Outside the lush greenery is wilting while colourful changing leaves make autumn a scenic delight.

“The Only Thing That Is Constant Is Change ” - Heraclitus

As advisers we see change every day in the life of our clients – and this often means that plans need to be reviewed and re-evaluated. We know that advice matters and so everything we do is advice orientated. Over the last few years there has been an increasing regulatory focus on the role of financial service providers – like banks, insurers and advisers. This is continuing into 2019 and soon there will be a new Code of Conduct for all – with the first code principle being that the clients’ interests are paramount. You will be comforted to know that this principle has always been the view of SHARE and SHARE advisers. Earlier this year the Reserve Bank of New Zealand and the Financial Markets Authority released a report on the culture and conduct of the financial services sector. It has given participants to the end of June to respond to how changes are being made to the culture of the organisation. As SHARE advisers, we are very supportive of these changes, and welcome the long overdue reviews, which will hopefully drive the outcomes we are all looking for. You can expect some changes in the advice process, but fundamentally we have been following the recommended processes for over a decade. The hearings and subsequent report of the Australian Royal Commission into Banking, where last year evidence was provided of poor outcomes for clients, have already driven some surprising results. OnePath has been sold by ANZ to Cigna. AMP has split its business into Fund Management/KiwiSaver, and Insurance, with the intention of selling its insurance division. CBA, Commonwealth Bank of Australia, parent company of the ASB, have sold Sovereign to AIA. It is some years since there has been such change in a short space of time, and there is more to come. Change is certain. But so is the support and confidence that comes with having SHARE assist you with advice, and we as an organisation are excited about the continuum of change and the benefits that will bring to you, our valued client.

From, Team SHARE

I began lifting weights at the age of 17 with my older brother Liam in 2012. He had been training for powerlifting for a couple of years by that point and so he taught me the basics of how to train for strength and helped push me to get stronger. Initially, I didn’t see powerlifting as something I would pursue because I was already training for Rugby. It wasn’t until I was 20 that I decided to start taking powerlifting seriously because I realised I enjoyed training in the gym more than I liked being on the field on Saturday’s and it was quite apparent by that point that I had a knack for it. So I found a coach, joined a Powerlifting gym and started my journey in Powerlifting.

That year I competed at my first National’s, placing 2nd in my weight class and earning my first National medal. Later the same year, I was chosen to represent New Zealand at the Oceania Championships placing third overall. Standing on the podium holding the New Zealand flag was a feeling like no other and it was then that I decided I wanted to again represent New Zealand at the World Championships in Calgary in 2 years time.

That decision meant two things. One; I had to get a lot stronger. And two; I had to claim the National title next year.

With a great deal of hard work and discipline, I was able to achieve both of these goals. Fast forwarding to June last year, I was selected to represent New Zealand to compete at the Powerlifting World Championships held in Calgary, Canada.

The competition was immense, the pressure unbelievable. The distance between 3rd place and 16th place was such a tiny margin that every kg left on the platform meant a placing slipped away. It was a hardfought competition from start to finish and one I am proud to have been a part of.

My performance consisted of a 280kg squat, a 167.5kg bench and a 310kg deadlift. I earned 9th in the squat, 11th in the bench press and 4th in the deadlift for an overall placing of 10th in the world in the junior u120kg weight class division.

One of the things I have come away with from this experience and the build up to it over the past 3 years is that my dad’s euphemisms are often frustratingly true. One of his favourites when we were kids was ‘it’s just skin, it grows back’ and to me, this has always meant being resilient.

To reach an elite level in any sport, you’ve got to be resilient. Things don’t always go your way, there are setbacks big and small and sometimes the only thing you can do is take a deep breath, brush the dust off, pick yourself back up and keep going.

My journey to World Championships was one filled with ups and downs, what I have come away with though is an unforgettable experience I won’t forget and one I see as a step in the right direction that I can build on as I work toward once again representing New Zealand at a World Championships and hopefully one day standing upon the podium holding the flag on the biggest stage of all.

By Callum Pumfleet

Why have a Trust?

The simple reason for establishing a Trust is to separate assets from your ownership to ensure they are protected for your intended beneficiaries.

The main reasons for establishing a Trust are:

• Protection of your personal assets from the risks of business. Using a Trust ensures you don’t loss the family home and other personal assets in the event of your business failing. The transfer of your assets to a trust must be done before any creditor action or business failure is evident.

