Archive | Investment

Investing with a Conscience

Investing with a Conscience

Investing in managed funds such as KiwiSaver is a great way to save for retirement. For investors with small amounts or who wish to make regular, small contributions, managed funds offer a cost-effective, simple solution with diversification to help reduce investment risk. One of the disadvantages of managed funds is the lack of transparency around […]

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Investing Without Risk

Investing Without Risk

As every investor knows, there is no such thing as a completely risk-free investment, and the lower the investment risk, the lower the investment return is likely to be. The challenge for investors is to strike the right balance between risk and return, to find investments that give a reasonable rate of return with an […]

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Invest in Cash

Invest in Cash

Interest rates have been low for some time now – great for borrowers but bad news for investors. Looking ahead, there are signs that interest rates will rise, albeit slowly. We have had low inflation, so leaving your money invested in the bank at a low rate hasn’t led to a loss of purchasing power. […]

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taking risk

How Much Risk Can You Take?

Whether you are investing money, setting up a business or gambling on horses, your first consideration, before parting with any money, should be how much risk you can afford to take. Risk is not necessarily the probability of loss – it is the probability that an outcome will be different than you expect. For example, […]

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Robo Advice is coming

Robo-Advice is Coming

The Financial Markets Authority has given the go-ahead for personalised advice to be offered online. Such advice is referred to as ‘robo-advice’. Under current legislation, personalised investment advice can only be given by certain categories of advisers in accordance with the Code of Professional Conduct for Authorised Financial Advisers. From 2018, there will be an […]

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Investment Time Frame

Match Your Investment Strategy to Your Time Frame

We’ve had a good run in share markets since the Global Financial Crisis (GFC) of 2008. Initially this growth was underpinned by central banks engaging in quantitative easing – otherwise known as ‘printing money’. Central banks released funds into circulation through purchasing securities as a way of reducing the likelihood of economies going into recession […]

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Share Investing for Young People

Shares for Young Investors

Conventional wisdom says the first significant step towards creating wealth is to get on the property ladder. However, it’s hard for young people to start creating wealth when property prices are out of reach and lending restrictions are tight. Not only that, but young people prefer to be mobile and don’t necessarily want to be […]

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Investing Without Emotion

Investing Without Emotion

Emotions and investment are best kept apart. Put them together and you have the ingredients of a disappointing investment outcome, if not a failure. The best investment decision is one which is based on thorough financial analysis using well founded assumptions about the future. There are some investment decisions where emotions are more likely to […]

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Keeping Your Money Clean

Keeping Your Money Clean

Opening a bank account and buying and selling investments are not such simple processes as they were a few years ago. Now you must provide formal photo identification such as a passport or driver’s licence, proof of address, and, if you are transacting a large sum of money, evidence of how you came to have […]

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Investing for Children

Investing for Children

Investing for Children Parent and grandparents often want to set aside funds for their young children so they can be used to help further their later education or for some other worthwhile purpose. Here are some useful tips on how to do it in the best possible way. First, consider the investment time frame. When […]

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Keep Calm

Keep Your Cool in Uncertain Times

Keep Your Cool in Uncertain Times The world is full of uncertainties. How will Brexit play out? What effect will Trump’s outlandish statements and policies have on the global economy? Where is the New Zealand dollar heading? Will interest rates keep rising? In amongst all these uncertainties and more there is a large bunch of […]

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personality-and-investment

Personality and Investment Decisions

Personality and Investment Decisions People who find themselves suddenly having to make significant investment decisions often feel overwhelmed, confused, or even afraid. They fear making costly mistakes which could jeopardise their financial futures. In most cases, fear stems from lack of information, understanding or experience which undermines confidence in making the right decisions. These emotions […]

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