Knowledge is money

Fund managers are taking heat over limp returns and skinny retirement accounts but the excuses wear thin for DIYs. For those looking to lift their gains without the pain of paying for advice, knowledge is money. Your Money has compiled a list of personal finance websites aimed at improving acumen as well as bottom lines.

The starting point for getting a better grip on one's personal finances is budgeting. Knowing how much is coming in and how much is going out, and where the leaks are, is essential to gaining greater control over one's finances. There are ample resources (free and for a small cost) geared to helping in that regard. One that comes highly recommended by financial advisers is the Retirement Commission's Sorted website (www.sorted.org.nz). The site is not only free but it is full of tips, tools, programmes, calculators and strategies to help sort out even the most financially clued-out.

The New Zealand Federation of Family Budgeting Services is another good place to start (www.familybudgeting.org.nz). Under the "Need Budget Advice?" section is a variety of resources worksheets, a list of available supports and services available, and information to get you moving in the right direction. The federation also provides a free budget phone hotline weekdays from 8am to 4.30pm (0508 283 438).

For the borrower and lender

In Shakespeare's Hamlet, Polonius famously advocates "neither borrower nor lender be" as a sage piece of financial advise but it is not a mantra with much currency in the 21st century. A modern-day version might be "borrow cheaply and lend with extreme caution". Do-it- yourself types would be wise to shop around before taking on more debt or dumping money into fixed-term deposits promising wildly above average returns. Two popular websites to go about the business of borrowing or lending are www.interest.co.nz and www.depositrates.co.nz. The former has comprehensive tables and listings from a vast range of lenders showing interest rates for short and long-term borrowing and fixed-term deposits. The site indicates the credit ratings of each financial institution. The deposit rates website also provides comparative lists of interest rates available for short and long-term deposits, as well credit ratings, financial news and general information for investors.

For talk therapy types

In case you missed it, Good Living's Your Money has a financial agony aunt to answer your nagging questions and concerns about money issues of all varieties. Agony aunt Janine Starks is a former currency trader, media commentator in Britain, and also a fund manager in New Zealand. You can expect from Starks unbiased frank, friendly and no-nonsense financial advice on subjects that run the gamut from what to do with a windfall to the harsh long-term economics of the DPB. She also welcomes your questions by email starkadvice@gmail.com. Your Money still has three copies of Martin Hawe's latest book, Letters to Aston to give away for those who write in with questions.

For those who like to get it off their chest and solicit public opinion, www.nzmoneytalk.co.nz is the ticket. You have to register to get in on the forums but it's free. An administrator moderates the on-line discussions, so the cyber trash talking is not only restrained, it is restricted. Discussions are generated by the users and are wide ranging and include issues such as insurance premiums, student grants, mortgages, debt and self-employment but are personalised and also anonymous which makes them more interesting. Again, users are blocked from disparaging remarks so don't expect Dr Phil-style sparks. If you're looking for some general guidance or suggestions from other well-meaning money-oriented folk - the likes of "pennypincher", "tightwad" or "UncleScrooge" - or just a place to vent your financial worries - this is good value. As long as you tread carefully with the threads and don't treat it as professional advice it's good therapy.

For the coupon clippers & scrimpers

Those looking to cut costs can find some creative and practical solutions on www.simplesavings.co.nz. Like many other websites of this nature, you get the basics free but pay a joining fee to access more specialised information. For those disciplined enough to put it all into practice the user fees might be justified. But for those who are after a few simple tips or rudimentary reminders on how to save money, there's plenty on offer. Freebies include downloadable tip sheets on gift giving, menu planning, garage sale wisdom and low cost cleaners. Budget-minded folk looking to save on food costs may find further value in the website www.destitutegourmet.com. The site is rich with practical and palatable ideas for trimming costs in the kitchen.

