Welcome to the August 2017 newsletter from LIFE-TIME Financial Group.
In this month’s issue:
- A “choices” or no “frills” lifestyle?
- Trump and his “tweeting”
- Market Update July
- Hot interest rate – 12 months at 3.85 pa %
A “choices” or no “frills” lifestyle?
In July 2017 Massey University, in the New Zealand Retirement Expenditure Guidelines, has reported that a single person needs to save in excess of $100,000 by retirement, in addition to receiving NZ Superannuation.
The purpose of the Retirement Expenditure Guidelines was to highlight the savings retirees require to supplement NZ Superannuation. As you can expect, there is no “one size fits all” solution. There is a difference between one and two person households, and also between living in a city or a rural location.
There is a choice between a “no frills” level of expenditure (which is basically food and utilities) and a “choices” level of expenditure (which includes some luxuries and treats). Just by adding those three extra choices (one or two persons, city or rural, no frills vs choices), the report has identified eight potential target savings levels. These target savings levels range from $30,199 to $486,023.
To further complicate matters, other figures can be determined from the Sorted website, which suggests $200,000 of savings are required, while calculators from bank websites can give figures in excess of $800,000.
With such a range of targets, you have to question which one, if any, is correct and can any useful information be drawn from the Retirement Expenditure Guidelines and other similar sources that estimate what is required to fund your retirement.
As an example, below is the gap between retirement expenditure guidelines and NZ Superannuation based on surveys conducted in 2016:
When it comes to planning for your retirement, there are three points to consider:
Firstly, it is advisable to have additional savings as NZ Superannuation may not be sufficient on its own.
Secondly, it has been assumed that NZ Superannuation will continue in its current form. There is no guarantee that this will happen if you are not entering retirement very soon. If changes are made to the level or eligibility requirements for NZ Superannuation, your savings target could be significantly impacted.
Thirdly, there are very large differences between even the broad categories (single/couple, city/rural, no frills/choices) used in the report. What this confirms is there is no single answer and that your particular situation needs to be considered.
Your personal situation and desired lifestyle in retirement need to be compared to your ability to save the funds necessary for that lifestyle. You need flexibility to adapt to any changes and know whether your plans and targets are achievable, this is where we can assist you. We can help identify your retirement target and give you the best chance of achieving it.
Donald Trump is Testing Twitter’s Harassment Policy
Facing an onslaught of criticism about recent incendiary tweets, President Trump defended his social media policy saying “My use of social media is not Presidential” Trump tweeted, it’s “MODERN DAY PRESIDENTIAL”.
The President’s latest outbursts suggest the social-media platform imposes no editorial standards. However, Twitter’s terms of service are simple. No threats of violence. No targeted abuse or harassment. No inciting anybody to engage in targeted abuse or harassment. No hateful conduct.
Trump has long been criticised for his impulsiveness, but just over six months into his presidency, alarm over his Twitter conduct has hit fever pitch.
Trump’s Twitter conduct also raises a question about what Twitter is, and what it should be.
In reality, though, Twitter is a media company. Just like CNN and The York Times are media companies. Except unlike a traditional model where publishers and readers are distinct groups, everyone can be both on Twitter.
Complicating things further, Twitter must answer to its shareholders, and having the President use its service so routinely – and so bombastically – certainly keeps the service relevant.
So, what’s Twitter to do when one of its users – who also happens to be the President of the United States – incessantly publishes attacks against individuals and so much more? Nothing, apparently. At least nothing yet.
The thornier question is: What should Twitter do?
An excerpt from the US publication “The Atlantic” July 2017.
Market Update – July
- Share markets rose again for the month, which saw investment fund returns resume their upward path. Higher growth funds benefited more from good returns on shares in emerging markets, with Chinese shares now up 25% over the past six months.
- While political posturing is heating up ahead of the New Zealand election, so far the likely effects for the NZ share market do not appear overly significant and local shares have also continued to gain.
- Property values continue to plateau in Auckland, Hamilton and Christchurch. The average value of homes in the Auckland region dipped slightly to $1,044,303 in July compared to $1,045,059 in June. Wellington and Dunedin are now expecting a similar trend.
Hot Interest Rate
LIFE-TIME Financial Group can offer our clients the best possible rates in today’s markets.
Get 3.85% for 12 months for a limited time.
Give us a call on 09 418 5000 / 0800 LIFE-TIME / 0800 54 33 84