NZDF Intro to Investing

00:02
funnily enough she sees it um but just
00:05
so you know it's really important that
00:06
you know this that it's only going to
00:07
record the slides on the screen as well
00:10
as many
00:10
um here or anybody else that pops up and
00:14
wants to talk through their mic um
00:16
otherwise anything you put through on
00:18
the chat
00:19
uh is completely um confidential in the
00:22
respect of it's not captured by the
00:23
recording now if you do want to keep it
00:25
anonymous and you want me to just share
00:27
what you've got to give us feedback uh
00:30
then just make sure that the drop down
00:31
box is to hosts and panelists so that'll
00:34
only come to me
00:36
um if you want everyone else to read it
00:38
which you know is great uh make it uh
00:40
change drop our box to everyone and
00:42
everyone else will see your comment as
00:44
well
00:45
um we're up to 44 mark we're getting
00:47
there which is good to see um so
00:50
as is always the case for our newbies
00:52
that have just joined um everyone's on
00:54
mute so it just makes a lot easier i'm
00:57
the only one talking but if you've got
00:59
something really important that you want
01:00
to share
01:01
or even anything you want to share
01:03
feel free to hit the little raise hand
01:05
button
01:06
which if you don't see just move the
01:08
cursor around the bottom of your zoom
01:09
control and it
01:11
should pop up the moment you hit that
01:13
i'll get a little hand on my
01:16
screen on the left here
01:18
and uh i will um you let you know and
01:20
then you can happily talk away after
01:22
that i think you'll have to unveil
01:24
yourself as well so just a bit of
01:26
housekeeping my right eye is keeping an
01:28
eye on the chat which
01:30
i haven't given to do very well so far
01:33
uh mark williamson who's the nztf
01:35
benefits manager is also keeping an eye
01:37
on the chat so keep those questions
01:39
coming through
01:40
um and just bear in mind if you only
01:42
send it to host panelists it only comes
01:44
to me but i'll share it with mark
01:45
without
01:47
so just so you know that
01:49
now i had a great uh rendition of the
01:52
karakia
01:53
this morning is there someone else that
01:55
would like to take us through it
01:57
uh please raise your hand it'll unmute
01:59
you or chuck it in the comment box
02:02
if not then i'll take us through the
02:03
karakia and then
02:05
it's a great lead in
02:06
to getting us started on introduction to
02:09
investing
02:11
uh
02:11
i don't think anyone's done it so that's
02:13
cool um
02:32
so thank you
02:34
and just in the middle here we've gone
02:36
to to utter along the order um that is
02:39
our name and it used to be called the
02:42
cffc for short and i have to say i
02:44
actually prefer this name because it's
02:46
much nicer much more
02:48
eloquent and commissioned for financial
02:50
capability um so
02:53
uh we always talked about fourth things
02:54
cover or position five but today we're
02:56
covering three things now that's not to
02:58
say there's not a lot of cool stuff in
03:00
here
03:01
but three key things um why we should
03:03
invest so just remembering what what is
03:05
it we're investing for why do we want to
03:08
invest money so just to sort of brief
03:12
dipping the maybe the first half of your
03:14
leg into the water on that one
03:17
barriers to investing so what's stopped
03:19
us in the past or what can still stop us
03:22
from investing um so you notice the
03:25
first two points around
03:27
um just sort of you know talking a
03:29
little bit around the soft fluffy stuff
03:31
as i call it uh and then last but not
03:33
least the six key rules to invest in and
03:35
that's where we'll start drilling down
03:38
and some of those six key points that
03:40
are really really important
03:42
um so yeah if you're gonna switch off uh
03:45
maybe do it for point one or two but
03:47
number three you definitely wanna be
03:48
there
03:50
but as i said always
03:51
definitely keep the questions coming
03:53
through um and my right eye will keep an
03:56
eye on it and just in case you ever see
03:57
me looking this way
03:59
it's because i've got another screen
04:00
there it's not because there's a cat or
04:02
a dog sort of pouring at the door um so
04:04
to add a ohana or a retirement
04:06
commission
04:07
that's the government agency that runs
04:09
the sorted website and you'll see on the
04:11
screen below the mouse
04:13
but because it's government it means
04:15
that
04:16
it is there to
04:18
promote financial capability to to give
04:21
us the tools and knowledge
04:23
information to empower us that's
04:26
you and me to make our own financial
04:29
decisions uh and pleasingly really
04:32
greatly um the website sorted provides
04:36
you with free independent and partial
04:39
information so one it's all about
04:41
empowering us to do our own decisions
04:44
um and you know that old adage that you
04:47
know i should teach this stuff in school
04:49
this is what it's all about we're just
04:50
trying to get it out there as much as
04:52
possible so thanks to mark
04:55
in the ends of the year for allowing us
04:57
sorted to come and actually present to
04:59
you all uh which is fantastic mark we're
05:02
up 51 i don't know if it'll crack 73
05:04
today but uh that's that's not a bad
05:07
strike rate i have to say
05:08
um so we'll actually use some of the
05:11
sorting tools uh to um
05:14
uh what's going to
05:16
work through our kiwisavers as an
05:18
example so here we go on bath and orange
05:20
which can only mean one thing
05:22
i'm about to launch a poll
05:25
all right
05:27
now you've got a poll and it's
05:28
completely anonymous so please answer as
05:30
honestly as possible and you can make
05:32
selections but the question is which of
05:34
the following assets have you invested
05:36
in
05:37
a crypto
05:38
like i said the other time i don't know
05:40
why we put that one first but yeah
05:41
crypto b shares c managed funds d
05:44
property e bonds f kings over or g
05:47
none of the above now it has been
05:49
pointed out that
05:53
specifically for you guys and girls at
05:55
nzdf we should have another option maybe
05:57
option
05:58
h where it talks about
06:00
dfss or the
06:03
the
06:04
superannuation plan that ncdf offers
06:07
only two interview employees uh so we've
06:10
got 34 out of 52. there's a oh look see
06:14
that always prompts somebody
06:17
42 so we've got about 10 to go
06:19
i'll try try and get as close to the 52
06:21
we've got online at the moment
06:24
just to um
06:26
because i really like seeing what the
06:28
outcome of this is and i will share the
06:30
results everyone
06:32
um yeah yeah i think that's a good idea
06:34
dfss call it a managed fund um and then
06:37
at least that way we can capture that
06:39
and i think for the next one we run next
06:41
week we might just see if we can change
06:43
tweak the poll and put the fps yes and
06:45
then
06:46
i think that'll be
06:49
um
06:50
50 we've got three to go three to go
06:53
that's okay if uh i'll give it one more
06:55
second two
06:57
three two one okay cool we'll end it
06:59
there and let me share the results um so
07:03
yeah
07:04
16
07:06
uh oh we have a question here family
07:07
home counters property investment
07:10
yeah tricky one that one um
07:14
i would say family home
07:16
yeah
07:17
i wouldn't treat it as a property
07:19
investment it's definitely an investment
07:21
as such but when we're trying to look at
07:23
things that you can make use of
07:26
later on in life in terms of retirement
07:28
like as in you want to
07:30
uh return an income from it or draw down
07:34
on it like a
07:35
superannuation retirement balance
07:37
uh that would be how classified whereas
07:39
a family home
07:41
you'll need somewhere to live
07:43
and to get money out of it you've got to
07:45
either sell it and trade down
07:48
or
07:49
do a reverse mortgage so probably not
07:52
let's see how you go without the family
07:54
home and just see what other things we
07:56
can build up hopefully that answers that
07:57
question
07:58
um
08:00
joshua's come through with a zinger of a
08:03
question i was looking on the sort of
08:04
website about bonds wondering what the
08:06
key difference are between bonds and
08:08
stocks is one better than the other
08:10
great question josh and uh sorry
08:13
i've shortened it to josh but joshua um
08:17
and hold that thought it will get
08:19
answered a little bit later on so please
08:21
hold that thought um so back to our poll
08:23
um
08:24
you know
08:25
16 of us
08:27
are invested or have invested in crypto
08:29
you know so the reason why we put it
08:30
there is you know it's it's been around
08:32
for years and years but of late uh i say
08:35
of late like the last few years it's
08:37
come to the front because you know
08:39
there's massive stellar returns and then
08:41
there's massive declines
08:44
and you've got uh what elon talking
08:45
about accepting it and then not
08:47
accepting it so there's all always in
08:49
the news so um yeah 16 of us you can see
08:52
see the results here half of us have
08:54
done shares which is brilliant
08:56
um almost half of us managed funds and
08:59
look keemsaver superannuation
09:02
is effectively a managed fund you have a
09:05
fund which is a pot of money
09:08
that is funnily enough
09:10
managed by someone else that's all the
09:12
managed funders um except kiwisaver
09:15
superannuation you know just has some
09:17
extra rules around it
09:20
that's pretty much it so hopefully we've
09:22
dispelled that bit uh property half of
09:25
us which is um
09:27
pretty high figure
09:28
uh bonds which is good i mean eighteen
09:31
percent of us are in bonds and last but
09:33
not least three quarters of us are in
09:35
kiwisaver which is brilliant and
09:37
surprisingly enough all the assets we've
09:39
listed there uh crypto shares manage
09:42
funds or take management property and
09:44
bonds
09:45
and property meaning commercial property
09:48
industrial office infrastructure type
09:51
stuff
09:52
um are actually features of your
09:54
kiwisaver
09:55
with one exception crypto is only one
09:58
funded manager's exposure there's only
10:00
one fundamental out there that has
10:02
crypto in their
10:04
kiwisaver fund as such
10:06
uh but yeah we like to ask that question
10:08
because
10:09
it it comes as a surprise sometimes what
10:12
investments are in your kids
10:14
or your superannuation for that matter
10:16
so thank you right question
10:19
so why would you invest we've all
10:22
answered that we've got investments of
10:23
some form or another
10:25
so why would you invest why do we want
10:27
to invest hit me put me on the chat come
10:30
on
10:31
i want to see what comes through and
10:32
i'll see if i can keep up with it
10:36
i'm trying to find my drink of water so
10:39
i'm not drinking as all the bloom
10:40
enhancers come through
10:42
grow assets cash retirement yes
10:45
financial freedom yep it's a means to an
10:47
end definitely a retirement more
10:48
security starter reserve for the kids
10:50
love it thanks nikki a passive income
10:52
money without working yes getting your
10:54
money to work for you yes
10:56
saving for a house
10:58
love it and to that person saving for a
11:00
house don't forget next friday we're
11:02
running the two-hour webinar on um how
11:04
to buy first home type thing so you
11:06
definitely want to roll for that one uh
11:08
russell make your hard-earned money
11:10
equity work for you yes
11:12
better than bank interest
11:14
yeah it is at the moment isn't it but i
11:16
guess on the flip side you don't get the
11:18
risk you do with um cash as opposed to
11:22
property shares even bonds for that
11:24
matter so um but yes get your point
11:27
definitely is better than ben kendrick
11:29
um grows quicker than the bank yep for
11:31
sure
11:33
but like i said it also has that
11:34
potential to to go down so as long as
11:36
we're going into the right reasons
11:38
not jarrod nice and succinct three words
11:40
to become rich
11:43
love it um so we can best utilize the
11:45
power of our funds yep get us work get
11:48
work just help our money grow build
11:49
wealth more fun so i can grow old
11:51
disgracefully iggy welcome back buddy
11:54
um
11:56
i think he said something to that extent
11:58
in our first webinar today uh retirement
12:00
