If you put your money in a term deposit with a bank today you would need $5 million dollars invested to make $40,000 pre tax per year. So what are people opting to do with their money? Resident savers data from the Reserve Bank shows there is $143 billion in term deposits, $111 billion in savings accounts and another $121 billion in transactional accounts. That’s over $370 billion laying idle. 

Property and equities remain the investment of choice for good returns. And whilst kiwis are going to lose tax deductibility from interest costs against rental properties, this only effects those who are borrowing. Yields are still significantly better than the bank, and property values are doubling a little over every 10 years, making it a compelling reason to invest in bricks and mortar. Rather than focussing on what use to be, let’s focus on what is best for us as individuals, what investments will work given our individual requirements/situations and then come and talk to people who know how to assist you with your plan.

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