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Welcome to our first edition of Smart Money! This newsletter is designed to give you updates, reminders and tips relative to the upcoming season for your finances and well being (getting a bit late for summer I know). In this season’s newsletter we have: Upcoming Recommended Courses: Smart Money, Communication Skills, Business Planning.Full Balance Coaching News: Update on new servicesNew Years Resolutions: How did they go?Yearly Updates: Why they are so important….. 1. Courses with our Tauranga or Auckland based financial coaches It’s the beginning of the school year, and also the start of many courses. Don’t miss out… Smart Money This three week course in Tauranga is designed to motivate and lead you through the steps we would go through one on one, focusing on how to build strong financial foundations so that a secure future is achievable, but in a group setting. It is a cheaper option for people and allows people to interact and share as much, or little as they like. The course starts on February 18 (this Thursday night) through the Life Academy at Historic Village. For more details and to enrol http://www.lifeacademyonline.co.nz/classes/smart-money/ or give us a ring. Relationship Education Courses These courses mostly start next week and run through out the country each term subject to demand. There is a variety of courses on improving relationships with important people in your life, including you! These are funded by the government so very affordable at $10 - $30, and are given by quality and experienced tutors. I recommend Positively me for Women or Manmade for Men, for any who wants to improve their communication and assertiveness skills to get their message across without conflict. There is also couples and parenting courses. Phone 576 8392 for more detail or click here: http://www.relate.org.nz/LinkClick.aspx?fileticket=BiOd9HGvyK4%3d&tabid=309 Certificate in Small Business Management This course is a year long course, one evening a week, and starts soon through out the country. It is subsidized from the government and free! The course covers all the fundaments of good business management and guides you through writing your own business plan. You do not have to be in business to do this course, you just need an idea. Call 0800 355 553 to find out when the intro evening is. I’ve done this course and I fully recommend it for anyone in business or anyone who wants to get into business. 2. Full Balance Financial Coaching News Website If you haven’t seen it yet, we’ve had a website running now for over a year! It’s a great marketing tool and can explain what Financial Coaching much more succinctly than I can over the phone! www.fullbalance.co.nz Free Money Personality Testing The website now also has the money personality test, so you don’t have to do it by hand anymore….There is also the option to email the results and get a free in depth analysis back via email. It’s a great first step for you and your friends to start their financial journey, and can also be a bit of a laugh! Best of all it is free with no obligation. http://www.fullbalance.co.nz/money-quiz-saving-money-feelings-about.html Client Numbers As word gets around about our fabulous service, we are getting busier. There are now over 100 clients on our books and it is ever increasing. Spread the love and forward the newsletter on… New staff: I am currently looking to recruit a new coach part time, watch this space… 3. New Years Resolutions? How are your New Years resolutions going? I don’t know about you, but I find the new year after the holidays is a motivating time to reflect on what you want to be different in your life. I’m still hanging in there with my resolutions, just! What’s the key? Remember to write it down while it is in your head (in a book, or as art work) and remember to think about why you want to change – what’s in it for you? I recommend using the 4 W’s for goal setting and/or a dream board. What do you want to achieve, by when, who is involved, and WHY do you want to do the goal. If you can’t think of a reason, other than you feel you “should”, then save yourself the pain and find something else that is important to you. 4. Yearly updates Yearly updates are really important to keep you on track! Whether you do this on your own or with a coach, it can make all the difference between staying in your current rut and getting out and “making” in the world over the longer term. If you are worried that you didn’t achieve much, don’t be. Often clients say “but I haven’t done much”, but then when we run down the list we find that most of their actions have been achieved without them realizing. Sometimes there is a good reason that an action hasn’t been done, even if it is that it just didn’t feel right! Reviewing your finances yearly, enables you and your coach to see how far forward you are going with your finances, and the progress you have made towards getting the funds for your goals. Sometimes the goal may not have been achieved because it is not important anymore or you’ve forgotten to give it the importance it deserves as other things have gotten in the way, and you need to start getting you A into G…. The best time for yearly follow ups is obviously a year after we first meet; in the New Year; after the end of the financial year; or when ever you are feeling motivated. Ring me for an appointment if you think you a due for an update. 5. Next Edition Autumn will be our next update, with emphasis on the end of the tax year and what it means for you…. Enjoy the rest of the summer while it still lasts! Ps thanks to Ros Lee, IT Coach, for your IT tips in preparing this newsletter. The information in this newsletter is designed to be for information purposes. The accuracy of the information is not guaranteed and no responsibility is taken for your action based on this newsletter or links contained in it.

