Kapiti Financial Advice Limited – KiwiSaver and Investment
The resilience of the US economy, robust corporate profits, enthusiasm around artificial intelligence (AI), and the prospect of central banks reducing interest rates later in the year have pushed global markets higher. New Zealand’s share market gained 3.3% in March, primarily on positive global investment sentiment and lower longer term interest rates. The global economic … Read more
Reserve Bank expected to start cutting rates later this year Markets and economists are now expecting the Reserve Bank of New Zealand to start cutting its benchmark interest rate this year and wholesale interest rates have moved down in anticipation. Last week’s Consumers Price Index release supported the view that domestic-driven inflation pressures are easing, … Read more
2024 could see revival of dividend stocks and a better balance in share market perfomance Investors sought dividend-paying stocks in 2022 mindful that interest rate hikes by the US Federal Reserve could weigh on bonds (higher yields drives bond prices lower). But in 2023 dividend stocks fell out of favour: As interest rates rose to … Read more
KiwiSaver and Tax We often get asked about KiwiSaver and tax. In short, you pay tax on the money your KiwiSaver fund earns (the profit it makes on your behalf), but you do not pay tax on any money you withdraw from your KiwiSaver account. Not all of the money that your KiwiSaver fund earns … Read more
Booster has launched Booster Savvy, an innovative smart account and Mastercard debit card, which also earns a competitive interest rate. Savvy is underpinned by an investment account but with a debit card and NZ bank account number, providing customers with access to their money to enable day-to-day payments and transactions, while still making a return … Read more
A Massey University report reveals a widening gap between NZ Superannuation and the cost of living in retirement. The New Zealand Retirement Expenditure Guidelines Annual Update 2023 examines various lifestyle choices and the savings that are required to fund the respective lifestyle. The study shows that your geographic location (metropolitan v provincial) and your personal … Read more
An article on Stuff this week highlighted the strong performance of Milford and Generate KiwiSaver funds over the longer term, as reported in the June 2023 quarter Morningstar KiwiSaver survey. Morningstar is an international financial services firm which conducts investment research, including their quarterly KiwiSaver survey. The Stuff article notes that Milford has been a … Read more
I have had a couple of enquiries over the past week about an article on Stuff expressing concern that KiwiSaver members are at risk from having “all your money invested with one manager”. I have given this some thought and it is not something that particularly concerns me. The writer gives the analogy that it’s … Read more
The Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act 2022 became law on 9 May 2022. Most of the changes to the Act came into force this month. Unit title owners own a defined part of a building, such as an apartment, and share common areas such as lifts, lobbies or driveways … Read more
This year should see a change in market dynamics as interest rate hikes slow and rates peak. Previous interest rate increases should start to gain traction in containing inflation. The hope is that the central bank will manage to achieve a soft landing for the economy. Even if we enter recession, markets tend to focus … Read more