Finance and Investments

Are you a DIY investor? If so how are you feeling now? Pretty stressed I imagine and your emotions will swing between denial, fear and blame which is probably resulting in portfolio paralysis. This response is not rational, this is the time to do something and that thing would be to seek advice. If you think you don't need an advisor ask yourself the following questions;1. What return do I expect over the next 12 months?2. What was my return for...

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Womenomics

The world of womenomics can be quite confusing. Two reports one from the UK and one from the USA caught my eye.In Britain it appears that the average earnings of black women are now 6% higher than that of their white counterparts. This is a reversal of last years figures when white women earned more than 7% more. The Equality and Human Rights Commission said that one explanation for these results was that 50% of black women live in central London...

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Musings and Amusings

In some books and websites of late there has been a common theme of anger - anger displayed by single young males (SYM's). They are angry at women who they say turn marriage into a raw deal for men. Apparently women see men as a conduit to money as well as being dishonest, self centred, slutty, manipulative, shallow and controlling. The men who complain seem to think this view of women is a new phenomenon. I can only say they must be poorly educated...

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Who's Counting?

Niall Ferguson is in his recent book entitled "Survival of the Fittest" subtitled "The Ascent of Money: A Financial History of the World."The financial world is all about counting - counting the risk, counting the money, counting the debits and credits.Without mathematics there wouldn't be a financial world and we would not enjoy the sophisticated advanced economics of the 21st century.In his book Ferguson discusses the evolution of "money" and what...

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Why?

Well actually I would say why not? Why not invest in equities? Yes, in hindsight the best place you could have kept your money over the last year is in the bank, and the volatility of the markets combined with the media reports of the worst financial crisis ever make you feel intimidated, fearful. You want to wait until "everything is stabilised." That is sheer foolishness. There is one certainty that has stood the test of time. By leaving all your...

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Everyday Money

10 Places to Find Money1. Stop spending coins. Collect them. Only pay with notes.2. Supermarket coupons (don’t spend the $1 that you have just saved!)3. Cancel SKY TV.4. Take lunch to work.5. Limit magazine subscriptions.6. Increase your insurance deductibles.7. Lower your thermostat.8. Set up automatic bill paying (saves money on stamps) and timely payment can give you discounts.9. Reduce or eliminate ATM and fee-charging credit cards.10. Buy less...

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Musings and Amusings

A famous 19th Century German doctor put it this way “Women is a pair of ovaries with a human being attached, whereas man is a human being furnished with a pair of testes”.Homer Simpson, that well known philosopher, told Bart that women are like beer, and he’s mighty fond of both! Somewhere between these two statements lies the reality. Something both sexes are constantly trying to evaluate, perhaps we should concentrate on our strengths rather than...

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Everyday Money

Given the daily media barrage of disaster and crisis in the financial world what can you do to ensure your everyday money is structured to build a secure financial future?Follow in the footsteps of those who have comprehensive financial plans. A recent study by the US Financial Planning Association reported that nearly half of those surveyed felt extremely confident in their financial future, with 30% fairly confident.Interestingly, in these troubled...

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Who's Counting?

I love the irony of this – it appears that math wasn’t Einstein’s strong point. A recent book entitled “Einstein’s Mistakes: The Human Failings of Genius” states that Einstein’s doctoral dissertation was “a comedy of errors” based on “zany” physical assumptions. And he continued to commit more math errors in 1905, the year dubbed his miracle year. What a relief! It is comforting to think that a genius of his ability and stature struggled with math...

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Finance and Investment

Buffet says ‘Buy.’ Warren Buffett, the world's greatest investor, has a message for people who have become fearful of today's stock market: Buy stocks now!In an editorial in last week's New York Times, Buffett says, "...fears regarding the long-term prosperity of the nation's many sound companies makes no sense." The Oracle of Omaha, as he is known, cautions that he is not calling the bottom for stocks. "I haven't the faintest idea whether stocks...

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Why?

Why in 2008 are we still seeing practices which restrict and marginalise women?In Kuala Lumpur the main body of Islamic clerics has issued an edict banning tomboys, ruling that girls who act like boys violate tenets of Islam.While in the port at Kismayo, thousands of people gathered to witness 50 Somali men stone a women to death. She was buried in the ground up to her neck and her head was battered with rocks. The local Islamist leader claimed...

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Womenomics

There is no doubt that the world economies look bad. Andrea Learned, a specialist in marketing to women, suggests that the only way to dig ourselves out of the crisis is to model businesses and organisations on typical feminine behaviour. “Women’s way” includes building and leveraging community, being socially responsible, and operating from an “it all matters” perspective. She says that reaching out to women is how brands should be preparing for...

