Investment queries answered

Ruapehu Bulletin, Volume 12, Issue 545, 19 July 1994, Page 11

Investment queries

answered

By

Warrick

Funnell

Insurance salespeople and many other professionals have products and solutions that they need to adapt people' s problems to suit. All that does is feed people' s dependance as a client. Whereas a financial plannre finds out what the problems are and then looks for the most suitable solution. With 18 years' experience listening to people' s problems and helping them deal with Lifes challenges, it has always been apparent that most people are overawed by the enormity of dealing with finances and the 'language'. Each week I will be answering reader's letters in an attempt to help you understand the complicated world of investment, insurance and financial planning a little better. Love to hear from you, Warrick. Olam having problems getting a valid claim from my insurance company. 1 left my case in the hands of my solicitor but even he seems to be getting stonewalled. We seem to be getting nowhere, a year later. □ Dealing with insurance companies is a matter of good communication. In my experience, insurance companies will respond to good logic if put to them by a writer that understands insurance and how it works. Quite often people adopt an aggressive attitude without having specific knowledge of the mechanics of insurance. Basically you need to know the right person to talk to; how to talk to them, then just keep annoying them until something happens - or nothing else will! This is where independant insurance advice is important, ie an insurance broker. Let your fingers do the walking! 0 Some ofmy family have suggested that Iform a family trust but I don't know much about them. Can you explain briefly what a trust is and how it ajfects me? Concerned Grannie □ A trust is basically the settlement of some wealth or assets into a fund to benefit certain people (beneficiaries). This fund is administered by a trustee according to a set of rules (the Trust Deed). The important thing to remember is that if you Settle your assets into a Trust that you as the benefactor actually give up ownership and in fact lose the control of those assets to the Trust Deed. This is but a simple explanation of a trust. In real

life each person' s situation requires it own specific advice tailored to their individual needs. Please feel free to call me, Grannie. • I'm a bushman and I earn $450 a week in the hand. What am I going to do when I'm 60? □ It is difficult to give people on $450 per week across the board advice. There's no magic formula, no magic wand; just a long hard brick road - as you would already know. What I can do for you though is help you to set yourself up with achievable goals and teach you to budget your finances to reach them, step by step. I know that within your industry -weather and markets often decide whether you work or not, so with better money management skills you would be back in control of your own future.