Financial planning involves making the best use of resources to ensure income, financial growth and security. It may involve risk management and insurance, investment, taxation, retirement and estate planning issues.

A financial adviser can help you make money and maintain or improve your lifestyle with a sound financial plan. This will include helping you to avoid pitfalls, using your money to best advantage, and choosing products that suit your needs. A financial adviser will also help you understand risk, so you can assess what the best options are for you.

If you are planning for your retirement, have received a lump sum of money or have just left the workforce, or you simply want to make the best use of your money, then you should contact a financial adviser.

Talking to a financial adviser will

• help you make more informed decisions about your money
• help you use your money to best advantage, and
• help you choose products that suit your needs

To discuss your financial options and find out how we can assist you, simply fill out our online enquiry form and we will be in contact with you within one business day.

The last few days have been extremely busy.

Yes it was the weekend however I was working on ways that will help you make money and create wealth for your retirement.

I am more and more convinced that we need to develop alternative methods to creating retirement income streams and I believe the internet is by far the easiest way to do that.

If you check out the sites www.2easy.co.nz and another one www.2pros.biz you will see that these sites allow you to try lots of different products and services that teach you how to make money on the web.

One of the key things that every marketer stresses is the fact that you need to figure out a niche that you can market too.

Everything else is incredibly easy.

Essential Internet Tools for example can help you to purchase your first domain name for next to nothing (you must have a domain name, it’s like the piece of land your internet shop will sit on) if you want to go global or you can try  Low Cost Domains if you want to focus on a New Zealand market (at $29 per annum they are one of the cheapest).

Once you have a domain name you need to create a website and this is so simple these days that it’s not funny. Website Tonight is a cost effective way to get your first website up and running in only a few minutes. Yes you will have to go back and add some content but you can be on the World Wide Web in minutes using this service and less than $5 per month I can’t see why you wouldn’t do it.

So that’s the first step and if you are not technically inclined you can always Joint Venture with me, this is where you provide certain content about a topic that you know alot about and you are happy to research and write about. I build and maintain the website as well as creating the various opportunities to make money from the site. We then share the profits 50/50

Remember when creating wealth on the web it’s not about getting rich overnight. It’s about building a solid business over a year or so. Sure that doesn’t sound terribly exciting but I can assure you that when you are recieving $1000 per week from the money making machine you helped create you will be incredibly happy and it’s an investment that is a lot easier to create than the traditional methods of wealth creation.

Kiwi families will have a collective $10 billion more in their back pockets over the next three years as a result of plummeting mortgage costs, injecting even more spare cash into the economy than next month’s tax cuts.

This great news comes in an article by Rob Stock at the Sunday Star times.

Add to that the $9billion estimated to be returned to tax taxpayers  through last years tax cuts and NZ’s economy looks to have plenty of stimulus it needs to get our economy running smoothly again.

A lot of the mortgage cuts will probably go straight into the economy according to some experts as people have been holding off spending over the last 6 months due to concerns about jobs and making ends meet.

ON APRIL 1
The tax cuts will give a worker on the average wage $18 extra a week
Earning under $40,000 = $0 a week
On $42,000 = $4.62
On $44,000 = $9.23
On $46,000 = $13.85
Between $48,000-$70,000 = $18.46
On $80,000 = $20.38
On $100,000 = $24.23
Independent earners rebate: all workers who earn $24,000 a year or more who are not receiving a benefit, Working for Families payments or New Zealand Superannuation qualify for a tax rebate. From April 1 the rebate will be $10 a week. It reduces as income increases above $44,000, meaning a person earning $48,000 a year would no longer be eligible for the rebate.

Today I thought I would share the answer I gave to a client who bought their first home last year before being introduced to us here at Professional Investment Services.

His question to me was this

“Ultimately I’d like to land bank somewhere (hopefully
another depression will come in about 7-8 years), then when we can afford to
build, we’d retain the first home (starter property) as a rental and build on the new section”

My reply

I’m not a big fan of land banking unless you have tonnes of cash, the IRD will not allow the interest to be a tax deduction and you have no income coming from the property itself so you are left paying for everything.

For example if the section cost you say $100,000 and interest rates were 6% then it would cost you $6,000 per annum plus rates to hold onto the section or on a weekly basis at least $120 per week. Compare that with holding onto a $260,000 property at the mount for as little as $4 per week.

The other issue you have later on down the track is that the “starter property” will have had two things occur, it would have increased in value (fingers crossed) and you would have reduced some of the mortgage. These are two very good outcomes however if you now make the “starter” property a rental it means you are going to borrow 100% to finance your new home. This means you will have a large non – deductible loan with a smaller tax deductible loan on your rental making the overall package less tax effective.

The best way to do this at the time would be to sell the starter home, use the equity to purchase your new home and then buy another property to use as the rental. This is the most efficient way from a taxation perspective as you will now have the 100% borrowing against the investment property which maximises your tax benefits and you have a smaller non-deductible loan on your new home.

I hope that makes sense.

I would also recommend looking at a debt management system between now and whenever you are going to buy your next property, mortgages are very efficient at making money for banks. The amount of interest you pay to a bank is extraordinary yet there are simple ways to minimise this. Remember every dollar in interest that you don’t have to pay to the bank is an extra dollar in your pocket.