The majority of New Zealanders lack a good plan of action to address their financial future. Particularly their retirement needs and financial security.

Developing such a plan is not difficult. There are web sites, professional advisers and several financial institutions or banks that provide financial planning services of varying quality.

My approach with clients is very interactive and the initial session is based on mind mapping techniques. Unless you as the client are fully engaged in the process the plan will have little validity and there is no point in proceeding past the initial meeting. A good plan however can build a basis for both a financially secure future and years of less worry.

Underlying the planning process is the investment recommendations. Some aspects of investment strategy are little more than common sense and can easily be applied or adopted by anyone.

Unfortunately many NZ investors in an attempt to make up for potential or perceived shortfalls in their future funds take unnecessary risks which compound their problems.

A recent example is the finance companies failures in New Zealand which could not have happened if NZ investors did not subscribe so heartily to the belief that property investing is “safe.”

No investment (including property, gold or bank term deposits) is safe should be the starting point for all investment recommendations.

Factors in addition to security or risk that should be considered in building an investment strategy include diversification, return, costs, volatility, taxation, inflation and most importantly of all the personal aspects. What are your beliefs and preferences? How much of a risk taker are you if at all? When and how do you want to draw on these investments? What exactly are your needs?

Act now to plan a better financial future plan.  Enquiries welcome.