Investing In NZ

Turns out, investing in New Zealand is one of our country's best kept secrets. It’s not commonly known as an investment destination, however the country was rated number one for ease of doing business by the World Bank, the world’s least corrupt country by Transparency International, and Forbes magazine tagged NZ as second among their best countries for business list.

There are countless options for investing in New Zealand and the hard part is deciding which ones are right for you. Let the experts at MyFuture take the reins. By investing intelligently and diversifying your investments to reduce your risk, we’ll help you maximise your returns.

Everyone has different levels of risk they are willing to take known as your risk tolerance. What you decide to invest in is completely up to you, but you should make decisions with all the available information. The expert Qualified Financial Advisers at MyFuture can coordinate a risk assessment with you and recommend investments that suit your goals.

Investing In New Zealand

Investing in New Zealand is an excellent opportunity to let your money work for you.

Where you choose to invest will vary depending on your financial plan, but our Qualified Financial Planners can guide you towards a healthy portfolio of investments to get you on the road to a secure financial future.

The most popular investment opportunities for Kiwis includes:

Cash & Term Deposits

A relatively low risk and easy investment that most people know are cash deposits. You simply deposit your money into a bank account that earns interest. Accounts where you have instant access to your money anytime providing you more liquidity tend to have lower interest rates. 

Alternatively, you can cash your money into fixed term accounts. These can range anywhere between 1 month and 5 years depending on how long you want to save for and are likely to earn you a higher interest rate. Fortunately, you can still access your money from fixed term deposits but you’ll likely lose the interest rate as a ‘break fee.’

KiwiSaver

KiwiSaver is a government run retirement or first home savings scheme that you can voluntarily make contributions to. There are many different providers who will invest your savings on your behalf. The best thing about it is that your employer must contribute 3% of your gross salary on top of the government’s 50 cents for every dollar you contribute up to $521.43 a year.

KiwiSaver is a relatively easy investment option and you can choose the amount of risk you’re willing to take. It is free to join and can’t be touched until retirement (or to buy a house) which makes it a great opportunity to build high returns year after year and enable you to create a comfortable retirement plan.

Get Ahead With Quality Financial Advice

Our Qualified Financial Advisers can help you achieve your investment goals with a tailored financial plan and proven financial expertise.

Shares

When you buy a share or stock, you buy a small part of a company. The more you own, the more of the company you own and their value will follow the company’s fortunes. The price of shares can drastically change on a daily basis meaning your investment falls and rises in value regularly. Investing in shares can be lucrative, but also carries substantial risks that should be carefully considered in a financial planning session.

Investing in shares or stocks can be done globally, or just in NZ if you prefer. Having access to financial markets across the globe also helps us understand local market conditions so we can identify the best opportunities for share investing.

Property

Property investment is one of the most popular types of investment in New Zealand and one of the most stable asset classes. Property can be a great investment because it provides you with cash flow as well as appreciation in value.

The implications of investing in property vary depending on the property you purchase and what you choose to do with it. Various lending schemes and tax benefits may be available, but you should consult a property investment specialist to be sure you’re getting the best deal.

The best thing about property as an investment is that it’s tangible meaning, no matter what happens with its market value, you will always have the property itself.

Bonds

Bonds are when you lend your money to a company or the government for a fixed period. Interest rates are generally higher than the interest from a bank account as there is more risk involved. The riskier the company or government you invest in, the higher the return on your investment (ROI). 

The variability of risk and difficulty depends on the bonds you choose to invest in and a certain level of experience and knowledge will go a long way in getting you a return on your investment.

Actively Managed Funds

Another easy option for most investors is to invest in an actively managed fund. This is where a manager or a team of individuals will watch the share market and make decisions about where to invest your money on a daily basis. 

You can invest in almost anything via actively managed funds including companies from New Zealand, Australia, America and Europe, they can be industry specific and you can choose the level of risk you are willing to accept. It’s important to keep in mind the fees you pay for this service. Alternatively, you could opt for Passive Managed Funds, which don’t have the day to day management but instead track specific indexes or follow a set-and-forget investment formula.

Reach out to MyFuture for your FREE no obligation Discovery Session to get the professional advice on investment decision making that you deserve.