To maximize your inheritance, consider Kiwisaver for tax benefits, Fisher Funds for diversified investments, maintain an emergency fund, and consult a financial advisor for personalized guidance in line with your goals and risk tolerance.
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“I could use some advice on what to do with an inheritance I’ll be getting later this year. My cousins and I are each set to receive 100,000 NZD. Most people usually stash this in a Kiwisaver for housing, rainy days, or retirement, but I’m in a bit of a different situation. At 22, I’m working in IT at a low-level position in an MSP, and I’m planning to head to Australia to hustle and make some extra cash. Since I’ll be moving across to AUS, and I’m not entirely sure if it’ll be a short-term or long-term thing, plus the possibility of returning to NZ, my family has given me the freedom to choose where to park this money. I’m not really keen on putting it into stocks or anything like that. I’ve got my eye on Fisher Funds as a potential investment, and I might set up a system where another family member needs to give the green light for withdrawals to add an extra layer of security. What do you think? Receiving 100k NZD, where should I put this money into? I don’t want Kiwisaver as I want the flexibility to swap between NZ or AUS Housing while having good returns.”
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It’s great that you’re thinking about how to make the most of your inheritance. The decision on where to invest the money should align with your financial goals and risk tolerance. Here are a few considerations:
Consider Kiwisaver:
While you may not be keen on Kiwisaver due to its long-term nature, it’s still worth considering. Kiwisaver offers tax benefits and employer contributions that can significantly boost your savings. Even if you plan to move to Australia, you can still access your Kiwisaver funds. It’s an excellent way to save for retirement, and it can be flexible to some extent.
Fisher Funds:
Fisher Funds is a reputable fund management company in New Zealand. If you’re considering investment, it can be a good choice. They offer a range of funds that cater to different risk profiles. Before investing, thoroughly research their funds and consider diversifying your investment across various asset classes to manage risk.
Maintain an Emergency Fund:
Before diving into investments, ensure you have an adequate emergency fund. This fund should cover your living expenses for at least 3-6 months, serving as a financial safety net in case of unexpected events, like job loss or medical expenses. For this purpose, you should consider high-yield savings accounts, which are liquid and easily accessible.
Consult a Financial Advisor:
Given the significance of this decision and the complexity of your situation, it’s strongly recommended that you consult a financial advisor. They can offer personalized advice based on your financial goals and risk tolerance, and they’ll help you make well-informed choices. A financial advisor can guide you in structuring your investments, managing your funds between countries, and ensuring that your assets align with your overall financial plan.
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.
