INSIGHTS

Whether you’re wealthy or starting with a small sum, there are investment services to suit you.

Craigs Investment Partners firmly believe that every New Zealander with means should be investing in some capacity. “We offer services for many different investors, some of whom are novice, others who are experienced,” says David Sawtell, Head of Advisory at Craigs Investment Partners.

“Some are just starting out with a few hundred dollars, while others have a large initial sum.” Sawtell says there are many reasons people delay seeking investment advice. “Once people have made the step to meet with an investment adviser, they realise how simple it is and wonder why they left it so long,” says Sawtell.

If you’re not investing, delaying may cost you in the long run. It’s less about how much you invest and more about how long you invest, as illustrated in the KiwiSaver chart below.

Every client has different investment needs, says Sawtell, and Craigs offer several different services to suit each client. Here are a few case studies.

ANTONIO & MARGIE* - RETIRING

INVESTMENT $3 million

The imminent sale of a successful business will result in a comfortable lifestyle for Antonio and Margie in their retirement. They have two commercial properties, and they want to leave a legacy of $3 million for their children and their local community foundation.

SUGGESTED SERVICE - MANAGED PORTFOLIO SERVICE

Without having a good understanding of the financial markets, Antonio and Margie saw the benefit in using the expertise of a qualified investment adviser to manage their investment portfolio.

They met with an investment adviser at Craigs to discuss what they wanted to achieve with their money. Their adviser created a comprehensive investment strategy proposal, and recommended an investment portfolio.

The adviser keeps regular contact with Antonio and Margie to keep them informed of how their portfolio is performing and to make sure the portfolio is meeting their objectives. They can also view their portfolio value on a daily basis through a secure client portal on the Craigs website or via the Craigs mobile app.

MATTHEW* - SAVING VIA KIWISAVER

INVESTMENT 3% SALARY, MATCHED BY EMPLOYER

Matthew is a 38-year-old professional, owns a house with his wife, and has two children. When he joined a KiwiSaver Scheme nine years ago, he went into one of the default funds. Now his KiwiSaver balance is $102,000 and growing. But he realised he was in a conservative fund, which is not suitable for his risk profile, or his life stage - he’s got many more years of work ahead of him so can afford to consider a higher risk option.

SUGGESTED SERVICE - CRAIGS KIWISAVER SCHEME

There is a key difference to this KiwiSaver scheme compared to others in the market. It offers the option to invest in funds, exchange traded funds (ETFs) or directly into shares of your choice.

Matthew decided to invest $51,000 into a growth fund as the cornerstone of his portfolio as it instantly provides diversification. He is investing the remaining $51,000 across five securities (stocks); two New Zealand shares, two Australian shares and one US ETF. He intends to continue to invest in these five until his portfolio reaches $120,000, and then add some additional stocks.

Given the amount of money in his KiwiSaver account, Matthew doesn’t want to just ‘set and forget’ and is taking a more active interest in the investment direction and performance of his portfolio.

NICKY & BEN* - SAVING FOR CHILDREN'S EDUCATION

INVESTMENT $300 PER MONTH

Nicky and Ben want to either help fund their children’s university education or first home purchase in adulthood. With the everyday expenses that come with raising a family, they want to start small.

SUGGESTED SERVICE - MYSTART

This service allows Nicky and Ben to contribute as little as $100 per month toward their goal, but they are in fact contributing $300 per month toward their children’s investment portfolio.

The couple met with an investment adviser and created an investment portfolio to match their risk profile and length of investment. Setting up an automatic payment each month makes it easy to invest, and full visibility of their portfolio value online means they can make changes when it suits them.

Originally published in the September issue of Kia Ora magazine.