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How to get financially healthy for 2021: Alistair Bean


If there was one thing 2020 taught us, it was how important it was to prepare for uncertain times. As we head into the new year, the only thing we know for certain is that there’s a Covid-19 vaccine. Its implications – and if this means the end of the pandemic? Only time will tell. And while we can’t predict the future, we can prepare for it. So if you’re resolving to secure your finances, that’s a resolution worth sticking to.

 

ALISTAIR BEAN

 

WOULD YOU CUT YOUR OWN HAIR?
We all use professionals for specialist services – lawyers, accountants, hairdressers, airline pilots and chefs. We can attempt to do some of these things unassisted, but we put ourselves at risk of not getting it quite right. As anyone who tried an at-home haircut during lockdown could surely attest to.

FINANCIAL HEALTH MATTERS
You and your family’s long-term health is the most important priority of all, valuing your financial health should be the next most important long-term priority. Maximising your investments, managing risk and growing your assets will help provide important financial security for your lifestyle, retirement, and that of your children and grandchildren. And this important priority should be treated as such by using a trusted financial adviser.

LEARNING FROM COVID-19
Last year we saw many KiwiSaver investors who did not use a trusted financial adviser at the start of the Covid-19 crisis. Instead, they changed from growth funds to conservative funds, and they locked in losses as a result. It may take these investors up to seven years to earn their losses back. Records show hardly any investors who use a trusted financial adviser changed their funds, and as a result they are benefitting. Investors who sought such advice not only see extra value in their investments, they receive guidance while markets go up and down (which they always do), the opportunity to claim back fees in tax returns, and continued focus on their goals.

EXPERT ADVICE
At Alistair Bean & Associates – Financial Advisers we manage your investments on a daily basis, we focus on the short, medium and longer-term, and we provide access to investments that can only be accessed by using a financial adviser, both in New Zealand and offshore. This level of expertise offers more – and more informed – opportunities.

ALISTAIR BEAN’S TOP MONEY TIP FOR 2021
One of the best things you can do this year is a simple budget. If your total monthly expenses, including spending money and holidays, is say $4000 per month, then leave $48,000 in your bank account as emergency funds as a one-year provision. Invest the rest of your funds.
Do not leave any other money in your bank account unless you have other special projects, as banks are currently paying less than 1 percent per annum for one year term deposits. Less tax and inflation, this is equivalent to -1.4 percent per annum.

Contact Alistair Bean & Associates – Financial Advisers on
(03) 288 0404 or via Alistair.bean@abafs.co.nz to help achieve your financial goals. Personal disclosure documents available free in the resources tab.


 

Help! How should I manage my investments during a global pandemic?! Alistair Bean


One of the keys to successful financial portfolio management is to ensure you are treated as an individual and not boxed in as just another number. Authorised Financial Adviser Alistair Bean tells Metropol why this approach is especially vital in uncertain times.

WHY SHOULD I HAVE AN INDIVIDUALISED INVESTMENT PLAN PREPARED BY A FINANCIAL ADVISER?
“More than just completing a series of fact finding and risk profile documents for your available lump sum, it’s about getting to know and truly understand you, your family, your trust, business or charity to discover how we can best help you meet your short, medium and longer-term goals and needs.”

DOESN’T IT TAKE TIME TO BUILD TRUST WITH AN ADVISER?
“I always tell my clients it may take some time to build a level of client-adviser trust, but any of my long-term clients will attest to how investing with Alistair Bean & Associates – Financial Advisers has helped them meet their life goals. I’ve been told authorising me to “make decisions so I don’t have to” was the best decision they ever made. I love hearing tales of how we’ve helped put children and grandchildren through school; buy new properties, cars, family holidays, and provided income for retirement. Clients are part of my family and doing our best to ensure the meeting of financial goals is my priority.”

WHAT DOES AN INDIVIDUALISED INVESTMENT PLAN INVOLVE?
“Among many other valuable things, you will be presented with initial investment recommendations for your available funds. These should reflect the current economic and market information available in New Zealand and overseas at the time and be used as a starting point.”

IF MY ADVISER HAS TOLD ME WHAT TO DO WITH MY AVAILABLE LUMP SUM, THEN WHY DON’T I JUST DO THIS MYSELF?
“This is where the rubber actually hits the road and where your financial adviser makes a difference! While funds should be allocated to the short, medium, and longer-term, as we are seeing in the current Covid-19 environment and many previous crisis situations – the whole world can spin on a ten-cent piece. Your financial adviser’s highest skills are employed here to adapt your investment portfolio as changes occur.”

WHAT KIND OF RECOMMENDATIONS MIGHT BE MADE?
“Your adviser’s actions will include ensuring you have enough funds to see you through a crisis. This used to be three months, but I now recommend a minimum of one year’s expenses.
“Then, ensuring you have medium-term funds for things like home improvements, family assistance, car, and appliance upgrades. And finally, for longer-term nest-egg and retirement provisions. Your financial adviser will keep an eye on your funds and adjust as appropriate to the current conditions. This could include keeping your investments exactly where they are or moving them somewhere deemed more beneficial.”

Contact Alistair Bean & Associates – Financial Advisers on 03 288 0404 or via Alistair.Bean@abafs.co.nz to help achieve your financial goals. Personal disclosure documents available free in the resources tab of the website below.