WINTER 2014
NEWSLETTER
Due to a server issue we are resending our newsletter, our apologies if you have already received it.
In this edition we discuss:
· Introduction of our two new Advisors
· Special Events – What are they
· KiwiSavers 7th Birthday
Joel Mclachlan RFA FSP 370246
Joel is a Registered Financial Adviser who also has a degree in Politics and Sociology from the University of Canterbury. Joel specialises in Risk Insurance (Life, Health, Income Protection, Permanent Disablement etc) for family and business, to give you choices and enable you to continue your financial lifestyle no matter what life may throw at you.
Born and bred here in Christchurch, Joel is an avid football fan and enjoys socialising with his friends and family. He also loves winter sports and makes his way to the slopes with his snowboard whenever he can.
You can contact Joel on:
08004KSAVER
08004572837
Julian Browne RFA FSP 381826
Julian is a Registered Financial Adviser with a Bachelor of Commerce and Bachelor of Science degrees from the University of Canterbury and is nearing the completion of his National Certificate in Financial Services.
Julian specialises in Risk insurance (Life, Trauma, Income Protection, Health etc) for families and businesses; as well as Fire & General Insurance (House, Contents, Car, Landlord Protection etc). Julian is passionate about working with people to help them protect their plans for the future.
Born in Christchurch and having lived his entire life in the South Island, he recently worked as an accountant and previously a teacher. He is married to Carolyn and has a son, Seth, who is in Year 7 at school. When not spending time with his family, he enjoys Toastmasters and church. He also still looks after a handful of accounting clients.
You can contact Julian on:
08004KSAVER
08004572837
Special Events increase benefits
What it provides
This benefit enables you to the increase the original sum insured for cover without medical underwriting when any of the special event listed below occur to the insured person.
The events
· Marriage/Civil Union
· Birth / adoption of a child
· New or increased mortgage amount
· Every 5th anniversary of policy
· Financial support of dependent child starting private or tertiary education
· Divorce/Separation
· Death of spouse or partner
· Increase in income (by at least $5,000)
· Becoming a carer for the first time
Eligibility and qualifying parameters
· The client has to have a personal insurance policy with one of the following
lump sum covers.
Ø Life cover or accidental death cover
Ø Trauma recover cover or cancer cover
Ø TPD cover
· This is available to age 60 next birthday.
Ø The benefit can only be used once in any one year
Ø 180 days after the event
Ø 30 days either side of policy anniversary
· Up to lesser of 50% of the cover sum insured or $200,000 per event
· Minimum increases for Life Cover, Accidental Death Cover and Cancer
Cover is $5,000
· Total of all increases cannot exceed original sum insured
If you wish to discuss your eligibility or are interested in knowing more about Special Events please contact the office on 08004572837 and we will arrange for one of our consultants to meet with you.
Saving for the future
KiwiSaver, still evolving, turns 7
· KiwiSaver was seven years old on July 1.
· More than 2.3 million New Zealanders are enrolled in the scheme.
· Four more default funds added, taking the total to nine.
· Lower fees for investors
· About 15,000 people have bought their first home using KiwiSaver funds.
Commerce Minister Craig Foss announced on the anniversary of KiwiSaver, nine KiwiSaver default providers stated the seven year appointment from July 1, offering lower fees for investors.
The default providers – AMP, ANZ, ASB, BNZ, Grosvenor,
Kiwi Wealth, Mercer, Fisher Funds and Westpac – were appointed in March after a competitive tender process and assessment by an independent panel. He also announced the default funds would offer lower fees for investors. As an example, he used average annual fees falling from $69 to $56, immediately benefiting about $450,000 New Zealanders.
On average, a default fund had 18% invested in New Zealand, 42% invested internationally and 20% in fixed interest and cash.
A person aged under 35 had at least 35 years to retirement. Their money should
be invested in a growth fund of about 80% in equities, and 20% in cash and fixed interest because long-term records showed equities, over time, provide superior returns to cash and fixed interest.
The latest barometer surveyed 850 New Zealanders in April and May and found more young people were thinking about their savings. Fifty five percent of young people indicated they were already saving for their retirement, and 82% of those young people not already saving for their retirement indicated they planned to save in the future.
Other key findings from the survey included:
· 70% of those surveyed were saving for retirement.
· 17% of respondents expected to rely sole on national superannuation. 29% of women believed they would need more than $500 a week on top of national superannuation.
· 31% of women were confident of reaching their retirement savings goals, compared with 51% of men.
Grosvenor Kiwisaver have announced the following, notice how low their fees are compared to the average above.
o Six new funds have been added
§ Default Saver Fund
§ Capital Guaranteed Fund
§ Asset Class Conservative Fund
§ Socially Responsible Investment Balanced Fund
§ Asset Class Growth Fund
§ Options Fund
o The Life Phases investment process is now available
Fund-related changes
o The name of the Socially Responsible Investment Fund has changed
o The typical asset allocation for the Balanced Growth Fund has changed
o The Standard Risk Measure is used to determine the risk level of each fund
Fee changes
o The standard member fee has been reduced to $3 per month ($36 per year)
o Different member fee and withdrawal fee rules apply to the Default Saver Fund
o Simplifying the fund fee structure - the annual management fee
o We are negotiating no fees for children please contact us on 08004572837.
If your require advice on your Kiwisaver or are interested in starting one please call us on 08004572837 and one of our Authorised Financial Advisers would be happy to answer your queries.
· Half of respondents said they would consider getting professional advice about KiwiSaver and their retirement savings plans.
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