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C & D

Investment Failures

What to Do with KiwiSaver Proceeds in Retirement

One of the challenges for KiwiSaver scheme members when they reach the age of sixty five is: should they continue to contribute to the fund, and or stay invested in the fund. Provided one is still in paid employment and can afford to save, then there is nothing lost by continuing to contribute to the fund. A generous employer may even continue to make employer contributions. What you will miss out on is the government’s ongoing contribution.

Low Interest Rates – the Reality

Interest rates in New Zealand are close to record lows with the Official Cash Rate (OCR) currently set at 3%. The OCR is still slightly higher than what it was in December 2011. That’s good news as it leaves the possibility of further interest rate cuts to stimulate the economy if needed. If it is needed, it will primarily be because of the impact of low dairy prices flowing through the economy. Remember, Fonterra is only working on forecasts. It’s the actual returns that will really matter.

Beware of Potential Scams

As authorised financial advisers, it really annoys us that people continue to be ripped off by “investment scams”, or by companies that are poorly managed or have little in the way of controls to ensure that their investor’s interests are safeguarded.

Investing in fads is fraught with danger. Those who invested in gold a number of years ago when the prices were high and didn’t get out at the right time, will have made some significant either realised or unrealised losses.

What is a Financial Planner?

The role of a financial planner is to work with their clients in order to establish their life goals, and put in place strategies for investing the clients’ money in order to meet or exceed those goals.

Term Deposits – Low Risk?

We were astounded yesterday when a spokesman for one of the country’s largest investment managers, made the comment on breakfast TV that KiwiSaver was really no riskier than a bank term deposit. Yes, there are risks associated with investing in term deposits. However there is minimal risk in losing investment capital, something that can readily occur when investing in KiwiSaver schemes.

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