Finances

with Wayne Ross, Newton Ross

www.newtonross.co.nz

Wayne’s company, Newton Ross, provides specialist wealth management services.

2011

All I want for Christmas - December

Initial numbers from the general election suggest that one in four enrolled voters decided not to have their say on who should steer the ship for the next three years. Apparently this was the lowest turnout for 120 years. Given the lacklustre campaign and few clear policy differences that is perhaps not surprising, but it is disappointing when you consider the havoc politicians can wreck if left alone.

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Minding your pennies - October

My Nana taught me from an early age to mind the pennies and the pounds would look after themselves: in other words to focus on taking care of the little things in life and the big things would get sorted along the way. Generally that has proved to be sage advice over the years in business, and life in general. For instance in my chosen sport of long distance triathlon by focusing on doing your best for the next five minutes and not worrying about the end result, you can get yourself successfully through 12 or more hours of swimming, biking and running. Think too much about the 226km ahead of you and you might not even make it to the start line.

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Business means backing yourself - September

The recent announcement that the legendary Steve Jobs was retiring from his role as the head of Apple Inc generated a huge amount of media coverage. Stories mainly focused on his vision, ability and relentless drive to turn Apple into one of the largest companies in the world and synonymous with functional design, innovation and just plain cool technology. 

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Is taxing gains a capital idea? - August

Governments around the world are currently struggling with the pressure of having to repay debt from many years of spending above their means. NZ is faced with the same issue, albeit we are talking billions of dollars rather than trillions, and the Government is casting about for possible solutions.  

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Rules complex for finance industry - July

From July 1 individuals and companies who provide financial services and offer financial advice as part of their job must comply with a set of new rules. Predictably the law-makers have taken a good idea and made it as difficult as possible to understand – but here are the key points. Firstly all financial service providers must be registered. This includes financial advisers, brokers, building societies, credit providers, credit unions, money changers, finance companies, foreign currency exchange dealers, fund managers, insurers, investment portfolio managers, issuers and registered banks.

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KiwiSaver changes analysed - June

The Government introduced changes to the KiwiSaver scheme in the recent budget. No surprise there. The level of taxpayer-funded incentives meant the scheme was always unaffordable longer term and superannuation is a perennial plaything for politicians.

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Regulation is a drag - May

The NZ economy is currently struggling to claw its way back to growth following some pretty tough trading conditions. As a small economy a long way from most of our main trading partners we need to ensure we do everything we can to make ourselves as efficient and effective as possible. No one owes us a living and with the world changing so rapidly, we need to adapt quickly and can ill-afford any handbrake on our ability to do things faster and smarter.

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A worthwhile plan - April

From my former corporate life I am well versed in the business planning process which usually accompanies the start of each financial year; the annual talkfest where key stakeholders gather, preferably at a nice off-site resort, and consume copious amounts of coffee and freshly baked goodies while a “facilitator” cajoles you into jotting down the essence of future business success on a brightly coloured post-it note before you head off for the obligatory round of golf.

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How prepared are you? - March

The physical, mental, emotional and financial devastation of the Christchurch earthquake will have an impact on a great many people for years to come.

2010

Wealthy and wise - December

The New Year is traditionally a time for reflection and resolution. At the risk of being at odds with one of the key Government messages of the day – that you must save for your retirement – perhaps this is a good opportunity to reflect on what it is that will really make you wealthy.

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Is cash king? - November

A total of NZ$1.7b is being paid out to South Canterbury Finance investors by the Government under the retail deposit guarantee scheme. The bulk of these funds will flow back to retail investors who are now faced with a decision about what to do with the cash.

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Poor decisions aid company collapse - October

If there is one thing that the collapse of so many finance companies has confirmed, it is that bad investment decisions are almost invariably based on some combination of fear and greed; whether it is company management more concerned with lining their own pockets, or investors chasing high returns with no regard for risk, or the NZ Government’s ill-advised intervention by way of the retail deposit guarantee scheme.

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What is the key for KiwiSaver? - August

As KiwiSaver grows it is attracting more attention from investors, the fund management industry and media. This will only intensify as investor fund balances get larger. One example was the recent report comparing KiwiSaver providers and funds at the end of June.

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Give while you live - July

Two of the world’s richest men recently launched a campaign to attract more than US$600 billion in pledged charitable donations from US billionaires. Such eye-watering sums seem inconceivable even if it was Bill Gates and investment guru Warren Buffett doing the talking.

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Budget bonus - June

For investors the Government’s recent budget was all about changes to the tax system. The main initiatives included a reduction in personal tax rates; the reduction in company and Portfolio Investment Entity (PIE) tax rates; and changes to depreciation allowances on new plant and equipment and buildings.

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New rules improve transparency - May

New government legislation is designed ìto promote the sound and efficient delivery of financial advice and to encourage public confidence in the professionalism and integrity of financial advisersî. Yes, that might be the sound you can hear of the stable door being shut after the horse has bolted, but it is a useful starting point before the next financial disaster posing as 'a sure thing' comes along.

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Taxing times ahead - April

Benjamin Franklin said ‘nothing is certain except death and taxes’. Most investors can be certain their tax bills for offshore investments are going to be significantly larger this year under the revised Foreign Investment Fund (FIF) regime.

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KiwiSaver needs clarity - March

Media attention has recently focused on whether the manager of the Huljich KiwiSaver scheme benefited from boosting the unit price of the scheme by putting extra cash into the fund when an investment went bad.

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Finding exit not easy - February

The NZ economy is predominately made up of small and medium sized businesses. Whether it is the local dairy or a multi-million dollar export company, business owners face similar challenges when looking to exit.

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