Welcome to our second edition of Smart Money! This newsletter is designed to give you updates, reminders and tips relative to the upcoming season for your finances and well being. In this season’s newsletter we have: Tax, tax and more tax: Do you need to do a return? Could you be due a refund? Do you need to change your PIR tax rate? How to negotiate with IRD, How to lower your tax bill….Kiwisaver: Do you need to be in it? What if you work for yourself?Full Balance Coaching News: New staffYearly Updates: Use the template and do it yourselfNewsletter ideas? 1. Tax, tax and more tax…. The end of the tax return for most of us, March 31st has been and gone, so if you haven’t updated your tax or done your return now is the time. If you do your returns yourself, they need to be in by July 7th - Yes that is a couple of weeks away. If you get your accountant to do them, they are not due for ages, but still good to get everything out of the way now, before it becomes a distant memory and you can’t remember what’s what! If you want to do your tax return yourself (only recommended for sole traders and individuals), FULL Balance can coach you through completing your return, give us a ring.Do you need to do a return?Obviously if you have earned income that you haven’t declared to IRD, yes you do need to do one (even if you made a loss), this includes self employment income, property rent, overseas income etc. The exception to this is if you earned money from a hobby activity where you were not intending to make a profit. If IRD have sent you a tax pack this means they are expecting you to do a return (usually because you did one last year), but if you can’t get it in on time or you don’t think you need to do a return – ring them otherwise you will probably get a whole lot of late penalty filing charges against your name - $50 a pop each year.Can I get a refund? There are many circumstances that you can get a refund, but IRD is not going to be knocking on your door asking you to apply, so sometimes you need to be a bit proactive. You can apply for your refunds for up to 5 years ago, and then it disappears. You may be due a refund in the following circumstances:• You only worked part of the year – this means that you probably paid too much tax, as they thought your earnings for the year were going to be more so taxed you at the higher rate. E.g. if you have been out of work during the year or have been travelling.• Were a low income earner - usually if you were working part time on a low wage • Made donations to a registered charity and kept your receipts• If you paid for childcare or a house keeper• Made a loss from your business or investments as a sole trader or individual• You qualify for the independent earner tax credit and haven’t declared it to your employer i.e. you earn between $24,000 - $48,000 and don’t receive any extra’s from the government i.e. you don’t have children or claim a benefit If you want to find out whether you are due a refund without having to file a tax return first or give your details you can do it here http://www.ird.govt.nz/calculators/tool-name/tools-p/calculator-pts-calculator-2010.html Do you need to change your PIR rate?No doubt you got a letter from your investment managers about whether you need to change your PIR rate. Make sure you have the right rate, because you won’t get that extra tax paid back! In general if your taxable income was less than $14,000 in either of the last two years then your PIR is 12.5%, between $14,000 – $48,000 then it is 21% otherwise it is 30%. Your Kiwisaver is a PIE investment, so good to check your tax rate if your income has changed since enrolling, especially if you now work for yourself. How can I lower my tax bill?Make sure you are declaring all your expenses, including home office (rent, insurance, power, water, rates, phone, mortgage etc), entertainment, mileage, bad debts….! This can have also sorts of benefits such as increasing your Working for Families entitlements, and lowering the amount of money you owe IRD. If you do have bad debts and need someone impartial to chase them up on your behalf, or want to check which expenses you can claim, give us a call. What if I owe tax and I can’t pay it? The IRD are surprisingly negotiable, so don’t just ignore it or you will get lots of penalties and interest added. There is a 1% then 4% upfront penalty when it goes past the due date, then they keep charging 1% a month penalty plus interest at around 8%. However if you negotiate a payment plan they will stop charging the 1% penalty per month, so good to do that sooner or later. If you continue not to pay they can take money from your wages or bank account or take you to court, but this is usually only in extreme cases. We can help to negotiate with IRD, and any other creditors, and act as your budget advisor if you need us too, to make sure any debt payments are not going to put you under hardship. 2. Kiwisaver I’m starting to see people build up savings in their Kiwisaver, and it’s a good feeling knowing that you have some money tucked aside. Also in these times of needs, this money can also be called upon if you are suffering hardship. Please let me know if you or someone else needs a Kiwisaver hardship application done. Do I need to be in Kiwisaver? A lot of advisors would say you were a fool if you were not, because you will get your money double or even tripled because your employer will match your 2% and the government will match the first $1040, but you may not get the money until you are 65 (if you die before then it goes to your estate). However there are some circumstances where it may not be in your best interest, mostly when you are under stress and need the cash for something else. So if you are not sure whether you need to be in Kiwisaver, whether to put 2% or 4% in, not sure which provider to join or how to join or which type of investment is for you (i.e. conservative, balanced or growth), give us a ring for an independent opinion. Kiwisaver and working for yourself If you are not working or work for yourself as a sole trader, you need to make your own contributions directly to your Kiwisaver provider. You will miss out on the 2% from an employer, but you can contribute $1040 to get that matched by the government, you may want to contribute more if you are hoping to get the first home subsidy (as you had to of contributed 2% of your gross earning to qualify). The cut off date to contribute to Kiwisaver so it will get matched this year by the govt is 30th June, so if you don’t contribute before then you will miss this year’s entitlement (note if you haven’t joined yet, you are better to wait until after this date, as it is govt contributions are prorated in the first year). Quite important if you are hoping to qualify for the first home subsidy and get your $1040 to get in before that date. 3. Full Balance Financial Coaching NewsTemplates AvailableWant to do your own update of your financial situation, the template are now available so you can track your own progress. Just send us an email to purchase your own copy.Free Money Personality TestingThis is a great first step for you and your friends to start their financial journey, and can also be a bit of a laugh! Best of all it is free with no obligation.http://www.fullbalance.co.nz/money-quiz-saving-money-feelings-about.htmlExpanding We now have an extra coach in Tauranga, Sue Newnham. Sue has a wealth of business and life experience and comes to us from a business financial advisory and counseling background. She has a Diploma in Business Studies, Certificate in Counseling, B.A. in Psychology and is a volunteer and certified budget advisor and Lifeline Counselor. With Sue on board this will give me more time to manage and expand the business. 4. Yearly updatesYearly updates are really important to keep you on track. Whether you do this on your own or with a coach, it can make all the difference over the longer term between staying in your current rut and getting out and “making” in the world. The end of the financial year is a great time to review your finances, especially if you are in business. Email me for a copy of the template if you’d like to review your own finances, or ring me for an appointment if you think you a due for an update. 5. Next EditionIt will be either the end of Winter or Spring for the next update. Please let me know if there are any topics you would like investigated. Keep warm and healthy till then.Full Balance Financial Coaching The information in this newsletter is designed to be for information purposes. The accuracy of the information is not guaranteed and no responsibility is taken for your action based on this newsletter or links contained in it.