passive income great thanks and
12:03
travis uh the value of money reduces
12:05
over time investment allows you to
12:06
increase money to overcome the value
12:09
reduction and make gains uh or in one
12:11
word inflation yes
12:14
uh retirement
12:15
oh and then we have shares quickly
12:17
making a correction instead of okay and
12:19
to overcome so thank you yes we invest
12:22
for a whole range of reasons
12:24
and it's very uh what's with individual
12:27
reasons as well so you know for some of
12:29
the comments that come through to get my
12:31
money working through to
12:33
get rich
12:35
through to
12:36
fund by retirement so i can do things i
12:38
want to do to provide for my children
12:40
so many different reasons um
12:43
now
12:44
does anyone
12:45
have a barrier to investing now or
12:48
have heard of other barriers to
12:50
investing um what do you reckon
12:54
we'll just see what comes through on
12:55
this one
12:58
oh no joyce has already come out with
13:00
two ah
13:02
okay
13:03
you caught me out then well done joyce
13:05
uh so going back to joyce here we've got
13:09
um
13:11
uh lack of knowledge risk personality
13:12
yeah definitely definitely don't know
13:15
how
13:16
exactly right when you start there's so
13:19
much information
13:20
uh
13:21
oh russell that's a big point to make
13:23
life life gets in the way life is a
13:26
barrier so yes
13:27
uh poverty yep being able to actually
13:29
afford to do something or having to
13:32
concentrate on now in survival rather
13:34
than actually planning for the future
13:36
get that
13:37
liquidity disposable income yep
13:40
a lot of jargon yes even though the
13:43
industry has become very very um
13:46
simplified there's still a lot of jargon
13:48
associated to it
13:50
lack of education yes definitely love it
13:52
josh
13:53
um and too scared yeah because
13:56
at the end of the day it's a little bit
13:58
of your life that you've given to your
14:01
employer to earn that money that you're
14:03
now going to invest which if you haven't
14:05
sort of
14:06
um
14:07
had any advice around or being educated
14:09
around it then that man it can scare the
14:13
bejeebers out of you so definitely not
14:15
knowing how
14:16
um
14:17
knowledge and what to invest yes
14:20
uh fear don't know what i'm doing yeah
14:22
exactly you don't want to lose that
14:24
money
14:25
fear of a crash
14:26
fear of loss
14:28
um i don't know anything about how to
14:30
select what she is investing with
14:32
exclamation mark definitely right um the
14:34
unknown don't know my stocks from bonds
14:37
and shares yep what are they uh mortgage
14:40
yes paying off debt before i contemplate
14:43
investments putting it off uh
14:45
procrastination
14:46
i procrastinate sometimes deeply
14:49
uh what are the risks you know
14:51
and hopefully after today we'll actually
14:53
delve into that and no funds to invest
14:55
yep
14:56
um you've really had coming through here
14:58
seeming unpredictable financial climate
15:01
significant other doesn't want to
15:03
don't know what i'm doing having
15:04
disposable income to do so lack of time
15:06
in one of the markets for quick gains
15:08
uh priority of where income where money
15:10
goes scared of losing hard and money
15:12
covered makes the people see life
15:14
differently may want to look for now yes
15:17
and vanessa great last point um it can
15:20
change your perspective
15:22
on investments and um
15:25
you know living for the now rather than
15:27
planning for the future
15:28
um oh george suggested to get the last
15:30
one on there unfriendly to use platforms
15:32
processes but this is getting easier
15:34
exactly um and mark talked about it this
15:37
morning about the new um app for a
15:39
kiwisaver you know those sorts of things
15:42
make it really easy just log in and
15:44
access your keywords over balance see
15:46
what's happening make changes if you
15:48
need to all sorts of things
15:49
right here we go we're going to take a
15:51
little bit of a dive into
15:53
investment 101 here so on screen you've
15:56
got what we call four key asset classes
15:59
cash bonds property shares right there
16:02
is a i guess a little shaded bubble at
16:04
the end of shares and we call them
16:06
alternative assets uh but let's just
16:09
focus on the four key ones all right so
16:11
any kiwisaver that you go into
16:14
that is a defensive conservative
16:16
balanced uh growth progressive
16:19
will have
16:20
one if not all of these
16:23
asset classes so that's the first thing
16:25
you really want to know is they've got
16:26
four key ones there's a little one off
16:29
to the side called alternatives and the
16:31
alternatives camp
16:33
are things like commodities currencies
16:36
crypto
16:37
um hedge funds
16:39
uh derivatives um those sorts of things
16:42
but the stuff that can be higher risk
16:46
and a little bit more
16:47
what's the word
16:49
not mainstream so to speak this is why
16:51
they're called alternatives um but they
16:53
have the effect of smoothing out
16:56
the volatility that you might experience
16:58
in shares
17:00
but not
17:01
some managers use them some don't so
17:03
just bear that in mind
17:04
so um that's our four key ones
17:07
and if you think of it as two levers all
17:10
right so i don't know how this comes
17:12
across in webinar land
17:15
but you've got an income lever and a
17:17
growth lever
17:19
so the importance is
17:22
that of the four assets of cash bonds
17:24
property shares
17:26
cash and bonds sit on the income side
17:29
and a helpful analogy in this respect
17:32
is like a modern car
17:34
so you've got airbags in a car to
17:36
protect you to make um
17:39
or shock absorbers to make the journey a
17:41
little bit more pleasant whatever it
17:42
might be
17:43
and then you've got an engine in the car
17:45
that pulls you forward
17:47
so if we're looking at it from the two
17:50
incoming growth income i like your
17:52
airbags
17:54
growth is like the engine in the car
17:56
so growth is definitely where all the
17:58
cool stuff happens
18:00
but you have to be prepared
18:02
for the journey you can't just sort of
18:05
hop in and go oh yeah i'm bailing out
18:07
now because i think that now it's a good
18:08
time or oh my god mark it's dropped i've
18:10
got to get out you've got to be prepared
18:12
to ride through the tough times as well
18:15
and then income assets
18:17
uh you know i think it's just give you a
18:19
little bit more certainty and don't get
18:21
me wrong bonds can go
18:23
up and down in value but not to the
18:25
extent that shares camp on average i'd
18:28
say all right so
18:30
income and growth so remember those two
18:33
levers all right
18:35
now if i click on the next one
18:37
what you see down the bottom
18:39
are different investor types so remember
18:42
in our session at 10 we talked about
18:45
investment profiles
18:47
you know depending on your risk
18:48
questionnaire that you complete you
18:50
might score out as defensive
18:53
at this end through to aggressive and
18:56
remembering our two leaders if i'm a
18:58
defensive investor what's really
19:00
important to me i don't want high
19:02
returns but what i do want is a lot of
19:04
stability and to know my money is there
19:07
for me so to me i want to really
19:10
push forward the income lever i want
19:12
more in cash and bonds
19:14
than i do in growth so growth will be
19:16
way back here but
19:17
oh look at that that's a good
19:18
perspective um income will be way up
19:21
here
19:22
and you can see here on growth assets
19:24
very small exposure maybe 10 up to 10
19:28
we flip that over and say no i've done
19:32
my risk profile i'm super aggressive
19:34
right the lightning
19:36
then you know income level comes way
19:38
back but the growth level goes way
19:40
forward all right and you can see that
19:42
anywhere from 90 up to all of my money
19:46
are in growth assets
19:48
keep questions coming through because
19:50
we're starting to delve into a bit of
19:52
investment theory now
19:55
and you can see
19:56
as a slight touch on that point about
19:59
what are bonds and how are they
20:00
different to shares
20:02
bonds are related to interest rates so
20:06
depending on how interest rates are
20:07
behaving
20:09
uh depending on when you buy that bond
20:11
you'll get to
20:13
participate in a higher rate potentially
20:15
a lower rate
20:17
whatever the rate is at the time so a
20:19
bond if you think of it as a loan
20:22
to and we'll touch on this a little bit
20:24
more detail soon
20:25
a loan to either a company or what we
20:28
call a corporate
20:29
or to a government and that's a
20:31
government bond or a sovereign debt
20:34
sovereign bonds i would get so it's you
20:36
giving your money away to get a return
20:38
on that money an interest rate return
20:40
and at the end of the term that you've
20:43
given that money away for so it might be
20:44
a year might be five years might be 10
20:46
years whatever it is you get your money
20:48
back
20:49
hopefully all right
20:51
but whereas shares you buy a little bit
20:54
of the company and you get two
20:57
well you might get to vote whatever it
20:59
is but you get to share in the company's
21:01
fortunes so you might get a dividend
21:04
which is like interest but you're
21:06
getting a share of the company's profit
21:10
but also
21:11
if the company doesn't do well
21:13
your share of that company might drop in
21:16
value because everybody else is like i'm
21:18
not touching it kodak is going out of
21:20
business
21:21
nobody wants to use film cameras anymore
21:24
and i use kodak as an example because
21:26
that's what happened
21:28
oh we just had a comment come through i
21:30
recently learned what active versus
21:31
passive kiwisavers are and think this is
21:34
information not talked about enough
21:36
exactly right there's just so much
21:38
different things about different
21:40
managers and what they do
21:43
yeah it's not touched on but tell you
21:45
what to the person that sent that
21:46
through because they already sent it to
21:47
me um we'll touch on that later on uh
21:51
well later on at the end of this
21:53
presentation and we'll just talk through
21:55
the key differences between active and
21:57
passive uh their their advantages and
21:59
their disadvantages as well
22:01
all right mark just decided to answer
22:03
that one as well and just say that nzdf
22:05
schemes are actively managed um so
22:09
feel free to take a photo of the screen
22:11
because i'm just about to click it off
22:12
to another one
22:14
but this is really the principle behind
22:17
all kiwisavers managed funds
22:20
unless you get into some
22:23
fun stuff so to speak um but generally
22:26
speaking this is what your manager or
22:28
how your manager divvies up that money
22:30
between income and growth assets
22:33
all good all right
22:35
so
22:37
six key rules here we go right what are
22:39
we 223 good
22:42
plenty of time
22:44
right rule number one and i'm just going
22:46
to cover them quickly and then we're
22:47
going to get into them in a bit more
22:48
detail so rule number one have a goal
22:51
rule number two
22:52
find that balance between risk and
22:54
reward i talk about levers
22:57
but you know how much risk are you going
22:59
to take for how much potential reward
23:01
you've got to weigh that up all right
23:04
number three the asset mix so how are
23:07
you going to or how is your manager
23:10
going to invest that money
23:12
according to um
23:14
you being conservative or balanced or
23:16
growth or defensive
23:18
what is the mix of that asset how many
23:20
different
23:21
egg baskets do you have to put your eggs
23:23
into
23:24
all right
23:25
number four diversify
23:28
so
23:28
we used to call it the best free lunch
23:30
in the world
23:31
and basically what it means is that you
23:33
get
23:34
those full basket of assets cash bonds
23:37
property chairs
23:38
you find out your um
23:41
your risk tolerance so let's say it's
23:44
balanced
23:45
and then you allocate your money or put
23:46
your money into each of those things and
23:48
the perfect percentage
23:51
so that you're not if one goes down the
23:54
other should benefit and go up so what
23:56
you get is a nice little average across
23:59
all of it so you're not exposed to one
24:02
big loser and losing all your money but
24:04
on the on the flip side you're also
24:06
