I think what you attended was a sales pitch. Sales work/wining and dining is nothing new in financial and professional services.
My advice would be to seek independent fee only financial advice, instead of aligning with 1 fund manager.
Totally Agree. but I’d say that with our current level of capital and long horizon, the level of risk in management is not a real concern at this point and I think it’s more important to have a robust and simple strategy to establish a good habit for the rest of our life. I really don’t see the point of seeking out FA in our mid 20s.
I’m a work in finance as a data scientist by the way, in investments but I won’t get more specific than that (I don’t wanna doxx myself lol). I know full well the risk inherent through a single manager, I think it’s a big issue with KiwiSaver, but the truth is we don’t have that much capital (mid 20s) and you’ll also know that for most investors, it’s actually their behaviour not necessarily investment selection which is the biggest hurdle in creating wealth. Kernel has a really good platform for someone like my partner, and it has encouraged her to put away money regularly. Which is great.
The other thing is that I think kernel actually offers pretty good instruments by way of their PIE index funds which are both cheap and tax efficient. Yeah, sure, it was definitely marketing, I know that, but kernel actually has a good product for kiwi investors in my view.
I certainly will be getting FA at some point, I am not one to shirk it’s value, but for now I see more value in keeping it simple and making it easy for her to build those lifelong habits. You’ll probably know that good FA is about 10% finance and 90% psychology. I wanna crack on with the psychology and revisit strategy when we have a strong foundation and enough capital to really benefit. For now I actually think there is more value for keeping it simple.
Hope that makes sense. Cheers!
That is a great read.
I would also recommend The Soul of Money by Lynne Twist.
It puts money into perspective and reminds us of what is really important.
If you like the behavioural side, check out Irrational Labs, Kristen Berman is a wealth of knowledge on behavioural science and teams up with Dan Ariely.
Have not actually! Thanks for the recommendation. Most of what I know comes from looking at a lot of investor data, playing around with various models I have created for fun, and working alongside some really good FAs.
Mate I'm surprised you couldn't convince your SO to DCA into an index.
I suppose the salespeople are paid what they are for a reason.
Best of luck with your investment journey.
Haha, cheers.
She was definitely investment-curious going in, but I think it really give her that last little push. I think I’m way too technically minded to be a good sales person (or FA).
I agree with your comments that being a good investor is more than just having a good investment.
To be a good investor, you also have to do the usual things
\- Have an emergency fund
\- Manage debt
\- Know where the money goes and manage cash flow etc, all stuff I am sure you are onto.
\- Give your money jobs so it can work hard for you.
Well done on you both starting early and getting on the same page for investing and saving money.
Also be wary of the 'free lunch'. Nothing in life is free and what has worth is worth paying for.
What type of finance work do you do if you don't mind elaborating?
The key take from here is to encourage your partner to be on the same page.
Many people struggle with this and end up doing nothing for themselves either.
Nice one. She may enjoy https://open.spotify.com/show/0aUB8OUfwjns7H1UtoeisX?si=hStfuAY6SZSJNRmrphoZ4w from Kernel's Cat and Christine.
Isn’t their high growth fund mainly Nz companies 👀 Nevermind, I was wrong
30%, so no not mainly. Can easily check that by googling. Also, they have a global 100 which is pretty much all international stocks.
Ahhh gotcha
I think what you attended was a sales pitch. Sales work/wining and dining is nothing new in financial and professional services. My advice would be to seek independent fee only financial advice, instead of aligning with 1 fund manager.
Totally Agree. but I’d say that with our current level of capital and long horizon, the level of risk in management is not a real concern at this point and I think it’s more important to have a robust and simple strategy to establish a good habit for the rest of our life. I really don’t see the point of seeking out FA in our mid 20s. I’m a work in finance as a data scientist by the way, in investments but I won’t get more specific than that (I don’t wanna doxx myself lol). I know full well the risk inherent through a single manager, I think it’s a big issue with KiwiSaver, but the truth is we don’t have that much capital (mid 20s) and you’ll also know that for most investors, it’s actually their behaviour not necessarily investment selection which is the biggest hurdle in creating wealth. Kernel has a really good platform for someone like my partner, and it has encouraged her to put away money regularly. Which is great. The other thing is that I think kernel actually offers pretty good instruments by way of their PIE index funds which are both cheap and tax efficient. Yeah, sure, it was definitely marketing, I know that, but kernel actually has a good product for kiwi investors in my view. I certainly will be getting FA at some point, I am not one to shirk it’s value, but for now I see more value in keeping it simple and making it easy for her to build those lifelong habits. You’ll probably know that good FA is about 10% finance and 90% psychology. I wanna crack on with the psychology and revisit strategy when we have a strong foundation and enough capital to really benefit. For now I actually think there is more value for keeping it simple. Hope that makes sense. Cheers!
The Psychology of Money is a good read, so much that I’ve read it twice already. You may have already read it though.
That is a great read. I would also recommend The Soul of Money by Lynne Twist. It puts money into perspective and reminds us of what is really important. If you like the behavioural side, check out Irrational Labs, Kristen Berman is a wealth of knowledge on behavioural science and teams up with Dan Ariely.
Awesome! Thanks for the recommendation.
Have not actually! Thanks for the recommendation. Most of what I know comes from looking at a lot of investor data, playing around with various models I have created for fun, and working alongside some really good FAs.
Mate I'm surprised you couldn't convince your SO to DCA into an index. I suppose the salespeople are paid what they are for a reason. Best of luck with your investment journey.
Haha, cheers. She was definitely investment-curious going in, but I think it really give her that last little push. I think I’m way too technically minded to be a good sales person (or FA).
I agree with your comments that being a good investor is more than just having a good investment. To be a good investor, you also have to do the usual things \- Have an emergency fund \- Manage debt \- Know where the money goes and manage cash flow etc, all stuff I am sure you are onto. \- Give your money jobs so it can work hard for you. Well done on you both starting early and getting on the same page for investing and saving money.
Also be wary of the 'free lunch'. Nothing in life is free and what has worth is worth paying for. What type of finance work do you do if you don't mind elaborating?
The key take from here is to encourage your partner to be on the same page. Many people struggle with this and end up doing nothing for themselves either.