Welcome to our first edition of Smart Money for this year, it’s been a long time coming I know!  This newsletter is designed to give you updates, reminders and tips relative to the upcoming season for your finances and well being.  This year I have added an extra section on good or free deals I have found, to provide you with more value. In this season’s newsletter we have: Tips to save more: Groceries and petrol keep going up, here’s how you can get better value. Updates:  Tax and financial legislation changes: The new tax year has started and there have been several changes to tax legislation which could affect you personally.  Also we summarise the new financial services regulation and what it means to you, the customer/client. Deals: Free 80 min yoga video online; Cheap dental checkups; Ohakune family accommodation:  Full Balancing Coaching news: Access to the money quiz, templates and expansion to Auckland Yearly Reminders:  Tax returns, kiwisaver and yearly update system Newsletter ideas? Lessons learned from natural disasters and the recession, housing and mortgage tips…     1.    Tips…. I think everyone has been feeling the pinch of increased petrol and food costs, especially those doing high km’s and feeding a family.  Here’s some easy ways to reduce costs: Groceries Go grocery shopping at the most once per week.  How often do you step into at a store, and buy extra treats while you are there? By only going once a week or less often you spend less on treats and once they are gone, you eat the cheaper staple foods left.  To do this make sure you have a list to take so you don’t forget anything, and buy enough milk and bread to get you through the week. You will also save time and petrol money by doing it less often.  If you have to get extras during the week, stop at a fruit and vege shop instead where there is less temptation. Also watch how much you spend of fancy cleaners.  A few drops of detergent in an old spray bottle lasts ages for the kitchen, or if you want to go natural use vinegar which will act as an antibacterial. http://www.vinegartips.com/Scripts/ Petrol Check your tyres are inflated to recommended pressure (refer inside of car door) at least monthly and before long journeys.  This will reduce wear on your tyre and save about 10% on fuel, or more if your pressure is low. Increase your following distance.  This will mean less breaking and acceleration, and is the safest thing you can do when driving. If you want to measure your fuel efficiency of your car, next time fill to the top re zero the km’s, then next time you refill to the top record on the docket how many km’s you have travelled.  Then divide the litres of petrol used by the km’s travelled and times by 100 to give you litres/100km.  4 – 12 l/100km is average, depending on whether you have a small car or a large SUV.  Let me know how you go, I’d love to here how everyone’s cars compare!  You can then work out whether it is worth downsizing. 2.    Updates: Tax changes and the 2011 budget There have been some changes in legislation over the past year, below is a summary of them and how it may affect you.  Increase in GST from 12.5% to 15%, meaning an increase in prices of 2.5%.  This small percentage increase in prices was mostly noticed when buying big ticket items, rather than day to day living costs.  This was done as part of the rebalancing of the tax system to make up for the income tax reductions, and to increase tax on spending rather than savings. Personal tax rate reduction.  A drop of 2.5% to 5% in tax rates depending on your tax bracket.  As it is on a percentage this meant that those earning large salaries got the greatest savings, those on moderate incomes mostly just cancelled out the GST increase.  This also bought the top marginal tax rate closer to the company tax rate of 28% to reduce tax avoidance strategies. You are no longer able to claim depreciation on investment properties that have a life of 50 years or more for tax purposes.  This will mean that your tax refund will be lower (and for some may mean you need to pay more tax) but will make your tax return easier (and you may like to think of doing it yourself with the help of a financial coach to save accountancy fees) and will mean that that you won’t have to worry about depreciation claw back when you sell your property in future years. LAQC companies in which a lot of people hold residential investment properties, will no longer be able to flow through losses from personal income, and a new entity called a Look Through Company (LTC) has been formed in which profit and loss can be claimed at marginal tax rates but in proportion to ownership of assets.  You have 6 months from April 2011 in which to make a decision to change from the LAQC, without any tax implications.  For most of you this will not mean much change, but it could be a good time to review whether you want to change how you own your property if you want to reduce admin costs or are going to start making a profit.  Refer to your accountant for more details. The definition of family income for working for families, student allowances and community service cards has changed.  This is so income can’t be hidden to get paid more working for families, making it more of an even playing field.  Income now includes: investment losses, trustee income, PIE income, fringe benefits, pensions, passive income to children, gifts over $5000/yr to help with living costs. This will make it harder to determine your entitlement where you have extra income sources, and may reduce the amount of income coming into the household. Certain students ability to borrow from student loans has reduced: those who owe overdue amounts of >$500 for longer than a year can no longer borrow any more, those over 55 can borrow for tertiary fees only; part time students can’t borrow for course related costs anymore. Kiwisaver member tax credits are going to half from $1042 to $521 a year from 1st July 2011 (this is the amount the government matched each year) and theminimum contribution rate will increase from 2% to 3% and ditto for the employer contribution from 1 April 2013.  This will mean for those that work for themselves or don’t work, the benefits of kiwisaver are greatly reduced, but for those working as an employee, especially on higher wages, will see their money grow faster.  Someone earning $52,000 at age 30 will now have nearly $300k in kiwisaver, an extra $55k at age 65.  Obviously this is going to affect your retirement savings goals, and this will need to be checked at your next follow up meeting. Changes in the definition of a commercial dwelling for GST purposes and GST on land transactions.  Talk to your accountant for more info. The mileage rate for claiming vehicle use has changed from 70c to 74c/km from April 2010 for those who travel less than 5000km per year, so remember to update this in your tax return if you work for yourself.  New Financial Legislation The two new pieces of regulation are called the Financial Services Providers Act 2008 and the Financial Advisors Act 2008.  These regulations define who is a financial advisor and what regulations they need to meet.  Previously anyone could call themselves a financial advisor and give advice on where to invest your money, with no qualifications or training, and this has lead to the public being mislead on where is a good place to invest their money, leading to some people losing their life savings as they were not aware of the risk involved in where they invested their money.  Also as nearly 99% of advisors take commission on the advice they give, they didn’t always have the clients’ best interests at heart. There is now going to be 3 types of advisors: Authorised Advisors, which means the advisors need to be registered and a person of good character; meets the code of conduct which includes minimum standards of ethical behaviour, client care, levels of competency, knowledge and skills and continuing professional training.  They may also not call themselves independent if they are to receive a benefit from a person, other than the client.  An advisor must be authorised if they giving a recommendation or opinion in relation to acquiring or disposing of a financial product and/or provides an investment planning service. Registered Financial Service Providers.  If advisors do not need to be authorised but are still providing a financial service that deals with money handling e.g. brokers, insurers, banks, money transfers, securities, superannuation, foreign currency etc, they will need to just be registered with an approved dispute resolution scheme. Qualifying Financial Entity Advisors where instead of each individual advisor being registered, the entity takes responsibility for the conduct of its financial advisors if it has been granted QFE status.  They can only do this if they don’t provide an investment planning service and only give advice on the more basic types of products. As you can see only Authorised Advisors really need to have any credentials for giving advice, so it pays to check what type of advisor they are.  Full Balance welcomes these changes that most advisors now need to have minimum qualifications and competency like ourselves to give advice, and can’t call themselves independent if they are taking any commissions or bonuses.  We will continue to concentrate on providing an independent, qualified service offering practical suggestions of options available with your finances, without recommending or selling any financial products, and become fully authorised regardless, while still keeping our costs affordable for the everyday NZder. 3. Deals: Dental I know you guys love to avoid going to the dentist, and then wonder where you are going to pay for all the work that needs doing.  Denta Care on Maranui Rd Bayfair are doing a dental exam with X-rays for $50 with a coupon from the local paper or supermarket docket, so now there’s no excuse for not getting a check up before it gets worse!  Of course an even cheaper way to look after you teeth is to clean and floss and stop eating all that sugar ;) Yoga I’m a fan.  It’s a great stress relief, stretches and strengthens all those un used muscles and provides numerous health benefits.  I’ve found a NZ internet site that gives you 24/7 access to a 90 min beginner yoga session for free, grab your friends and do it together.  Visit the Yoga.org.nz site for downloadable FREE Yoga DVDS Alternatively if you are looking for a small class to learn, go along on Tuesday nights to Arataki school hall Bayfair 6 – 7 PM with Sarah 021 0221 9892 $10 / session, or go to a yoga centre in your local area. Mid winter break Planning to take the family to the mountains this winter and looking for an affordable family friendly place?  Try Arawa Lodge Ohakune www.arawalodge.co.nz  You’ll get a free continental breakfast too. 4. Full Balance Financial Coaching News Templates Available Want to do your own update of your financial situation, the template is now available so you can track your own progress.  Just send us an email to purchase your own copy. Free Money Personality Testing This is a great first step for you and your friends to start their financial journey, and can also be a bit of a laugh!  Best of all it is free with no obligation.  http://www.fullbalance.co.nz/money-quiz-saving-money-feelings-about.html Expanding Full Balance now has offices in Auckland and Tauranga and have the EAP contract for the South Auckland area (we can also use EAP nationwide over the phone too, so if you work for a large employer who is in EAP you could get your coaching for free), so we are now able to help a wider area for face to face work.  5. Yearly updates Remember 7 July is the date to get your tax return in if you are doing it yourself.  If you need help determining whether you need to do one or help filling in the forms, just give us a call or check out our newsletter from last year for more info. http://www.fullbalance.co.nz/ird-tax-debt-refund-templates.html We have also implemented a new system where all existing clients will get yearly reminders for follow up sessions.  These refreshers are great to keep you on track, and could mean the difference between financial success or failure.  Email us for an appointment and get 20% off. Also if you work for yourself or are on a low income, if you want to top up your kiwisaver contributions to $1040 so you get the maximum subsidy for this year, remember to do this by 30 June. 6. Next Edition Lessons learned from the recession and natural disasters If you haven’t been affected by the recession or a natural disaster, then count yourself lucky.  I have seen many people effected by both, in a way they never thought possible.  However any Financial Planner will tell you that with prudent financial management you can plan in advance to lesson and possibly even avoid the impact of them. Housing and Mortgages A lot of people are on low floating rates now, are you better to increase your savings or increase your mortgage and pay it off quicker? When should you fix?  Are you better to sell now or wait? The thing is we can never predict the future, but we can reduce the impact on our finances and subsequently our stress and relationships and next newsletter we will talk more about it, in the mean time send in any questions you have on any financial subjects. It will be either the end of Winter or Spring for the next update.  In the mean time I look forward to hearing from you and keep warm and healthy till then.