getting a little bit um
24:09
yeah exactly finisher
24:11
exactly like that don't put all your
24:12
eggs in one basket
24:15
but it's very
24:16
important message because
24:19
at the moment well now what we're seeing
24:21
is you're getting a lot more opportunity
24:23
to invest into
24:25
um
24:26
single sector funds even through
24:28
kiwisaver so you can go and what we say
24:30
by single sector will become very
24:32
apparent so but it means you can invest
24:34
into things that is one
24:37
thing or one industry one sector so you
24:40
can go into new zealand shares you can
24:42
go into
24:43
us shares you can go into i think is ken
24:48
kensho moonshot fund which is all uh
24:50
different robotics and all sorts um so
24:53
to todd's point uh etf if you've never
24:55
heard that term exchange traded funds
24:58
man there's a whole another world of
24:59
those and they are basically
25:02
different funds that can be set up to
25:05
give you exposure to different markets
25:09
different um
25:11
different industries different companies
25:14
um whatever it might be there's a whole
25:16
world of them as such
25:18
um so yeah etf thanks to this good good
25:21
uh comment uh
25:23
isaac's just comes what are your
25:24
thoughts on buying shares randomly
25:25
versus researching and attempting to
25:27
predict company futures market trends
25:30
and i think you said second that
25:32
question isaac um
25:34
we can touch on that at the end because
25:36
i think last
25:38
this is good mark lots of questions
25:39
coming through
25:41
last session we ran as well um it was
25:43
about you know i do a sharesies or a
25:45
hatch or an invest now portfolio
25:48
how do i how do i put that together how
25:50
do i start or how do i make sure i'm not
25:52
buying
25:54
random companies that might drop
25:55
overnight so um i will touch on that
25:58
isaac so keep that in mind and hold me
26:00
honest to make sure i don't forget that
26:03
number five research i'm going to show
26:05
you an awesome tool to help with the
26:07
research
26:08
and i might also just
26:10
share just some
26:12
uh commonly uh held
26:15
concepts around research as well that
26:17
means you're not paying the earth to try
26:19
and figure out what to do if you want to
26:20
go and do a little bit of diy
26:23
so that as well
26:24
number six grow
26:26
we've got a great little example in here
26:28
of being able to leave that money in
26:32
and really adding to our lovely motto of
26:35
a little and long
26:37
so yeah we'll walk you through that as
26:39
well
26:41
so what's the suppression of josh a lot
26:43
of people talk about the s p 500 and etf
26:46
of the top 500 companies in the us you
26:48
can invest into yes exactly right
26:51
um
26:53
s p standard poor's 500. so what it is
26:55
is the 500 biggest companies
26:59
in the states and if you watch the news
27:01
someone knows that you're keeping it
27:03
if you're watching news you may see on
27:05
the business side where they talk about
27:07
the dow jones index the s p 500 and the
27:11
nasdaq
27:12
they're just examples of what we call an
27:15
index or indices
27:17
and it's a way to measure hundreds of
27:20
different companies so the s p is the
27:22
top 500 companies in the u.s the dow
27:25
jones are the biggest i don't know how
27:28
many are in the dow jones but are the
27:29
biggest
27:31
industrial manufacturing type companies
27:33
in the us
27:34
and the nasdaq is an index that
27:36
represents the biggest
27:39
tech companies
27:41
as well so
27:42
and when you talk about etfs that's
27:45
another way to get exposure to a
27:48
particular index as well
27:51
i know i'm probably leaving it down a
27:52
bit of a rabbit hole but it yeah
27:54
stick with me
27:56
so goals
27:59
uh
28:01
thanks joyce
28:02
everyone read joyce's comment
28:04
love it
28:05
um
28:07
very very appropriate which i'll touch
28:08
on a second
28:10
first and foremost this may sound really
28:11
boring but goals you've got to know why
28:13
you're investing and there's there's
28:15
really two reasons for it now if you go
28:18
and talk to milestone direct which is
28:20
the um
28:22
affiliated financial advisory service
28:24
with nzdf
28:27
if you sit down with an advisor they
28:28
will ask you what's important to you why
28:30
do you want to invest what do you want
28:32
to achieve what are the things that that
28:34
need to happen with this investment for
28:36
you know what's the life you want to
28:37
live those types of things
28:39
but it's very important to figure out
28:41
why you're investing you know the why of
28:43
it
28:44
so the reason is a
28:46
it it's better to have a reason because
28:49
you're attached to it more than and two
28:52
then we can discover the time frame
28:54
because it's really important like here
28:56
you can see on the screen house deposit
28:58
six years but it's cool so we know
29:01
you've got six years till you retire
29:02
until you buy a house at the time
29:05
um
29:06
so that means going into a super
29:08
aggressive fund is completely out of the
29:09
question unless you really want to and
29:12
you know the risks
29:14
so it automatically says well okay six
29:17
years
29:17
maybe you need to be in a conservative
29:20
maybe a balanced fund so it sort of
29:22
starts narrowing down your options
29:25
and it means that you're not faced with
29:27
a whole range of choices
29:29
and it also acknowledges the risk
29:32
because if you put all your house
29:33
deposit funds into a
29:36
s p 500
29:38
which is a complete share portfolio and
29:41
share markets go like this all the time
29:44
and remember
29:45
february march last year they dropped by
29:47
about 30 odd percent
29:49
would you want that to happen to your
29:50
house money
29:51
so goals are very important um
29:55
so just reiterating joyce's point
29:56
investing long-term business day trading
29:59
being new to investing don't get sucked
30:00
into the day traders talk especially in
30:02
social media groups remember your why
30:04
not fear why
30:06
um and love it joyce absolutely love
30:09
that because
30:11
day trading there's nothing like the
30:13
picture you see of somebody sitting by
30:15
the pool
30:16
in summary conditions i'll do some
30:18
trades
30:19
on the laptop shut the lid and go into a
30:21
swim that that that is not day trading
30:25
that's trying to get you to give them
30:27
give you give them your money and those
30:28
sorts of things there's a lot of risk in
30:30
it and you need to be prepared to make
30:33
it your full-time gig now if your
30:34
full-time gig is defending our country
30:36
or doing a trade whatever it might be
30:40
that's what you need to stick to i mean
30:41
my full-time gig uh look i facilitate
30:44
and obviously i do my normal day-to-day
30:47
job do i trade no even though i'm in
30:49
this industry you know i i might buy
30:52
some chairs on the off just because i
30:54
enjoy it but i don't
30:56
subscribe to the fact that i can make
30:58
money off it and
31:00
take the risk with my family's situation
31:03
and to do it so love the comment joyce
31:06
brilliant um right so balance here we go
31:10
2 30. this is good getting questions
31:12
coming
31:13
um
31:14
oh todd todd
31:15
just came through with warren buffett
31:17
recommends etfs
31:19
and i'll touch on who warren buffett is
31:20
in a second um so remember our four key
31:24
assets what were they again i've started
31:25
you off we've got cash what were the
31:26
other two
31:28
bathroom huh it was a good test
31:31
he's going to hit me first
31:33
what were the other three bonds
31:35
well done damien love it i'll call you
31:37
out because it's a good answer shares
31:40
oh back to bonds again
31:42
oh here we go read thank you cash bonds
31:45
probably shares all right so
31:47
what i've got on my little little graph
31:49
here i can never get the x and y figured
31:51
out it's probably my dyslexia um
31:54
potential returns on the vertical column
31:57
from low to high and then risk on the
32:00
horizontal column
32:02
from low to high okay
32:04
so cash
32:06
low risk
32:08
and
32:09
why in the scott ah thank you
32:11
that's it why in the sky so here's your
32:13
y y axis and here's your x axis thank
32:16
you
32:17
uh vanessa i'll call you out because
32:18
that was awesome thank you so much um so
32:21
why in the sky and that i might just
32:23
share that with
32:26
everybody oh george you're getting
32:28
you're getting complicated now
32:31
um so
32:32
cash
32:33
lowest potential return
32:36
uh but on the flip side what you're
32:38
gaining is the lowest potential risk
32:40
limit credit
32:42
bear in mind this is cash at the bank
32:44
now if you're talking about government
32:46
bonds
32:47
you can see my cursor they would be here
32:49
you'd still get a bit of a return
32:51
but they are technically the safest form
32:54
of money
32:55
you can have well new zealand bonds new
32:57
zealand government bonds i wouldn't know
32:59
too much about brazilian government
33:01
bonds per se but i dare say that might
33:03
be junk status so you can still have
33:05
risk with government bonds just so you
33:07
know
33:08
so
33:09
where's my next bubble so bonds remember
33:12
it's like a loan you're giving your
33:13
money to a business or to a government
33:16
so you expect a better return of cash
33:18
because you're taking some more risk so
33:20
here you go
33:21
on our y in the sky axis
33:24
um bonds slightly higher risk
33:28
ah sorry
33:29
a slightly higher return
33:31
potential over cash because we're taking
33:34
more
33:36
risk
33:36
simple as that
33:38
next bubble property on our wise sky i
33:41
keep saying the snaps i'm trying to get
33:43
some muscle memory um the potential
33:45
return for property is higher again in
33:48
cash and bonds now remember
33:50
we hit our income lever what was the
33:52
other lever
33:56
he's gonna have the first
33:58
you can do it couldn't do it
34:00
yes zach
34:02
zack nick or zach just put you like a
34:07
yes we're now in the growth
34:10
side of the ledger so property higher
34:12
risk i know this is surprising but
34:14
potentially higher risk
34:16
potentially higher return
34:18
and last but not least the big boy on
34:20
the block
34:22
shares um
34:24
so the potential return for shares
34:26
is the highest still
34:28
and then the risk is again the highest
34:31
still now again bear in mind um
34:35
oh great question
34:36
where would gold and silver sit now gold
34:38
and silver is a commodity we call them
34:40
hard commodities soft commodities are
34:42
like sugar and cocoa coffee
34:45
barley that type of stuff so hard
34:46
commodities um now
34:50
some people may dispute me on this but
34:52
they certain commodities which sit in
34:54
alternative assets so they can be quite
34:56
volatile so that they would sort of sit
34:59
up here if you're looking at it as a
35:02
chart
35:03
um you can also look at venture capital
35:06
private equity they sit up here as well
35:09
so but again this is on average it's not
35:11
to say that's always going to be the
35:13
case
35:14
because you could very well be just to
35:16
really muddy the waters here if interest
35:19
rates are run
35:20
ooh love it someone just come out on a
35:23
question of what are your thoughts on
35:25
non-funded fund fundables or nfts i
35:28
should say
35:30
bear in mind bonds can have risk because
35:32
if you buy a bond with interest rates
35:34
are low and they start going up
35:36
it can look like on paper you're losing
35:38
money so just keep these things in mind
35:42
but i'll answer that question about
35:43
non-fungibles or nfts
35:46
coming up
35:48
and again uh if we were looking at those
35:50
things they are definitely
35:52
well outside the
35:54
the spectrum on this particular chart
35:56
they're up here as well same with crypto
35:59
it's just
36:01
uh and the question was asked last time
36:03
how how is crypto ever going to be you
36:05
know or bitcoin i should say
36:07
because that seems to be the most widely
36:09
accepted one there's all sorts of other
36:11
ones
36:12
um
36:13
but yeah will it ever be become an
36:15
accepted um currency and at the moment
36:19
just way too volatile the price swings
36:21
are just absolutely nuts um so here we
36:24
go all right investor kickstarter
36:29
look
36:30
have you ever wanted
36:33
has anyone actually used investor
36:35
kickstarter before
36:47
yes it has mark