For the investor

Advanced DIY personal finance types may have it sussed but those looking to move in that direction or simply wanting information about investing may get something out of www.goodreturns.co.nz An industry favourite, it provides a broad mix of news, profiles, events and charts, and rates for borrowing and lending. Publisher Philip Macalister also keeps a pithy blog on the latest in the finance sector. The independent US investment research company Morningstar (www.morningstar.net.nz) is another industry favourite and with good reason. It too provides a wide range of resources for the more financially sophisticated out there. In addition to the usual round-up of international financial news, commentary and stock indices, it tracks the performance of fund managers and ranks them. Investors wanting to know how the fund managers stack up when it comes to delivering returns will take joy and interest in this one.

Your Money's financial agony aunt Janine Starks cautions users against getting caught up on short-term performance. "Best to stick to three and five-year numbers," she recommends. While past performance is no guarantee of future performance, Starks says it is useful to the extent that it can "provide a picture of what the strengths are for each investment house". Morningstar introduced a new personal finance section recently. While tailored to North American audiences, it has some interesting and intelligent reading of value and relevance to folks on the other side of equator too.

For the blog lover

It seems everyone and their dog has a blog these days and the realm of personal finance is no exception. If you want to make the most of your internet allocation on the not-so-sexy subject of finance, bookmark these blogs.

Financial columnist Mary Holm is widely published in the print media but she also posts her columns on her website www.maryholm.com. Holm has a well-deserved reputation as an expert in the area of KiwiSaver but her observations and insights go beyond retirement savings. Her weekly commentaries take only a few minutes to read and provide rich financial food for thought afterwards.

Wellington financial adviser Liz Koh, author of Your Money Personality, also pens a thoughtful column. Koh is as philosophical as she is technical so her weekly reflections are a pleasure to read: www.moneymax.co.nz

Tough-talking Aucklander Lisa Dudson has a more assertive style but one that gets the reader to sit up, take note and take action. Co-author of the Complete Guide to Residential Investing, and a regular speaker for the Property Investor's Federation circuit, Dudson is as knowledgeable about property as she is the equities. Her website (www.moneytv.co.nz) has a range of resources geared to all levels and a video clip on topical issues.

Kapiti Coast stockbroker Chris Lee is a controversial figure with his outspoken and unflattering views on the country's financial planner community. His commentaries at www.chrislee.co.nz provide a useful, if somewhat biased, snapshot of financial issues and challenges facing the industry and investors.

For the over-50 crowd

Time waits for no-one and financial needs change over time so it's paramount to stay tuned financially even in old age. Kiwis approaching their twilight years will need to think about adjusting their portfolios and tweaking their financial plans. The website grownups.co.nz includes a money section tailored to the maturing audience with separate areas on subjects including savings, investment, superannuation, home equity release, business exit strategy advice. The Retirement Commission's sorted website (www.sorted.org.nz) also includes a section on life-stages and offers an assortment of tips and tools for the 60-plus demographic. Age Concern NZ is another useful site with a dedicated money section (www.ageconcern.org.nz/money) with information on money, income, planning, investing, discounts, working and insurance.

For the KiwiSaver

With more than 50 KiwiSavers providers, there is no shortage of information on the compulsory retirement savings scheme. Pretty much every one of those providers will have a section explaining what's on offer. It may not make for an exciting read but contributors would do well to pay their retirement savings account a bit of attention now and again. The rate of returns on conservative, balanced and growth portfolios are, over-time, dramatically different. So young contributors in default schemes (balanced portfolios) could potentially cheat themselves out of thousands of dollars by virtue of their indifference to their account. The Government's website (www.kiwisaver.govt.nz) provides a good overview of the difference between the various schemes along with a calculator that works out how much you'll have by retirement depending on how much your contribute.

The New Zealand stock exchange also has a dedicated section on KiwiSaver (www.nzx.com/kiwisaver) with similar information. Key interest is a link to a separate website (Fundsource) which tracks and rates performance of respective KiwiSaver providers. The website kiwisaver.net.nz also provides similar performance data and tables, as well blogs, news and other related KiwiSaver articles.

- © Fairfax NZ News