Money Week: time for a financial goals check
Every year the Commission for Financial Capability runs ‘Money Week’, an event aimed at encouraging New Zealanders to talk about money and develop greater financial capability. “Show me the money!” is the theme for this year’s event which runs from 5-11 September.
AMP Capital is a strong supporter of Money Week and its focus on helping New Zealanders to plan for their future and get ahead financially. ‘Show me the money week’ is all about visualising the future and making a plan to get there. If you already have a financial plan, we think it’s a great time to revisit and refresh your goals to make sure you are on track financially.
Touching base with a financial adviser, reviewing asset allocation and investing in your financial education are all things you can do to stay abreast of your investments, how they’re performing, and ultimately whether your financial goals are being met.
To help ensure you are in optimum financial shape for the year ahead, we’ve developed a checklist of some key financial tasks to consider.
Financial goals checklist
Review your investment goals: Recent market volatility has made it more important to review your investments and ensure they are still delivering against your lifestyle and retirement objectives while being mindful that long-term – not short-term – performance needs to be the focus.
Review your asset allocation: The impact of market volatility also means it’s important to look at asset allocation and assess whether your portfolio could benefit from exposure to asset classes you may not have traditionally considered, such as infrastructure. More broadly, your annual asset allocation review needs to be considered in the context of your goals. Do you have enough exposure to growth assets such as equities if growth is your objective? If income is important but it has dipped in a low interest rate environment, should you consider moving out of cash into other asset classes such as property or infrastructure, or allocating to a better-performing income-focused product?
Make an appointment to see a financial adviser: A lot can happen in 12 months so if it’s been a year (or longer!) since you’ve seen a financial adviser, consider making an appointment to talk about your goals and any change in your personal situation. A financial adviser can also provide guidance on asset allocation and help you assess your investments in line with your overall objectives. In addition, they can advise on any changes to KiwiSaver or tax legislation that may affect you. Visit AMP for more information.
Check the tax effectiveness of your investments: Investment options may include direct investments held individually via a trust, a company or through a Portfolio Investment Entity or PIE (which is a managed fund that has tax concessions). Investing through a PIE may be beneficial as the maximum tax rate is 28%, compared to a maximum 33% tax rate on income from investments held directly.
Continue to invest in your own financial literacy and learning: As the old saying goes, knowledge is power. The more you understand about finance, the better you will be able to manage your investments to ensure you’re on the right path to achieving your goals. Subscribe to finance newsletters from media outlets as well as service providers to receive updates on investment opportunities, economic trends and general information relating to investing and superannuation. You’re on the AMP Capital website so that’s a good place to start!
This blog post has been prepared to provide general information and does not constitute 'financial advice' for the purposes of the Financial Advisors Act 2008 (Act).
An individual investor should, before making any investment decisions, consider the information available in the relevant Product Disclosure Statement and seek professional advice.
While every care has been taken in the preparation of this document, AMP Capital Investors (New Zealand) Limited and the AMP Group (together, 'AMP') make no guarantee that the information supplied is accurate,
complete or timely and do not make any warranties or representations in respect of results gained from its use.
The information is not intended to infer that current or past returns are indicative of future returns. The views expressed are those of the author and do not necessarily reflect those of AMP.
These views are subject to change depending on market conditions and other factors.
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