Are you guilty of making some of these investing mistakes? You’re not alone, but the good news is some easy tweaks can get you on track!
1. Only thinking short term
Most investments are for the long term. This helps even out short-term turbulence in financial markets and, over the long term, your investment returns should increase. If you’re close to withdrawing your money, you may want to take a look at the type of investments you have.
2. Putting it off
The best time to start investing is yesterday. Time is your friend when it comes to investing so the sooner you start, the better off you’ll likely be over the long term. KiwiSaver is a great introduction to investing. If you’re looking to expand your investments outside of KiwiSaver, Sorted has helpful guides.
3. Avoiding help from experts
It’s easy to feel overwhelmed when investing. A strategy and plan can help you reach your investing goals. People often engage support and advice from financial advisers, who can help set them up for their personal situation. The Financial Markets Authority has helpful information on financial advisers. Be wary of taking advice from Facebook groups or other forms of social media, it can be a minefield out there!
4. Investing all the money you have
It can be easy to get excited and “over invest”. That means, put all your money into investments because you’re keen, or if your shares are increasing in value quickly. Before investing money, aim to clear debt and ensure you have an emergency fund set up. Doing so can help ease stress and make investing more enjoyable for you. Remember shares can drop in value too.
5. Ignoring KiwiSaver
For most Kiwis, a KiwiSaver account is their first introduction to investing, and it’s a really great tool to help you save for your first home or retirement. If you do not have a KiwiSaver account, the IRD has helpful information. If you do have a KiwiSaver account, check it once a year to make sure it’s set up best for you, and you aren’t paying more tax than you should be
Information correct as at December 2021. Pie Funds Management Limited is the issuer and manager of the JUNO KiwiSaver Scheme. Click here for our Product Disclosure Statement. Any advice is given by Pie Funds Management Limited, and is general only. It relates only to the specific financial products mentioned and does not account for personal circumstances or financial goals. Please see a financial adviser for tailored advice. You may have to pay product or other fees if you act on any advice. As manager of the Scheme we receive monthly fees that are determined by your balance and whether you are 13 years or over. We will benefit financially if you invest in our products. We manage any conflicts of interest via an internal compliance framework designed to ensure we meet our duties to you. For information about the advice we can provide, our duties and complaint process and how disputes can be resolved, visit www.junofunds.co.nz. All content is correct at time of publication date, unless otherwise indicated. Past performance is not a guarantee of future returns. Returns can be negative as well as positive and returns over different periods may vary. Please let us know if you would like a hard copy of this disclosure information.