please help! Wanting to invest around 10k for investing. Looking at Simplicity of Milford asset management? Please help me decide

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Forums › Finance and wealth management › please help! Wanting to invest around 10k for investing. Looking at Simplicity of Milford asset management? Please help me decide

Bazz30

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#272311 19-Jun-2020 08:21

Hi there. Very new to investing and am trying to make a decision who to use for investment funds.

I am looking at investing 10-15k and am willing to invest for 5-10 years, I have been reading articles that say simplicity is very good because low fees and some people say milford has consistently given awesome returns each year that out weigh the fees you save using simplicity.

Now I know you shouldnt judge future performance on past returns etc. So if anyone has experience using one of the two listed above and has something to share I'd appreciate it. Thanks in advance

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#2507846 19-Jun-2020 08:24

Take it to the casino throw it all on red or black you may double your money or you may lose it all, Just like investing

cshwone

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#2507849 19-Jun-2020 08:31

Speak to a proper financial adviser.

pistol

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#2507852 19-Jun-2020 08:36

This depends a lot on your risk profile. Everyone that answers "Seek a financial advisor" is right although if you are happy getting feedback from strangers on the internet a better place to ask might be over at www.reddit.com/r/personalfinanceNZ

freitasm

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#2507853 19-Jun-2020 08:39

You shouldn't base your financial future on advice from a public forum. You might need to talk to a financial advisor. Your decisions should be based on your age, available amount to invest, funds available to live, when you need the money, willingness to take a riskier position, where you are based, income and other things.

Go to a professional.

sbiddle

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#2507854 19-Jun-2020 08:39

Nobody is going to be able to even guarantee that there will actually be returns in the coming years - there is probably a fairly good chance of seeing returns over the next few years being negative, or minimal as we enter a massive global recession. 30% + p.a growth in funds like we saw in the past 18 months prior to Covid (and what we saw after Covid) is simply not going to happen.

With such a small investment there is going to be very little difference between different providers over that sort of time frame.

Note I am not a financial advisor so this is not financial advice. Nobody can offer you advice unless they are a financial advisor.

Linux

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#2507855 19-Jun-2020 08:42

freitasm:

Go to a professional.

And that is not me :P

kotuku4

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#2507857 19-Jun-2020 08:54

Very Happy with Simplicity.

Good people shaking up the market, improving returns to Kiwi's, proving that ethical investment funds provide great returns.

I reduced my Kiwi contribution to minimum, and started a parallel investment fund, for more flexibility. Initially the minimum investment was $10,000, then reduced to $5,000, now it's $1,000. My Investment fund has grown to half the value of my Kiwisaver fund in less than a couple of years.

I'm in the growth funds and returns are very good, even through covid.

Have set up accounts for our children as well.

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kotuku4

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#2507858 19-Jun-2020 08:58

cshwone:

Speak to a proper financial adviser.

Unfortunately, many investment advisors are not professional, with no skills or qualifications, add no value to the client, quite the reverse.

sbiddle

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#2507865 19-Jun-2020 09:06

kotuku4:

cshwone:

Speak to a proper financial adviser.

Unfortunately, many investment advisors are not professional, with no skills or qualifications, add no value to the client, quite the reverse.

There might be the odd person who fits that description but many are the exact opposite. They are also bound by guidelines and rules, and can be censured by the FMA if they fall foul of these.

dafman

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#2507868 19-Jun-2020 09:11

freitasm:

You shouldn't base your financial future on advice from a public forum.

Go to a professional.

It's fair to say that in the current environment, there are no experts - but, yes, you are much better placed to get advice from finance professionals rather than a public forum.

If you do speak to a advisor, be wary of small financial operators running their own businesses. My advice, stick with larger recognised companies. Small operators have limited oversight over what they do with your money and history is littered with stories of investors investing with no-name advisors offering high returns and losing everything.

My own thoughts, we are currently living in extraordinary times, with global equity prices seemingly defying economic reality and the real prospect of zero or even negative interest rates on the horizon (with the latter likely driving the former). Given this, the next months could prove very unpredictable for investing, so one short-term option may be to simply keep your money in the bank for a few more months while the global situation pans out a little more.

kotuku4

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#2507872 19-Jun-2020 09:25

The thing with Simplicity is they are a non profit, with staff and also many volunteers.

They have no interest in selling you a product to feather their own nest.

They do a lot of financial education. You can talk to the people at Simplicity, and probably Milford.

antonknee

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#2507875 19-Jun-2020 09:28

As much as I’d echo advice to seek professional advice, I’m with Simplicity for both my KiwiSaver and investment funds and I can not recommend them highly enough.

The actual funds are passively invested, so you essentially take the average of the market returns in exchange for low fees. Studies have shown this form of index investing tends to outperform actively managed funds in the long term, particularly once fees are taken into account. There is a range of funds available depending on your appetite for risk and investing timeline.

I also like Simplicity’s ethos and approach, they’re big on improving financial capability of all NZers and making things easy to understand. They donate portions of their management fees to charity. They’re innovative (eg their new mortgage offering). The customer service, should you ever need it, is fantastic.

Note I do also use Sharesies and Stake for some exposure to specific shares, but I view this more as a fun hobby akin to gambling. Simplicity is where my real money is.

timmmay

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#2507915 19-Jun-2020 10:29

Didn't some financial company related to Milford go bankrupt a while back?

I noticed on my recent Fisher Funds annual statement that the fees for the year of about $500 were about the same as the annual return, so because of the fees I made no effective return. This was a bad year though, previous years the return was something like $1500 and fees of $500. Still, that's a lot of fees, and it would be worth considering returns vs fees for other companies.

How stable / reliable is Simplicity? We're in difficult financial times, put your money in the wrong place, Kiwisaver or otherwise, and it could disappear.

elpenguino

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#2507930 19-Jun-2020 10:56

freitasm:

You shouldn't base your financial future on advice from a public forum. You might need to talk to a financial advisor. Your decisions should be based on your age, available amount to invest, funds available to live, when you need the money, willingness to take a riskier position, where you are based, income and other things.

Go to a professional.

I think where a forum of consumers might be useful is not providing answers but rather providing a starting point on the type of questions to ask. A professional, or more than one.

Most of the posters in this thread are just like chimpanzees on MDMA, full of feelings of bonhomie, joy, and optimism. Fred99 8/4/21

afe66

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#2507944 19-Jun-2020 11:05

I'm a fan of index funds.

Been buying smartshare units for 15 years.

There are other options.

How long have simplicity been around?

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