Although anyone can invest money themselves, we often see many people lack the information or access to a diverse range of products to do it effectively. Others simply don’t know where to start! A Wealth Adviser can work with you to create personalised investment plan.
Some signs you might need an Investment Adviser.
All your money is in the bank – New Zealanders have traditionally utilised a limited range of investments, the favourites being term deposits and residential property.
Bank term deposits are a very simple, popular low risk financial investment, but are they the best option today?
Term deposits have many appealing features; returns are fixed and therefore predictable, distributions are regular and they are very easy to administer and setup. They often form the basis of many New Zealander’s retirement nest eggs.
The banks in New Zealand hold huge market share and provide a range of products, but are you getting genuine personalised service with access to a Financial Adviser?
You received a lump sum of cash and can’t decide how to invest it – You may have just sold a business, rental house or farm, had an insurance policy mature or received an inheritance, maybe you won lotto! But now what? Receiving money in a lump sum like this may sound like a wonderful thing, however it can be a source of stress and concern for many as they worry about what to do with it or worse rapidly find themselves spending it all. This is exactly when you should contact an Investment Adviser, they can meet with you and discuss exactly what you want to achieve with the funds and present you with a range of options.
You’re successful in your own field but don’t know where to start when it comes to investing – We all have certain areas where we excel, however dealing with money and investments can be rather daunting for many of us. There are lots of people who are very successful in their careers but they don’t have good money skills. Engaging the services of an Investment Adviser early in your career can mean financially you are working smarter not harder, and you don’t necessarily need to start out with a big lump sum.
Take the time to understand your goals
We work with you to design an investment plan that matches your needs, your budget, your timeline, and also aligns with your values. We don’t just explain the fundamentals of investing; we work with you to help you achieve your investment goals.
Think about what you are investing for and how accessible do you need your cash to be.
Understand your ‘risk tolerance’
Time isn’t the only key factor. It’s also important to know how you feel about returns and potential losses to your investment – in other words, your ‘risk tolerance.’
By helping you understand what your risk tolerance is, we can tailor an investment solution that will help you sleep at night rather than worry about short-term market fluctuations.
Ensure all your eggs aren’t placed in one basket
One of the key pillars of sound investment is diversification. An investment adviser will provide you with a much wider range of products and access to different asset classes. We can diversify our clients’ investments in four different ways. Once we have a good understanding of your risk tolerance and situation, we construct a portfolio that will give you exposure to all the major assets classes:
- cash
- fixed interest
- equities
- property
These assets are also spread geographically to take advantage of opportunities not available in New Zealand markets. As independent advisers one of the big benefits we offer is also being able to construct our portfolios using a number of different providers. Providers have different management styles including both actively and passively managed investments, so we can offer a variety of ways to take care of your hard earned money.
Keep up-to-date
We always stay on top of what’s happening in the market, so you don’t have to; it’s our job to keep you informed and let you know how your investments are performing. We regularly review your investment plan, so you can see how your returns are tracking, but also to discuss any potential changes that might be necessary. Maybe your circumstances have changed or the market outlook has shifted. Sometimes your portfolio may have had significant returns in one sector, this may need to be ‘rebalanced’ to ensure it remains diversified.
Ready to make that good investment? Let’s chat.
Cole Murray’s Wealth Advisers work with you to help you understand your investment approach, and the investment solutions that are best-suited to your needs. Remember: choosing how to make the most of your hard-earned money is important, and something that can be achieved through sound financial advice and robust investment strategies. Get in touch for a chat today.