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Welcome to our first edition of Smart Money! This newsletter is designed to give you updates, reminders and tips relative to the upcoming season for your finances and well being (getting a bit late for summer I know).\n

In this season\u2019s newsletter we have:\n

Upcoming Recommended Courses: Smart Money, Communication Skills, Business Planning.
Full Balance Coaching News: Update on new services
New Years Resolutions: How did they go?
Yearly Updates: Why they are so important\u2026..\n

1. Courses with our Tauranga or Auckland based financial coaches\n

It\u2019s the beginning of the school year, and also the start of many courses. Don\u2019t miss out\u2026\n

Smart Money\n

This three week course in Tauranga is designed to motivate and lead you through the steps we would go through one on one, focusing on how to build strong financial foundations so that a secure future is achievable, but in a group setting. It is a cheaper option for people and allows people to interact and share as much, or little as they like. The course starts on February 18 (this Thursday night) through the Life Academy at Historic Village. For more details and to enrol http:\/\/www.lifeacademyonline.co.nz\/classes\/smart-money\/ or give us a ring.\n

Relationship Education Courses\n

These courses mostly start next week and run through out the country each term subject to demand. There is a variety of courses on improving relationships with important people in your life, including you! These are funded by the government so very affordable at $10 - $30, and are given by quality and experienced tutors. I recommend Positively me for Women or Manmade for Men, for any who wants to improve their communication and assertiveness skills to get their message across without conflict. There is also couples and parenting courses. Phone 576 8392 for more detail or click here: http:\/\/www.relate.org.nz\/LinkClick.aspx?fileticket=BiOd9HGvyK4%3d&tabid=309\n

