Money managers in NZ and are they a safe way to invest your retirement funds

While adviser compensation may not be as important as their competence, ask what commissions the money manager will receive. Commissions can be paid on the front-end, commissions paid if your sell the product during a period of years known as the surrender period, and ongoing trailing fees. Know that in all cases the costs of these commissions are born by you the investor and they serve to reduce your returns. Other financial advisers charge fees. These fees may be hourly, calculated as a percentage of the assets invested, or a flat ongoing fee or fee only.

Does the adviser company sell financial products and if so maybe he/she will try to sell you these thus undermining other investments that may get you more for your dollar. It may not turn out bad but best ask. Some may get commissions from companies you do not know about [ eg. freinds ]

Check who some of his other clients are similar to your circumstances and age group. What may be good for the retired person may be different for a person turning 35 so ask what his experience is with your age group.

Ask what specific services he has to offer you.Can he offer business services, tax services and full financial services so get a list of his expertise. Then check with AFA to see just what he is qualified in offering.

Ask what statements are given and when and frequency. Also what meetings and frequency of discussing your affairs. How often will you meet to review your portfolio and your overall situation?

An adviser who acts in a fiduciary capacity towards their clients agrees to provide advice and guidance that is solely in the best interests of the client. This is compared to suitability standard that is employed by advisers who work for broker dealers and other firms that sell financial products. The suitability standard means only that the products suggested must be suitable for the client.

As stated some of these characters in the Money Management game are ex MMP and one must wonder as to their capacity in holding your funds in times of difficulty. Remember you are allowing a person with a tie you never met before to control some or all of your hard earned cash. Do a background check on the person's company like how many years in business; past work roles and with whom he was associated with. You may be surprised at what you find. This could just change matters but read on as the safest invester is you and you alone so why use a money manager if you can learn yourself how to invest.

Ask how much notice is required to get your funds out and maximum allowed. Make sure you have this in writing. Its wise to remember that when Wealth Managing Companies feel the pinch they freeze your funds??? and maybe you will joing the 201,000 kiwis who lost their investment funds to finance companies etc.

The main drawback with the Elderly retired folk in NZ is getting good advice as to what to do with their hard earned cash over the years. NZ has had its fair share of finance companies, wealth funds and good to be true investment companies who have played on the whims of the elderly and srewed them of their cash. So to put it plainly what should one do wirth their money. The answer is simple. Be your own financial adviser and there are 2 ways you win:

Take for instance Money Managers or MMG the company that failed and lost investor funds

Now we have an influx of Wealth Management companies set up in the last 10 years in NZ many of them owned by ex sales agents of the Company MMP. Again nothing wrong with that but will some of these now use the same tactics as the likes of MMG as they know what they went thru working for them and will no doubt use the same tactics with you. You invest............ you may lose.

THE HIDDEN FACTORS

Money Managers in NZ promoted DNZ back in the years 1996 to 2001 period when Money Managers established 32, mainly single property, syndicates. A character named Paul Duffy became its chief executive in 2001 & these properties were merged into three companies namely ; DNZ Income, DNZ Foundation Property Fund and DNZ Retail. On September 30, 2008 these three companies amalgamated, together with DNZ Tauranga, to form the DNZ Property Fund in NZ. Yes this company still runs today but you will note it does not say in their Q & A if one can take their funds out whenever?

The sad part it that the shareholders are at a complete disadvantage. This is because the capital structure of what was 469,965,609 “A” shares, are held by the public. They then have 10 “B” shares, held by management. Under the constitution the “A” shares appointed one of the six directors & the “B” shares appoint the other five.
The “B” shareholders have near total control over the company and the “A” shareholders have no vote on their capital raising or the purchase of the management company & change of directors.

BEFORE YOU USE MONEY MANAGERS THINK AND ASK

AND SEARCH THESE CHARACTERS OUT AND HOW THEY USE YOUR MONEY

TO EARN DIVIDENDS FOR THEMSELVES. BUT NOTHING WRONG WITH THAT AS ALL IS ABOVE

BOARD YET YOU THE INVESTOR ONLY EXPECTS A DIVIDEND.

Did you read the fine print .

Ask them if they ever worked as a sales agent for MMG ?

Check if they are AFA affiliated.

Note how they allow you to get your money back if not satisfied? Do they have this in their Q & A?

Do a run down on the executives in the wealtrh company & past work roles?

How old has the company been in business. If under 15 years stay away?

As a rule any Wealth Financial Adviser involved in the business of giving advice will be registered with the FMA (Financial Markets Authority), they will either be an AFA (Authorised Financial Adviser) or a less qualified and more restricted Registered Adviser. I suggest people use AFA’s and ensure they are NOT classified as Wholesale Investors, this will offer them the best protection going forward as well as be covered under the Adviser Code as well as the new Financial Adviser Act. An AFA would be best qualified to help you find the right investments for you - bearing in mind your total financial situation and how much risk you are comfortable with as from past experiences with MMG many elderly investors lost their money.

To check if somebody is an AFA, go to the Financial Markets Authority's website, www.fma.govt.nz, and click on "How to Invest" and then "Using an Adviser". There's a link to the list of AFAs, as well as other useful information.

An AFA's license tells you which categories of advice they are authorized to offer. The categories are listed on the adviser's disclosure statement, which you can probably find on their website, or you could ring or email and ask them to send the statement to you.

Alternatively, you could look at the Financial Service Providers Register, at www.fspr.govt.nz. Search - at the top of the page - by either an adviser's name or their firm's name. The categories are in the financial services box after the words "Authorisation Status". I suggest you look for someone who offers "financial advice" and "investment planning services" if you wish to go with a Financial Manager but bare in mind these investments are not 100% safe .

As said what is a safe investment: Treasury Bonds;

Property in your name bought by you alone;

Fixed deposit in a Bank & you can do it all yourself.

Whats better for you:

1/. Piece of mind

2/. Safety

3/. Knowing that your money is safe anytime.

THE SAFEST INVESTMENT:

Government securities – Kiwi Bonds - can be purchased through some registered banks, NZX brokers, chartered accountants, solicitors, investment advisers and investment brokers. Their credit rating is AAA, which is the highest possible. You buy Kiwi Bonds for terms of six months, one year or two years. Note that Kiwi Bonds are available only to New Zealand residents.
The New Zealand Debt Management Office today announced changes to the interest rates for Kiwi Bonds effective from 31 July 2014. The interest rates for six-month, one-year and two-year Kiwi Bonds have been increased by 0.25% to 2.75%, 3.00% and 3.25% respectively. The rate for the four-year bond remains unchanged at 3.50%. Kiwi Bond interest rates are set periodically from moving averages of domestic wholesale rates. The new rates have been set in response to recent changes in wholesale market interest rates.
The Kiwi Bond rates are as follows:
For subscriptions of $1,000 - $500,000

Maturity	Rate
6 months	2.75 percent per annum
1 year	3.00 percent per annum
2 years	3.25 percent per annum
4 years		3.50 percent per annum

"Don't trust the financial industry " experts " with your savings ....... learn the hard way , to invest successfully for yourself . Take personal responsibliity for your future . Cut out the unnecessary ticketers-- the high flyer Money managers and Wealth funders.......if the investment look so complicated that you think you need expert help, run away .....good investing isn't rocket science" as said by a person whose wise. Be your own boss and fund manager & then think would you give your money to the Lawn mower man yet you will give it to a guy in a suit you just met who showers you with all the answers except a guaranteed full refund????? caveat emptor prevails