Investment

Investment

Getting the right investment advice

There are no guarantees of good financial advice. But new rules mean anyone who gives investment advice to clients will now have to provide more information up-front.
 

Glossary: investment
A way to use your money to make it grow.
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Your business as a retirement fund

Kiwi Story

George had owned his small general store for the last thirty years. The business had its ups and downs ...

You can't eat your house

Kiwi Story

Marg and Paul are in their mid 50s. They've lived in the same family home for 20 years, doing it up ...

Two sisters - the power of compound interest

Kiwi Story

Jenny and Margaret are sisters, aged 28 and 30, both married with young children of similar ages. Their ...

Investments too good to be true - Alex and Jan

Kiwi Story

Alex and Jan wanted their savings to earn more than the after-tax return they were getting from their ...

Returns versus volatility

It's a general rule that you should expect greater returns from your investments if you are prepared to take on greater risk. Risk is often measured by the way investments go up and down in value.

Glossary: risk
An investment is normally considered to be risky if there is a reasonable chance that its value will vary significantly in the future. For example, an investment in shares is more risky than an investment in a bank term deposit. The value of shares may fall below the price paid for them while the value of bank deposits generally do not. High risk investments should only be taken on with long term intentions. You would expect a high long-term return to compensate for high risk.
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Comparing products

Once you've decided what sort of investments suit your plans, use this checklist to help you to tick off all the important factors you need to consider to make final decisions.

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Investment types

Types of investment

There are many different types of investment. Broadly speaking, they fit into four asset classes:

Glossary: investment
A way to use your money to make it grow.
Glossary: asset classes
Types of investment, e.g. shares, property, bonds, cash deposits.
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The power of compound interest

If there's any magic in saving, this is it - the power of compound interest.

Glossary: interest
Money paid in return for the use of money. If the bank is using your money (in a savings account) they pay you interest. If you are using the bank's money (via a loan), you pay the bank money.
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