First, some basics
We become investors when we put our money into things (assets) that can earn income or grow in value. The general aim is to earn a return that’s greater than any fees, taxes and inflation.
Being an investor also involves a degree of risk. Generally, the higher the returns we chase, the higher the risks we’ll need to take on.
There are some key fundamentals of investing money that we can rely on. These investment basics are covered at the link below:
Investing basics
Then, some key questions
We can ask ourselves a number of investing questions to get on the right track with our investments.
Investing questions
My investor type
Knowing what type of investor you are helps you work out the right mix of investments.
Shares? Bonds? Property? Term deposits?
How do we know which is right for us? And how much of each should we hold?
Knowing what type of investor you are will helps you work out the mix of investments (and kinds of investments) you should consider – what to invest in and where to invest.
Sorted’s investor kickstarter can help with your investor type, give you a typical mix of investments for each investor profile and show you what we can expect when investing money.
Ways to invest
You can invest money ‘directly’ through a bank (term deposits), sharebroker (shares and bonds), real estate agent (property) or other brokers. If you invest directly in shares, bonds or property you’ll need to be well informed about the sharemarket, and the business or real estate scene.
Guide to term deposits
Guide to shares
Guide to property investing
You can also invest money ‘indirectly’ through a managed fund. In a managed fund (or unit trust) your money is pooled with that of other investors, and a professional fund manager invests it in a variety of investments on your behalf.
Guide to managed funds
Guide to KiwiSaver
