INSIGHTS

For many of us, investing can seem scary. There’s always the fear of the unknown and a tendency to think that it’s just for people who already have lots of cash. Tucking money away under the mattress, or more likely in a savings account, can seem like the best thing to do.

But the truth is that investing isn’t actually that scary. And it certainly isn’t only for a select few.

Here’s the thing, if you have a KiwiSaver account, then you’re already investing. Yet many of us treat our KiwiSaver account a bit like a bank savings account – contributing as we should, but not giving it any real thought.

According to a recent survey conducted by the Financial Markets Authority, more than one in ten of us don’t even look at our KiwiSaver statements. In fact, more than half of New Zealanders take longer to choose a movie than they do to read their annual KiwiSaver statement.

But it’s time to think like an investor and take an active role in your KiwiSaver account. This is your best bet to ensure you have an investment portfolio that takes into account your own individual circumstances, your risk profile, and your objectives.

It’s time to think like an investor and take an active role in your KiwiSaver account.

Maybe when you first joined KiwiSaver you didn’t pick a fund and so were placed in a conservative fund from a default provider. Unfortunately, this isn’t uncommon. However, let’s say you plan to retire in several decades’ time and as such would have the ability to weather market fluctuations. A growth portfolio with potentially higher returns could be the better option for you. Take the example below:

There could be a $233,000 difference between the expected returns of Carla’s conservative portfolio and Gary’s growth portfolio*:

Taking an active role in your KiwiSaver account doesn’t necessarily mean you have to do it all yourself. It also means understanding when to enlist the help of someone with expertise. An investment adviser can work with you to ensure your KiwiSaver investments match your life goals. They can also help you create your own portfolio, tailored to your own individual needs and wants.

Craigs Investment Partners offers the only KiwiSaver Scheme where you can handpick from more than 190 New Zealand, Australian and international shares, funds and trusts which is able to provide instant diversification. This gives you full control and transparency over what you’re invested in. Imagine using a product you love and knowing you own shares in the company that made it.

So embrace your inner investor and get the most from your KiwiSaver investments.

If you’d like to become an investor with Craigs, you can speak with one of Craigs’ investment advisers.

This article was originally published in the March 2020 issue of Kia Ora magazine.