“Invest it” is the first choice of many people who have voted in the poll so far. Do you agree? And if so, how would you decide what to invest in and who to invest with?
Choosing an investmentThere are many different types of investment available. Broadly speaking, they fit into four “asset classes” - short term deposits, bonds, property, and shares. If you don’t know which type of investment to go for, here’s how to get started:
Step oneWork out your “investment profile” – what you want out of your investment and how much risk you feel comfortable with.
Step twoFind the types of products or schemes that suit your profile.
Step threeGet good quality financial advice or information.
Step fourCompare products, then make your choice.
The Investing section of the Retirement Commission’s free and independent website
www.sorted.org.nz tools and information to help you through all these steps.
For example, Sorted’s Risk Recommender asks you some questions to establish how much risk you can tolerate in your investments.
• Are you conservative, do you worry about money?
• Do you like things to go according to plan – and like to be in control?
• Or are you comfortable in taking a calculated risk with money?
Risk is a critical thing to get your head around when you’re thinking about investing. The higher the risk you take, the higher returns you could receive, but the more chance you have of taking a loss.
Getting good adviceYou can get investment advice at financial institutions like banks, or brokers, or from an independent advisor. But before you trust your money to a financial advisor it’s important to find out about their qualifications, any limits on what they sell, and how much they will make if you follow their advice. Sorted has an advice checklist which can help you get this information.
Find out moreTo find out more about investing, visit
www.sorted.org.nz. Sorted is packed with helpful information, tools and calculators to help you manage your personal finances.