Certificate in Small Business Management\n

This course is a year long course, one evening a week, and starts soon through out the country. It is subsidized from the government and free! The course covers all the fundaments of good business management and guides you through writing your own business plan. You do not have to be in business to do this course, you just need an idea. Call 0800 355 553 to find out when the intro evening is. I\u2019ve done this course and I fully recommend it for anyone in business or anyone who wants to get into business.\n

2. Full Balance Financial Coaching News\n

Website\n

If you haven\u2019t seen it yet, we\u2019ve had a website running now for over a year! It\u2019s a great marketing tool and can explain what Financial Coaching much more succinctly than I can over the phone! www.fullbalance.co.nz\n

Free Money Personality Testing\n

The website now also has the money personality test, so you don\u2019t have to do it by hand anymore\u2026.There is also the option to email the results and get a free in depth analysis back via email. It\u2019s a great first step for you and your friends to start their financial journey, and can also be a bit of a laugh! Best of all it is free with no obligation. http:\/\/www.fullbalance.co.nz\/money-quiz-saving-money-feelings-about.html\n

Client Numbers\n

As word gets around about our fabulous service, we are getting busier. There are now over 100 clients on our books and it is ever increasing. Spread the love and forward the newsletter on\u2026\n

New staff: I am currently looking to recruit a new coach part time, watch this space\u2026\n

3. New Years Resolutions?\n

How are your New Years resolutions going? I don\u2019t know about you, but I find the new year after the holidays is a motivating time to reflect on what you want to be different in your life. I\u2019m still hanging in there with my resolutions, just!\n

What\u2019s the key? Remember to write it down while it is in your head (in a book, or as art work) and remember to think about why you want to change \u2013 what\u2019s in it for you? I recommend using the 4 W\u2019s for goal setting and\/or a dream board. What do you want to achieve, by when, who is involved, and WHY do you want to do the goal. If you can\u2019t think of a reason, other than you feel you \u201cshould\u201d, then save yourself the pain and find something else that is important to you.\n

4. Yearly updates\n

Yearly updates are really important to keep you on track! Whether you do this on your own or with a coach, it can make all the difference between staying in your current rut and getting out and \u201cmaking\u201d in the world over the longer term.\n

If you are worried that you didn\u2019t achieve much, don\u2019t be. Often clients say \u201cbut I haven\u2019t done much\u201d, but then when we run down the list we find that most of their actions have been achieved without them realizing. Sometimes there is a good reason that an action hasn\u2019t been done, even if it is that it just didn\u2019t feel right!\n

Reviewing your finances yearly, enables you and your coach to see how far forward you are going with your finances, and the progress you have made towards getting the funds for your goals. Sometimes the goal may not have been achieved because it is not important anymore or you\u2019ve forgotten to give it the importance it deserves as other things have gotten in the way, and you need to start getting you A into G\u2026.\n

The best time for yearly follow ups is obviously a year after we first meet; in the New Year; after the end of the financial year; or when ever you are feeling motivated. Ring me for an appointment if you think you a due for an update.\n

5. Next Edition\n

Autumn will be our next update, with emphasis on the end of the tax year and what it means for you\u2026.\n

Enjoy the rest of the summer while it still lasts!\n

Ps thanks to Ros Lee, IT Coach, for your IT tips in preparing this newsletter.\n

The information in this newsletter is designed to be for information purposes. The accuracy of the information is not guaranteed and no responsibility is taken for your action based on this newsletter or links contained in it.","label":"Edition 1"}},{"name":"","type":"switcher_item","props":{"title":"Edition 2: Smart Money Newsletter 2010 Winter","label":"Edition 2","content":"

Welcome to our second edition of Smart Money! This newsletter is designed to give you updates, reminders and tips relative to the upcoming season for your finances and well being.\n

In this season\u2019s newsletter we have:\n

Tax, tax and more tax: Do you need to do a return? Could you be due a refund? Do you need to change your PIR tax rate? How to negotiate with IRD, How to lower your tax bill\u2026.
Kiwisaver: Do you need to be in it? What if you work for yourself?
Full Balance Coaching News: New staff
Yearly Updates: Use the template and do it yourself
Newsletter ideas?\n

1. Tax, tax and more tax\u2026.\n

The end of the tax return for most of us, March 31st has been and gone, so if you haven\u2019t updated your tax or done your return now is the time. If you do your returns yourself, they need to be in by July 7th - Yes that is a couple of weeks away. If you get your accountant to do them, they are not due for ages, but still good to get everything out of the way now, before it becomes a distant memory and you can\u2019t remember what\u2019s what!\n

If you want to do your tax return yourself (only recommended for sole traders and individuals), FULL Balance can coach you through completing your return, give us a ring.
Do you need to do a return?
Obviously if you have earned income that you haven\u2019t declared to IRD, yes you do need to do one (even if you made a loss), this includes self employment income, property rent, overseas income etc. The exception to this is if you earned money from a hobby activity where you were not intending to make a profit.\n

If IRD have sent you a tax pack this means they are expecting you to do a return (usually because you did one last year), but if you can\u2019t get it in on time or you don\u2019t think you need to do a return \u2013 ring them otherwise you will probably get a whole lot of late penalty filing charges against your name - $50 a pop each year.

