Partnering with you to create and build a Legacy
Investment
Your money should work for you to provide maximum possible return
Your investment choices can make a big difference in what your final returns are going to be. Making prudent investment decisions that consider your financial assets, their suitability to your goals and objectives, your risk/return profile and the time horizon of your investment could make a big difference in your returns.
Whether your goal is short-term, medium-term or long-term, we are here to help.
Our Six Step Process
Whether your goal is short-term, medium-term or long-term, we are here to help.
1) Briefing
At our initial meeting, we will meet with you and discuss what you wish to achieve both financially and in terms of lifestyle. We will provide you with a Disclosure Statement and Scope of Services, so you know what to expect from us, and agree on areas of advice requested.
2) Implement
Learn about your needs, goals, and expectations. We do this by asking the question and making written notes.
3) Analyze
We analyze and evaluate your financial position, subject to the scope of the engagement, to gain an understanding of your financial situation. We then assess the strengths and weaknesses of your current financial situation and compare them to your objectives, needs, and priorities.
4) Develop
Develop and present tailored recommendations to you that meet your needs and provide you with options for consideration.
5) Implement
Implement the recommendations and oversee the commencement of your plan. This will involve putting the structures in place to ensure that the implementation of your strategy is handled as smoothly and efficiently as possible. We ensure that you are kept informed of the progress throughout.
6) Monitor
Regular monitoring of your plan and discussions with you to ensure that your plan still meets your requirements.
Managed Funds
Managed funds can be a great way to diversify your investment portfolio. In a managed fund, instead of investing into one asset for example cash assets, you spread your assets over thousands of different assets.
These includes shares, bonds, cash, commodities and properties. It’s a great way to get into investing, as it doesn’t take much to get started.
They make it easier to manage risk by spreading your investments across a range of assets and products. KiwiSaver is a good example.
We can earn income from managed funds as well as getting capital gains when the value of our units in the fund rises. In a managed fund, the fund manager chooses investments according to the fund’s rules. The manager is paid to administer the fund and choose the investments.
The Benefits
- In a managed fund your money is pooled with other investors' money and spread across different kinds of investments.
- A fund manager chooses the investments, and each investor owns a portion of the total fund.
- Managed funds may be defensive, conservative, balanced, growth or aggressive.
- They can also focus on a particular type of investment or market such as share, commodities, or emerging markets.
Investment Property
Purchasing an investment property is one of the most popular types of investment in New Zealand. According to Statistics New Zealand, investment in houses made up nearly a third of all kiwis’ investment in the past year – the highest share of total investment since records began 45 years ago.
Investment property is purchased with the intention of earning a return on the investment, either through rental income, the future resale of the property or both.
1) You can invest directly in property with the intention of selling later for profit (capital gain) or invest in a rental property.
2) You can also invest in property market through managed funds, property syndicates or listed property funds. Investing in managed funds that buy and sell commercial property. These funds may own properties such as office buildings, factories, and shopping centers directly, or they may own shares in other funds that own the property. An investor receives an income if the fund makes a profit.
The advantages of owning this way are;
- Property ownership without having to find the property and do the hands-on management ourselves.
- Small investors can own a diversified portfolio of commercial property, which has a different cycle of ups and downs to residential property.
- Removing the risk of unexpected costs involved in the day-to-day management of a property.
Property syndicates are another way to invest in property, these have a different legal structure to managed funds and can be riskier. Property investors are exposed to risk for a longer time.
It’s important to understand the risks before you invest, one way you can reduce this risk is by Diversifying– having other types of investments, for example, bonds and shares and/or investing in managed funds is a great way.
Talk to us about the factors you need to be aware off when getting into property investing and what other options you might have.
Investment Strategy
Negative Gearing
Negative gearing refers to a strategy in which your expenses and outgoings from the property (such as interest repayments on your home loan, council rates, maintenance, insurance, and water) are higher than the rental income.
This often happens in the early years of owning an investment property. In effect, you are making a loss on your investment. Many people choose to use this strategy because they can claim tax deductions for some of the ongoing expenses.
Once you have made these claims, you can reduce the amount of taxable income because you will have a smaller amount of rental profit.
Positive Gearing
Positive gearing strategy refers to a strategy where the rental income is higher than the ongoing costs of the property – generating a cash flow.
Some investors use a mixture of both negative and positive geared properties in their portfolios so that the shortfalls of one can cover the other.
