If you are wondering how you should invest please watch the attached short and very simple video before reading further.
Go to any gathering, be it a dinner party, BBQ or coffee house meeting, and opinions will be expressed about what is going to happen in the economy and also often about what one should invest in, be it the Auckland property market, bio tech companies, or simply the bank.
Everyone seems to have an opinion about investing based on their experiences. If that is not enough pick up a newspaper, go to Facebook, talk to a bank teller, or listen to the radio or TV and you will get more predictions and opinions about what to do. Many of these predictions and opinions are also driven by the desire to sell something to you.
There are two problems with listening to these opinions. The first is that for investment advice to be any good for you it has to take into account your situation and needs. What suits someone else may be, or probably is, completely inappropriate for you. The majority of New Zealanders lack a good plan of action to address their financial future and this should be the starting point, not the spin off. The second problem is that the vast majority of this often well-meaning advice is that it is typically part of market noise. It has little scientific or quantifiable basis. We accept science in our world easily when we go to a Doctor, have an operation or climb on a plane to fly away for a holiday. Yet when it comes to investing most New Zealanders, including a majority in the industry, prefer to avoid the science or do not know it exists. The key role of a good financial adviser is to help you create a good plan and then to use investment science to help you invest in the best way possible for you.