36:49
uh ecuador has embraced bitcoin as a
36:52
second currency us dollar
36:54
i think it's probably echoed or um
36:56
throwing their thumb up to the us around
36:58
the us dollar currency um
37:01
and let's not forget i mean it's the
37:02
same with gold and maybe silver and
37:07
some of the other more sort of precious
37:08
metals
37:09
uh back in the old days and i say the
37:11
old days um
37:13
gold used to be the reserve
37:15
behind the backed up currency that gold
37:17
standard was removed
37:19
so gold's always had that place where
37:23
it holds its value so to speak
37:27
and bitcoin you know ecuador can be
37:29
doing that same thing
37:31
oh no
37:34
that's what happens because it's so
37:35
volatile
37:36
um someone just made the comment ecuador
37:38
just had riots due to the recent bitcoin
37:40
crash
37:41
it was a flash crash it dropped about 17
37:43
in a matter of like a minute or two uh
37:46
anyway so investor um
37:50
now i've just lost my train of thought
37:51
we're talking about
37:53
invested kickstarter okay
37:56
so this is to get you to figure out
38:00
who you are as an investor now i'm not
38:02
gonna focus too much on this but if
38:04
you've never ever done a risk profile
38:07
before
38:09
and that a risk profile at the end of it
38:11
should give you
38:13
an answer around okay are you
38:15
conservative balanced or growth
38:17
orientated
38:18
you'll see that's five defensive and
38:20
then aggressive as well so
38:23
where are you on the spectrum of risk
38:25
how much do you want to put in income
38:27
and how much do you want to put in
38:28
growth okay
38:30
so as a starting point if you've never
38:32
done one of these before
38:34
then i definitely recommend you go
38:36
through and do this
38:37
there's also some great risk profiling
38:39
tools with uh the force financial hub
38:42
interview
38:43
that
38:44
through your kiwisaver um so make use of
38:47
them because they will hopefully
38:50
give you an answer that sort of matches
38:52
you as an investor so here you can see a
38:54
growth investor
38:55
remember our two levers
38:58
of my hundred dollars i put into it
39:00
thirty dollars will be on the income so
39:02
it's way back here
39:04
but seventy dollars
39:06
then growth will be in shares and more
39:08
profit in shares and you can see quite
39:11
easily
39:12
that the bulk of your money
39:14
usually goes into bonds and shares
39:17
cash and property plays a little bit of
39:19
a feature but otherwise it goes into the
39:21
two big ones
39:26
okay great question so the question was
39:28
if you're doing this as a couple
39:30
would you put the average age of the two
39:32
of you in eg my husband and i are in
39:35
separate age brackets yes it's a good
39:37
question well i think um
39:40
what you need to look at as well is your
39:42
time frame so
39:43
you know age won't come into it if you
39:45
both want to retire at the same time
39:48
so that that's a key one
39:49
uh but then also as well bear in mind
39:51
that as you work towards retirement
39:54
that's here
39:55
you might be here you'll get to hear
39:57
you've still potentially got another 20
39:59
30 years of retirement as well
40:01
so it's not just about becoming super
40:04
super super super conservative
40:06
when you retire it's also about trying
40:08
to find that balance between getting
40:09
your money working hard because that's
40:11
going to be your job or that job now
40:15
to hopefully give you the lifestyle you
40:17
want right through to you know
40:19
when we
40:20
leave this mortal birth
40:22
so you could yeah i wouldn't combine the
40:25
two average i'll just look at okay if
40:27
you're going to retire at the same age
40:30
uh as your husband or vice versa if he
40:32
or she will retire at your age
40:35
then use that time frame answer all the
40:37
questions as you would normally do that
40:39
but bear in mind the time frame
40:41
does that make sense hopefully that
40:43
answers your question
40:46
please help me with a yes i mean i know
40:49
oh cool great
40:51
so you can see here
40:53
and i just mentioned time frame so for a
40:55
growth investor nine to 12 years
40:58
so you know that's to work through a
40:59
cycle and mark talks about it as well
41:01
you know he's back in the civil war days
41:04
he started a chart sorry man
41:07
but here's a chart that dates back from
41:10
you know civil war days through to now
41:11
which charts uh american share market
41:16
performance
41:17
and
41:18
you know every on average every seven
41:21
years the share market tends to go
41:23
through a massive correction um so you
41:25
need to be prepared for that and if
41:27
you're prepared for it to actually ride
41:29
through it as well
41:30
because that's the key and that's why
41:32
they when you see a risk profile and
41:34
they talk about investment time frames
41:36
nine to 12 years because you've got so
41:38
much in growth
41:40
to allow you time to work through it's
41:42
not exact you can still get it wrong but
41:46
you know
41:46
chances are you should be on the right
41:48
side if you do that
41:50
uh and then as you look further down
41:53
and i'll show you this with a
41:54
conservative as well
41:55
your range of returns from negative six
41:58
percent
41:59
to plus 21
42:01
so annually your return could be in
42:03
there
42:05
95 of the time uh
42:09
yeah
42:10
which if you've done stats before you
42:12
know the old bell shaped curve
42:14
so somewhere in there are going to be
42:16
your annual returns
42:18
most of the time
42:19
having said that sometimes it can sit
42:22
outside of that and you see that with um
42:24
you know
42:25
since the well since gfc as well as
42:28
since
42:29
the pandemic really hit last year
42:31
markets have been doing well better than
42:34
that than the average
42:35
and then if you were leading into the
42:37
gfc and during gfc markets did worse
42:40
than the average as well so it can sort
42:42
of sit outside that as well
42:44
and come up with a great question what
42:45
happens if you want to get a good
42:46
investment and a good growth but do not
42:48
have 9 to 12 years for the growth hey
42:50
that's great
42:51
great question um
42:53
[Music]
42:55
yeah
42:56
so i would ask you what do you mean by a
42:59
good investment good growth
43:03
now just why you answered that one
43:05
um
43:07
uh where are we so if i go to
43:08
conservative
43:10
what happens to our time frame
43:14
so remember conservative we've now gone
43:16
from growth from a poor bit back and
43:18
we've put income
43:20
at the forefront
43:22
so our time frame has actually dropped
43:24
four to five years
43:26
so
43:27
and this is probably directed to you
43:30
um
43:31
what it means is you you'll need to
43:33
weigh up and again this is not advice
43:35
but it's just hopefully giving enough
43:37
information to to go and
43:39
you know have a little little faucet
43:41
around and find the right answer or
43:43
give milestone direct a call and just
43:45
see
43:46
see if you can have a chance and advisor
43:48
and just see what they take you through
43:49
as well but the key would be
43:52
you've got to try and figure out okay
43:54
what's more important to me going into
43:56
retirement do i want to know i've got my
43:58
money protected and i know what i've got
44:01
or do i want the best potential return i
44:04
can have and i'm quite happy for the ups
44:06
and downs
44:07
and then it takes all the
44:10
um all the pain away in terms of trying
44:12
to figure out what markets are doing and
44:14
you know are they expensive or are they
44:16
cheap whatever it is it's more it's all
44:18
about you
44:19
your time frame
44:21
and how comfortable you are
44:23
going on the as market leads to the
44:25
roller coaster ride so to speak
44:27
um
44:29
yes
44:30
and hopefully and just as a final point
44:32
it just strikes that balance between my
44:35
money's not doing much to
44:37
i don't want to you know be too
44:39
aggressive i know i want to know i want
44:41
to keep what i've got as secure as
44:43
possible
44:45
and i think mark can talk to this
44:48
um towards the end as well so rather me
44:51
just sort of sit on that hopefully and
44:53
that sort of addresses it a little bit
44:55
um
44:57
but what i would suggest is picking up
44:59
the phone and i might like i said mike
45:01
can talk to us so rather than talk about
45:03
that um so yeah so you can see here once
45:05
you've figured out who you are as an
45:07
investor
45:08
you can figure out okay well
45:10
i've got my income and growth levers
45:13
so how does that compare to the fund
45:16
that i'm actually in because that's
45:17
really important because if you've said
45:19
yes that's me i'm a conservative person
45:21
and i want to invest conservatively
45:24
is your kiwisaver invested the same way
45:27
and that would be a key question to
45:29
answer
45:31
as well so hence why the investor
45:34
profile is very important
45:36
all right gonna have a quick drink um
45:40
ah mark can i bring you on
45:42
and then
45:44
oh you can just unmute mark do you want
45:46
to just quickly add to what i said to
45:48
anne about her question
45:50
yeah i mean um
45:52
there's no easy answer i didn't think
45:54
immediately ad buy a lotto ticket but um
45:57
obviously that's not the sensible answer
46:00
there are a lot of resources available
46:01
to help people with their research and
46:03
as um
46:05
dennis has mentioned we also provide a
46:06
financial advice service we went through
46:08
a tender a number of years ago we've
46:10
selected milestone direct limited who
46:12
are our financial advisors they're paid
46:14
by salary rather than by commission
46:17
and so their all their details are on
46:19
the force financial hub
46:21
we've also put together a resources list
46:23
for people are keen on doing a bit more
46:24
of their own reading and research so
46:26
anyone's interested in that please just
46:28
email benefits nzdf.mill.nz
46:32
and i can send you out the resources
46:34
list for you to do you know a bit of
46:36
your own research and reading and things
46:38
as well
46:39
cool thanks mark and hopefully um
46:42
and that goes some way to giving you
46:44
some answers or maybe a has direction to
46:47
go in hopefully
46:49
uh and yes the cheeky person said is
46:51
this gin uh no it is water um i have to
46:54
keep my wits about me because you you
46:56
guys and girls are a bit sharp so um
46:58
yeah uh so diversification rule number
47:01
four all right so here we go remember
47:03
our four key assets cash bonds property
47:06
shares
47:07
um we're now going to talk about
47:08
diversification so how does your fund
47:11
manager
47:12
take those pots and diversify it all
47:14
right
47:15
so bear with me this is going to maybe
47:17
get your camera phone ready and take a
47:19
picture of this once i've finished
47:20
clicking
47:21
because it'll it'll basically explain
47:23
how on average accumulative fund is
47:25
invested so here we go
47:27
cash is cash stays in new zealand
47:29
generally uh you might have offshore
47:31
accounts but from a kiwisaver
47:33
perspective it's more to settle
47:35
overseas transactions rather than to
47:37
actually take currency position okay so
47:40
cash new zealand cash right
47:43
bonds so in the top right corner you
47:46
start seeing that you've got new zealand
47:48
bonds and overseas bonds all right so
47:50
you've got what we call local
47:52
local debt and offshore debt
47:56
and you can see here that's our first
47:57
level of diversification for bonds you
48:00
go into new zealand and offshore and the
48:02
reason for that is twofold one is
48:04
interest rates can move differently
48:07
between new zealand and the rest of the
48:08
world and two if
48:11
for instance new zealand had a foot and
48:13
mouth breakout
48:15
which you know
48:16
some sort of risk to our economy
48:19
then
48:21
you don't want all your money in new
48:22
zealand do you want it offshore so it's
48:24
a way to spread that risk as such
48:27
um oh it's a good question when do you
48:29
think kiwisaver will run out of money so
48:32
good question and an easy one to answer
48:34
too um but bear with me i'll answer that
48:36
after this so next level is you can get
48:39
into corporate debt and when i say
48:42
corporate debt that's big business stuff
48:44
so that might be um in new zealand it
48:47
