Last week I asked readers to send in their stories of how this column — not just me, but readers and experts — has helped them over the years. Thanks so much for the big response. There are too many great letters to run them all today, but Iwill publish some more of them over the weeks to come. And all the published readers will receive one of my recent books, if requested.
Some people wrote about their financial journey, but not really how this column affected it. But their stories are good, so many of those will also feature among future Q&As.
Not just luck
Q: I’ve been reading your column for about 20 years. I’ve taken on board “Save for a rainy day” and “Don’t get into consumer debt”.
We’re now mid-fifties and we only work a few months of the year thanks to having investments and no debt. We often get told how lucky we are. Not really luck, just setting a path and living within our means for years.
A: Fair enough.
Keep it simple
Q: Very simple:
1. Any money you need to spend in 1-3 years in cash or a cash fund.
2. Any money you need to spend in 4-10 years in a conservative fund.
3. Any money you don’t need in that time in a growth fund.
4. KiwiSaver is awesome.
Motto: “Stick to the plan and enjoy the ride”. It’s worked a treat since I started reading your column 25 years ago.
A: You’ve got it! My only modification: 4-to-10-year money could be in a somewhat riskier balanced fund or bond fund.
A robot writes
Q: Hi Rosie Robot!
Congratulations on achieving 25 years of offering ideas and opinions to us mere mortals!
Recent Q&As relating to laddering bring to mind that at one stage I was laddering at monthly intervals, due to the low interest we were getting at the time. Two reasons: one, be ready to re-invest when/if interest rates increased, and two, at my age (82), I could have ready cash when required.
A: If you’re flirting with Rosie, take care. She can be cold-hearted.
Celebrating 25 years of Mary Holm answering readers' questions. Cartoon / Rod Emmerson
Start ‘em young
Q: I am 18. Every Saturday, my father reads highlights from your column. Here is what I have learnt and actioned over the years.
The first shares I invested through my parents were new energy shares. My parents invested, so I thought, why not me? At 8, equipped with an IRD number, I set out to buy my first shares. You have said: the earlier you start investing, the better. My aim is to invest long term.
I have since heeded your other advice — diversify. It is mainly ETFs (exchange-traded funds) via Sharesies now.
Two other important messages: don’t panic and sell when the prices are down (that’s hard to do), and use “dollar cost averaging”. Whether 16 and still at school with a part-time job or now with a full-time job while pursuing tertiary education, I use the dollar cost averaging method to invest.
I put in hours of hard work. My father reminds me: LUCK stands for Labouring Under Correct Knowledge. Your columns should be made mandatory reading at schools.
A: You’re off to a great start.
What would Mary say?
Q: Thank you for educating me, finance-wise. My education stopped at NZ School Certificate level. Over the years, I’ve read your columns and learned a little about a lot.
Now, when my wife and I have to make an important money decision we inevitably ask: what would Mary Holm say? Would she rebuke us, discourage or encourage us? Surely she’ll say tread carefully. Mostly we’ve got it right.
Thank you for your no-nonsense, forthright and candid advice over all those years. And bless you for educating me.
A: Rebuking you? Oh dear. I like “discourage” better!
Down to earth
Q: I am absolutely sure that we have read every one of your columns over the last 25 years! The first 10 as we were heading to retirement, and for the last 15 years, very happily in retirement.
Your advice, looking back over the years, has always seemed sensible, comprehensive and instructive. You’ve never been an up-themselves, academic bean-counter. You’ve always talked to the average person who is trying hard to understand and get ahead.
Diversification, laddering, don’t panic, long term, time-in not timing, index funds, pay down debt etc. etc.
We can say without any doubt at all, that we have richly benefited from following your advice.
We now have investments out to 2028, mostly in high quality bonds for stability and liquidity, maturing at approximately 6-month intervals, with term deposits filling in the odd gaps.
Our share portfolio has been wonderful over the last 12 years — declining now as interest rates rise — but we are reducing the level of these and are not too concerned, you’ve taught us that!
Thank you for the years, thank you for all the help, thank you for being you.
A: Gosh. You’re too kind. But thanks so much.
- Mary Holm, ONZM, is a freelance journalist, a seminar presenter and a bestselling author on personal finance. She is a director of Financial Services Complaints Ltd (FSCL) and a former director of the Financial Markets Authority. Her opinions do not reflect the position of any organisation in which she holds office. Mary’s advice is of a general nature, and she is not responsible for any loss that any reader may suffer from following it. Send questions to mary@maryholm.com.
Letters should not exceed 200 words. We won’t publish your name. Please provide a (preferably daytime) phone number. Unfortunately, Mary cannot answer all questions, correspond directly with readers, or give financial advice.