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FINANCE AND INVESTMENT

We are at the point in time when we are faced with a particularly fragile global banking system, a weakening global economy, very depressed and nervous equity and capital markets. As you are undoubtedly aware, not least from the pervasive and extensive media coverage of recent months, it has been a particularly harrowing time in equity and credit markets. For the quarter, the MSCI Global Equity index returned -4.8%, Irish equity index -31.2% and...

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WOMENOMICS

It’s pretty clear that Hollywood pays its male leads more and gives them roles for much longer than women.This has extended to the world of comics. Five of the six upcoming Marvel movies feature male leads with women firmly relegated to the roles of girlfriends or assistants. Why not a Wonder Woman flick or any true super heroine movie? It’s not because directors and writers lack good material, there are literally hundreds of comic book super heroines,...

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WHY?

Why does money matter? Money matters because like it or not we live in a money culture where money is the universally acceptable medium for exchange for goods and services. Money buys the things that all people want – and deserve; life, health, food, land, hope, education, sexual pleasure and some peace of mind. From Women, Money and Power. Phyllis Chesler & Emily Jane Goodman (New York: Bantam Books, 1977)Why do we need to learn about money?...

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EVERYDAY MONEY

What can be more everyday than marriage? Ask your favourite married couple what makes their marriage work and they are unlikely to say it’s because they found their financial soul mate.The smartest financial decision you will ever make may be marrying someone who has the similar attitudes to money. This could in fact be your most valuable asset – or your largest liability.Although we now marry for love, so much of what we want in life boils down...

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MUSINGS AND AMUSINGS

In Money, Money, Money Ain’t it Funny I wrote a little about our lack of mathematical skill quoting an entertaining example from The Simpsons:A psychologist is giving a ‘team talk’. He makes the statement, ‘You are all very good players’. The team members mimic the psychologist, ‘We are all very good players’. Then the psychologist says, ‘You will beat Shelbyville!’. And the team, again in unison, reply, ‘We will beat Shelbyville!’ By this time the...

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WHO’S COUNTING?

I’ve been counting women lawmakers and politicians. It is true that we have made substantial gains in the last decade but equal representation in the lawmaking and ranks of political power still seems to elude us.Less than 18% of the world’s lawmakers are women and many developing countries have more women in the corridors of political power than Western democracies. Globally, the proportion of female lawmakers jumped from 11% to 17.7% between 1995...

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Everyday Money

Many of us have life insurance and in well over 90% of cases we have term insurance. Term insurance premiums increase each year to meet the rate for the insured’s age. To date most of us have just rolled our eyes and paid the extra however 2009 could see our eyes watering.It has been suggested that life insurances are under taxed and legislation is planned to correct this. As always this will reflect on the consumer with premiums looking to increase...

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Musings and Amusings

I love my bed and I love snoozing – for those of you who feel the same way it is now official – sleep is good for your brain.Until the mid 50’s, it was assumed that when we slept our brains shut down but are now familiar with the REM (Rapid Eye Movement) cycle evident in your sleeping patterns – the brain waves produced during this period look similar to those produced when are awake.In fact the effects of sleep on memory are impressive. It appears...

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Womenomics

A few weeks ago and academic Paul Callister questioned the validity and continuation of specific scholarships for women, given, as we all know that women routinely gain higher educational qualifications than men. An op-ed piece in the Sunday Star Times commented that Mr Callister raised “fair” but “awkward” questions.At arond the same time Fairfax printed a booklet listing the 100 Business Luminaries who have shaped our nation. Of the 100 business...

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Finance and Investments

The stark truth about managing our money these days is that we are mostly on our own.Few employers want us around for 40 years, so our income is likely to have ups and downs and could disappear altogether for brief periods between jobs. Saving for retirement is now mostly our responsibility, too. Health insurance, for those of us who have it and manage to keep it, requires increasingly large amounts of money out of our pockets. The list goes on and...

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Why?

Why do I continually meet people who live from payday to payday and why do I have to keep parroting the same lines. Financial freedom is not rocket science. Follow these simple steps.• Spend less than you earn• Join a subsidised superannuation scheme or KiwiSaver• If you are in the position of having short term expensive debt pay it off. • Take out insurance – income protection is essential. • Set aside an emergency fund. • Buy a property and focus...

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Who’s Counting?

I am – and I am up to five – five great ways to find extra money.One: Slash your credit card rate – you could take a term loan, clear the balance and cut your card up; if you don’t want to do this transfer to a low interest rate card; or alternatively increase you mortgage to clear your card and finally – if you have money in your savings account or term deposit pay off your card! The interest you earn is less than a quarter of the rate on your...

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Finance and Investment

There are numerous books written ostensibly to guide, advise and enlighten us on how to invest or get wealthy – and yes I am guilty! One Ken Fisher, a practical and rich man who obviously loves simplicity wrote a book called ‘The Only Three Questions That Count: Investing by Knowing What Others Don’t.’In these uncertain times it may pay you to ask yourself the following, in relation to your investments:1. What do I believe that is actually false?...

