Latest News & Updates
Equity Release - for a worry free retirement
Thursday, July 25, 2024
Equity release products are becoming popular as a way to provide more financial flexibility and comfort during retirement.
There are two main Equity Release options: Home Reversion, where you can sell a share of your home, or a Reverse Equity Mortgage, which allows you to borrow against your home's value. These solutions aim to help retirees who are 'asset rich but cash poor' to have a more comfortable retirement.
The products have advantages and disadvantages. We provide unbiased information to assist retirees and their families when considering potential asset utilisation options for a better retirement. This includes funding for lifestyle, immediate financial needs (e.g., health), and basic expenses like rates, utilities, and insurance.
These options are a reverse equity mortgage and a home reversion scheme.
July Newsletter
Wednesday, July 17, 2024
Creating a Strong Financial Foundation
Kickstart Your Financial Plan: The Essential First Steps
If you haven’t yet started on your financial planning journey, now is the perfect time to take action and secure your financial future.
Starting a financial plan from scratch can seem daunting, but it doesn't have to be. With the right help and guidance, you can create a well-structured financial plan that helps you set clear goals, manage your money effectively, and make informed decisions about your future.
What is Asset Finance and can it help you and your business?
Tuesday, July 16, 2024
Cashflow needs to be the key focus of businesses now…
Over the past three years, numerous businesses have encountered cash flow difficulties as a result of their debt arrangements. When seeking loans, business owners tended to prioritise interest rates and choose short loan terms, often due to discounted interest rate offers from equipment suppliers etc. Currently, industries with narrow profit margins and disrupted operations are facing significant cash flow challenges.
Potential cash flow impacts to consider:
* Repayment of debt too quickly.
* Equity is tied up in assets, with funders unwilling to release it when needed.
* Businesses have experienced disruptions due to staff shortages, supply chain issues caused by COVID-19, extreme weather events, and inflationary impacts.
* Borrowers focused on cheap interest rates or ease of finance.
* Poor choice of finance structure or products.
* Limited funder options due to heavy reliance on a single funder.
* Current funders are unwilling to restructure existing debt or provide finance for other business needs.
* Use of personal assets to support business debt.
* Businesses using IRD debts as working capital, with funders unwilling to assist due to resulting tax arrears.
Changes to Trust Tax Rate
Monday, June 17, 2024
Changes to Trust Tax Rate.
In April 2021, the top personal tax rate for income above $180k was increased to 39%. However, the top trust tax rate remained at 33%. The government of the day highlighted that this variance could cause arbitrage.
Saving for their education.
Friday, May 3, 2024
As parents, we all want the best possible future for our children, and a key component of that is providing them with access to quality education.
Saving for your children's education is a smart investment in their future. By starting early, setting aside small amounts of money regularly, and taking advantage of tax-advantaged savings options, you can give your savings more time to grow and accumulate into a substantial fund.
Additionally, involving your child in the process and teaching them about financial responsibility and the value of education can instil good money habits from a young age and motivate them to take an active role in their academic future.
Mortgage Cashback?
Friday, March 22, 2024
What is a Mortgage Cashback?
After a mortgage is secured and drawn down, a bank will pay an agreed amount into the borrower's bank account. This sum is known as the 'cashback' and will usually be a percentage of the initial mortgage. Depending on a bank's criteria, cashback offers usually range from 0.10% to 1.00%, or a fixed dollar amount, known as a 'cash incentive', i.e. $3,000 - $7,500, or more, depending on the mortgage size. Having discussed cashback with mortgage brokers working with all major lenders, we understand the 'average' cashback rate offered is around 0.70%.
After the cashback is paid, the homeowner can do whatever they want with it, including making an overpayment on the mortgage (if permitted). However, in most cases, homeowners will use the money to bolster an emergency fund, spend it on property-related expenses, or invest it.