Forum Archive Index - December 2000

["Andrew Dengel" <adengel@voyager.co.nz>]

Jason

 

Tonys response was good advice this may (or not) help!

 

I guess I am biased as I am involved in the “advisors” industry, however what I would say is this, sure there are bad advisors but as with everything there are many good ones too.  I get a bit sick of all the cynical snipes made by people/media who are obviously well educated and have the time, knowledge, capital and interest in doing there own investing direct.

 

From my experience, and I sit in front of at least 15 people/couples a week, they are a very small minority of New Zealanders, unfortunately most know nothing whatsoever and tend to blindly swear by what there cousins wife’s uncle who used to go out with a women who worked for a solicitor told them!! Or they are petrified by the whole thing and want to leave their money in the bank.

 

Of course an advisor will charge you, its there living! But that’s no different to a mechanic. If you want to have your car fixed you can either read every manual etc you can find on your car, set up an appropriate space to work on your car, buy any special tools required to do the job and do it yourself. Or pay a mechanic who is a specialist but may say that your brake pads need changing when they don’t!!  Working on it yourself is fine if you are committed to it, Investing is (or should be the same).

 

You do have a good chance of making better returns investing direct IF you don’t “play” at it but set up a plan, a strategy, read and learn, read and learn oh and read and learn some more you must be disciplined and committed. If that sounds like you and you have a passion and an interest go for it! If you are, however, keen to invest but lacking in time, knowledge or both get yourself a good advisor, but find one that “fits” you and your goals you don’t have to sign for three years and you don’t have to pay exorbitant fees if you shop around either way the ultimate winner will be you!!

 

By the way this is in no way meant as a swipe at the many experienced and learned people who contribute to this list, I certainly learn lots on a daily basis following this list, it is meant purely as an opinion to someone starting out who is unsure of how to go about it and is confused by extreme comments from both sides. I personally use a mixture of managed investments and direct which suits me and my ultimate strategy.

 

Cheers

Andrew

 

-----Original Message-----
From: owner-sharechat@sharechat.co.nz [mailto:owner-sharechat@sharechat.co.nz]On Behalf Of Tony Haddon
Sent: Tuesday, 26 December 2000 14:36
To: sharechat@sharechat.co.nz
Subject: [sharechat] Money managers

 

Jason, there are lots of "investment" sites on the net, you obviously have access, read up on the basics of portfolio theory etc to start with, then do the rounds of three or four investment advisers, sharebrokers etc to get a handle on the scene. They will all happily administer your money for you, raking off 1.5% pa more or less fee regardless of returns ...you'll get a six monthly report , every second one of which will say something like "all in all, Mr ...... ,   another dog of a year . Please find attached our invoice for next  year $1,000 +gst . Investment advisers like to sign you up for a three year contract, and are trained to create the impression that the client cannot manage on their own.

 

They will all assist you to set up a portfolio initially, and you can do your own monitoring, or pay them to review the investments now and again, on an hourly rate basis, like a solicitor or accountant.

 

Take your time..read,read, read.

 

Cheers    Tony Haddon