might be i'm going to just click it and
48:49
show you it might be a fisherman
48:51
or a fonterra it might be spark whatever
48:53
company wants to issue debt
48:55
um
48:56
so you can see now we've we've suddenly
48:59
gone from you know hundred bucks into
49:01
bonds summoned to new zealand some of
49:03
the corporate some of the fishermen bike
49:05
or someone to fonterra
49:07
and then also government debt
49:09
and the big the big thing with
49:11
government debt is we can't pick the
49:12
government in new zealand because it is
49:14
government
49:15
regardless if it's red blue green
49:17
whatever
49:18
the main thing is you can pick the terms
49:21
of bonds or the manager can pick the
49:23
terms bonds and what they're trying to
49:25
do is make sure that they haven't got
49:28
too much money out and
49:30
long like 10 years
49:32
because if interest rates go up and year
49:35
round in 10 years it's going to look
49:36
pretty bad it's going to look like
49:38
you're making massive losses so they can
49:41
manage interest rate risk by buying
49:44
different maturities okay
49:46
and the big thing you need to remember
49:48
with bonds is that because it's a debt
49:51
because it's um a tradable security
49:54
but our fund managers can buy and sell
49:56
them they're not locked into it
49:58
so it's completely different to a term
50:00
deposit turn deposit sits here
50:03
and a turn deposit is
50:05
just that it's cash with the bank for an
50:07
agreed term you can't buy and sell it to
50:09
anybody else but a bond you can all
50:12
right
50:13
so property new zealand and overseas
50:16
again you see that diversification and
50:18
bear and mine is not residential
50:21
it is commercial retail industrial
50:24
office infrastructure
50:26
so you might have different types of
50:28
property
50:29
within
50:30
the countries
50:32
that are there
50:33
and then last but not least if you look
50:35
at shares and it all comes up at once
50:37
looks like an elaborate pyramid scheme
50:38
but the key is
50:40
all your money is in different parts
50:43
and at work in different sectors
50:45
different industries and different
50:47
assets so for shares again you see new
50:49
zealand and offshore
50:51
but new zealand might be into telecom or
50:53
banking or sectors and within those
50:55
sectors we have different companies so
50:58
offshore might be into different
50:59
countries so what you've got here uk us
51:02
and then in the us again you might be
51:04
into banking telecoms and then in
51:06
banking you might be in um
51:09
whatever the different banks maybe is
51:11
whatever it is on swiss bank
51:14
um but yeah in different banks in the us
51:17
and different telecom companies in the
51:18
u.s as well so the key being is that if
51:20
you start at the top here with 100 bucks
51:22
and shares
51:23
you know 20 of that might be new zealand
51:25
80 offshore
51:27
and of that you know 40 in the uk 40 in
51:30
the us and then by the end of it
51:32
if you added up all the companies you
51:34
might end up with hundreds and hundreds
51:35
of companies in your kiwisaver and it
51:38
just means that if one of those
51:40
companies failed like literally failed
51:42
and disappeared
51:44
all of your money is not at risk because
51:45
you've got it spread out does that make
51:47
sense
51:48
hopefully that makes sense it's crash
51:50
course and diversification by the way
51:53
um so to the question about when do you
51:55
think keemstar will run out of money so
51:56
kiwisaver is your money so whatever you
52:00
build up is what you will have access to
52:03
on the other side you have the
52:05
government which has a superannuation
52:07
fund
52:08
that's what they pay into
52:10
now that is completely different to
52:12
kiwisaver so one
52:14
hey if you want to make your keywords
52:16
over last as long as possible start
52:18
putting money into it helping it to grow
52:20
um and then depending on when you hit 65
52:24
you know can you let it grow more or do
52:26
you want to start drawing it's all up to
52:28
you
52:29
what have we got here if you invest in a
52:31
managed fund invested property does that
52:32
reduce the risk slightly um well it can
52:35
do because
52:36
risk is attached to your investment so
52:39
if you put
52:41
let's just say
52:42
i don't know if you put all your money
52:44
into one rental property
52:46
that's your risk because it's that one
52:49
property
52:50
suddenly i don't know the bus route
52:51
changes or people don't want to live
52:53
there anymore or
52:55
nobody wants to live in a house they all
52:56
live in apartments you're going to carry
52:58
a lot of risk because you have it all in
53:00
one thing you're also having something
53:02
that's quite liquid i know properties
53:04
selling by hot cakes at the moment but
53:06
trust me at 48 years of age there have
53:08
been a number of property market cycles
53:11
where property does not sell for months
53:14
and potentially might have to drop price
53:16
to sell it a bit quicker so that's the
53:19
risk you have but if you do a property
53:21
investment through a fund
53:23
you might get in new zealand you might
53:24
get
53:26
kiwi income property trust you might get
53:29
um
53:30
a couple of rest homes in there you
53:32
might get a whole diverse nature of it
53:34
so in theory yes you will be
53:37
um your risk is reduced because you're
53:39
more diversified so for the person i
53:41
said hopefully that answers that
53:42
question
53:43
um so there you go you've got four
53:45
levels of diversification all right
53:48
that's cool you got that correct um and
53:50
bear in mind as well that nowadays and
53:53
mark alluded to this through the mercer
53:56
fund for nzf you can go into just solely
54:00
a share fund
54:02
so the name gives it away
54:04
so if you've got a kiwisaver balanced
54:06
fund then yes you know you're going to
54:08
get a lot of this but if you go into a
54:10
kiwisaver new zealand shares fund you
54:12
know that you'll get shares
54:14
and new zealand shares you won't get any
54:16
of this other stuff it's what we call
54:18
single sector funds so just be aware of
54:21
that as well
54:23
very good
54:24
so
54:26
i talked about it before um but who has
54:29
um who's done some research on their fun
54:32
or to pick their fun
54:34
and how did you do some research
54:43
just wait
54:49
oh that's nice to end
54:51
um
54:53
i'll be a sort of tour of dear friends
54:55
all right love it so um oh oops click
54:58
the page again
55:01
so this is smart investor and
55:04
i know again it's not the best name to
55:06
describe what it does
55:08
but i alluded to it before
55:11
under tools smart investor
55:15
and i will give you the link here
55:21
all right so people here we've got um
55:24
have said try to talk to other friends
55:26
working sectors knew more about
55:27
investing yes
55:28
so sort of talk brilliant and be a
55:31
friends
55:33
mark reading google science investment
55:35
board brilliant love it mark
55:37
uh for sharpies i'm guessing she's
55:40
had a look at the ups and downs over the
55:41
years um looked around performances
55:44
online uh shares he's great you're
55:46
corrected there that's all good um
55:48
oh tony robbins master the game money
55:51
master the game there's a lot of
55:52
understanding talk about index funds uh
55:54
persistent habits compounding growth
55:56
interest code of nz very good book yes
55:59
okay so
56:01
smart investor so this is all new
56:03
zealand
56:04
through sorted so you know the
56:05
information is 100 correct okay
56:08
you can research managed funds and
56:11
kiwisaver
56:12
so to all of us that have said i asked
56:15
friends or i didn't know where to start
56:17
and oh my god where do you start
56:19
um
56:20
this tool here will give you all of that
56:22
information
56:24
at the drop of a hat
56:26
so i'm just going to pick out kiwisaver
56:28
and i'll pick out growth and the moment
56:30
i hit that you'll see it's starting to
56:32
update
56:34
and in about three seconds and
56:37
there we go there are total 65 funds in
56:40
the kiwisaver market in new zealand that
56:43
are classified as growth all right
56:45
this is how quick and easy this is
56:48
so you've got a little sort by column so
56:51
remember if you want maximum growth
56:54
you can do highest growth assets
56:57
you can do lowest to highest fees
57:00
you can do lowest to highest return
57:02
and then also last but not least if you
57:04
want to find your fund out there you can
57:06
do by fund name all right
57:08
so i just i just show you that quickly
57:10
and i'll pick out um
57:13
our
57:15
lowest fees all right so those things
57:17
first um it'll update straight away
57:21
and there's three key things that will
57:23
show you so this is going to filter
57:24
first and foremost on who's got the
57:26
lowest fee
57:27
and you can see here it's the invest now
57:30
hunter growth fund
57:31
0.37 so the three things it shows you is
57:34
one the asset mix so how is my money
57:37
going to be invested between those two
57:39
leaders remember income and growth
57:41
what are the fees i'm getting charged
57:43
and then it compares it to the average
57:45
and then last but not least it gives you
57:47
the returns for the last five years and
57:49
i'll just find one that's got one so
57:51
here's bnz
57:53
their return for growth has been 10.35
57:57
net per annum each year for the last
57:59
five years and they've beaten the
58:01
average by almost one percent
58:04
so if you're in the bnz fund and you
58:06
want to check on it and think
58:08
that's all right i'm happy with that i'm
58:10
paying less than averaging fees and
58:12
their performance is on average better
58:15
than the rest of the growth funds out
58:16
there
58:17
um
58:19
thanks jared love it yes it is very
58:21
handy uh but we can circle back to this
58:24
at the end because i know there were
58:26
lots and lots of questions about it i
58:27
just want to make sure we cover up the
58:29
last
58:30
bit about growth because we're right on
58:32
three um so the last rule we've got in
58:35
our back pockets is growing your money
58:37
so giving your money the opportunity to
58:39
grow so on screen is a perfect example
58:41
of this so lee may
58:44
at the age of 19 does not start your
58:46
kids over or her savings okay
58:49
but decides to do it at the age of 26
58:52
and from 26 to 65
58:54
puts in 2 000 a year all right now the
58:57
balance grows by the 2000 plus a return
59:01
and you can see it's 10
59:02
so
59:03
don't worry about the return it's a
59:05
concept of a little and long all right
59:08
so she waited what seven years to start
59:12
as opposed so what you can see is she
59:15
put in a total of eighty thousand
59:16
dollars
59:17
it grew to eight hundred ninety four
59:19
thousand dollars so it's an increase of
59:20
eleven fold all right so keep that one
59:23
in mind
59:24
so now we're gonna look at moana
59:26
for moana same age
59:28
high school mates
59:30
uh let's go she started with two
59:32
thousand dollars per year up until 25
59:35
and then stopped
59:36
so what you can see is her money growing
59:39
till 65 and getting to 945 000. so
59:43
you'll go huh dennis that does not prove
59:45
a thing because your balance is lower
59:48
this is the key
59:49
so for a grand total of fourteen
59:51
thousand dollars that she put in right
59:53
at the beginning
59:55
her money grew to nine hundred people by
59:57
an addition nine hundred and thirty 000
59:59
so she actually
60:01
grew her money 66 fold
60:03
as opposed to lee mae 11
60:06
so
60:07
what we're trying to show
60:10
is oh look someone's got love and moby's
60:12
got
60:13
is the power of starting as early as
60:15
possible it doesn't matter how much it
60:16
is just start as early as possible
60:18
that's the key so and allowing it to
60:21
grow giving it the time to grow
60:24
so action plan hopefully there's some
60:26
stuff that's come out of today is any
60:28
tools that have come out of today
60:31
that you think damn i'm going to do that
60:33
please please mention it now
60:36
i'm just going to quickly put up a link
60:38
for a
60:40
questionnaire or survey to see what you
60:42
saw thought of today's session
60:45
and then mark will
60:47
go through some stuff
60:49
and then look we're around
60:51
for a wee while to answer any questions
60:53
because there's generally lots and lots
60:54
of questions coming through so one over
