Broke or Broken: Must We Choose?

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What’s more important, saving your pennies or fixing your dodgy knees? What about that lower back that complains every time you tie your laces? Lance discusses that painful tension between financial and physical fitness.

I recently received a link from a chiropractor entitled, “Is your debt making you sick?” My initial thought was, “Hey, chiropractor! Stay in your lane and leave the finance talk to the people in finance!”

 

My second thought was, “Lance you are a guy in finance offering thoughts to people about wellness.” Point taken … and ignored (I do have a Diploma in Exercise Science … just saying … now focus!).

 

In New Zealand, we play sports, and our national sport involves people running as fast as they can as often as they can straight in to other people running as fast they can … for 80 minutes! We also have an absolute love for the outdoors, which is fantastic, but can physically take its toll. Now, the long-term effect on our bodies from such activities can be tremendous, and often these continue to plague us long after we’ve hung up our [insert apparatus here].

 

I recall playing rugby and seeing the older spectators hobble along the side-lines and saying to myself, “They should have stopped playing much earlier than they did.” Yet there I was in my late 30s doing just the same thing and not learning the same lesson.

 

How many times in a day from the time when we first get out of bed or we get up slowly from a meeting or we go to pick up our kids and stop short because our back is sore or neck is out or… so on? Do we feel the on-going effects from prior activities?

 

I know that a lot of us simply put up with this, as we don’t want to pay the price to remedy these physical ailments. When did we decide that our physical wellbeing was not a financial priority? And what is the true cost of doing nothing about it?

 

I would suggest that as soon as it interferes with your day-to-day or prevents you from doing simple or much loved activities—such as having fun with your children, grand kids or walking your dog—then it’s time to calibrate that Kiwi “she’ll be right” mantra. Spend the money for goodness sake! Your body is a temple. Unfortunately some of us treat it like it’s the temple of doom!

 

In exercise science it is about peak performance in sport. Should we not have the same deliberate approach to our day-to-day wellbeing? Why do we settle for less of our body if it gets in the way of doing the things we value most?

 

I can in no way tell you what to spend your money on, and, as a husband with two kids, I understand the need to prioritise finances. My thought today, however, is for you to at least investigate if there is any way of easing the pain.

 

What is the cost of doing something versus the very real cost of doing nothing at all?

 

As for me, I cannot help myself but play sport, run, whatever. I have changed from the high impact sports of my younger years to activities that are “easier” on the body. This has dramatically improved my day-to-day work and family life, while still satiating my thirst for competition and exercise.

 

I recommend having this conversation with an expert, as the remedy may be simpler and less costly than you think.

 

Lance Shearman is a Registered Financial Adviser with Velocity Financial. No investment decision should be taken based on the information in this blog alone. A disclosure statement is available free of charge upon request.

 

Insuring Your Wellington Property

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We’ve been talking about “the big one” hitting Wellington for decades and it seems the insurance companies are more worried about it than most. Stevie explores what this worry means for insuring your home in the capital.

 You may have heard last week’s announcement from IAG (and its associated brands) that they are further limiting their new cover in the Wellington area. If you’ve lived in the Wellington region for a few years, you will know that this isn’t particularly a new announcement. Since the Kaikoura earthquake, IAG undertook a conservative (a.k.a. risk averse) approach to Wellington homes.

 

It is, however, a good time to discuss what this means for you as a Wellington homeowner.

 

Firstly, we’ve spoken to our Fire & General Insurance Brokers and it is business as usual. There are still companies that happily insure Wellington homes.

 

Secondly, we’ll be keeping our finger on the pulse for any changes with other insurance companies and keep our clients informed as always.

 

Finally, if you are concerned about the insurability of your home or rental properties, give us a call and we’ll talk it through with you.

 

A Quick Guide to Personal Insurance

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Insurance can get confusing. Huge policy documents, insider lingo, fine print everywhere. It’s supposed to provide peace of mind, but can instead just play havoc with even the sharpest samples of grey matter.

So, here’s a 101 guide to understanding your personal insurance.

 

In New Zealand, there are four things a person can insure themselves for:

 

1. Life

 

Why? To repay debts, cover funeral costs and give your loved ones the financial freedom to properly grieve.

 

Who? This pays a lump sum to your estate or the person of your choosing.

 

2. Trauma

 

Why? Give yourself space to recover, whether or not you’re off work for a prolonged period of time.

 

Who? This pays a lump sum to you if you are diagnosed with a specific illness.

 

3. Income Protection

 

Why? Unfortunately the bills still come in if you’re unable to work due to injury or illness. This will pay a percentage of your income (or mortgage repayments) until you’re able to return to work.

 

Who? This pays you a monthly sum.

 

4. Health

 

Why? If you need non-acute surgery, you can skip the public queue and go straight to a private hospital.

 

Who? This pays the medical professionals that are looking after you.

 

Finally, it’s important to ensure that your cover is relevant to your life. Here are a few examples of life events that may impact the relevance of your cover. If any of these apply to you, give us a call!

•          You have new additions to your family

•          Your kids leave home

•          You get married and/or divorced

•          Your job changes

•          Your salary changes

•          You have had any health issues (more than just a GP visit)

•          You have set up a new company or trust

•          You have bought or sold a property

No investment decision should be taken based on the information in this blog alone