News Round Up

The housing boom of the last 12 month is making New Zealanders wealthier.

The Westpac Houshold Savings Indicator shows net household worth rose $2.7 billion in the September quarter and is now just under 6% higher than at the same time last year.

That works out at $156,174 a household, or a rise of $6,500 from last year - but still below the peak of a $160,000 reached in 1997.

Westpac's chief economist Adrian Orr says earnings are up and those are going into bank accounts or further house purchases.

"Capital preservation rules for now."

Funds have flowed out of the managed fund this sector after the poor performance of international share markets. Investors have instead been hunting for high interest fixed interest returns, though those have been falling too with interest rates trending down.

Rich Dad's Prophecy
Volatile financial markets mean that relying solely on superannuation and managed funds is a sure plan for retirement disaster, best-selling author Robert Kiyosaki says.

In his new book, Rich Dad's Prophecy, Kiyosaki says that the only way to prepare and profit in these times is through financial literacy and taking control of your finances.

Rich Dad's Prophecy is Kiyosaki's financial plan to help people "prepare for the worst and start planning now for your financial freedom."

NZSE 40 changes
Powerco will join the New Zealand Stock Exchange's Top 40 index from December 2 now it has acquired United Networks assets.

The company's focus over the coming months will be on bedding in the integration of assets from the UNL purchase, which it hopes to complete by January 31.

International credit rating agency Standard and Poor's has removed Powerco from CreditWatch, noting that the ratings outlook for Powerco is stable as its business position has strengthened in recent years through the expansion of its territory.

Powerco has a BBB+ long term credit rating.

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