It’s easy to think the investing world is out of reach or is just the domain of rich older men. But the perception is slowly changing. Claire Connell says investing doesn’t have to be daunting, and busts some common stereotypes.
You don’t need to be rich.
It’s true that if you want to invest your money with a big fund manager, you might need a relatively large amount to deposit, but there are still options if you don’t have lots of cash but still want to give it a go.
Stash, Sharesies, Smartshares, InvestNow, and Acorn are just some options where you don’t need large amounts of cash to get started.
So, even if you don’t have heaps of cash to throw around, don’t think investing is out of reach.
People from all walks of life do it.
Investors can range from the very experienced, to the beginner at the foot of the investment ladder. Some people may have suddenly found themselves with a large sum of money, for example through an inheritance, and decided to invest it after seeing a financial adviser.
Some investors may be hands-off, or have a passive approach, while others might want to be regularly involved and making decisions often.
Investors range from the very rich, to the not-so-rich. Platforms that offer low-deposit options are making investing accessible to the everyday Kiwi.
And Kiwi investors include women too – you might be surprised just how many!
You don’t need to know all that technical stuff.
It’s easy to think you might need a finance degree or money skills before you try to wrap your head around the share market.
But many investors don’t have a huge amount of finance knowledge – they just want to make their money work for them.
Investing is like anything else you’re keen to find out more about – do your research.
Start reading, and find out which reputable short courses you could take. Once you’re familiar with the jargon that those in the industry throw around, you’ll find it’s not as complex as you might think.
If you’re interested in using a platform to invest in the share market, don’t be afraid to call up and speak to a real human behind the company. That’s what they’re there for.
You can also see a financial adviser – if you pick a good one, they’ll be able to explain things simply for you.
You might already be an investor.
If you’re a contributing member to KiwiSaver, you’re already an investor. The government’s KiwiSaver scheme is the easiest and most common type of investment option for Kiwis.
It helps you save for your retirement, and maybe your first home. The money in your KiwiSaver account is invested on your behalf, by your provider. Depending on who your provider is and what type of fund you’re in, your money could be invested in bank deposits, fixed interest investments, property, and shares. (Learn about KiwiSaver here.)
It doesn’t have to be high-risk.
There is some stigma around investing – that it’s risky, and you could lose the lot.
Of course, there’s always some risk involved. It’s up to you to weigh up the pros and cons, and assess your own level of risk tolerance.
A financial adviser can help with this, and can likely offer some lower-risk ‘safer’ options for you. Some lower risk examples might include bank deposits and other fixed interest investments.
Higher risk options might include mostly shares. Read up online and find your level of comfort. Losing sleep over your investments isn’t worth it – be happy with your choice!
It can be fun.
It’s an industry perception that investments can be rather dull. They’re not exactly lively dinner party conversation for most people. But if you’re new to the investing world, it’s likely you’ll find it fun.
It’s exciting seeing your money grow (and occasionally go down).
The more you learn, the more interesting you’ll probably find investing.
Learning about your investment, even at a basic level of KiwiSaver, for example, can be really empowering.
If you do have investments, it’s important to know how they work, what you can expect, possible risks and, overall, feel comfortable with your decisions.
First published 30 July, 2018
Story by Claire Connell
JUNO does not contain financial advice as defined by the Financial Advisers Act 2008. Consult a suitably qualified financial adviser before making investment decisions. This story reflects the views of the contributor only. Content comes from sources that JUNO considers accurate, but we do not guarantee that the content is accurate.