Prioritize building a 3-6 month emergency fund for financial security. Maximize your KiwiSaver by choosing the right fund, aligning with your risk tolerance. Diversify your $260,000 investments, and regularly review and adjust your portfolio and retirement plans with a financial advisor.
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“Looking for advice rebuilding my investments for retirement. The current situation is I will be 52 in November. Currently renting($750 per week)due to split 18 months or so ago, was paid out of the family house. I have 260k to invest. I have 120k in my Kiwisaver, my current yearly salary is 120k, I’m contributing 10%, and the company is doing 3%. I have no debt. Any advice?”
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Emergency Fund: Building an emergency fund is the first step to financial security. Ensure it can cover your living expenses, including rent and utilities, for 3-6 months. This fund provides a safety net for unexpected costs, so you won’t have to dip into your investments in case of emergencies.
Maximise KiwiSaver: KiwiSaver is a critical component of retirement planning in New Zealand. You’re already contributing 10% of your salary, which is great. Consider optimizing your KiwiSaver by reviewing your fund choice. Depending on your risk tolerance and retirement goals, you might want to select a fund with an appropriate mix of growth and conservative assets.
Diversify and Manage Risk: With $260,000 to invest, diversification is key. Diversifying means spreading your investments across different asset classes like shares, bonds, and potentially property. As you approach retirement, you may want to tilt your investments more conservatively to reduce risk. A financial advisor can help determine the right balance based on your unique circumstances.
Regular Review and Planning: Consistently review your investment portfolio, budget, and retirement goals. Reassess your risk tolerance and make adjustments as necessary. As you near retirement, consider additional savings measures if possible. Consulting a financial advisor can ensure that your investments align with your retirement objectives. Retirement planning is an evolving process, so ongoing review and adjustments are essential to meet your financial goals.
Hope this helps.
Regards, Clive Fernandes (Financial Adviser)
Director – National Capital
Disclosure: I am the director of National Capital, a KiwiSaver advice firm. The views expressed in this article are the views of the author. The information provided is of a general nature and is not intended to be personalised financial advice. You may seek appropriate financial advice from a Financial Adviser to suit your individual circumstances or contact National Capital.
