Welcome Wow, it is August already. It only seems like a few weeks ago when the January newsletter was being written. Although, when we reflect on the events of 2011, there have been so many huge, life changing events around the world. It is hard to believe that there are some months left…The Canterbury Earthquake, Fukushima, The Arab spring, Bin Laden being killed, Murubak resigning, Gaddafi up to his old tricks, the price of Oil, Silver and Gold going up to record highs and the Royal Wedding. We still have to fit in the RWC and the Elections. One thing that these events can remind us, is the only thing we can count on is change. As usual the winter bugs have been doing the rounds. Dry noses and coughs. Thankfully the season is almost over and it is time to be preparing for spring. There is nothing better than a pre-spring personal make over. Freshen up and brush away the winter blues. To recover from the winter hibernation period, we recommend drinking a lot of water, eating fresh veges and getting out and taking some time out for yourself. Top quick fix tips: • Have a laugh. - Laughter is excellent medicine for a quick pick me up. • Rock out loud. - Whether you work alone or in a room with co-workers, a quick one-song rock out loud session is an effective way to beat winter fatigue. • Eat a piece of chocolate. - What can we say? YUM • Take a mini-vacation. - It does not have to be expensive, just stop, relax & have fun. • Get a massage. - Loosen up those tight muscles and you’ll feel more relaxed. • Dress up. - Feeling better about yourself has a magical way of giving you more energy. • Do something nice for someone else. Have a tip top month! Warm Regards, Jamie Coltman

August Articles Rest home subsidies and the abolition of gift duty Product  Review: Keeping your documents safe.. Hilarious Advertising Reading Round-Up Event of the Month Rest home subsidies and the abolition of gift duty Recently, much has been made of the government’s intention to do away with gift duty from 1 October. The abolition of gift duty will allow you to complete a gifting programme in one fell swoop by making a transfer of property to your family trust and then completing a single gift of the full purchase price to the trust. However the abolition of gift duty will not affect the position of the Ministry of Social Development (MSW) in assessing your financial position for the purposes of rest home subsidies; the MSW’s assessment is entirely independent of the Inland Revenue Department’s gift duty assessments. When the announcement of the abolition of gift duty was made, some suggested that by taking advantage of no gift duty and completing the single gift of the sale value of the asset to the trust, you would thereafter be eligible for government subsidies for services such as rest home care. However, that is not the case. The MSW has a stringent regime of assessing whether or not you may have ‘deprived’ yourself of assets prior to a means assessment of income and assets. Essentially, the MSW allows you to hold certain assets at the time of making an application for subsidies for health care. Additionally, the MSW will allow you to gift no more than $6,000 for the five years prior to the application, and for the years prior to that, of $27,000/year. Any gifting over those levels may be considered by the MSW as ‘deprivation’ of assets and the MSW will include that excess gifting or disposal of assets in a means assessment, thereby clawing back the transaction that deprived you of assets. The important message is that after 1 October a one-off gift to a family trust to take advantage of the abolition of gift duty and thereby transferring ownership of assets to the trust will not prevent the MSW from assessing your assets and gifting during your lifetime for the purposes of means assessment for rest home subsidies. The longevity and independence of a trust will help you in an MSW assessment of deprivation in a means assessment. However after 1 October, if you attempt to avoid payment of rest home subsidies by completing a single gift in close proximity to a claim for rest home subsidies (or similar), it is unlikely to be effective. By Clark Pirie, partner in Queenstown law firm Mactodd. This article first appeared in NZ LAW Limited’s member firm client newsletter Property Speaking, August 2011. Mactodd is a member of NZ LAW. Product  Review: Paperless and Efficient Office Assistant – DepositBook It is not often we include product reviews in our newsletters, but this month we introduce a new product that is taking the financial world by storm. DepositBook, is revolutionary product  designed by a Kiwi team, we think you will find it useful. DepositBook is a cloud based software solution, which was launched to help you manage your term deposit investments and maximise returns.  It is a simple yet effective administration software that reduces your time, desk space and environmental impact.   The Benefits of using DepositBook:     •    Our main benefit is our online tender platform – which allows you to tender each Term Deposit for marketing rates.     •    Provides you with remote access.  Which means you can manage your term deposits wherever you are – working from home, mobile devices, or the office.     •    Is a reporting tool – to allow you to produce reports for your stakeholders, real-time and at a click of a button.     •    Provides a seamless communication link to New Zealand Banks – for all your Term Deposit requirements.          •    Also can create a unique, simple, and very painless fundraising channel to help raise money for causes that need it most. Over the last 3 months DepositBook.co.nz has grown rapidly and now handles over $10m of Term Deposit tenders a week for over 160 registered users. Nick Hurst, Managing Director of DepositBook was asked, “Why have we been so successful?” “Before we launched DepositBook.co.nz, we researched the New Zealand Market and identified that there was a wide range of term deposit rates on offer from the Banks and that to get the best rate and term you need to shop around.  