Her Magazine is New Zealand’s only women’s business lifestyle magazine! Her Magazine highlights the achievements of successful and rising New Zealand businesswomen. Her Magazine encourages a healthy work/life balance.
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Contributors p.84 Fashion has always been a passion for Helen Osborne. From her teenage years when her love affair with quality over quantity started, she acquired the name Imelda Marcos while living in London in the 1990's as her appreciation for anything of the 'high-heeled variety' took hold. For the last 20 years, Helen has kept fit and healthy as it gives her that work / life balance she craves. Every week she's walking, running, playing netball or going to combat classes. "It means I can get around those shops faster when going 'window shopping' - trying to help support those amazing New Zealand designers we have. I love 'made in NZ'." What do you do to indulge? :beyond the window Why look when you can't have? Beyond the Window DO YOU EVER WANDER past a shop window, looking at the clothes, admiring how I love to go with a friend and have high tea with scones and jam and a cream. What a treat. they look and think, "wow that looks nice - surely I can't afford it"; or better still, "I'm way too old to be going in there". But you want to! So why not indulge every now and then? Being creatures of habit we like to go shopping where it feels familiar. You know the style and fit suits, so why would you go somewhere else? It doesn't matter that we have walked past the window many times, or dreamed about looking like the model and how that outfit might look on us. We think of all the reasons not to go in rather than go in. Is it about taking a fashion leap of faith and venturing into the unknown? It could be as simple as buying one skirt, rather than three or four cheaper ones. I call this quality over quantity. I had a friend who was notorious for shopping at second handshops (nothing wrong with this), but she would later comment that the skirts tended not to last and she'd end up throwing them out. She decided to indulge in two decent ones and start to build a quality wardrobe, with a selection of work attire that lasts. When it comes to venturing into a store you may have admired from the window, or perhaps even seen something you fancied in a magazine – what stops you from going in? Firstly, think of the worst case scenario. You go in, you try something on, you don't like it – you leave. Secondly, the great thing about shopping somewhere unknown is that you may end up with something new and exciting. Of course, this could be the start of a love affair with a new you. 84 | w w w.h erma g a z in e .co.n z Is there something you have wanted but have talked yourself out of, for reasons only you can answer? It could be as simple as deciding it is time to try on that new black dress you keep looking at when walking past but think won't suit. But then again, every girl needs a new black dress, as I'm sure Coco Chanel would agree. I feel this way most times when I go window shopping and wonder about what the experience would be like if I was to walk into some fashion stores that quite frankly seem scary. I am not sure what is more intimidating; the immaculate shop assistant/stylists looming inside, the possibility they won't have my size, or that the price tag is too expensive. In other words, I'll have to mortgage the kids or the house to be able to afford anything. Sticking to what we know and like gets easier the older we become. We get set in our ways and find it hard to step outside the comfort zone for that far- off fashion fantasy. Of course, we aren't all the perfect size (whatever that may be), have a disposable income to match or an occasion that warrants an indulgence of the fashion variety. But why not go in and spoil yourself? You deserve it. No one else needs to know. You can always hide the dress in the wardrobe for a week or two, and then surprise your family with, "oh this old thing – had it for ages". Naturally, when everyone sees how lovely you look, it won't really matter that you can't put food on the table or feed the dog for a week due to a little retail therapy. Helen Osborne Yellow Tulip whatisstyle.co.nz WINTER 2013 COLLECTION helen o sbo r ne w w w. he r m a g a z i ne . c o. nz | 85 li z ko h MSocSc, BCA, CA, CFP, GradDipBusStuds, ATCL Liz established her financial planning company—Moneymax—in 1999, after a successful career in management. Liz is an Authorised Financial Adviser, Certified Financial Planner and Chartered Accountant. She is passionate about ensuring that New Zealanders have access to good financial advice at home and in the workplace. She runs financial literacy seminars, contributes articles to a variety of newspapers, magazines and websites, and has published a best-selling book—Your Money Personality: Unlock the Secret to a Rich and Happy Life, Awa Press, 2008. She lives on the Kapiti Coast where she is an active Rotarian and a trustee of several not-for-profit organisations. p.40 :off on the right foot Off on the right foot The top five money mistakes people make Start the new financial year by avoiding the five most common mistakes people make with their money: 1. Spending everything you earn. One of the most important decisions to make about your income is how much to spend now, how much to spend a little later, and how much to spend a lot later. Spending everything you earn now leaves you vulnerable to changes in your income and potentially unable to achieve significant and important goals. Saving doesn't mean going without; it means being able to spend more, later! 