• To ensure your assets transfer to your children, without challenge, and they remain protected should their relationship with their partner breaks down in the future. • To provide for dependents such as children or grandchildren - for their well being and support, their education, or if they have disabilities or an inability to manage money. • To ensure continuity of family ownership for several generations that want to keep the assets in the family. • To protect separate property within a marriage or a de facto relationship. • To provide for unequal sharing of your assets on your death. Such as different amounts for children of a prior marriage or a child with limited money management skills. • To provide long-term support for a charity.

Provided a Trust is properly administered and maintained it is usually a bullet proof a way of protecting your assets for you and your family into the future.

One of the strongest reasons I have seen is the protection a Trust gives by identifying a method of distribution of money either placed in the Trust from insurance policies or generated by the trust realizing assets or investments. If you have minor children and up-to-date wills you may still have created an issue for your Executor by placing these Insurance benefits into an open cheque account with no guidance on how the money is to be used or invested for the use of the minor children care and protection.

With a Trust you give the Trustees the guidance they need to fulfill your wishes.

Think you don't need life insurance if you don't have kids? You may want to think again.

It may seem like an unnecessary expense. But there are many benefits to having life insurance, even if you’re not supporting a family.

Here are 3 reasons why you should buy life insurance.

1. Mortgage Protection

Your home is your largest asset which becomes your spouse or partners financial responsibility if you pass away unexpectedly. Purchase a term life insurance policy for at least the amount and term of your mortgage.Then, if you pass away during the "term" when the policy’s in force, your loved ones receive the face value of the policy. They can use the proceeds to pay off the mortgage.

Actually, the proceeds from your policy can be used for any purpose your beneficiaries choose.

If your mortgage has a low interest rate, they may want to pay off high-interest credit card debt and keep the lower-interest mortgage. Or they may want to pay for home maintenance and upkeep. Whatever they decide to do, that money will come in handy.

2. Replace lost income

You and your significant other may have planned for a future based on two incomes. But what if one of you passes away unexpectedly? Term life insurance can be used to replace the lost income so the survivor can maintain the same standard of living.

3. Funeral expenses

Funeral expenses, burial costs and medical bills add up. The last thing you want is for your loved ones to shoulder this extra burden. Level Term life insurance provides the right funds to ensure these costs are easily funded.

Taking responsibility for yourself and family can be a full time task, right?

With such busy lives on the go, often the simplest of tasks get forgotten in the rush to enjoy a good lifestyle and a happy family life.

One of the key tasks that we all need to get done, now, is making or reviewing our Last Will and Testament to ensure that if the unthinkable does happen - then your family doesn’t have to bear the pain of your loss on top of the severe financial hardship not having a Will can cause.

From where I sit I see the effects both good and bad when it comes to Wills. And it’s the good ones that I obviously like the most.

So for your entertainment I have studiously copied below a summary of what the Administration Act 1969 does to your estate when you DON’T have legal will.

If your spouse/partner is living at the time of your death, but you have no children or parents alive, your whole estate passes to your spouse/partner.If you have children living at the time of your death but no spouse/partner, the whole estate passes to your children in equal shares.If your spouse/partner and parents are living at the time of your death, but you have no children, your spouse/partner receives all personal chattels, $155,000 and two-thirds of the residue. Your parents receive one-third of the remainder (split equally).If you have no spouse/partner, children or parents alive, the whole estate passes to certain blood relatives.

So points one and two aren’t really an issue but points three and four can be a real hassle - especially if you are not around to sort it. Imagine you have a mortgage on the house and you have prudently covered this with a 'life insurance policy' owned by you for the value of the mortgage but you have no will and you inconveniently die before you sort one. Frankly it isn’t pretty because the end result is the mortgage isn’t automatically cleared by those funds when not directed to do so, and the family castle could be heading to the open market.

So here’s the fix. Get a will sorted and ensure your estate is handled in an orderly, planned fashion that will benefit your family and leave them secure with your greatest legacy of love and kindness.

Cheers

Alan

Welcome to the Spring edition of yourSHARE

What you need to know about Level Term insurance!

You may already know that life insurance products are priced on the age of the insured person, with premiums rising annually as you get older. This is called Yearly Renewable Term cover. The older you get, the higher those premiums rise – and so people often feel forced to reduce or cancel their valued cover to keep their premiums within an affordable range.