60:56
to you mark okay look thank you very
60:58
much dennis again an excellent webinar
61:00
and lots of really good questions people
61:03
i've just been taking a list of things
61:04
that people have been raising and i just
61:06
want to quickly cover them off
61:08
and no in particular order in terms of
61:09
the question about will will kiwisaver
61:11
funds run out there's actually 85
61:13
billion dollars invested in kiwisaver
61:15
funds in new zealand now
61:17
and in addition to that there's around
61:19
about another 400. 400 billion invest in
61:22
other managed funds
61:24
like the dfss the state service sector
61:27
retirement scheme um things like that so
61:30
and as dennis highlighted there's a very
61:32
strict regulatory regime
61:35
and there's lots of checks and balances
61:36
to minimise lists and ensure
61:38
try to ensure that money doesn't run out
61:41
at any stage so i think you can be well
61:43
satisfied about that
61:44
in terms of the nzd of saving schemes we
61:47
have three schemes the ncdf flexi saver
61:50
scheme the kiwisaver scheme the defence
61:51
force superannuation scheme there's a
61:53
total of 660 million dollars invested
61:56
across those three schemes
61:58
growing right by around about um
62:02
10 to 20 million dollars a month
62:04
that forms part of an eight billion
62:06
dollar investment pool that's managed
62:08
for us by mercer who's our fund manager
62:12
and mercer in turn has gone out and
62:14
selected 49 investment managers and
62:17
those 49 investment managers in turn
62:19
reach out to um
62:22
multiple thousands of companies both
62:23
within new zealand and across the world
62:26
to invest the money to get the best
62:28
returns and it's saying that at the same
62:30
time minimize the risk
62:32
for the membership
62:35
we have a monthly report that goes up in
62:37
the force financial hub and if you have
62:38
a look at that you'll see that there's
62:40
very robust returns and we've been doing
62:43
very well
62:44
over the last few years in particular
62:46
our schemes are not listed in the um
62:49
sorted site and nor are they listed in
62:52
morningstar the reason for that being is
62:53
our schemes are not open to the whole
62:55
public they're only owned to members of
62:57
the defence community
62:58
and so to to get the closest fit have a
63:01
look at mercer
63:02
uh and that'll give you a closest fit
63:04
but there is a different fee structure
63:05
applying to our schemes because we use
63:07
our our fees partly to subsidize the the
63:10
financial advice service and some of the
63:12
other benefits and so that's what you're
63:14
not comparing apples with apples but
63:15
you'll see you'll understand why our
63:17
scheme is not actually reflected in the
63:20
in the sorted site
63:22
um
63:23
and as i mentioned earlier we have our
63:25
financial advice service they are
63:27
independent uh they're not skewed to any
63:29
particular company they're available to
63:32
um give advice to people so please feel
63:34
free to contact them at any stage they
63:36
are fully operating despite
63:39
the different levels of lockdown
63:40
applying and so please make make contact
63:43
with them
63:44
um and as i mentioned earlier we do have
63:46
a resources list that's available
63:49
to
63:50
um um
63:51
give people some additional reading and
63:53
things so feel free to email that mars
63:56
has just asked what are the fees for our
63:57
scheme well the fees are actually listed
63:59
in the product disclosure statement
64:00
which is available online under the
64:02
kiwisaver scheme and the flexisaver
64:05
scheme uh page
64:06
you'll see them all listed there and
64:08
there's a full breakdown of the
64:10
investment for each of the different
64:12
categories we actually have seven
64:14
different
64:15
investment portfolios ranging from cash
64:17
at one into the scale to
64:19
shares at the other end
64:22
you have a look at a product disclosure
64:24
statement which is available online that
64:25
gives you a breakdown around the
64:28
different percentages of growth versus
64:31
defensive assets within each of the
64:32
portfolios as well
64:36
cool
64:37
all right and and like my debt is happy
64:39
to take any questions
64:40
yeah great thanks mark um so
64:43
yeah no feel free to keep the questions
64:45
coming through we've still got 40 odd
64:46
people on so that's brilliant um mark uh
64:49
the person asked how does defense
64:51
schemes compare against other schemes um
64:54
so good question
64:55
and you can see that through the
64:59
um
65:00
sorry what's the one called um melville
65:02
just at weaver which actually shows our
65:04
scheme um so what we look at
65:07
and so but answer to your question that
65:10
in terms of them and this is from memory
65:12
in terms of the cash
65:15
conservative model we're reasonably
65:17
aligned to the market median in other
65:19
words we're we're reasonably uh aligned
65:22
to what the meetings for the kiwisaver
65:24
schemes are producing
65:26
and for the growth and the high growth
65:28
and the shares we've actually been
65:30
outperforming the market which is what
65:32
we're trying to do that's why we're an
65:33
actively managed fund
65:36
and i'll just add to that as well um
65:39
oh to the person who asked is this for
65:41
military and civilian um just can you
65:43
clarify yes whatsoever
65:45
so our schemes are available all well
65:48
everything we offer through the force
65:49
financial hub is available to regular
65:52
force
65:53
civil civilian members
65:55
territorial reserve members and their
65:57
partners and family
65:59
and a key thing about the force
66:00
financial hub is when you leave defence
66:02
because at some stage career has come to
66:04
an end
66:05
everything we have you can continues to
66:08
apply to people as well we like the
66:09
mafia once we get hold of you we hold on
66:11
to you for life
66:12
yeah
66:14
the person just said perfect thanks so
66:16
that's good
66:17
i just wanted to echo mark's points and
66:19
just add to it as well around you know
66:21
peer comparisons
66:23
um be very wary of just trying to pick
66:26
the best performer each year because it
66:28
will change and it does change yeah
66:30
there are some uh managers out there
66:32
that have a habit of you know day in day
66:35
out trying to beat performance but
66:38
um what you what this tool is about is
66:40
not
66:42
letting you sit down in years time and
66:43
go right there's number one i'm gonna go
66:45
there chances are
66:47
someone else will be number one what it
66:49
is there to do is to say okay well
66:51
here's a performance here's our ranks
66:54
am i happy with that if i'm not happy
66:56
with that then you can pick up the phone
66:58
and talk to your provider or talk to
66:59
your advisor about why you're there what
67:02
are the things they are seeing and and
67:04
what are the things that the manager is
67:05
seeing as well um because it's just
67:08
about putting you into control of asking
67:10
those questions and knowing
67:12
why you're with that kiwisaver provider
67:14
i mean i know from first hand having
67:16
dealt with your good sales for you know
67:18
over a few years now
67:20
um there's some other additional
67:21
benefits you get through ncdf that you
67:24
go through the keysight scheme
67:25
specifically that you don't actually get
67:27
if you go out joe publicly
67:29
um so you just got to weigh in those
67:31
benefits as well
67:33
uh a really powerful point dennis um
67:36
so we use the analogy of a three-legged
67:38
stall
67:39
one of the legs is the returns one of
67:41
the one of the legs is the the
67:45
the cost
67:46
and the other leg is the um benefits the
67:49
one gets through membership of our
67:51
schemes we've now got 10 502 members as
67:54
of last friday and um there's a whole
67:57
whole raft of benefits that people get
67:59
and particularly
68:01
things like the face-to-face engagement
68:03
through
68:04
a series of presentations and expos and
68:06
things like that that you don't get
68:07
through membership of other kiwisaver
68:09
schemes but you do get through
68:10
membership of our kiwisaver scheme and
68:12
the flexi saver scheme and all that sort
68:14
of stuff because one of the things we've
68:16
found with our defence people we're like
68:17
a cross-section of society
68:19
we have at one end of the scale people
68:21
have got a very sophisticated
68:22
understanding of money and money
68:24
management
68:25
and at the other end of the scale we've
68:26
got a group of people who probably don't
68:28
actually have that much knowledge and
68:30
then in the middle we have quite a
68:31
cluster of people who have a little bit
68:34
of knowledge but want to know more
68:36
and we find that face-to-face is a
68:38
particularly a powerful way of reaching
68:41
across to people
68:42
obviously we can't do so much of that at
68:44
the moment during covert lockdowns and
68:46
everything else but you can give people
68:48
all the articles and all the books and
68:49
things of the world but they're not
68:50
necessarily going to understand these
68:52
things and that's why we're so we're so
68:54
keen to reach out doing the face-to-face
68:56
thing and dennis we've had the privilege
68:59
of working with dennis now for nearly
69:01
six years
69:03
in terms of presentations we do to
69:05
recruit courses and other groups like
69:07
that and again if you you can see the
69:10
impact of these things you can see the
69:12
light going on and you don't get that by
69:14
putting in front of people in front of a
69:16
computer screen or or giving them a book
69:18
to read yeah exactly that's a good point
69:21
um and one question here someone just
69:23
sent through
69:24
and i will answer those other questions
69:25
that were raised earlier about active
69:27
passive
69:28
um and nfts as well so don't think i've
69:30
forgotten um
69:32
i just use sort of indicates it should
69:34
be on growth currently in balance should
69:35
i change i recently joined the entity of
69:37
kiwisaver scheme from amp so perfect
69:40
there's a perfect opportunity for you to
69:41
give the uh the good people at mercer a
69:44
call because they're managing your kids
69:46
over have a chat to them
69:48
and then also um if you want to take a
69:50
little bit further have a chat to one of
69:52
the advisors at milestone
69:54
and just get their view because they
69:56
offer i think 30 minutes free
69:58
yeah
69:59
yeah i'm just i'm just reading this
70:01
question about the shares investment and
70:03
things like that
70:05
um the i guess the advantage of buying
70:07
shares for a managed fund like our
70:08
scheme whether it's the kiwisaver the
70:10
flexi saver scheme is you're actually by
70:12
doing that you're buying shares and
70:13
literally thousands of companies both
70:15
within new zealand and across the dutch
70:18
and uh
70:19
internationally
70:21
um and i'm cdf's representative on the
70:23
investment board for the eight billion
70:25
dollars invested and so i see every
70:28
month they comprehensive range of
70:31
investments that are being made
70:33
and the checks and balances that are in
70:35
place to again maximize the returns and
70:37
reduce or minimize the risk as much as
70:39
possible there is a lot of robustness
70:42
and fairness that goes into those
70:44
investment decisions
70:45
that unless unless you've got the time
70:48
you're not necessarily going to be able
70:49
to make yourself
70:51
and so
70:52
one of the reasons why i started
70:54
investing in shares nearly 30 years ago
70:56
is something that pushes my buttons i
70:58
really enjoy it so i'm happy to spend a
71:00
lot of time reading and sitting in front
71:02
of a computer screen looking at stuff i
71:05
was up
71:06
this morning until two o'clock this
71:07
morning looking at what's going on
71:08
overseas
71:10
i don't really necessarily recommend
71:12
that for everyone
71:13
and um some a lot of people's lifestyle
71:16
doesn't suit to that sort of thing
71:17
either so
71:20
by all means invest in shares yourselves
71:21
do it because it gives you an interest
71:23
you'll find it a bit of fun
71:25
and with platforms like sharesies and
71:26
hatch and things like that particularly
71:28
with sharesies now you only need five
71:30
dollars to start
71:32
um it's a very easy platform to work
71:34
your way through and so
