Investments

Setting yourself up for an investment whether this is retirement funding, property, or savings, it all starts with having a great plan. An investment is an asset or item that is purchased with the hope that it will generate income or will appreciate in the future. Investing is an opportunity to take your hard earned money and grow it exponentially.

There are many different kinds of investment structures and these are categorised by their terms being short, medium or long. At Wright Financial we draw on our experience to assist you with investments such as KiwiSaver, Select Wealth Management, Wrap Accounts, Long-Term Superannuation, and Savings Plans. With any investment, you will have a financial goal or purpose for your investment. Our role as your authorised Wright Financial  adviser is to assess your personal risk profile and your financial objectives. This works by producing a tailored investment portfolio that is designed increase your net wealth.

We start the investment discovery process to know and understand your financial goals allowing us to research each of the many investment vehicles available in New Zealand and offshore. Providing you with professional advice on managing your financial affairs while unravelling the complexities of investments is what we do.

Our recommendations are based on:

  • Independently researched opportunities to increase your wealth.
  • Meeting income or cash flow objectives with ready access to money when it is required.
  • Protecting capital with consistent, competitive returns.

The content of this website is for information purposes only. The content is intended to be of a general nature, does not take into account your financial situation or goals, and is not a personalised financial adviser service in the Financial Advisers Act 2008.

The following information is provided as a guide with which to provide general information on investment terms, types and structures. Wright Financial does not provide direct advice for share portfolios.

It is recommended you seek advice from your authorised financial adviser which takes into account your individual circumstances before you acquire an investment product. Full Adviser Disclosure Statement is available on request.

KiwiSaver:

KiwiSaver is an easy and affordable way to save for retirement. KiwiSaver is a voluntary based savings scheme set up by the NZ Government to help New Zealanders save for their retirement.

  • If you are employed, your employer has to contribute at least 3% of your gross income into your KiwiSaver account. That’s on top of your own contributions.
  • Your KiwiSaver contributions come out of your pay before you see it. This makes saving very easy.
  • The government also pays into your KiwiSaver account in the form of an annual ‘member tax credits’ (if you are a contributing member aged 18 or over) of up to $521.
  • As well as saving for retirement, you can also use KiwiSaver for buying your first home through a KiwiSaver HomeStart grant.
  • If you change jobs or leave the workforce your KiwiSaver account moves with you.

Managed Funds:

The simplest way to think about managed funds is as equities and as a business in their own right. Take a lump sum capital and manage it for profit. You also have the option of drip feeding in small amounts over time so that you spread your risk over many businesses.

When you invest in a managed fund, your money is combined with other investors. A manager of the fund will then buy and sell assets/shares on your collective behalf.

  • You gain access to potentially high return investments which would not otherwise easily be available to you as a direct investor – international investments, for example, or investment in multi-million dollar projects or property.
  • Your money is managed to minimise risk given the returns that you seek.
  • You gain the opportunity for higher returns over the long term.
  • Your money is managed by experienced professionals who are fully aware of investment trends and opportunities so that returns are maximised and risks are minimised.
  • You can choose a fund which matches your attitude to risk and your requirement for capital growth, on-going income, or both.

Long-Term Investments (Including Retirement Planning):

A long-term investment is a return that may consist of capital gain and/or investment income, including dividends and interest. Financial portfolio’s range from low-risk, low-return investments, such as high-grade government bonds, to those with higher risk and higher expected commensurate reward, such as emerging markets stock investments.

Risk and return are positively correlated in real terms this means the higher the risk associated with an investment the higher the expected return and vice versa.

  • Allows you to enjoy higher returns than medium-term investments through higher fixed interest rates or more diversified investing options.
  • Monthly compounded interest option allowing you to earn a regular income from your investment, or grow your money even faster with other investing options.
  • Offers long term gain for less volatility.
  • Higher expected returns.
  • With regular contributions allows you to see growth quickly.

Investing During Retirement:

If you are scheduled to receive a sizeable lump sum from superannuation or the sale of a business or farm, it is important to retain as much of your capital throughout your retirement. You should enjoy a long and fruitful retirement. Investing throughout your retirement can help ensure that you have the money to enjoy your retirement regardless of how long you are retired, which should also keep ahead of the effects of inflation.

Investing during your retirement is a good way to ensure that the money you receive from superannuation/business/farm sale continues to work for you. Wright Financial will develop a plan specific to your cash requirements that will allow you to enjoy and pay for your day-to-day expenses while letting you invest and earn more money.

We understand that your retirement fund is precious and we will ensure that it is not put at risk for the sake of making high returns. Your investment will always be invested in a portfolio that suits your risk profile.

Access to Funds: We will make sure that your investment is not tied-up beyond your reach should you need to access it.

Choices: You may choose a diversified portfolio that helps protect your capital investment while helping you to grow your finances.

Fight Inflation: By investing your capital, you can increase your earnings which will allow you to combat inflation over time.

Make-up for Lost Time: If you didn’t start planning for your retirement as early as you would like, you can make-up for lost time by continuing your investments throughout your retirement.

Medium-Term Investments (36 Months to 5 Years):

Medium term is an asset holding period or investment horizon that is intermediate in nature. The exact period of time that is considered medium term depends on the investor’s personal preferences, as well as on the asset class under consideration.

Medium-term investments are ideally suited for those who have money to invest in the near future but are not looking to keep their money tied up for an extended period of time.

  • Allows you to enjoy higher returns than short-term investments through higher fixed interest rates or more diversified investing options.
  • Securing capital over your choice of term and interest rate.
  • Monthly compounded interest option allowing you to earn a regular income from your investment, or grow your money even faster.
  • Higher return options with slightly higher volatility risk when compared to a short term investment.

Short-Term Investments (On-call to 24 Months):

Short-term investments are any asset that is anticipated to expire within one to three years, has low risk, and offers low returns. This type of investment often described as a term deposit and/or on-call account is a standard offering of all NZ banks. We recommend researching providers including their financial rating of such facilities because there is opportunity for zero fees and a premium interest rate.

  • Opportunity to increase your funds while minimising the length of commitment required.
  • Securing capital over your choice of term and interest rate.
  • Monthly compounded interest option allowing you to earn a regular income from your investment, or grow your money even faster.

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