Josh Hoskin Smart Money [email protected]

One of the major banks this week went to press regarding the potential loss of funds that investors in default schemes across the country may endure over the lifetime of their investment.

I would say there are a lot of ‘ifs and buts' in this statement. For me, however, the major issue is the estimated 191,000 investors discussed in the press release do not receive any advice at all.

The ‘ifs and buts' aside, a comment in the article noted that people can't justify the cost of advice, and therefore they should have their choice of fund made for them.

Firstly, with some exceptions, I don't believe people can't afford the advice.

I have just gone to the dentist twice in the space of a month, which has cost me approximately $400 and I am guessing there are many hundreds of thousands of New Zealanders who spend the same, if not more, on the dentist per year.

Another example of discretionary spending is the $500 to $1000pa we Kiwis spend on gym memberships. Although we complain about the cost, the fact is we can afford it. Retirement advice is a cost we can afford as well.

The problem of course is that we as a community can't see any tangible benefit to receiving financial advice, as opposed to going to the dentist or the gym. The most obvious tangible benefit is actually the ability to look after your physical health by going to the dentist and the gym is dependent on your financial health.

So the question from here is why aren't you seeing a financial adviser today? Your life may depend on it.

The article is based on personal opinion and may not be representative of the views of Goldridge Ltd. Josh Hoskin is an authorised financial adviser with Goldridge Wealth Management. A copy of his Disclosure Statement is available free on request. This article is not personalised advice under the Financial Advisers Act 2008. Readers should not act on any suggestions in this column without taking professional advice that takes into account their current circumstances and appetite for risk.