Energywise Tip

We recommend taking a look at the subsidy available to insulate your home.  It is a 4 year scheme, that has been going for 3 years.  Last month 150,000 homes had taken advantage of this scheme.

If you are starting to feel the chill of winter, now is the time to take advantage.
If your house was built before 2000, you will be eligible.  Use it to insulate your own home or your investment properties.

Save some money on your heating bill this year and add value to your home or investment.  It is a win-win in our books.

Visit Energywise for more details.

Winter Power Savers.

The price of electricity increased 7.5% in the year between 2007 and 2008, and in some area’s 105% in 8 years between 2003 and 2011. New Zealanders pay substantially more for power than our neighbors. In 2010, Australians were paying 14.83c, while in New Zealand power was retailing for between 22.7c and 24.97c per kwh.  So how do you keep your power bill down?

 
With a few small changes, there could be  savings of 30% on power.  If you could save 20% on your annual energy bill, think what that could get you. An additional mortgage payment per year, or sneaky weekend away next winter. Read More

What’s wrong with the Economy

Steve Keen is Associate Professor of Economics & Finance at the University of Western Sydney. His main academic research interest is in developing mathematical models of Hyman Minsky’s Financial Instability Hypothesis. Prof. Keen’s best-selling book, Debunking Economics, delivers a powerful critique of modern neoclassical macroeconomics. He maintains a website dedicated to ‘analysing the global debt bubble’ at www.debtdeflation.com.

How would you provide for your family?

Case Study
Client Name: John
Status: 35, married, 2 children
Accountant John earned $60,000 annually. His wife Joy (34) stayed home to look after their two kids Bruce (4) and Jo (2). John’s debts included $140,000 for his mortgage, $4000 on credit cards and a $6000 car loan.

John had $50,000 life insurance cover.  But was concerned about what would happen to his family’s lifestyle if he died or was to suffer an accident or illness that prevented him from working.

With some help, John choose to increase his life cover $1,000,000 and $200,000 Trauma and Total & Permanent Disability Insurance. The combination of superannuation and stand-alone insurance would deal with all of the family debts and provide the family with another $900,000 should John die.

If John was to suffer one of the medical conditions specified in his Trauma Insurance policy, or suffer a total and permanent disability, the lump sum would help him meet the medical costs associated with the treatment of the condition without the need to dip into personal savings or go further into debt.

John also considered his wife Joy need for Life Insurance. They decided to purchase $500,000 worth of Life Insurance to help provide child care if Joy was not around to look after the children. They also included $400,000 Trauma and Total & Permanent Disability cover on her life. Read More

Reading Round Up

 

“Chronic shortage” pushes Auckland house prices to new high
Asking prices for Auckland homes hit a new all time high in April of $568,820 – the third high in eight months.

No house price bubble on horizon, says Reserve Bank
Household debt levels and banks unwillingness to lend will act as a check and prevent a repeat of the house price inflation seen between 2002-2007, according to the Reserve Bank.

Mortgagee sales hit record levels
Some winners dream of being free of work forever. Calculating the cost to do that is tricky. Say you’re 30 and need $100,000 a year to live comfortably.

Keith Rankin: Austerity needs stimulus to work
Public austerity, under different names, has commonly been extolled as a prudent fiscal policy that remediates alleged past excesses of governments.

How savage has European austerity (spending cuts) been?
To be sure, there are particular small countries which have made serious spending cuts, in the Baltics most of all.  But sometimes one hears it said that an anti-austerity strategy must be EU-wide as a whole, or that austerity is “a failed strategy for the eurozone,” or something similar.