PLANNING RETIREMENT
SMART MONEY # 3 Smart Money sets out to build your knowledge and challenge your thinking to enable you to ask the right questions and make smart financial decisions. Jocelyn & Richard Join us for our complimentary ‘Investing 101’ workshop designed to inform you about the fundamentals of investing and goal setting. Contact Richard Knight on 09 361 3670 rknight@rutherfordrede.co.nz. Autumn Series starting April lunchtime and evening.
THE EXPRESSSO PORTFOLIO Building investments is relatively simple. All it takes is time and just the price of a cup of coffee. We all have our indulgences, for most of us a cup of coffee from the local café isn’t actually an indulgence it’s a necessity; but what if that “necessity” could put you well ahead in ensuring your lifestyle in retirement. What if we used that daily flat-white to save instead? A cup a day adds up to $40 a week or $170 a month (depending on where you buy your coffee and the odd muffin to go with). Kicking caffeine wouldn’t be easy. Besides, you wouldn’t imagine that loose change spent on coffee would make much difference to your long-term financial position, would you? We deal with the first problem by suggesting a coffee at home or brought into work each day in a ‘to go’ cup. The second problem - that it wouldn’t be effective - we can deal with by the miracle of compounding. With an initial balance of $100, a monthly contribution of $160 and a return of 5%, an early 20 something’s coffee money would accumulate over time to a pool of a quarter of a million dollars by the time of retirement, without saving another cent. This is the Espresso Portfolio.
Interest Regular Investment
$400,000
Whether you are looking for a sound fresh approach or wishing to learn the fundamentals this event will provide value to you without a sales pitch.
$200,000
$0 Year 1
We welcome you to attend our small and interactive workshop series, complimentary to you. Extending over two weeks, with each workshop made up of an approximate 1 ½ hours session, the workshops are designed to introduce you to investment concepts, providing you with a sound understanding of investing and the catalyst for you to establish your own personal investment goal and plan.
$800,000
$600,000
INVESTING 101 - WORKSHOPS, AUTUMN SERIES @ 52 College Hill
Year 1
Year 1
Year 1
Year 1
Assuming salaries were to rise over time you might bump up that monthly contribution to $500. In this case, your savings pool would grow to three quarters of a million by retirement. And this is a fairly conservative estimate. The key is firstly starting early, no time like the present. Secondly, saving a small amount consistently month after month, tying some into a KiwiSaver scheme makes some sense to get your maximum credits but leaving some room for an independent fund makes a lot of sense. Thirdly, exercising patience! The rest of it was just the effect of time and compounding. Even for those of us much older, there are lessons here. We tend to underestimate the effect of gradual saving and patience in building wealth. We can’t control the ups and downs of markets or the daily noise of the media. We can control our own behaviour. With slow and steady saving, and a trusted adviser to keep us disciplined, there is no reason we can’t succeed. Thanks to our friend and associate Jim Parker, for supplying the essence of this message. Jocelyn Weatherall and Richard Knight; Authorised Financial Advisers.
The World Belongs to the Dissatisfied
Year 1
Autumn Dates - Series One April 15, 25 Daytime Series 12 noon to 1:30 pm Or Evening Series 5:30 pm to 7 pm @ No 52 College Hill Freemans Bay
Attendees limited to 8-10, to register: Contact Richard Knight BCOM AFA Email rknight@rutherfordrede.co.nz Ph. 09 361 3670 www.rutherfordrede.co.nz
Disclosure statement(s) relating to our advisers are available on request and free of charge
DEADLINE - 20TH OF THE MONTH
PONSONBY NEWS+ April 2014
115