But did you know that Level Term insurance gives you the option of retaining that valued cover for longer? Level Term allows you to “lock in” level premium guarantees, which have the effect of levelling out the cost of your insurance over the expected life of the policy. While it does increase the cost in the early years, it can also save a considerable amount in the latter years of the policy. Another thing to remember is the younger you are when you lock the premiums in (and also the longer the life of the policy), the more cost effective it can be.

For example, consider a 36-year-old non-smoking male, wanting to discuss the potential savings he could make taking out both Life and Trauma covers for a thirty-year term. His first annual premium for a Yearly Renewable Term policy would be $351.72 with Fidelity Life. Compared to a first annual premium for a Level Term policy of $938.04, the choice may seem clear cut. However, fast forward thirty years later to age 66 and there’s a good chance he will be looking to retire.

His annual Level Term premium is still $938.04 – whereas his annual Yearly Renewable Term premium has increased to $5,196.60.

Or to look at it another way, because Level Term has an agreed fixed premium for the life of the policy, the average premium over the life of the contract is much cheaper – in this case his average premium for Level Term would be $78.17 per month versus $136.57 per month for Yearly Renewable Term. It often means that under Level Term, clients are able to keep the insurance covers in place for longer due to the premiums remaining affordable.

In New Zealand today, we often need insurance for a lot longer than previous generations. It is quite common today for a 65-year-old to still have children at university, or for people to still be working well into their seventies. Many people still carry high debt levels at what used to be a retirement age, and so are reliant on one or two incomes for longer.

Many clients are grateful for the opportunity to lock in premium guarantees, giving them the much needed security for longer than their budget would allow on the traditional stepped premium structure. It costs nothing to speak to your SHARE adviser to go through the options of level premium guarantees, but the end result could be of great value to you.

Adapted from Fidelity Life - did you know: the benefits of Level Term insurance.

A word from us...

And just like that, Spring is upon us! We can’t believe how quickly 2016 is flying by, and we hope you are making the most of it! With the end of the year ever so closer, now is an important time to look back and double check you have been achieving your goals you set at the beginning of the year. If not, it may be time to reassess those goals, sit down with a pen and a cup of tea and decide how you can make the next three months some of the best yet. Whether it be personal goals or business goals, break them down into simple steps and tick them off your checklist as each day goes by.

With the weather warming up again (hurrah!) take the time to catch up with family and friends – perhaps it’s time to put the BBQ on again, and start enjoying the great outdoors already!

We have had an exciting 2016 so far at SHARE, with a number of new advisers having joined the SHARE family from various parts of New Zealand. As I am writing this, the SHARE annual conference is just around the corner - being the 1st and 2nd of September! We are looking forward to finishing off the year.

From the team at SHARE!

First home buyer tip: stay within your means

If you are a typical first home buyer, your mortgage is a burden you’ll bear for many years to come. Owning a home is a big commitment and you need to approach borrowing with a healthy dose of caution.

While your lender may give you a maximum home loan amount, the payments could be higher than your comfort level. Listen to that inner voice of caution: it’s important that you assess your own borrowing capacity for your first home before you buy.

Here are some factors to take into account when determining how much you should borrow – rather than how much you could borrow.

HOW MUCH DEBT CAN I HANDLE:

A rough guide a manageable mortgage payment is your current rent plus any amount you regularly save. Decide if you can increase the amount available for the mortgage by giving up some aspects of your lifestyle, such as frequent travel, dining out or expensive car loans.

AM I BEING REALISTIC?

Houses are like stepping stones – it’s usually best to start with something modest and move towards a larger or better located home as your personal earning capacity and equity grows. Aim to purchase a house you can afford, rather than the proverbial dream home.

ARE MY PLANS LIKELY TO CHANGE IN THE NEAR FUTURE?

Think about what the futures holds – both personally and financially. Do you have one or two incomes in your household, and is this likely to change in the future if you start or increase your family size?

WHAT IF INTEREST RATES GO UP?

Consider how a mortgage interest rate rise will affect your ability to make repayments and factor that in when setting your borrowing limits. Currently rates are at historic lows, but in a few ears they could be higher.

Talk to you SHARE adviser today to see how we can help!

Adapted from mortgagesupply.co.nz – stay within your means

A disclosure statement is available upon request, free of charge.

Life insurance is important, but it can sometimes be complex. So Sovereign Insurance has broken it down to keep it simple. Drawing on the expertise of Sovereign people, these videos cover off some frequently asked questions and answers around life insurance to help you get sorted.

What is life insurance?

Start with the life insurance basics. Get a run down on what it is, the types of cover you can get and when you might need it.