it to see how it is going. There are some influencing factors which determine the directions of the stock. This can be initial public demand and hype, market sentiment, and economic trends.
My view is that Initial Public Offerings are not for long-term investing but something which can be part of your portfolio as an added interest. The same rules apply to initial public offerings as they do with any other company you are investing in. The questions you should be asking is:
How does this fit into my financial strategy?
Can I afford to lose this money?
How have similar companies fared in the past?

In a nutshell you should do your own due diligence because you are the one who has to live with any financial decision made concerning your money.

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

February 15, 2026

Invest and Forget

Written by R. A. Stewart

I know a couple of people who have money invested in the share market and keep track of how their investments are going by checking up on their shares online just about everyday. I told them that I just invest in such and such and then just forget about them.

For me, there is no point in worrying about how your share portfolio is going because what the markets are doing is out of my control.

If you have chosen where to invest your money and it is in line with your values, your goals, and your risk profile then what the markets are doing should not be a concern for you.

Financial experts will tell you that if you are investing for the long-term, 10 years plus, you should be a little more aggressive with your investing.

Some investors get panicky when the markets are down and shift funds. Then what happens next is that they miss out on the gains which would regained their previous losses, if you can call it that, because these are just paper losses. They are temporary, but if you decide to sell when your shares are down or switch to conservative funds then these losses are locked in.

Some investors change fund managers because their funds are not doing well. It is worth noting that past record is no guarantee of future performance, so even if a particular fund manager out performed all others this year it does not necessarily mean that they will continue this trend.

If you have chosen which fund type to invest in then how the markets are performing should not be an issue.

Your savings goals can be categorised in one of three goals; they are:

Long-term goals

Medium term goals

Short term goals

Long-term goals are money which is not needed for 5 years+. Retirement savings and house deposit savings are examples of long-term goals.

Medium-term goals are money not needed for 1-5 years. Saving for a car or the trip of a life-time fall into this category.

Short-term goals are money needed within 12 months. This could be your emergency fund set up for unexpected expenses such as an appliance or car breaking down. School expenses, etc.

There is no one shoe which fits everyone, therefore it is up to each individual or couple to set up their own financial plan according to their goals and personal circumstances.

Which funds are best for you?

There are three types of funds to choose from when you invest in a managed fund, also called mutual funds. They are:

Growth funds

Balanced funds

Conservative funds.

Growth funds have the most potential to grow your wealth but are the riskiest. They are for long-term investing. It is suitable for young people because they have more time to recover from a market meltdown.

Balanced funds are a combination of growth and conservative funds. They have the potential to grow your funds but are not as risky as growth funds.

Conservative funds are safer than growth and balanced funds but are not as profitable. They are more suitable for short and medium-term investing depending on how much risk you are prepared to take on.

Once you have chosen where to invest your money, you should just get on with your life and turn your attention to other things. In other words, “Invest and Forget,” because what happens in the money markets is out of your control.

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 website/blog or ebook.

Read my other articles on www.robertastewart.com

February 6, 2026

Investing in Risk and Reward and how it affects you

Written by R. A. Stewart

In life people get involved in what are considered to be dangerous activities. Being a jockey or a racing car driver are such activities but there are protocols in place to mitigate the risks. If a horse slips after a race the jockeys will examine the track in order to ascertain whether it is safe enough to proceed with the race meeting. If they are not satisfied, the meeting is abandoned.

It is called “risk management.”

Investing is similar. Investors will weigh up the pros or cons of a certain investment or their fund manager will do this for them and will then make a decision on whether the company is worth investing in.

Investors need to know the difference between a permanent and a temporary loss.

You can have two investors which have shares in the same company, but they react differently to what is happening in the market. One investor panics after the company’s share price drops so has suffered a permanent loss, the other investor holds on to his shares and when the company’s share price rebounds he has recouped his losses. The second investor suffered a temporary loss.

If you have invested according to your risk-profile then what the market is doing should not be a concern to you.

It is important to keep your emotions in check, otherwise they can end up costing you in the long-term.

When investing you want the right amount of risk and that all depends on when you need the money. You can be more aggressive with your retirement savings if you have at least 10 years to go but if the money is needed within 5 years then you need to be a little more cautious because what you do not need is for the markets to drop just when you need the money.

Time can work for and against you in terms of what you do with your money. If you are young then you have the advantage of time on your side. You can be more aggressive in your choice of where to invest your money because you have more time to recover from financial hits. But you have to be prepared to take calculated risks in order to take advantage of the rising markets.

At the other extreme, being too safe and over cautious is not good because inflation will erode the purchasing power of your savings. Leaving your money in an ordinary savings account may be fine for money you need in the short-term but it is not appropriate for long-term savings.

Investing is a balancing between risk and reward. It is important to stick with your plan despite what the markets are doing because panic selling when the markets are down will turn a temporary loss into a permanent one. This means that those investors who sell their shares during a market downturn will miss out on the gains when the market recovers.

If you want to get involved in any kind of dangerous activity, think about the risk and how it will affect your future lifestyle if it all goes pear-shaped, and most of all how much risk you can tolerate. Never let a temporary loss become a permanent one.

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

January 25, 2026

4 Keys to Financial Success

There are rules to getting the most out of your money and these rules apply to everybody irrespective of your personal circumstances, stage of life, or goals. They are basic common sense.

Live within your means

This is the most basic money management rule. If you do not follow this rule then you are going to struggle to get ahead financially. There are several reasons why people do not live within their means. The main ones are:

(a) Their income does not match their lifestyle

Some people have a lifestyle which is not compatible with their income level and so they overspend or they spend everything they earn with the result that there is nothing to show for their labours. The easy solution is to be more modest in your lifestyle choice. Cutting out things which do not add any kind of value to your life.

(b) Easy access to credit

Easy access for credit has enabled people to bury their heads in the sand rather than confront their financial issues. After all, if you want something then just put it on the plastic. There is a cost to all of this credit and it is called “Interest.”

Lack of self control is the main factor why people do not live within their means. Being able to say “No” to things you want will stand you in good stead.

Save

The habit of saving is a habit which will open doors for you as far as being able to afford things. It means that you do not have to borrow money for basic household appliances or a motor vehicle if one is needed. The money saved by not paying interest on these things add up to a fortune during one’s lifetime.

Invest

Investing your money will enable your wealth to grow. Today, there are so many opportunities for those of modest means to invest with so many online investing platforms available. Sharesies and Hatch are excellent online platforms where investors can drip feed money into the share market. Most people in New Zealand have money invested in Kiwisaver. This is New Zealand’s retirement scheme. The annual tax credit and the employer contributions make this the best way of saving for your retirement. Even if these incentives were not available, Kiwisaver would still be a brilliant scheme even without the government money and employer contributions, because funds are locked up until you reach the retirement age of 65.

Make right choices

It is important to make the right choices in order to live a more prosperous life. If you are on the minimum wage then your options are limited as far as what you can afford and the choice to get married, have kids, or buy a car is among those choices which cannot be taken lightly. It is all about making choices which align with your income level and your goals.

I am not saying that you should not get involved with someone if you are on a low income, but rather make sure that you are in a good financial position before you make major life decisions.

About this article

The information in 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