71:36
a number of people i work with and
71:38
things i've just been talking to and
71:40
they've started joining up purely out of
71:42
interest just to see
71:44
um you know have a bit of a play around
71:45
and have a bit of a dabble themselves
71:47
and the advantage of using something
71:48
like sharesies or hatch as an example
71:51
is that they'll do it they have an auto
71:53
invest
71:55
option as well where you don't actually
71:56
have to make the decisions yourself you
71:58
just give them the money and they'll
71:59
invest on your behalf
72:01
but if you do want to make your own
72:03
investment decisions then you can do so
72:05
just by overriding that and um
72:08
both platforms access you you have
72:10
access to thousands of companies
72:12
if you want to use those as an example
72:14
and that's not a recommendation that's
72:16
just as an example
72:17
yeah great great points mark um so yeah
72:20
nikki the other thing i would say as
72:21
well if you do have an interest in it
72:24
and want to you know
72:26
dabble a bit more um then sign up to
72:29
some fund managers and you know mercy do
72:33
get their monthly news or just by having
72:35
the kiwisaver with the engineer
72:37
and then have a look through that
72:38
monthly fact sheet or
72:41
newsletter because it it will talk
72:43
through um you know their top 10 shares
72:46
they hold
72:47
and what what's worked well what hasn't
72:50
and then do that with a few other fund
72:52
managers as well just get their monthly
72:53
fact sheet and because this is what i do
72:55
i just read it because obviously i'm in
72:57
this industry and i love it but so i
72:58
don't mind reading it
73:00
but there's some fund managers out there
73:02
that are very very detailed about what
73:05
they're doing how they're doing things
73:08
um and you'll you'll quickly cotton on
73:10
that there's some company names that
73:12
tend to come up a lot
73:14
and that can be a great way to start
73:16
because you know your googles your
73:18
nike's coca-cola mcdonald's whatever it
73:21
is
73:22
then the second part of that would be
73:24
well what interests you so
73:26
you know for me i'm interested in
73:29
technology
73:30
but not not you know google or amazon
73:33
type thing i was genetic um editing that
73:36
type thing so that sort of stuff
73:38
interests me um you know our own local
73:41
rocket company rocket lab love that i
73:43
love the idea that it's a little new
73:45
zealand company it's listed on nasdaq
73:47
now but um
73:49
doing its
73:50
launching satellites in space how cool
73:52
is that so what interests you as well
73:55
and i think if you start reading through
73:57
those you're going to
73:58
quickly pick up well a confidence but be
74:01
a lot of knowledge around what a fund
74:02
manager is actually looking at out there
74:06
so yeah dennis can you just click on the
74:08
uh
74:10
kiwisaver scheme please uh
74:12
yes oh yes
74:13
so there we go
74:14
click on that please
74:16
um go down to the bottom
74:19
um to the monthly report page
74:21
uh i think it's down below it's down
74:23
below here we are clicking
74:25
click on monthly report just bring up
74:26
one of those please oh yeah great
74:29
perfect just what we were talking about
74:31
yeah
74:33
and now one of the things we do when
74:34
we're writing this is it's it's the
74:36
challenge between not boring people with
74:38
a whole lot of detail but also giving
74:40
them a little bit of detail to wet their
74:42
appetite without talking down to people
74:44
and hopefully it gives gets them to take
74:46
a bit of interest and then they'll go
74:48
and want to read more stuff because
74:50
there's a whole raft of stuff available
74:51
on our site but you'll see there's a bit
74:53
of a commentary and then if you drill
74:54
down further
74:56
and then it starts talking about what's
74:58
been going around all around the world
75:00
in key markets and then
75:02
there's a commentary from our financial
75:03
advice service and then we actually show
75:05
the investment returns for each of the
75:06
three schemes
75:08
and um um
75:11
the key thing is to look at the five
75:12
years because this is very much about
75:14
the long term
75:16
and so and all these figures that are
75:17
shown here returns after the deduction
75:19
of fees and taxes so that's a really
75:21
important thing to remember
75:23
you need to make sure you're comparing
75:24
apples with apples when you're looking
75:26
at our returns uh because not every
75:28
company reports after deduction of um
75:31
taxes but but we do
75:33
so you can it enables you to see what's
75:35
actually going on from your perspective
75:37
yeah and that that's just an example of
75:40
um what we produce and then
75:42
down below there's another site that's
75:44
got videos and resources and stuff like
75:46
that and the mercer site itself actually
75:48
has a lot of material
75:50
milestone have done a series of podcasts
75:51
for us um
75:53
you just access that by googling
75:55
milestone direct limited podcasts and
75:57
there's 12 podcasts that i commissioned
75:59
from them last year during lockdown
76:01
which is still very relevant this year
76:03
and that covers off things like
76:05
investment and things like that as well
76:07
cool brilliant thanks mark um now i had
76:10
a question here is it better to pay off
76:12
debt faster before investing ie uh we g
76:15
prioritize higher mortgage payments we
76:17
want to start investing younger and make
76:19
the most of compounding interest or
76:21
paying off fit
76:23
definitely maximize your benefits that
76:25
you're going to get through
76:26
kiwisaver or the nzdf super whatever it
76:29
is maximize those benefits as much as
76:31
you can
76:33
yes the old adage is to pay debt off as
76:36
quickly as possible the one thing i'll
76:38
share with you after
76:40
30 years glorious years of being in
76:42
financial services is i've dealt with a
76:45
lot of people in the past that have paid
76:47
off their mortgage
76:48
and it is a very hard thing
76:50
psychologically
76:52
for them to go from oh my god i've just
76:55
paid off my debt this is awesome because
76:56
what do they want to do they want to go
76:58
and celebrate they want to spend that
76:59
money they want to do something because
77:01
they've struggled for the last 10 15 20
77:03
25 years whatever it is
77:05
and even though they've chopped it down
77:08
they will use that money for something
77:10
else
77:11
for a little bit and then
77:12
the risk is that they keep using that
77:14
money for something else and not
77:15
actually put it towards saving so
77:17
i'm i i used to be an advocate for
77:20
paying down debt as much as possible but
77:22
i think nowadays it's great to have a
77:24
balance and i think if you work with one
77:26
of the advisors at milestone sorry to
77:28
pop on about this but they can take you
77:31
through a bit of a scenario to say okay
77:33
well this is what it could look like
77:35
if you only relied on kiwisaver nothing
77:37
else to pay down yet or if you built
77:39
something up on the side this is where
77:42
it could take you to so
77:43
hopefully that answers your question i
77:45
didn't really answer your question i sat
77:47
on the fence quite nicely
77:49
but i think it's very individual
77:52
and i think there's a lot to be said for
77:54
that just
77:56
taking money off the table so to speak
77:58
and starting to put it away and letting
78:00
time work on it um so that you've got
78:03
another little least egg
78:06
hit those retirement years
78:08
so hopefully that answers your question
78:09
there um now to the person that asked
78:11
about um
78:12
fungible tokens nfts you've never heard
78:15
of it definitely google the term
78:17
um i think personally it's a bit of a
78:20
bit of a sign of the times there's just
78:22
so much money floating around the system
78:25
um yeah it's cool and techy
78:28
but the reality is let's get back to
78:30
fundamentals what are you buying you're
78:32
buying the right to something you're not
78:35
you're never going to own it
78:36
well you do own it technically
78:38
but you can't you can't eat it you can't
78:41
um
78:42
grow anything from it there's no utility
78:45
which basically means you're relying on
78:46
somebody else that has to come along and
78:49
pay a higher price to you for you to
78:51
make a return on it and whatever you
78:53
actually bought you bought everybody
78:55
else can still use
78:57
the little icon or the
78:59
digital artwork whatever it is
79:01
you just own
79:03
that
79:04
actual token so i
79:06
personally i don't subscribe to i think
79:08
it's just a
79:09
bit of a gimme over the times and you've
79:11
run a great lot of risk buying into one
79:13
of those type of things but who knows it
79:14
could be completely wrong
79:17
but that's just my personal opinion um
79:19
now also someone asked about active
79:21
passive yes
79:23
uh and definitely look that up what is
79:25
active management what is passive the
79:27
easiest way to think of it is passive
79:29
management is looking in the rear view
79:30
mirror to invest
79:32
because you're only going it's the
79:34
cheapest way to invest definitely
79:36
because you're investing remember how we
79:38
talked about the s p 500 as an index
79:42
passive investment
79:44
wants your money to go into an index
79:46
type investment or an exchange traded
79:48
fund that mimics an index so the only
79:52
way you get that index
79:54
is based on how well the company has
79:57
done
79:57
against the rear view mirror in the past
80:00
so
80:02
passive management i personally think is
80:05
investing as to what happened so you're
80:08
going to get a good share of the market
80:10
definitely because there's lots and lots
80:12
of companies involved all sorts of
80:14
things going on and you never know what
80:16
the winner will be so you get a share of
80:17
everything but then on the other side
80:19
you've got something called active
80:21
management now mark's already confirmed
80:23
that the nztf schemes are actively
80:25
managed
80:26
and all that means is that you have a
80:28
manager or a bunch of managers that are
80:31
always looking to find the best deal the
80:34
best place for your money
80:36
and they can either work hard in markets
80:38
going up to to get a better return or
80:41
they can work very hard when markets are
80:43
dropping to try and
80:45
insulate you somewhat they're never
80:46
going to avoid losses but they might be
80:49
able to save you a percentage to half a
80:51
percent you know all those
80:53
half percent here
80:54
quarter of a percent there over the
80:56
years will definitely add up
80:59
and there's been mention of warren
81:01
buffett in our champ here as well and
81:04
it's really important to know that yes
81:06
warren buffett for his mum if his mum
81:08
needed to invest he advocates just
81:10
buying an s p 500 fund and just putting
81:13
the money in there
81:14
one thing that we need to remember about
81:16
warren buffett is he is an active
81:18
manager
81:19
um and what i mean by that is that his
81:22
company berkshire hathaway
81:24
has researched and knows all the
81:26
companies intimately
81:28
and buys them but the big thing is and
81:31
holds them for 10 20 30 years i mean he
81:34
bought coke
81:35
decades ago so
81:38
he makes an active decision to buy
81:40
companies that he knows believes in and
81:43
can grow for the future so whilst he
81:46
says for you know a mum and dad type
81:49
invested go into an index and be passive
81:52
um
81:53
he himself and his company has been
81:54
built in the reputation of making very
81:56
very active decisions
81:58
so definitely have a look at it because
81:59
it's i think it's time and place for
82:02
both i don't think a lot of data
82:04
suggests that
82:06
passive management always wins out
82:08
but again personally
82:10
it wins out if you can leave it invested
82:12
for 10 20 30 years at a time
82:15
and it almost
82:17
insinuates that ah it's so easy to do
82:19
that but the reality is our psychology
82:21
comes into it as investors and if you're
82:24
not working with an advisor or you
82:26
you're not like really
82:28
concentrating on it it's hard to stay in
82:30
a market that is dropping
82:32
let alone going sideways and declining
82:34
over two three years at a time like what
82:37
happened back in 0.708 09.