2. Not choosing the most appropriate KiwiSaver fund. The effects of compound returns can lead to massive differences in the final value of a fund at retirement, depending on which investment strategy is chosen. If retirement is a long way off, investing too conservatively may result in disappointing returns; if you are close to retirement, investing too aggressively may result in loss. Many KiwiSaver members have not chosen a provider and have been enrolled in a default conservative fund. Make sure you are not one of them! 3. Not insuring your most valuable asset. You insure your car, your house, your business, your life, but what about your most valuable asset – your future income? Most people earn between $1 million and $2 million during their lifetime. Lose the ability to earn and you lose the value of those potential earnings unless you have income protection insurance. 4. Not having a financial buffer. If you have no financial reserves, you may be forced to choose between borrowing money at a high rate of interest, selling assets at a discount for a quick sale, or taking a big drop in your standard of living in response to a sudden change in your circumstances or unexpected expenses. A financial buffer can be savings, the unused portion of a line of credit, or the potential to borrow additional funds at a reasonable rate of interest. What do you do to indulge? Time out for me is curling up in a cosy chair for a couple of hours and reading a book from cover to cover. From trash to crash A young English boy who bought a limited edition toy for AUS$22 has sold it for AUS$1500! The toy was a "Trashie" – a rubbery, thumb-sized, garbage-themed toy which represents all things gross like filth and muck. When the boy bought his limited edition Grimy Gold "Trashie" it came with a certificate confirming it was one of 250 in the world. He put it up on ebay and after 10 days of hectic bidding was sold for £1296 (AUS$1500). Source: Sydney Morning Herald KASPANZ Kiwisaver Annuities and Superannuation Protection Association New Zealand Incorporated (KASPANZ) - the new lobby group created which wants to let consumers have a say in the affairs of the retirement savings industry. KASPANZ was officially created in February 2013 and with over 2 million New Zealanders enrolled in Kiwisaver schemes, their growth potential is huge. Source: www.nzherald.co.nz Quotes 5. Mixing business finances with personal finances. Your business should have separate bank accounts from your personal accounts so that you can keep track of how well it is doing and make sure you have set aside enough money for your tax liabilities. Business income tends to fluctuate and raiding your business bank accounts for personal spending may leave your business short of funds later on. Try and maintain a constant regular payment to yourself from your business so you can plan both your personal and business finances. Liz Koh www.moneymax.co.nz/Liz_Koh Liz Koh is an Authorised Financial Adviser. The advice given here is general and does not constitute specific advice to any person. A disclosure statement can be obtained free of charge by calling 0800 273 847. Need to up-skill the workforce How New Zealand fares on the list of billionaires We have a skill shortage in New Zealand. Deloitte's annual Talent Edge New Zealand survey surveyed 300 managers from a range of economic sectors and different sized companies. The survey identified which skills and roles were in short supply. The skills that were in shortest supply amongst employees were: critical thinking and problem solving, general management and leadership, and initiative and drive. The roles that were in shortest supply were: operations staff, IT staff, sales staff and executive leadership. Source: Fairfax NZ News Forbes has released their list of billionaires for this year and three kiwis have made it, although their rankings have slipped compared to last year. Graeme Hart, owner of packaging company, Reynolds Group is our richest New Zealander. Hart sits in 229th place and is worth a net value of NZ$6.4 billion. Brothers Richard and Christopher Chandler were the other two kiwis on the list. Richard is ranked in 502nd place and runs the Richard Chandler Corporation, he is worth NZ$3.4 billion. Christopher is ranked in 1342nd place, he funded the private investment firm Legatum and is worth NZ$1.2 billion. Source: www.nzherald.co.nz 40 | www.hermagazine .co. nz www.hermagazine .c o. nz www. h e rrm a g a z iin e ..c o. n z | 41 www. h e m a g a z n e c o. n z The key to having a good retirement (and you can) Knowledge is power – and that is very much the case when it comes to retirement. It does not matter if you are 25 or 75, women of all ages can and will benefit from planning and learning