Can I get a refund?\n

There are many circumstances that you can get a refund, but IRD is not going to be knocking on your door asking you to apply, so sometimes you need to be a bit proactive. You can apply for your refunds for up to 5 years ago, and then it disappears.\n

You may be due a refund in the following circumstances:

\u2022 You only worked part of the year \u2013 this means that you probably paid too much tax, as they thought your earnings for the year were going to be more so taxed you at the higher rate. E.g. if you have been out of work during the year or have been travelling.
\u2022 Were a low income earner - usually if you were working part time on a low wage 
\u2022 Made donations to a registered charity and kept your receipts
\u2022 If you paid for childcare or a house keeper
\u2022 Made a loss from your business or investments as a sole trader or individual
\u2022 You qualify for the independent earner tax credit and haven\u2019t declared it to your employer i.e. you earn between $24,000 - $48,000 and don\u2019t receive any extra\u2019s from the government i.e. you don\u2019t have children or claim a benefit\n

If you want to find out whether you are due a refund without having to file a tax return first or give your details you can do it here http:\/\/www.ird.govt.nz\/calculators\/tool-name\/tools-p\/calculator-pts-calculator-2010.html\n

Do you need to change your PIR rate?
No doubt you got a letter from your investment managers about whether you need to change your PIR rate. Make sure you have the right rate, because you won\u2019t get that extra tax paid back! In general if your taxable income was less than $14,000 in either of the last two years then your PIR is 12.5%, between $14,000 \u2013 $48,000 then it is 21% otherwise it is 30%. Your Kiwisaver is a PIE investment, so good to check your tax rate if your income has changed since enrolling, especially if you now work for yourself.\n

How can I lower my tax bill?

Make sure you are declaring all your expenses, including home office (rent, insurance, power, water, rates, phone, mortgage etc), entertainment, mileage, bad debts\u2026.! This can have also sorts of benefits such as increasing your Working for Families entitlements, and lowering the amount of money you owe IRD.\n

If you do have bad debts and need someone impartial to chase them up on your behalf, or want to check which expenses you can claim, give us a call.\n

What if I owe tax and I can\u2019t pay it?\n

The IRD are surprisingly negotiable, so don\u2019t just ignore it or you will get lots of penalties and interest added. There is a 1% then 4% upfront penalty when it goes past the due date, then they keep charging 1% a month penalty plus interest at around 8%. However if you negotiate a payment plan they will stop charging the 1% penalty per month, so good to do that sooner or later. If you continue not to pay they can take money from your wages or bank account or take you to court, but this is usually only in extreme cases.\n

We can help to negotiate with IRD, and any other creditors, and act as your budget advisor if you need us too, to make sure any debt payments are not going to put you under hardship.\n

2. Kiwisaver\n

I\u2019m starting to see people build up savings in their Kiwisaver, and it\u2019s a good feeling knowing that you have some money tucked aside. Also in these times of needs, this money can also be called upon if you are suffering hardship. Please let me know if you or someone else needs a Kiwisaver hardship application done.\n

Do I need to be in Kiwisaver?\n

A lot of advisors would say you were a fool if you were not, because you will get your money double or even tripled because your employer will match your 2% and the government will match the first $1040, but you may not get the money until you are 65 (if you die before then it goes to your estate).\n

However there are some circumstances where it may not be in your best interest, mostly when you are under stress and need the cash for something else. So if you are not sure whether you need to be in Kiwisaver, whether to put 2% or 4% in, not sure which provider to join or how to join or which type of investment is for you (i.e. conservative, balanced or growth), give us a ring for an independent opinion.\n

Kiwisaver and working for yourself\n

If you are not working or work for yourself as a sole trader, you need to make your own contributions directly to your Kiwisaver provider. You will miss out on the 2% from an employer, but you can contribute $1040 to get that matched by the government, you may want to contribute more if you are hoping to get the first home subsidy (as you had to of contributed 2% of your gross earning to qualify).\n

The cut off date to contribute to Kiwisaver so it will get matched this year by the govt is 30th June, so if you don\u2019t contribute before then you will miss this year\u2019s entitlement (note if you haven\u2019t joined yet, you are better to wait until after this date, as it is govt contributions are prorated in the first year). Quite important if you are hoping to qualify for the first home subsidy and get your $1040 to get in before that date.\n


3. Full Balance Financial Coaching News
Templates Available
Want to do your own update of your financial situation, the template are now available so you can track your own progress. Just send us an email to purchase your own copy.
Free Money Personality Testing
This is a great first step for you and your friends to start their financial journey, and can also be a bit of a laugh! Best of all it is free with no obligation.
http:\/\/www.fullbalance.co.nz\/money-quiz-saving-money-feelings-about.html
Expanding 
We now have an extra coach in Tauranga, Sue Newnham. Sue has a wealth of business and life experience and comes to us from a business financial advisory and counseling background. She has a Diploma in Business Studies, Certificate in Counseling, B.A. in Psychology and is a volunteer and certified budget advisor and Lifeline Counselor.\n

With Sue on board this will give me more time to manage and expand the business.\n

4. Yearly updates
Yearly updates are really important to keep you on track. Whether you do this on your own or with a coach, it can make all the difference over the longer term between staying in your current rut and getting out and \u201cmaking\u201d in the world.\n

The end of the financial year is a great time to review your finances, especially if you are in business.\n

Email me for a copy of the template if you\u2019d like to review your own finances, or ring me for an appointment if you think you a due for an update.\n

5. Next Edition
It will be either the end of Winter or Spring for the next update. Please let me know if there are any topics you would like investigated.\n

Keep warm and healthy till then.
Full Balance Financial Coaching\n

The information in this newsletter is designed to be for information purposes. The accuracy of the information is not guaranteed and no responsibility is taken for your action based on this newsletter or links contained in it."}},{"name":"","type":"switcher_item","props":{"title":"Edition 3: Smart Money Newsletter 2011 Winter","label":"Edition 3","content":"

Welcome to our first edition of Smart Money for this year, it\u2019s been a long time coming I know!  This newsletter is designed to give you updates, reminders and tips relative to the upcoming season for your finances and well being. \n

This year I have added an extra section on good or free deals I have found, to provide you with more value.\n

In this season\u2019s newsletter we have:\n

    \n
  1. Tips to save more: Groceries and petrol keep going up, here\u2019s how you can get better value.\n
  2. Updates:  Tax and financial legislation changes: The new tax year has started and there have been several changes to tax legislation which could affect you personally.  Also we summarise the new financial services regulation and what it means to you, the customer\/client.\n
  3. Deals: Free 80 min yoga video online; Cheap dental checkups; Ohakune family accommodation: \n
  4. Full Balancing Coaching news: Access to the money quiz, templates and expansion to Auckland\n
  5. Yearly Reminders:  Tax returns, kiwisaver and yearly update system\n
  6. Newsletter ideas? Lessons learned from natural disasters and the recession, housing and mortgage tips\u2026    \n\n

