All in Term Deposits

You should pay off your student loan, and here’s why.

I want to explain why you will often hear me encouraging people to avoid taking out student loans or pay them off as fast as possible if they have them. My suggestion is more controversial than I realised, and I’m often taken to task for my view, particularly by more mathematically minded people. Over almost eight years of talking with people from all walks of life about money, I have found that student loans keep coming up in conversations with former students. The simple reason is that what is considered a relatively innocuous decision to take on interest-free student debt has far wider-ranging implications than those borrowers ever realised at the outset. I kōrero with many people, and the word that keeps coming up regarding student loans is simple: REGRET. The reason they now have regret is that the debt had impacts on their life that they never foresaw.

Becoming an Investor*

All your working life you are trying to increase your net worth so that when you finally stop working you start to slowly spend it to live on. If upon retirement each year you take 4% out of your pot of savings it will take about 30 years to boil the pot dry. So what can you live on a year? Do you need to invest $100K, $200 or $500K?

KiwiSaver ≠ First Home Buyer Deposit

Is it just me or are people confusing saving for a house with saving for retirement? I keep hearing about first home buyers all the time and how difficult it is to get into the market. But the question I keep asking myself is “why do people use their KiwiSaver as their primary mode of saving for a deposit?”