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Who’s Counting

House sales are down 30 per cent compared with a year ago, with prices expected to fall 5 per cent this year and remain flat for the next five years.That's the grim prediction from Westpac's economists who say residential property prices have "screeched to a halt, with essentially zero price movement in the past eight months". Prices stopped dead in April last year, they say, after rising by $8000 a month. Had it not been for New Zealand's strong...

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Everyday Money

University of Chicago economists Kerwin Kofi Charles and Erik Hurst along with Nikolai Roussanov of the University of Pennsylvania, have challenged common assumptions about luxury. Conspicuous consumption, this research suggests, is not an unambiguous signal of personal affluence. It’s a sign of belonging to a relatively poor group. Visible luxury thus serves less to establish the owner’s positive status as affluent than to fend off the negative...

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Womenomics

A recent article in the Economist asks is the European Union at heart a female project? Margot Wallstrom, a vice-president and thus the most senior woman in the European Commission, rather thinks so. She points to the EU's fondness for compromise and listening, and its rejection of horrid things like conflict. Ms Wallstrom, who is charged with selling the EU project to the public, suggests that this is a good reason for giving women a bigger share...

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Musings and Amusings

You probably didn’t know this (nor did I!) but the world’s top eight economists (including five Nobelists) were asked to prioritise 30 different solutions to ten of the world’s biggest problems. I thought it made fascinating reading given some of media obsessions.Supplying the micronutrients vitamin A and zinc to 80 percent of the 140 million children who lack them in developing countries is ranked as the highest priority. The cost is $60 million...

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Why?

I have recently read and enjoyed Kluge (Subtitled 'The Haphazard Construction of the Human Mind') by Gary Marcus. Kluge means ‘a clumsy or inelegant solution to a problem.’ His book explains why, despite the fact that humans have been known to be eaten by bears, sharks and assorted other carnivores, we love to place ourselves at the top of the food chain. And, despite our unwavering conviction that we are smarter than the computers we invented, members...

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Why?

Why aren’t there more women in science and engineering?When it comes to the huge and persistent gender gap in science and technology jobs, the finger of blame has pointed in many directions: sexist companies, boy-friendly science and math classes, differences in aptitude.Women make up almost half of today's workforce, yet hold just a fraction of the jobs in certain high-earning, high-qualification fields. They constitute 20 percent of the nation's...

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Musings

How many times has this happened to you? You leave work, decide that you need to get groceries on the way home, take a cellphone call and forget all about your plan. Next thing you know, you've driven home.What gives? Why are we as a species so often so desperately poor at achieving our goals? The problem is that evolution failed to realize that remembering goals is not like recognizing objects. When your brain sees a lion, the thing to do is to...

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Finance and Investments

Investors be worried...The next 12 months will provide you with the best returns you are likely to get for some years.A study of the last eight US recessions shows the US sharemarket (Which is still closely correlated with other world markets) hit their lowest points 3 – 6 months before the economy dips to its lowest ebb.One commentator suggested the markets should start to recover around June – markets tend to recover before recessions end and,...

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Womenomics

Once upon a time our DIY activities were restricted to cooking and sewing – but not anymore. In the great Kiwi tradition of self sufficiency, manual competence and can doism, we are now joining the hammer brigade. Smart marketers in home improvement companies have latched onto this and are offering courses in home maintenance.In the States there has been an explosion of women targeted self help books, videos and radio shows – including one called...

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Everyday Money

Well I love market research especially that which tell me what I am doing with my every day money – and in comparison with Australian women. You’ll be surprised to know that we spend more than the Aussies, proportionate to our income. But at least we get it right – we spend more on premium products and indulgences such as shoes, designer clothing, haircuts and pamper sessions. What do you spend your money ...

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Who's Counting?

The government is counting. It appears that we have embraced KiwiSaver in numbers which have far exceeded Cullen’s expectations. Initial projections were for 270,000 people to sign up in the first year but to date over 600,000 people have joined.It’s not surprising because we can count – we count $1000 kick-start from the Government, up to $20 a week, and $40 a year towards fees. What’s not to like? And the funding is coming from the taxes we p...

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Mike Yardley Presents with Sheryl Sutherland

Please view the 15 minute CTV excerpt from Mike Yardley Presents featuring Sheryl Sutherland speaking about her book 'Money, Money, Money Ain't it Funny.' Enj...

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Everyday Money

Everyday I read advertisements which urge me to get rid of my wrinkles, change my body shape or alter my bust size - and the options don't stop there. The advertisers want my discretionary income, my everyday money, to create a new and miraculously better looking person.The amount of money we spend on skin care and cosmetic procedures (which seem to become weirder and weirder) is phenomenal. Global skin care companies boast science laboratories which...

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Why?