    1.    Tips\u2026.\n

    I think everyone has been feeling the pinch of increased petrol and food costs, especially those doing high km\u2019s and feeding a family.  Here\u2019s some easy ways to reduce costs:\n

    Groceries\n

    Go grocery shopping at the most once per week.  How often do you step into at a store, and buy extra treats while you are there? By only going once a week or less often you spend less on treats and once they are gone, you eat the cheaper staple foods left. \n

    To do this make sure you have a list to take so you don\u2019t forget anything, and buy enough milk and bread to get you through the week. You will also save time and petrol money by doing it less often.  If you have to get extras during the week, stop at a fruit and vege shop instead where there is less temptation.\n

    Also watch how much you spend of fancy cleaners.  A few drops of detergent in an old spray bottle lasts ages for the kitchen, or if you want to go natural use vinegar which will act as an antibacterial. http:\/\/www.vinegartips.com\/Scripts\/\n

    Petrol\n

    Check your tyres are inflated to recommended pressure (refer inside of car door) at least monthly and before long journeys.  This will reduce wear on your tyre and save about 10% on fuel, or more if your pressure is low.\n

    Increase your following distance.  This will mean less breaking and acceleration, and is the safest thing you can do when driving.\n

    If you want to measure your fuel efficiency of your car, next time fill to the top re zero the km\u2019s, then next time you refill to the top record on the docket how many km\u2019s you have travelled.  Then divide the litres of petrol used by the km\u2019s travelled and times by 100 to give you litres\/100km.  4 \u2013 12 l\/100km is average, depending on whether you have a small car or a large SUV. \n

    Let me know how you go, I\u2019d love to here how everyone\u2019s cars compare!  You can then work out whether it is worth downsizing.\n

    2.    Updates:\n

    Tax changes and the 2011 budget\n

    There have been some changes in legislation over the past year, below is a summary of them and how it may affect you. \n

      \n
    1. Increase in GST from 12.5% to 15%, meaning an increase in prices of 2.5%.  This small percentage increase in prices was mostly noticed when buying big ticket items, rather than day to day living costs.  This was done as part of the rebalancing of the tax system to make up for the income tax reductions, and to increase tax on spending rather than savings.\n
    2. Personal tax rate reduction.  A drop of 2.5% to 5% in tax rates depending on your tax bracket.  As it is on a percentage this meant that those earning large salaries got the greatest savings, those on moderate incomes mostly just cancelled out the GST increase.  This also bought the top marginal tax rate closer to the company tax rate of 28% to reduce tax avoidance strategies.\n
    3. You are no longer able to claim depreciation on investment properties that have a life of 50 years or more for tax purposes.  This will mean that your tax refund will be lower (and for some may mean you need to pay more tax) but will make your tax return easier (and you may like to think of doing it yourself with the help of a financial coach to save accountancy fees) and will mean that that you won\u2019t have to worry about depreciation claw back when you sell your property in future years.\n
    4. LAQC companies in which a lot of people hold residential investment properties, will no longer be able to flow through losses from personal income, and a new entity called a Look Through Company (LTC) has been formed in which profit and loss can be claimed at marginal tax rates but in proportion to ownership of assets.  You have 6 months from April 2011 in which to make a decision to change from the LAQC, without any tax implications.  For most of you this will not mean much change, but it could be a good time to review whether you want to change how you own your property if you want to reduce admin costs or are going to start making a profit.  Refer to your accountant for more details.\n
    5. The definition of family income for working for families, student allowances and community service cards has changed.  This is so income can\u2019t be hidden to get paid more working for families, making it more of an even playing field.  Income now includes: investment losses, trustee income, PIE income, fringe benefits, pensions, passive income to children, gifts over $5000\/yr to help with living costs. This will make it harder to determine your entitlement where you have extra income sources, and may reduce the amount of income coming into the household.\n
    6. Certain students ability to borrow from student loans has reduced: those who owe overdue amounts of >$500 for longer than a year can no longer borrow any more, those over 55 can borrow for tertiary fees only; part time students can\u2019t borrow for course related costs anymore.\n
    7. Kiwisaver member tax credits are going to half from $1042 to $521 a year from 1st July 2011 (this is the amount the government matched each year) and theminimum contribution rate will increase from 2% to 3% and ditto for the employer contribution from 1 April 2013.  This will mean for those that work for themselves or don\u2019t work, the benefits of kiwisaver are greatly reduced, but for those working as an employee, especially on higher wages, will see their money grow faster.  Someone earning $52,000 at age 30 will now have nearly $300k in kiwisaver, an extra $55k at age 65.  Obviously this is going to affect your retirement savings goals, and this will need to be checked at your next follow up meeting.\n
    8. Changes in the definition of a commercial dwelling for GST purposes and GST on land transactions.  Talk to your accountant for more info.\n
    9. The mileage rate for claiming vehicle use has changed from 70c to 74c\/km from April 2010 for those who travel less than 5000km per year, so remember to update this in your tax return if you work for yourself. \n\n

      New Financial Legislation\n

      The two new pieces of regulation are called the Financial Services Providers Act 2008 and the Financial Advisors Act 2008.  These regulations define who is a financial advisor and what regulations they need to meet. \n

      Previously anyone could call themselves a financial advisor and give advice on where to invest your money, with no qualifications or training, and this has lead to the public being mislead on where is a good place to invest their money, leading to some people losing their life savings as they were not aware of the risk involved in where they invested their money.  Also as nearly 99% of advisors take commission on the advice they give, they didn\u2019t always have the clients\u2019 best interests at heart.\n

