Discover how to kickstart your investment journey in New Zealand with expert guidance. Learn about essential education, diversification, Vanguard S&P 500, and more.
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“I’m a dummy when it comes to investing. I lost some money through sharesies when I followed all the meme stocks and lost a whole years worth of salary.
It was an expensive lesson but I want to get back into investing in funds like the Vanguard S&P 500 or the Morningstar fund ? I don’t trust the nz economy as much as we are facing brain drain.
Any seminars or podcasts you recommend or even ebooks? I’ve given up trying to buy a house but I still want to save well so I can have a comfortable retirement and enjoy life.”
(Original question on Reddit)
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Certainly, I can provide you with some guidance on where to start with your investment journey in New Zealand. It’s great that you’re looking to learn and make informed decisions this time around. Here are some steps and resources that can help you:
Education and Learning:
Before you start investing, it’s essential to educate yourself about the basics of investing. There are several books, podcasts, and online resources that can help you understand the fundamentals of investing. A few well-regarded books include:
“The Intelligent Investor” by Benjamin Graham
“A Random Walk Down Wall Street” by Burton G. Malkiel
As for podcasts, you can listen to “The Motley Fool,” “InvestED Podcast” by Phil and Danielle Town, and “The Dave Ramsey Show” for general personal finance advice.
Investment Seminars and Workshops:
Check if there are any investment seminars or workshops happening in your area or online. Organisations like the New Zealand Stock Exchange (NZX) or financial institutions often host events for investors. Keep an eye on their websites and announcements for upcoming events.
Online Courses:
Platforms like Coursera, Udemy, and edX offer various courses related to investing and finance. You can choose courses that cater to your level of expertise, from beginner to advanced.
Financial Advisors:
Consider consulting a certified financial advisor or planner. They can provide personalised guidance based on your financial goals, risk tolerance, and current financial situation.
Diversification:
When you decide to invest, make sure to diversify your portfolio. Don’t put all your money into a single investment. Diversification helps spread risk and can protect your investments.
Investment Options:
You mentioned Vanguard S&P 500 and Morningstar funds, which are excellent choices for long-term investments. It’s generally a good idea to consider low-cost index funds or exchange-traded funds (ETFs) for diversification.
Regular Contributions:
One key to successful investing is to invest regularly, such as monthly or quarterly, rather than trying to time the market.
Risk Management:
Make sure to assess your risk tolerance and choose investments that align with it. Investments carry some level of risk, and it’s crucial to find a balance that you’re comfortable with.
Keep an Eye on Fees:
Be aware of the fees associated with your investments, as they can eat into your returns over time. Vanguard is known for its low-cost index funds.
Patience and Long-Term Perspective:
Remember that investing is a long-term endeavour. Don’t be swayed by short-term market fluctuations. The S&P 500, for example, historically has shown solid long-term returns.
Lastly, consider joining online forums or communities where investors discuss their experiences, share tips, and provide insights. In these communities, you can learn from others’ experiences and ask questions when you’re unsure about something.
Always remember that investing involves risk, and there are no guarantees of making a profit. It’s important to make informed decisions and start with a solid understanding of the investment options available to you. If you’re uncertain about any aspect of investing, consulting with a financial advisor is a wise move.
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.
