Expert discusses other paths towards wealth creation
A recent study shows that young New Zealanders still see property ownership as the ultimate pathway to financial stability and wealth growth, but Trustees Executors CEO Ryan Bessemer said that the picture is shifting, and Kiwis are increasingly looking at other areas where they can invest their money.
Bessamer said that the idea of diversification is becoming more attractive with the rise of things like online investment platforms, and Kiwis have also been looking to other potentially profitable asset classes.
“Our role has really been to look after financial wellbeing for everyday Kiwis, and property is a really big part of where we keep our wealth, and our largest asset is usually in property,” Bessemer said.
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“But it does seem like that paradigm is changing. The concept of diversification is a really great one in terms of where to put your money.”
“Obviously KiwiSaver is a really good one, but of course you can only take it out at certain times and during certain life events,” he explained.
“Micro-investing platforms are great because they’re easy, PIE funds will give you some tax concessions, and different asset classes will give you different rates of return at different times in the economy. But to be able to judge all these things together can be difficult.”
Bessemer said that going to a financial adviser “makes sense” if you are looking to diversify, and he noted that those who are looking to amass cash for investment would also benefit significantly from the input of an adviser.
“I think the idea of going to a financial adviser who really understands the peaks and troughs and the eccentricities of the market really makes sense, and it builds on that concept of diversification,” Bessemer said.
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“I think there’s a huge place for advice, and what usually happens is that people accumulate, and then they go to an adviser to say ‘what do I do with my money?’ But then what about the idea of going to an adviser and saying: ‘I want to accumulate, what's the best way for me to do that?’
“I think a lot of people don’t really think about that scenario as much, but it’s something that more people should be considering.”
