What should I do?

[bambi]

I am currently living and working in Sweden. Each month I have a suplus of money that needs to be put somewhere (invested). Previously when I was living in NZ the money went into either a home loan, shares or cash.

Currently I have a house in NZ which is mortgage free and rented out. And a little bit of cash around 5k.

What I want are opinions on what I should do with my surplus each month. Should I move this money to NZ each month and invest in shares or cash deposits? (cash deposits here have very low interest, you can get a house loan for 3%) Or should I move my money elsewhere to invest? (Currently I've only ever invested in NZ so this could be a good chance to try elsewhere). I'm currently at a bit of a loss as to what I should do, I don't feel confident in investing here in Swedish shares as my Swedish isn't good enough to understand their websites etc.

Any help would be great. If you need more info let me know and I'll post it.

Bambi

[bambi]

Further to the above, I will not consider buying property here in Sweden I think it is overvalued and also a nightmare to get into and out of. I'm quite happy renting. I would however consider buy property in Chch NZ IF and only IF I could get a loan from Sweden at 3%-4%. (I don't think they would let me buy property in NZ with a loan at that rate though.) If anyone can tell me with certainty that I am wrong then please do.

Bambi

[CJ]

Do you plan on returning to NZ. If not, i would not invest in NZ. Try UK or USA.

If you are planning on returning to NZ, my opinon would change a bit.

[bambi]

Yes I plan on returning to NZ. Not for another year or two at least. The money is purely for investment so there would be no immediate need to move it back to NZ when I returned.

I am probably looking at $2000ND a month if this helps.

Bambi

[wns]

Hi Bambi,

The answer(s) to your question should be governed by the answers to some other questions, such as:

- Why are you investing the money?
- What do you want from your investments?
- What are your goals in other parts of your life that your
investments can help you achieve?
- What is your investment time frame? How long can you tie up the
money?
- What potential investments are you familiar with/know a lot
about/comfortable with?
- Are you looking for cash flow or capital gain or both?
- What stage of life are you at? Family? Any dependants?
Married? Single?
- What’s your ‘risk’ profile?

Its up to you of course how much personal info you post. I’m not asking you to tell me the answers to these questions because some of them are quite personal.
But I’d recommend that whoever has input into what you do with your money can make better decisions if they know the answers. Whether that is just yourself, or if you take advice from other posters here, or if you consult someone like a financial planner, that’s up to you.

One suggestion I’d make is to make sure you leave yourself enough cash (in the bank or short term deposit or something) to cover a few months living expenses, just as a safety net and for some peace of mind. Just in case something unexpected crops up. Once you have a suitable amount set aside, then invest that in a way that fits with your answers to questions such as the ones I have posed above.

I hope this helps. Good luck.

[wns]

Also consider:
- How much control do you want over your investments? How much are
you willing to give up?
- How much time - can you/do you want to - give to them?
- What level of return are you seeking?
- Do you have any debts to pay off?

[bambi]

wns, I'll try and give the information you have requested. It's not really that personal and hopefully others will benefit from me being a real life example.

I will keep 10-15k in cash for emergencies etc. The remaining will be invested with no requirement to access for 10yrs other than for moving between investments.

- Why are you investing the money?
To make enough money so that it is no longer a concern. Say $1mil initially then revise higher afterwards. Not sure on time frame required to get here as I'm not sure how high a return is possible.
- What do you want from your investments?
See above.
- What are your goals in other parts of your life that your investments can help you achieve?
The investments will be converted to low risk investments when I decide to stop working.
- What is your investment time frame? How long can you tie up the money?
I am currently 26, so as long as needed, or shorter if returns are good.
- What potential investments are you familiar with/know a lot about/comfortable with?
Familiar with NZ shares. Long term 2+yrs only nothing short term yet.
Knowledge of Cash in the bank.
Knowledge of residentual property but think there is too much work required from me for the return.
Happy to learn and use new investments - anything that gives a good return I am interested in.
- Are you looking for cash flow or capital gain or both?
Mainly captial gain, cash flow will most likely be reinvested.
- What stage of life are you at? Family? Any dependants? Married? Single?
Couple, own mortgage free house but keep most of our money separate. She invests how she sees fit and I do the same, we share living expenses equally. No kids but maybe in the future 5yrs+, the kids will not affect investments made before they are born.
- What’s your ‘risk’ profile?
Happy with risk, like to control the downside if high risk so that I minimise losses.
- How much control do you want over your investments? How much are you willing to give up?
I want control, will give up some control if return is good or better than I can do myself. In the past I have only invested directly. I wouldn't consider managed funds unless I needed to use them to access the investments that I wanted.
- How much time - can you/do you want to - give to them?
I currently work but can devote several hours a week if needed. Usually more if I find something new and exciting, then I like to find out as much as possible, fast. Prefer to devote the time when I have it rather than having to devote an hour every night.
- What level of return are you seeking?
High, don't know how high is possible long term but the higher the better as long as the risks aren't too extreme. Don't want to be completely wiped out in a single bad investment.
- Do you have any debts to pay off?
Nope I am debt free.

Hope this is helpful and people can offer good advice.
Bambi

[whatsup]

Bam---, Buy Vector at the upcoming "Float' and keep topping up whenever your finances permit .This share has several years of catching up financially on its peers ,it pays a good div and has good growth prospects in a growing population centre in a area of business where it has a monoplopy. In 4-5 years you will have a very worth while nest egg if your deciplined , maybe over 100k's!!!

[foodee]

Bambi
26, own a dwelling and no debt. Most will be envious of that situation. I would say your are at least 10 years ahead in time. Well done.
Not much I can suggest except to ask have you consider a piece of prime land? Will meet most of your criteria and low risk.

Good luck

[bambi]

Yip I am pretty happy with the situation. I think I have the basics covered now so I feel it is time to make the next step and create some wealth.

True, bare land would probably increase over time and maybe quite significantly. However I think that would be putting all my eggs in one basket currently. I won't rule it out but for now I don't think it's suitable. I think shares, options, futures, forex etc might be better. Although not that familiar with most of them yet.

Bambi