One of the most important savings goals we all have is for retirement. However, one of the big questions about retirement savings is “how much do I need to save?” Even more vexing is “how long am I going to live?”, “how much am I going to spend?”, and “what returns will I get?”.
The insurance industry is full of jargon that often appears to be part of a secret underground language, designed to confuse and bewilder. Money week is an excellent platform to reveal part of the secret code which makes up many Income protection policies. Prepare to have the magician’s cloak pulled aside and be amazed at how simple it really is.
A 2018 report has New Zealand’s total household debt to personal disposable income ratio at an all-time high of 166.2% in the second quarter of 2017, putting our debt levels in the top 10 countries in the world. Clearly, we New Zealanders are comfortable with debt. But, are we too comfortable with consumer debt?
When asked if they have life insurance, most people immediately think about the traditional death cover – you know, the type that pays a cash lump sum to your dependants when you die. But there are other types of “life insurance” that can assist you when illness or injury impacts your ability to earn an income.
“You’re not allowed to buy a car until you can afford insurance”. That’s the message drilled into most young adults who are looking to buy their first car. Some parents can be quite adamant that until insurance cover is purchased there will be no way their pride and joy is driving their pride and joy on any public roads. The financial risks are just too great.
The mere mention of ‘investments’ is enough to glaze eyes and switch off brains. This is hardly surprising; an entire book has been devoted to demystifying the jargon, acronyms and terminology of investments. While the complexities are seemingly endless, understanding a few simple concepts will go a long way in helping you achieve financial success.