about retirement and finances. You don't need to be a rocket scientist either; • Get started on a savings plan today • KiwiSaver is good, but for most of us that will not be enough • Any saving is better than no saving Why women need to know more about retirement finances than men WHEN MY FATHER WAS age 90, he was going to the local pub for Sunday lunch. When I asked who he was going with, he replied, "20 widows and me" (with a cheeky grin). I said, "What, no men?" And he said, "No, they have all gone." This is of course no surprise to anybody; we all know that women live longer than men. Let us assume that a husband age 68 retires. His wife is 65 so they now both get National super of $27,000 a year. They have a debt free home and have saved $300,000 for retirement thus they are looking relatively comfortable. Assuming a 4% after tax return and 3% inflation, how long will this money last? If they are sure they will only live 10 years, they can spend $31,000 a year.If they are sure they will only live another15 years, they can spend $23,000 a year. If they are prudent and assume they will live for 20 years, they can spend $19,000 a year. If one of them lives for 30 more years, they can only spend $15,500 a year. Now we all know who is likely to live longer – the woman – so it is clear that all women need to be well-informed about retirement and all its financial aspects. There are many, many issues that you need to be aware of (see box insert on this page). This can seem a pretty depressing subject, but it need not be. In fact, you can have a pretty good retirement in NZ if you plan ahead, and there are many things you can do out and about at low cost. • Will the retirement age be raised from 65 to…? • Should you perhaps work a little longer or keep working part-time? • Why you need more investment returns than the bank will pay you • How you can get better investment returns without taking excessive risks? • Women seem to outlive men by 7 to 10 years • Learn the basics or more about investments • Get professional advice from an independent adviser or suitably qualified mentor • Make a plan and stick to it • Review your plan at least annually with your adviser • A woman living alone gets $18,000 a year govt. super • A woman living alone will have most of the expenses that a couple would have • Women seem to outlive men by 7 to 10 years • If you are going to outlive your man, you need to understand money today 38 | w w w. hh e r m a g a zine .co.nz w w w. e r m a g a z ine .co.nz p.38 • Be prepared to be flexible • Never, never ever give up – Winston Churchill "The more cooking done in any society, the less obesity (Harvard research 2003). Cooking is traditionally eaten at the shared table, the place where you learn how to behave." Ray McVinnie pg.105 a l an cl a rke :where would we be without men? would we be without "My family and closest friends have always encouraged me in my belief that if we are united in our passion to help impoverished communities break the cycle of poverty we can change the course of history." Molly Bedingfield pg. 10 Property – your home Keep an eye on property prices, because at some point you may downsize your house to release some more cash - the fallback position. Since you do not know how long you are going to live, "keep your powder dry" and do not use up your fallback position until later on – say age 77 to 80. House prices are a very interesting issue and I would not be so brave as to forecast where they will go. However, the government recently tweaked the rules and asked the Reserve Bank to ensure house prices do not rise too quickly. Excessive house prices for young families were recently referred to in the media as "a form of child abuse" and the government is working on cheaper first homes as I write. House prices are very high compared to wages in NZ. Taking all these factors into account, one would be unwise to count on significant capital gains, year in, year out. So ladies, you can have a good retirement, but to get it right, you need to take action and seek the knowledge. If you do, you will gain a lot of satisfaction and peace of mind. Good luck. Alan Clarke www.investandretire.co.nz Alan is an independent authorised financial adviser (AFA) and his disclosure statement is available on request and free of charge. Knowledge is power – and that is very much the case when it comes to retirement In 1987, Alan made a major career change into finance and has been a financial adviser for 25 years. He has first-hand experience of what works for some people and why others get it so wrong. He is now an authorised financial adviser (AFA). After many years involvement with active investment managers, and many years research, Alan discovered what he believes to be a superior investment method – asset class investing. In 2011, Alan wrote his first book entitled "Retire Richer". His passions are his family, writing, meeting new people, helping people with their finances, travel and flying. w w w. h e r m a g a z i n e . c o. n z | 39 What do you do to indulge? Friday drinks, fly gliding, dinner with friends, relaxing at Matauri Bay and swimming or stand-up-paddle-boarding. www.h e rmagaz in e .co.n z | 5