Seth Rackham - Financial Adviser

People often focus on the rate. Fair enough, it's the number everyone talks about.

But two identical loans, on the same rate, can finish years apart. It comes down to how the lending is structured.

Whether there's an offset. Whether a revolving credit is doing any work. How the pieces sit together.

The rate gets the attention. The structure quietly decides how it plays out over time.

General information only. Seth Rackham is a Financial Adviser at Real Savvy Financial Advice (RSFA). Your situation will vary.

3% to 4%. Significant or not?

In April, KiwiSaver contributions went up from 3% to 3.5%. They go to 4% in April 2028.

Take-home pay drops a little. But more going toward your retirement or first home over time adds up more than most people expect.

Compounding does the heavy lifting. But it's important to know where yours is at, and where it's heading.



General information only. Seth Rackham is a Financial Adviser at Real Savvy Financial Advice (RSFA). Your situation will vary.

Trauma cover pays a lump sum if you're diagnosed with a critical condition. Cancer, heart attack, stroke, and more. One payment.

Income protection replaces your income if you can't work. Ongoing monthly payments.

A lot of people have trauma cover and think their income is protected. They're two different products that do two different things.

Worth knowing which one you have.

General information only.

*Critical conditions are subject to policy wording and definitions, which vary between insurers.*

12% of your wages going into KiwiSaver every year.

That's what National are proposing if re-elected.

Most people are at 7% today (3.5% from employee and employer contributions). The plan builds to 6% each for employees and employers by 2032 phased from 2029.

Every baby born in New Zealand would also be automatically enrolled with a $1,500 Baby Boost to start their balance.

For young families, more going in earlier means more compounding over time.

If it goes ahead, paying close attention to your KiwiSaver will be even more important.

The OCR hasn't moved since November. Fixed rates have.

Most people assume mortgage rates only follow the OCR. They don't always. Fixed rates are priced off wholesale swap markets, which can move based on what's expected to happen. Not just what has happened already.

Remember, while rates are important, over the long term, how your mortgage is structured will have a bigger impact on what you pay than the rate you're on at any given moment.

General information only. Seth Rackham is a Financial Adviser at Real Savvy Financial Advice (RSFA). Your situation will vary.

Out and about with the fam

If you're self-employed, this one's for you.

Have you remembered to contribute the minimum requirement to trigger govt. contributions? Nobody's deducting it from your pay 🙂So this reminder might be needed!

The deadline is 30 June. To get the full $260.72 you need to have contributed $1,042.86 of your own money since 1 July last year.

To check where you're at, log into your KiwiSaver provider directly. myIR can work too, but if you've been making lump sum payments, your provider's app or website is the place to look.

Three weeks left. A lump sum before 30 June still counts.

General information only. Seth Rackham is a Financial Adviser at Real Savvy Financial Advice (RSFA). Your situation will vary.