“May you live in interesting times!”

If ever there was an expression that summed up 2020 so far, that would be it! Pandemics. Lockdowns. Destruction of jobs in vast parts of some industries, and large movements in the value of savings. It’s also been a time that many of us have questioned what’s important to us and our priorities. Working from home, learning to use new technology or generally thinking about how we can do things differently. Adapting to a ‘new normal’!

How we deal with change is often tied to past experiences and how secure we are in our career and with our lifestyle ambitions. No two sets of life experiences and lifestyles are going to be the same. What will make a difference regardless of your circumstances, is having a financial plan built on strong foundations and with a structure personalised for you based on your goals. These are the cornerstones of financial advice.

So as an adviser what do we mean by foundations? A starting point is the way we manage our finances day to day. How are you saving? Are you putting money aside for specific goals like a replacing cars, holidays or emergency funds? Are you making the most of savings schemes like KiwiSaver? Where you have a savings scheme, are you gaining the greatest possible benefit from your contributions (employer contributions/tax credit) or being in the right risk profile for the goal and its timeframe. In many cases using multiple bank accounts and savings schemes greatly assists some people in the management of their money, particularly where separation is required from day to day funds.

Like all foundations, we should also do as much as we can to protect our wealth. Personal ownership may not be the most effective structure for you as you build wealth. In some situations, Trusts and company structures have a place in separating things like relationship property, business interests and inheritances from each other. Are you fully insured for the risks you face in life? We tend to insure our homes, but do you have income protection and health insurance in place. The loss of income for any reason can be disastrous for the achievement of your plans.

A big part of a financial adviser’s role is helping clients define their goals and aspirations and then building a plan on how to get there. Much may depend on your age and stage in life. Your goals may change and so a plan should be adaptable. What are your priorities? If something must give, what would it be? In circumstances like the present, it’s easy to shelve many of the plans we had but that doesn’t mean we should. Without detailing the why and when we save, our goals won’t hold the same ‘value’. A financial adviser will help make that connection and will challenge you to assess your goals and help you create a realistic plan to help achieve your objectives.

While COVID-19 brought a national response, not all the obstacles you face in life will. If you needed to access funds quickly, where would you get them from? Savings (bank or investment), KiwiSaver, or by borrowing? Which has the least long-term impact – at least in terms of your own goals? Ideally you have savings for emergencies but if not, what is the next most desirable option for you in terms of cost, accessibility and flexibility.

In circumstances like the present, it's easy to shelve many of the plans we had but that doesn't mean we should. Without detailing the why and when we save, our goals won't hold the same 'value'.

Setting goals and putting aside a fixed portion of your income (commission or otherwise) on a regular basis gives purpose to the money you save and helps you survive financial shocks. It’s not always easy. Some months it may not even be possible but having a plan in place that is reviewed regularly and adjusted accordingly, as circumstances change, will keep you on track to achieving your desired goals.

Possibly now more than any stage in recent times, financial advice can have significant benefits. It provides peace of mind in uncertain times. A way forward for the present, and a strategy to ensuring your long-term lifestyle goals remain on target. We will look at what you need or have, and how you can protect it. We can assess the risks involved or maybe the risks you need to consider taking.

An Authorised Financial Adviser at FANZ Private Wealth would love to help you plan your future!

Will Roberts, Authorised Financial Adviser at FANZ Private Wealth

FANZ Private Wealth specialises in providing personalised and impartial investment solutions to individuals and trusts. To arrange a no obligation appointment with an adviser phone 0800 727 2265 or visit www.sbsbank.co.nz/ invest/fanz-private-wealth for more information.

Disclaimer: This information is of a general nature only and has not been prepared with regards to the needs of any investor. FANZ Private Wealth is an operating division of Funds Administration New Zealand Limited (FANZ). FANZ is a subsidiary of SBS Bank which is a registered bank. Neither FANZ nor FANZ Private Wealth is a registered bank.