Why do you need to understand economics and game theory? OK - a qualification, this could be useful information if you are concerned with the man drought. You need to think of the search for your man as a kind of auction. In this auction some of you will be more confident of your prospects than others. In game theory terms the first group would be "strong bidders" and the latter group "weak bidders." You would think wouldn't you that the "strong...

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Who's Counting?

I have been counting the members of the National Academy of Sciences (NAS). This is an extremely elite and venerable American institution, membership in this academy is second only to winning the Nobel Prize.The pool of scientists from which the NAS members are drawn numbers about 625,000. Academy membership (by invitation only) currently numbers 2,041. Of the 2,041, 200 are women. Women PhD's number 33% of all graduates. Even in science the old...

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Musings and Amusings

As you know I am fascinated with the way our brains function. Human error is often written off as a momentary loss of concentration but it appears that a localised change in brain activity may be involved. The regions which seem to take over our brain function when we make mistakes are part of the so called "default mode network" which show increased use when people are resting or falling asleep. This set me musing of course - what would life be...

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Womenomics

I frequently talk about the gender gap but here in the West maybe it ain't so bad? Despite the Prophet Muhammad's first wife supporting her husband financially, women in Saudi Arabia were legally required to conduct business through a male agent until 2004. Although that law has gone its ramifications live on, which makes the male dominated world of banking particularly hard to penetrate. But on a positive note some forward thinking Saudi banks have...

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Finance and Investment

One of the issues I address when writing a financial plan is that of diversification. And by this I mean diversification across asset classes. Of late I have had numerous conversations with worried "property" investors. Without exception diversification has not been considered at all. The narrow investment schemes (not financial plans) all share the same features;1) All of their money is tied up in property.2) All their property is residential.3)...

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Who's counting?

Well I am not at all sure who is counting. Perhaps some people can't count - and I am thinking here about Michael Cullen. We have veered between not counting $700 million or so from tax revenues, to not being able to afford the last lot of tax cuts because of KiwiSaver, to "significant" tax cuts.Dr Cullen, the right honourable has not defined "significant." We have seen some pretty significant price rises; interest rates, petrol, food for example...

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Musings and Amusings

Like you I always wish I had more will power so I was thrilled to find out that the latest studies tell me I can grow my will power. Yes it's true - something as simple as using your non dominant hand to brush your teeth for two weeks can increase will power capacity. People who stick to an exercise programme for two months report fewer impulse spends, eating less junk food, drinking and smoking less. They also study more, watch less television and...

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Womenomics

The Human Rights Commission has just released a "Census of Women's Participation." The findings of that report clearly delineates inequality across sectors such as the police, legal and justice systems and at company director level:• 41.6% of lawyers are women but only 19.34% are partners in law firms.• 3 of the top 50 police officers are women.• 54 women sit on boards of publicly listed companies, 8.65% of board membership.• 23% of public service...

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Everyday Money

I have just read a hugely entertaining book review by one Jessa Crispin, the founder and editor of www.bookslut.com - check it out. Her discussion revolved around those ubiquitous fashion/shopping guides.The Trinny and Susannahs, the Paula Ryans; she makes an extremely valid point; these guides exacerbate the negative feelings we have about our bodies.So I have decided to retain more of my everyday money by not shopping for that special garment which...

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Finance and Investments

When I think of the finance company sector I am reminded of that scene in Alice in Wonderland where she says "You are nothing but a pack of cards." The assembled company then flutter gently to earth in a flurry of diamonds, hearts, spades and clubs.Yet another finance company has hit the ground, the 17th, and, I wearily note the story is the same old, same old. Lombards investment strategy is apparently an issue with a substantial amount invested...

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Why?

Why don't we read and write more poetry? A review poem of Money, Money, Money Ain't it Funny follows for your amusement and edification. You might even find yourself agreeing with the poet's sentiment.A Poetic Book Review of Money, Money, Money Ain't it Funny....Money, Money, Money written with sex on her mind,Compare my sexual progress to my money progress and they are the same I find,If I am going to fail with money, why the bloody hell am I in...

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Who's Counting?

Certainly the government can’t count correctly.The IRD, Treasury and Dr Michael Cullen featured in a scenario the writers of Yes Minister would have loved. It seems that the $400 million “deficit” we had for the seven months to January was actually a surplus of $200 million – as Mae West said when she went into the movies “I just love those round figures”. What a massive balls up. Quite apart from the obvious questions – can we trust anything we...

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Musings and Amusings

Our brains lust after money with the same neurons that crave sex. And these are the same neurons which give us the high from cocaine. The pleasure of orgasm, the high from cocaine, the rush from buying, are governed by the same neural network.Furthermore, these primal pleasure circuits can, and often do, override the functioning of the brains’ frontal cortex which governs rationality (read more about this in Money, Money, Money, Ain’t it Funny)....

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