Investing for 20 good summers

Investing for Twenty Good Summers – Making your money work so you don’t have to. By Martin Hawes. Published by Allen & Unwin $32.99









“Money and finance are about people and that’s what keeps me engaged in the industry”, says Martin Hawes.

Hawes is a New Zealand household name, when it comes to financial how-to-books.

His latest publication looks at rearranging your money so that you can work less and get on with living the life you want to live.

Hawes explains this requires a new attitude and new way of managing and investment.

For baby boomers, this means moving away from the focus of building up wealth, and instead using investment capital to give you the income you need after you retire. (This is, however, a different idea of retirement from our parents - more about slowing down, rather than stopping work).

Hawes says to first work out what it is you do want and the five factors that deserve particular scrutiny are lifestyle, house, inheritances, work and investment returns.

The end game is not a certain amount of money, but the life that you want - happiness, contentedness and satisfaction.

Much of the content is about reducing investment risk in its various forms.

Hawes covers diversification and getting your asset allocation right for your circumstances. There’s advice on how to set up your asset allocation between shares, property, bonds and cash deposits; manage your investments and the instances where this is not practicable; and the importance of a buffer account and why.

Hawes suggests now is the time to use wealth you have built up from working to fund some good summers. “You will never be fitter and healthier than you are now”.

Hawes makes a very good point and provides a practical advice for New Zealanders of ‘a certain age’.

©2009 Linda Donald
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