82:40
um so that's that's just the take on
82:42
that hang on we've got a whole bunch of
82:44
messages here mark so here we go um
82:47
oh todd just shared look into smart
82:49
shares etfs yep so it's a form of a
82:51
exchange trade fund definitely
82:54
uh always great to use sharesies to try
82:56
a small amount of money over time in
82:58
scale yeah
82:59
fyi if you're interested in getting into
83:01
shares hatch is a free quick rundown oh
83:03
oh you've shared that really great
83:05
thanks reid uh josh personally find it
83:07
easy and best if i know or buy from the
83:09
industry involved in i buy disney shares
83:11
because i follow the film industry
83:12
closely and see
83:14
when they're doing well and it's nice to
83:15
have a share and something i consume
83:17
also big companies like that have been
83:18
around
83:20
yeah it's a personal interest and and
83:22
usually when you've got a personal
83:23
interest you tend to
83:25
um digest information quicker as well
83:28
because you're interested in you want to
83:29
read about it
83:30
um where can we find the recordings of
83:32
the webinars when someone asks us that
83:35
yes mark we'll let you go on that one
83:37
yeah so what's going to happen is that
83:39
um they're going to go up on the fourth
83:40
financial hub next week
83:42
but there is a big
83:44
dpa digital load all this stuff for me
83:46
they tell me they've got a heavy backlog
83:48
of stuff at the moment so they'll get it
83:50
up for me as quickly as they possibly
83:51
can so just watch the space and just be
83:55
you know patient please um because we
83:57
are in their hands and i don't want to
83:59
load them up with too much stuff because
84:00
they do a great job for me even in a
84:02
whole variety of areas but i'm only one
84:04
of a number of clients they have
84:07
fair enough um and robert asked candy
84:10
savers managed by kiwi wealth is this
84:12
different to ends of dfs
84:14
yes i mean both are actively managed but
84:16
yes they are different um so
84:18
definitely have a look through the force
84:21
financial hub to get in a bit of an
84:23
insight on the nzdf scheme
84:26
and then have a look through the q
84:27
wealth one and just figure it out or
84:28
also use the um
84:31
sorted tool just to see
84:33
how it's invested what the fees are and
84:36
um how's that performance been so
84:38
hopefully rob that answers that question
84:41
we have a shout out here mark thanks for
84:43
that we really appreciate webinars and
84:44
we've learned a lot
84:47
thank you well done that's good um
84:51
oh you've answered robert yes that's all
84:53
good
84:54
nikki thanks so much for our
84:55
presentation and information
84:59
very much appreciate it that's good
85:02
um
85:03
oh where can we find out more
85:04
information about bonds apologies
85:06
there's a bit late in joining the
85:06
session all right that's cool all good
85:08
um a these sessions are recorded and
85:10
will be uploaded at some point i've just
85:12
alluded to that uh but i think if you go
85:15
to
85:16
there's a site called oh there's a on a
85:19
sports financial hub and uh
85:22
oh gotta find it now and uh
85:29
have a look at the milestone direct site
85:30
um um dennis that we did some
85:34
podcasts last year that cover off that
85:36
oh yeah okay
85:38
yep uh
85:52
[Music]
86:00
what should do i need to look up um
86:03
there's investing in a taylor port photo
86:05
uh building wealth and all that sort of
86:06
stuff you just
86:08
i just i just type in uh milestone
86:10
limited podcast and it takes me straight
86:12
to the site oh okay and there's a lot
86:14
there's a raft of stuff that they did
86:16
for us last year
86:18
um
86:25
if the person sends me again emails
86:28
benefits at
86:29
nzdev.mill.nz i'll send you the link
86:31
around the stuff on bonds and
86:33
investments and things yeah cool
86:35
um and the other thing as well um
86:38
you could always google it because
86:39
you're not trying to figure out who can
86:41
manage bonds you're just trying to find
86:42
a definition um there is a great site i
86:45
use to give to people about investopedia
86:48
and it's all it's almost like an
86:49
encyclopedia on investment terms and
86:51
that does a good job of breaking it down
86:53
as well
86:54
um
86:57
robert's going to call you
86:58
shares the information
87:01
um and do you have any part-time online
87:03
courses you recommend around investing
87:05
well mark just talked about the podcast
87:07
so
87:08
email benefits at
87:11
nzdf.mill.nz to get some of those or get
87:13
access to those
87:15
and also someone mentioned hatch i think
87:17
about some podcasts
87:19
um very home uh go to if you're punching
87:22
her website
87:24
it's h o l m and from area at the end
87:27
mary home
87:29
share some great information as well a
87:31
little bit more conservative but that's
87:32
a good thing because then you can start
87:34
reading through things that's not gonna
87:36
sort of point you down in the garden
87:38
path so to speak
87:39
um but yeah there's there's lots and
87:41
lots of information but i reckon start
87:43
with a reputable organisation ie
87:46
uh forced financial hardware milestone
87:49
uh before you go down the rabbit hole of
87:50
google because
87:52
trust me there are lots of lots of
87:53
things on youtube or you know
87:57
wherever whatever other social media
87:59
where people are just
88:00
not
88:01
acting in your best interests at all
88:03
um cool and we've got some thanks and
88:06
that's it any other questions
88:08
i've got 27 of you still on so um
88:11
so going back to just going back to
88:13
barcha hathaway they are one of the
88:15
companies that don't actually ever pay a
88:16
dividend
88:17
so we get the return for that longer
88:20
term is around the capital growth and
88:22
the value of the shares over the years
88:25
and so
88:27
just something to watch out for that if
88:28
you're relying on income from shares and
88:30
equities then
88:32
you you you'd want to look very
88:34
carefully about which shares you're
88:35
actually purchasing because some shares
88:37
will pay a dividend and some will pay
88:40
you you get the return through the
88:41
increase in the value of the share or
88:44
accommodation of both depending on what
88:46
the share portfolio um is so
88:49
um ryman's in places like that as an
88:51
example you get
88:53
dividends normally paid out every year
88:55
but also you see capital growth usually
88:57
every year as well in new zealand
88:59
auckland airport limited things up until
89:01
recently we're paying out dividends but
89:03
of course the last two years no
89:05
dividends and i don't think there'll be
89:07
a dividend paid next year at least until
89:08
new zealand gets back into the black so
89:11
um
89:12
again it brings machetes here
89:14
i think a key thing also about all of
89:16
this is that it's really important that
89:18
people have a plan about what they're
89:19
going to do with their money when they
89:21
turn 65 or 67 or 68 or whatever else and
89:25
they're going to start
89:27
tapping into that money to supplement
89:29
their income as we discussed this
89:30
morning because that money is literally
89:33
going to last you 25 plus years and you
89:35
want to make sure that you actually do
89:37
have a plan to work out how you're going
89:40
to draw down the money and how you're
89:41
going to get that income stream you need
89:44
each month or each six months or however
89:46
you're going to do it
89:48
to supplement your national your
89:49
national super and that's why it's so
89:51
careful that we have a plan everyone
89:54
to
89:54
around what we're going to do with our
89:56
money because what the australian
89:57
experience has been and australia's had
89:59
compulsory super now since 1990
90:02
people will often retire with a billion
90:04
dollars plus on their funds and then
90:06
what they do partly because of the tax
90:08
system and the way it's skewed that
90:10
almost discourages people holding on to
90:12
their money what they tend to do is they
90:14
spend it then on the big flash boat and
90:16
the car and the over and the trip that
90:19
when they can travel overseas and the
90:20
big flash house and everything else and
90:22
then all of a sudden they find they
90:24
haven't got the money that they need to
90:25
last in that 25 years plus
90:28
so really important to have a plan
90:30
and to and not to look upon this is a
90:32
lot i wonder and everything else this is
90:34
money that's going to last you a
90:35
lifetime
90:36
and it's really important you do work
90:38
out how you're going to draw down on
90:40
your money um and what your time frame
90:42
is for doing so
90:44
great point great point
90:46
um
90:48
uh yeah yeah yeah we just had a question
90:50
there come on would milestone provide
90:52
advice on planning for the next 25 years
90:54
yeah i mean it's
90:56
that's at the heart of financial
90:57
planning um
90:59
in that and depending on the services
91:01
offers offered but you're looking at you
91:04
know cash flow
91:06
you're looking at
91:08
paying off debt like a mortgage or even
91:10
buying your first home because you've
91:12
got mortgage advisory capacity as well
91:15
then you've got insurance so if you need
91:17
insurance and does that need to be
91:19
looked after as well
91:21
then you've got retirement planning um
91:23
and within retirement planning there's
91:25
also a little bit of tax planning those
91:26
sorts of things as well so yeah it's
91:28
there's quite a bit to it and uh happily
91:31
uh milestone does
91:33
all of that
91:34
um
91:36
stuff and sorry i'll just concentrate on
91:38
another question just came through um i
91:40
saw some where there is a financial
91:43
advice to the value of 1500 or a credit
91:46
into the super scheme coming on ilp will
91:48
that choice come through by email uh yes
91:51
you should have received your letter
91:53
already the everything was sent out on
91:55
the 20th of august
91:56
ah okay did you get your letter
91:59
hopefully to the person to ask that
92:00
question
92:01
and you need to open your emails
92:03
[Laughter]
92:05
maybe it's in the unopened email box
92:08
uh yeah maybe have a look if it's not in
92:10
your inbox it might be in the spam so
92:11
maybe just check that one out just to be
92:13
hundred percent yeah and so for the so
92:16
eligible people members of the candidate
92:18
and cat c
92:20
um you would have received a letter um
92:22
contact milestone direct limited to
92:24
start talking to them about
92:26
uh reach
92:27
you you want to register your interest
92:28
for the financial plan and they'll send
92:31
you a question sheet for you to complete
92:32
and then they start the process with you
92:34
so that's underway now
92:36
and um
92:38
we've had a couple of hundred people so
92:40
far i've actually registered for that
92:41
process which is really great
92:43
and so um get them
92:45
you're not going to miss out by delaying
92:47
a couple of weeks but have a look at
92:48
your letter and then um contact
92:51
milestone to get the process underway
92:54
and um to the person that just asked
92:55
about can't see a payment and super
92:58
would have been wise
93:00
the phone phone um the mercer helpline
93:03
the reason for that being is there's
93:04
apparently a technical issue with the
93:06
screen
93:07
so the money has actually been paid in
93:09
but it's just not visible at the moment
93:11
they're trying to get that gremlins
93:13
sorted out if you phone oh 800 333 787
93:18
introduce yourself
93:20
they'll ask for your service number and
93:22
then uh just explain that you're wanting
93:24
to find out what the summers that was
93:27
paid into your account on the 20th of
93:29
august
93:30
um oh 800 triple three seven eight seven
93:33
that's correct good yeah i just typed
93:35
that in so everyone's got that as well
93:37
so that's good
93:38
all right
93:40
well i think our questions are drying up
93:42
all right well well done dennis thank
93:43
you very much again for splitting it
93:45
over
93:46
oh don't forget next week mark do you
93:48
want to touch them yeah so we're doing
93:50
these again next week people and um um
93:54
the notice has been sent out through the
93:55
command chain but please email again if
93:58
you haven't got the registration details
93:59
help spread the word and we are running
94:01
the buying a home workshop next friday
94:04
as well so for people who are interested
94:06
in buying a first home there's a
94:07
two-hour workshop we're running on
94:08
friday morning
94:10
and dennis is going to have a repertoire
94:12
of fresh jokes
94:15
for that and
94:17
hopefully again all the details the
94:18
registration details have been sent out
94:20
for that as well but if you haven't got
94:22
them just email me benefits at
94:24
nzdf.mil.nz
94:27
mark you're secretly fanning the fire by
94:29
suggesting that i come up with a new
94:31
list of jokes so i'm quite happy about
94:33
that
94:35
um oh good all right well um
94:38
thank you so much everyone it's been a
94:40
most enjoyable week um and yeah if i see
94:43
you again next week all the more
94:45
brilliant because you want to sit
94:46
through it again that love it
94:48
but otherwise it's been a great session
94:49
today to mark's point lots of questions
94:52
um and lots of comments coming through
94:54
that these sessions have been invaluable
94:55
and big thanks teams at df for allowing
94:58
us to run these because
95:00
you know it's a awesome cool employer
95:03
to you know give up employees time to to
95:07
work through these things um so
95:09
financial well-being
95:11
empowerment whatever it might be
95:12
whatever you want to call it really
95:14
is a great thing and um you know i'm
95:16
heartened by the comments coming through
95:19
because it means
95:20
a lot of people are going to be in
95:22
control of their financial destiny so to
95:24
speak and that is absolutely awesome so
95:27
one thank you so much
95:29
uh keep well stay safe and um tall you
95:32
people on level two
95:34
i'm so jealous
95:35
um
95:36
mark included you're in level two now
95:38
yeah
95:39
yes yes i haven't i haven't ventured
95:41
outside yet
95:43
yeah
95:45
you get a habit of staying close to your
95:48
computer screen it's actually a sunny
95:49
it's the sun's coming out this afternoon
95:51
so i'm going to go i am going to go for
95:52
a bit of a wander around and just
95:53
stretch my legs um after we've finished
95:55
this dinner so yeah yeah good call good
95:57
call all right well um unless there's
95:59
any other questions i'll uh bid all the
96:02
farewell
96:03
and uh like i say have a wonderful
96:05
weekend enjoy level two wherever you are
96:07
for us and level four
96:09
we're almost at the end for next week
96:11
chances are it might carry on a little
96:13
bit longer but we're getting there we're
96:14
getting there often so which is a good
96:16
thing
96:17
um no questions great all right thank
96:20
you mark
96:21
we'll see you next week dennis thank you
96:23
see you all
96:24
bye