Building a Nest Egg
The essentials of wealth accumulation
Money that you save and put away for the future is called your nest egg. It will provide passive income when you can’t or don’t want to work at retirement and will allow you to choose your work schedule to suit your health and lifestyle in the future.
Starting early is one of the most important factors in building wealth. It means your investments have more time to grow. Now is a great time to start your journey toward financial independence, and the process is not as difficult as you may think.
How to start investing
Investing is a powerful tool that can help you build wealth and achieve your financial goals. While many people are overwhelmed by the complexities of investing, there are a range of different strategies that can be used to achieve success.
If you’re just starting out, understanding the basics of investing and wealth building is crucial. We’re here to help and answer any questions you may have.
Set your goal
How much do you need and how can you reach it.
Pick your strategy
Some assets will generate more income than others.
Don’t delay things
The earlier you start accumulating wealth, the better.
Get expert advice
For well-informed investment decisions, talk to us.
Make your money work for you
Looking for a better way to save than having your money in the bank? By investing in assets such as shares and real estate, you can earn returns that can grow your wealth over time. One of the key benefits of investing is the power of compound interest.
When you earn returns on your investments, those returns can then earn returns of their own, creating a compounding effect that can significantly increase your wealth over time. Saving a little on a regular basis over a long period of time has remarkable results. In fact, we view the power of compounding interest as being the eighth wonder of the world.
Life is different for everyone, which is why our advice will be tailored to your specific situation and your goals. We help you identify your own retirement wealth target and calculate the amount you will need to have accumulated by the time you retire so that you can have the retirement lifestyle of your choice.
Questions and answers about wealth accumulation
The earlier you start focussing on wealth accumulation, the better. Generally, people between the ages of 25 and 45 years will be in the best position to grow their wealth and prepare for a successful financial future. This is also a vital time to work on financial literacy, and craft a solid financial plan to help lay the foundation for financial freedom.
There are different ways to save, invest and build a nest egg for the future. The most common ways to build assets and wealth are with cash, bank term deposits, KiwiSaver, a savings plan, rental properties (both residential and commercial) and shares (managed funds). Assets can either be sold and/or generate income for you.
NZ Super and KiwiSaver are helpful, but it’s the size of your nest egg that will make the biggest difference between achieving a comfortable or a modest lifestyle in retirement. However, things don’t always go to plan. There are risks along the way, such as the rising cost of living, which can impact on your nest egg savings. Market volatility and unexpected medical bills are also risks you should consider. Either way, Bill is always available to talk about an approach to wealth accumulation that works for you. Just get in touch for an obligation-free chat.
It’s a misconception that you’ll have to be a big earner or come from money to successfully build a nest egg. With the right planning and advice, it’s doable for almost everyone. Starting a managed fund with just $100 a month is possible. Feel free to book a free one-hour session with Bill to find out how.