Passing away without a Will places a lot of added stress and pressure on your family during an emotional time. Your Will should be sorted as soon as possible, for the sake of your family and loved ones.


What happens if you die without a Will? 

  1. Everything in your name, including your bank accounts, is frozen by the court.
  2. Even if there is no disagreements between who gets what, all your assets will remain frozen for at least six months. 
  3. Your family will need to pay legal and court fees to get it all sorted out. 

 

Many people are under the misconception that they don’t have any assets to put into a will.

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Even if you don’t mind where your assets will go, having a Will means your family won’t be stuck with the expensive burden of sorting it all out after you have passed away.

*Wills can be complex, and it's something you can chat to an adviser about helping map out your wishes with a lawyer.

Many of us know what KiwiSaver is, but aren’t 100% sure on the details, and how to manage it.

KiwiSaver is a simplified saving scheme. You put a small percentage of your wages away into a fund and this money is topped up by the Government and your employer.

That money is then invested by your KiwiSaver Provider. They choose investments from around the world and try to grow your KiwiSaver money even more. In return, they take a fee. Some providers take more, some take less.

Except in special circumstances - eg, severe financial hardship or as a deposit on your first home - you cannot withdraw money from your KiwiSaver fund until you reach retirement age (currently 65).

If you never specifically chose a provider, chances are your KiwiSaver money is sitting with a ‘default provider’ chosen by the Government (90% of people are in this boat) - Your contributions will be invested in the scheme’s conservative investment fund, low risk = potentially low return. Over a lifetime this could mean missing out on thousands of dollars. 

You also need to ensure you are paying the correct tax rate on your KiwiSaver money. We can help with this. 

Where it gets slightly more complicated is when it comes time to choose where your money is invested. In a nutshell, KiwiSaver Providers offer three types of funds:

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Where you allocate your money is entirely up to you and depends on your circumstances. For example, a young person may be willing to put more of their money in the growth fund, as they want to grow their KiwiSaver as much as possible to use it towards buying their first home. Growth funds are the most risky KiwiSaver investments, but the have the potential to reap the biggest rewards. 

You need a KiwiSaver provider who:

  • Has a reasonable fee structure
  • Communicates well
  • Makes it easy to set the correct level of investment risk for your situation
  • Has a history of performing well in terms of investment growth (although this is never guaranteed)

Talking to a financial adviser will help you assess the right fund options for your unique situation.


If you get your KiwiSaver set up correctly, you could actually double your nest egg in half the time*

 

*Obviously we can’t guarantee this. But most KiwiSaver funds are doing less than 4% return. This means your money will double every 18 years. But by understanding the different types of risk, and the time you have to invest, an adviser will help you create a unique KiwiSaver strategy. Depending on your circumstances, you could double your money in half the time.

There are two main types of insurance

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Insuring your stuff - The basics. We're pretty good at this. 

Insuring yourself - This is where most people fall short. What happens to you and your family if you can no longer earn an income? Who will cover the mortgage? How will you afford to live?

There are four ways to insure yourself

 
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1. Medical Insurance

  • Pays for medical bills if you get sick

  • Provides private treatment straight away (no waiting for months)

  • Gives you access to non-pharmac approved drugs by subsidising them. (ie expensive cancer treatment)

  • Kiwis use medical insurance an average of four times before turning 65

 
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2. Income Protection

  • Pays a percentage of your income if you can no longer work.

  • Most people are off work long-term due to illness, not accident (therefore not covered by ACC).

  • One in five Kiwis will use income protection in their life (even for a short amount of time, it pays to have the option).

 
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3. Trauma Insurance

  • Pays a big lump sum of money if you are diagnosed with a serious illness.

  • Biggest claim is for cancer - one in three Kiwis claim their Trauma pay out.

  • Can be spent on whatever you like ie pay your mortgage off, alternative treatment etc.

  • If you don't have an income (ie a stay-at-home parent) this money can be used to replace your income protection.

 
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4. Life Insurance

  • Your family gets a big lump sum payment if you die or are diagnosed as terminally ill.

  • Gives financial stability to your loved ones, even if you're not around. Pays off debt and provides ongoing support for your family.

  • Who do you want the money to go to? You need to specify in your Will, otherwise the court decides.