We developed a web based service that sources these rates from all the main banks. Our service is absolutely free to all users – we take no commissions or fees from any party, nor do we handle any of our clients' funds.  It is fair to say – this puzzles a lot of people and the question is often asked of us “but how do you get paid?”.  We have introduced this Free service to ensure the Banks have no reason to not use DepositBook.  It also allows us time to prove what we have delivered to the market a service that creates real value and then we intend to introduce additional services they may wish to pay for.” An example of how DepositBook can improve your returns and amount of interest you can earn Recently we undertook analysis of the New Zealand Term Deposit landscape; Statistics obtained for the week beginning 4th of July – for a 6 month Term Deposit.  The following rates were identified by DepositBook. Highest negotiated rate through DepositBook                                                       4.60% Market Range                                                                                                             3.30% to 4.60% Versus The highest ‘advertised’ rate by a AA or higher rated bank.                    4.35% DepositBook User Testimonials: “Thanks for making my bank more competitive, it's a shame they didn't come to the party in the first instance and quite a shame I had to rely on DepositBook to get a better deal “ - DepositBook client “Your website is great – it is better than the phone calls” - Bank Assistant Manager “DepositBook is a simple, timely system through which I can research possible terms and rates.  It saves me a lot of time “ - School Finance Manager. “DepositBook is useful to see what most banks are     offering in one place – it has saved me time and has been advantageous to the school” - School Business Manager “Living in London – DepositBook allows me to handle my term deposit investments with ease and simplifies what is normally an onerous task' – Company Director Nick says “ I think you will agree it is very worthwhile to use DepositBook.” - If you have $10,000 or more to invest in a Term Deposit – Simply click:  www.DepositBook.co.nz Keeping your documents safe.. 80,000 insurance claims are either being delayed or unable to be processed from the Christchurch Earthquake.  Why?  Because their documentation was damaged during the Earthquakes, or they simply are not allowed into their houses. 85% of the claims 18 months after Katrina had hit were unable to be processed because of documentation issues.  Imagine going through a massive natural disaster and then not being able to get back on your feet, because of a paperwork issue?  Frustrating to say the least. With modern technology being so easy to use, it is imperative to make sure you have all of your legal and personal documentation somewhere safe. How about 'the cloud'? The Cloud, is a term, that you will be hearing more often when you store information online.  Accessible from anywhere in the world and anytime as long as you can get internet access. You could use Dropbox.  It is a free, secure service that allows you to save documents online and be able to access them from your computer, phone or ipad. It is super simple to use. When you save something on your computer it automatically saves the same file in the cloud. It is wise to get certified copies of your passport, birth certificate, license and other information, that you may need in an emergency situation. Scan them, and save them in Dropbox or similar. If you don't trust storing your personal information online.  You could store them, by either making copies of the documents and give them to a trusted friend or relative that lives in another city to take cake of them or by using a portable hard-drive or USB key, that you can grab quickly.   If you are an iphone or ipad user, there are apps in the apps store that can help you keep your documents stored on your these devises, so you can access them easily. It is worth investigating and making a plan.  A little bit of planning and preparing could save you months or trying to get your personal documentation starting from scratch. Hilarious Advertising Dirt Devil-The Exorcist 4826 ratings 1,815,007 views Reading Round-Up Mary Holm: Commissions mar new rules  ( Click here... ) Mary answers readers' questions about investing, financial advisers and KiwiSaver withdrawls. (NZ Herald) Bernard Hickey: Help NZ by saving like the wind  ( Click here... ) "It's now clear our Government and our banks are not doing anything substantial to reduce our vulnerability to another Lehman Brothers-style global financial crisis, or to improve our national savings rate." (NZ Herald) Diana Clement: Know what is in your KiwiSaver  ( Click here... ) "Hands up if you know what your KiwiSaver money is invested in? Even I couldn't tell you exactly this week, although I know the percentage in growth assets." (NZ Herald) Mary Holm: Advisors need steady cash too ( Click here... ) Mary answers readers' questions about financial advisor fees and regulations. (NZ Herald) Gen Y aim for nest egg, not a nest  ( Click here... ) Members of Generation Y are putting aside aspirations of owning a dream home and instead are looking to enter the market through an investment property. (NZ Herald) Diana Clement:Teenage money habits can last them a lifetime  ( Click here... ) "Teens and their money are soon parted. Even worse is when teens get the ability - through credit - to be parted with money they haven't earned yet." (NZ Herald) Event of the Month Free Animation Workshops Free Animation Workshops, Glenfield, 27 August 2011 Where: South Seas Film & Television School, 75 Ellice Road, Glenfield Restrictions: Over 15 Website: South Seas Film & Television School This is designed as a fun day with our animation tutors to introduce people to concepts of animation with simple exercises. These include: movement drawing with a life model layout application character design introduction to Flash Animation introduction to Digital Painting See previous monthly newsletters here ...