Have you ever wondered what the difference was between a well-diversified portfolio and a bank term deposit?

And what’s best for you?

There’s no one-size-fits all. It all depends on your personal circumstances, which is why it’s always a good idea to talk with an Adviser about the best options for you. You’ll need to take into consideration the amount you’re investing, what kind of investor you are and your risk profile. You should also consider fees, tax and interest, notice periods, plus the returns you’re likely to get back and how that fits in with your short or long-term aspirations.

I’ve had a couple of clients who at first glance thought advertised interest rates of bank term deposits met their needs. On reflection, they acknowledged they didn’t understand that to meet their financial goals, a well-diversified portfolio over the long run should and could provide more attractive returns. Also, there is tax to consider and a lack of liquidity given the 30-day timeframe you have to notify to ‘break the term deposit’ (and which may have hidden costs associated with breaking the term).

Here at AdviceFirst, we provide transparency about our forecasted returns after fees and tax, and there are no hidden costs. In a well-diversified portfolio, your funds will be invested across different sectors and geographic locations which is what reduces overall investment risk and helps provide security.” – Janet Britz, Wealth Management Adviser, Auckland

Sorted.org.nz have a handy little quiz that you can take to help you find the conversation starters or areas of focus you might want to ask your Adviser about. The quiz can help you assess what kind of investor you might be and encourage you to get a feel for what you might be looking for in your investment mix – based on a few simple questions.


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AdviceFirst is a Financial Advice Provider (FSP23242).