      There is now going to be 3 types of advisors:\n

      Authorised Advisors, which means the advisors need to be registered and a person of good character; meets the code of conduct which includes minimum standards of ethical behaviour, client care, levels of competency, knowledge and skills and continuing professional training.  They may also not call themselves independent if they are to receive a benefit from a person, other than the client.  An advisor must be authorised if they giving a recommendation or opinion in relation to acquiring or disposing of a financial product and\/or provides an investment planning service.\n

      Registered Financial Service Providers.  If advisors do not need to be authorised but are still providing a financial service that deals with money handling e.g. brokers, insurers, banks, money transfers, securities, superannuation, foreign currency etc, they will need to just be registered with an approved dispute resolution scheme.\n

      Qualifying Financial Entity Advisors where instead of each individual advisor being registered, the entity takes responsibility for the conduct of its financial advisors if it has been granted QFE status.  They can only do this if they don\u2019t provide an investment planning service and only give advice on the more basic types of products.\n

      As you can see only Authorised Advisors really need to have any credentials for giving advice, so it pays to check what type of advisor they are. \n

      Full Balance welcomes these changes that most advisors now need to have minimum qualifications and competency like ourselves to give advice, and can\u2019t call themselves independent if they are taking any commissions or bonuses.  We will continue to concentrate on providing an independent, qualified service offering practical suggestions of options available with your finances, without recommending or selling any financial products, and become fully authorised regardless, while still keeping our costs affordable for the everyday NZder.\n

      3. Deals:\n

      Dental\n

      I know you guys love to avoid going to the dentist, and then wonder where you are going to pay for all the work that needs doing.  Denta Care on Maranui Rd Bayfair are doing a dental exam with X-rays for $50 with a coupon from the local paper or supermarket docket, so now there\u2019s no excuse for not getting a check up before it gets worse!  Of course an even cheaper way to look after you teeth is to clean and floss and stop eating all that sugar ;)\n

      Yoga\n

      I\u2019m a fan.  It\u2019s a great stress relief, stretches and strengthens all those un used muscles and provides numerous health benefits.  I\u2019ve found a NZ internet site that gives you 24\/7 access to a 90 min beginner yoga session for free, grab your friends and do it together.  Visit the Yoga.org.nz site for downloadable FREE Yoga DVDS\n

      Alternatively if you are looking for a small class to learn, go along on Tuesday nights to Arataki school hall Bayfair 6 \u2013 7 PM with Sarah 021 0221 9892 $10 \/ session, or go to a yoga centre in your local area.\n

      Mid winter break\n

      Planning to take the family to the mountains this winter and looking for an affordable family friendly place?  Try Arawa Lodge Ohakune www.arawalodge.co.nz  You\u2019ll get a free continental breakfast too.\n

      4. Full Balance Financial Coaching News\n

      Templates Available\n

      Want to do your own update of your financial situation, the template is now available so you can track your own progress.  Just send us an email to purchase your own copy.\n

      Free Money Personality Testing\n

      This is a great first step for you and your friends to start their financial journey, and can also be a bit of a laugh!  Best of all it is free with no obligation.  http:\/\/www.fullbalance.co.nz\/money-quiz-saving-money-feelings-about.html\n

      Expanding\n

      Full Balance now has offices in Auckland and Tauranga and have the EAP contract for the South Auckland area (we can also use EAP nationwide over the phone too, so if you work for a large employer who is in EAP you could get your coaching for free), so we are now able to help a wider area for face to face work. \n

      5. Yearly updates\n

      Remember 7 July is the date to get your tax return in if you are doing it yourself.  If you need help determining whether you need to do one or help filling in the forms, just give us a call or check out our newsletter from last year for more info. http:\/\/www.fullbalance.co.nz\/ird-tax-debt-refund-templates.html\n

      We have also implemented a new system where all existing clients will get yearly reminders for follow up sessions.  These refreshers are great to keep you on track, and could mean the difference between financial success or failure.  Email us for an appointment and get 20% off.\n

      Also if you work for yourself or are on a low income, if you want to top up your kiwisaver contributions to $1040 so you get the maximum subsidy for this year, remember to do this by 30 June.\n

      6. Next Edition\n

      Lessons learned from the recession and natural disasters\n

      If you haven\u2019t been affected by the recession or a natural disaster, then count yourself lucky.  I have seen many people effected by both, in a way they never thought possible. \n

      However any Financial Planner will tell you that with prudent financial management you can plan in advance to lesson and possibly even avoid the impact of them.\n

      Housing and Mortgages\n

      A lot of people are on low floating rates now, are you better to increase your savings or increase your mortgage and pay it off quicker? When should you fix?  Are you better to sell now or wait?\n

      The thing is we can never predict the future, but we can reduce the impact on our finances and subsequently our stress and relationships and next newsletter we will talk more about it, in the mean time send in any questions you have on any financial subjects.\n

      It will be either the end of Winter or Spring for the next update.  In the mean time I look forward to hearing from you and keep warm and healthy till then."}}]}]},{"name":"","type":"column","props":{"widths":[""],"image_position":"center-center"},"children":[{"name":"","type":"joomla_module","props":{"menu_style":"nav","module":"187","type":"mod_simpl_fb","text_align":"","style":""}},{"name":"","type":"image","props":{"margin":"default","image":"images\/quiz.png"}},{"name":"","type":"image","props":{"margin":"default","image":"images\/shula_services.jpg","image_alt":"Tauranga, Auckland,Budgeting advice,Financial hardship, Independent Financial Advice, Retirement advice","text_align":"center","image_box_shadow_bottom":false}},{"name":"","type":"image","props":{"margin":"default","image":"images\/jumping1.jpg","image_alt":"Tauranga, Auckland,Budgeting advice,Financial hardship, Independent Financial Advice, Retirement advice","text_align":"center","image_box_shadow_bottom":false}}]}]}]}]} -->

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