Feeling stressed or worried about your financial situation right now? You are not alone.
In fact, 74% of NZ households are with you on that. The Commission For Financial Capability have just published the results of a survey they ran in Level 4 lockdown, involving 3,085 people.
The survey showed that 34% of households were in difficulty and 40% were at risk of tipping into hardship.
The retirement commissioner Jane Wrightson, who heads the CFFC, said the 40% group at risk of slipping into financial difficulty, if their income reduced in the next three months, was concerning.
Among other findings in the CFFC report:
- Māori, Pacific Peoples and young people were worst affected.
- 10% of households had, by the end of April, already missed a rent or mortgage payment
- Workers in insecure forms of work before the crisis were among the worst affected,
- A lack of financial confidence led to panicked decision making, including taking extra loans or trying to access KiwiSaver funds through hardship withdrawals.
- Many switched KiwiSaver investments to lower risk funds, thereby ‘locking in’ losses.
In response to the loss of international tourists, some tourism operators and luxury lodges around the country are letting their guests set their own price, giving many Kiwis the chance to have an experience they could not otherwise afford.
The same could be said for high-quality financial advice – is the price of getting good advice too high for too many?
Financial Services Council chief executive, Richard Klipin said the country was in for a “real tough time,” but it would make the role of advice more important than ever. “Good advisers need to step up.”
And MoneyTree Financial Services is certainly doing just that.
Pay what you want for financial advice.
Operating in Palmerston North since 2010, MoneyTree Financial Services has now launched an initiative inspired by brave business operators like Stewart Island Adventures and Quail Lodge who are willing to accept bookings where the customers set the price.
MoneyTree is offering to meet with anyone who wants access to financial advice but has never used an Adviser before. With MoneyTree, your first meeting is always free but with this offer, instead of undertaking work for set fees or commissions, you will be able to pay whatever you want for the service after the work has been completed.
You will receive the usual service from a registered, qualified and experienced Financial Adviser, and the advice will be given in full compliance with the Financial Advisers Act.
The only condition is that the work will be limited to 2 hours (after the free first meeting), and the number of customers per week will be limited to manage demand.
MoneyTree Managing Director Regan Thomas has over 20 years of experience in roles from retail banking to insurance and financial advice. He has served as a Mentor for Business Mentors NZ since 2014.
Examples where MoneyTree has helped
- Family asked for help with spending plans and goal setting. Led to ongoing discussions about whether to sell house, restructure mortgage, and exploring exciting business opportunity.
- Business owner unsure about taking franchise opportunity. MoneyTree looked at the pros and cons, asked lots of questions and in the process the client worked it out, and proceeded with confidence.
- Person nearing retirement unsure whether to continue life insurance policy. Premium had become very expensive. Eventual pay-out was intended to benefit children, who were now adults. MoneyTree facilitated a family discussion where the children revealed they did not need that money. Person ended up reducing cover, and set up fixed premiums policy that won’t go up until after age 80.
- Spending review that led to detailed review of very high power bill – MoneyTree helped get a better power plan, backdated with more than $2,000 of refunds.
- Family that suffered loss of wages during lockdown. Mortgage and life insurance relief was required. MoneyTree quickly got mortgage payments “holiday” – including most recent mortgage payment refunded – and arranged for life insurance payments to stop for three months.