Welcome to the June 2017 newsletter from LIFE-TIME Financial Group.
In this month’s newsletter:
- Budget 2017
- What Kind of Investor Are You?
- How To Be A Super Shopper
- Hot interest rate – 12 months at 3.85% pa
The Minister of Finance, the Hon Steven Joyce, presented his first Budget on Thursday 25 May and, as many predicted, it was definitely a ‘steady as she goes affair’ with few surprises.
The centrepiece of the Budget was the Family Incomes Package, which included a mix of tax cuts, and increases for many on Working for Families and the Accommodation Supplement – a package which will cost $6.5 billion over the next four years.
From 1 April 2018, there will be tax cuts for every working New Zealander with particular emphasis on lower to middle income earners.
Income that can be earned at the lowest tax rate of 10.5% will rise from $14,000 to $22,000, which means $11 more a week. The 17.5% income tax rate will be raised from $48,000 to $52,000 giving an increase of $20 a week. Below are the changes in tax brackets:-
There’s no change to the 33% top tax rate income threshold of $70,000. However, all taxpayers will pay less tax from 1 April next year due to the lower tax rate bands being raised.
Increase for superannuitants:
NZ Superannuation payments are linked to after-tax wages; as a result of the wage increases relating to the tax cuts, from 1 April next year couples receiving NZ Super will get an extra $13.10 per week week, a single person sharing will get an extra $7.90 per week, and a person living alone an extra $8.50 per week.
For more comprehensive information on what the 2017 Budget delivers for New Zealanders, please visit the website below:-
What Kind of Investor Are You?
Can you handle the short-term ups and downs of investment markets, or do you prefer a smoother ride? Are you preparing to retire soon, or can’t imagine stopping work for a long time yet?
Whatever your answer, it’s important to make sure your investment strategy, including KiwiSaver, matches up to your risk profile and personal lifestyle goals.
Risk is a personal thing. One of the most important and often overlooked parts of risk is your personality. Psychological research shows we’re born with certain personality traits. The ‘big five’ are our degree of openness to experience, conscientiousness, extraversion, agreeableness and neuroticism. These don’t change as we age and influence all aspects of our lives.
‘Openness to experience’ determines how you feel about the level of risk in investments. Individuals who are highly open to experience tend to be the ones who bungy-jump off tall buildings. They also get rich – and go broke – multiple times. They tolerate life’s ups and downs very well and can also withstand higher risk in their financial lives.
If you’re not so ‘open to experience’, the idea of hiking up Mt Everest without oxygen or big wave surfing, might be horrifying. You might also find that the thought of your investment going down by even one dollar too much to take.
So how you feel about risk is a direct result of your personality, which is pretty much set in stone. This isn’t a surprise, but it can be overlooked; some are tempted to assume everyone of a certain age and stage in their lives should have the same risk profile.
The most important point is that there is no one best risk category for everyone at any given moment – it really just depends on you.
So, what kind of investor are you?
Please get in touch with us and we’ll help you to determine your ‘tolerance to risk’, for example, the percentage of your savings that you would be comfortable with in “growth”assets.
At the same time, we’ll discuss your personal financial situation and balance that against your goals and objectives.
Give us a call on 0800 LIFE-TIME and we’ll be with you every step of the way.
Swap Don’t Shop!
We could all do with a little extra cash……”swapping” is a clever way to shortcut costs while still living well and recycling to boot!
A few years ago a Canadian called Kyle MacDonald swapped his way from a red paper clip to a house. He used Craigslist, but there is a growing number of swap sites out there, exchanging everything from baby clothes and books to skills and car journeys.
For example, SwapStyle is the world’s longest running free online clothing swap website. Women from all around the world use SwapStyle to swap clothes online and save money in the process. You can also swap, buy and sell vintage, handmade and second hand designer fashion.
Do you want a holiday in Europe, Bali or even New Zealand with absolutely no accommodation cost?
If so, have you ever thought of house swapping…….there are now many websites devoted to “home exchange” here in New Zealand and Internationally, for example, on the Home for Exchange website you can find accommodation in the Cayman Islands or all the way to the Outer Hebrides in Scotland.
Bartering for goods and services is a centuries-old art and it just goes to show that you don’t always need money to get what you want!
Interest Rate Special
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