Interrupted: FSC Get in Shape Conference rescheduled plus more daily news

The FSC has announced that the Christchurch and Dunedin Get in Shape summits will go ahead on 14 and 15 April 2020. The second half of the summit was interrupted due to changes in COVID-19 alert levels. Similar to the Auckland and Wellington summits, the upcoming summits will include a masterclass session. Click here to register

“The two Get in Shape Advice Summits that were postponed in February due to Covid-19 alert levels have been reorganised on 14 April 2021 in Christchurch and 15 April 2021 in Dunedin.

The sessions, including the 2021 Masterclass are all designed to help and support the community to grow and adapt, following the start of the new FSLAA regime this week.

If you missed out on our Auckland and Wellington events, tickets are still available for both the Christchurch and Dunedin events. Find out more information and register.

Those already registered for the postponed events will have received an email and text with a link to the updated tickets automatically transferred to the new dates.”

In other news

Fidelity Life: new adviser portal set to go live in July

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Insurance People: Katrina Church asks: Should the government be encouraging the public to seek advice?

Sorted: Tom Hartmann writes: This is what good advice looks like


Sorted sees the silver lining in huge increase of traffic

Sorted has had a big spike in traffic. Reported in Goodreturns, the focus in that article is on the demand for advice. That is true. The nature of the traffic also highlight the grim economic news: the most-used areas of the site were the mortgage calculator and the budget planner. But to return to the subject of advice, more than ever an holistic approach to financial advice is probably in demand now. We could do with a lot more capacity in this area - which currently is limited to AFAs. If you are an RFA, with relevant competence to offer financial planning, I suggest getting your transitional licence for the new regime and formalising your offer. It is needed.

Sorted: New Zealanders hungry for advice, Sorted says

In other news:

Fidelity Life: Fidelity Life makes board appointment

OBITUARY: Janet Brownlie

Suncorp: There is “no urgency” to return staff to offices - Suncorp

Pandemic risk mitigation and environmental policies go hand in hand


Sorted's Excellent Article on Avoiding Scams

Sorted has published a great article by Tom Hartmann on avoiding scams. The impressive thing about this article is the 'hook'. Consumers aren't very interested in the more detailed aspects of financial planning. So how do you make this interesting? A picture of Robert De Niro helps, dressed as the character in the movie "Wizard of Lies". Link.


Sorted has a great suite of financial tools, but is missing one...

Sorted has this great suite of cool looking new financial tools - the kinds of calculators and planners with nice graphics and good step-by-step instructions that you would like to see from the Commission for financial Capability. Take a moment to check them out. Notice which area is missing? That's right, insurance.

 


Sorted: Highlighting the Cost of Rate-for-Age Cover

Sorted has a blog and on it Tom Hartmann has written a thoughtful post about the cost of rate-for-age cover. The powerful image of a steep set of stairs brings it home (he lives in Wellington, so it is an easy image to identify with). I'm a bit biased about the article because it quotes me, but more importantly, it does nail the issue of rising costs.

Let me illustrate: Use a fairly ordinary package of benefits to construct the 'ideal': repay debt, life cover of 5x income, plus IP at 75% of income, to 65 on a four week wait. I've only allowed a typical, but very low, $50,000 of Trauma and TPD. I did not select the best options in IP. I left out health insurance completely. 

  • At age 35 the package costs just under 4% of income
  • At age 40 it will have risen to over 5% of income
  • At age 55 it will be over 15% of income
  • At age 60 it will cost about 24% of income

Those scenarios allowed for increasing income and reducing debt levels. Combine that with the 'ideal' package of home, contents, and car, and 'ideal' health insurance, plus, of course, the 'ideal' contribution to KiwiSaver... I don't know if there would be much income left. It is easy to see why people aged 50+ are shopping their cover around and cancelling chunks of it. That's because there is nothing 'ideal' about spending a quarter of your income on insurance.