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Nikita Trainin

Nikita Trainin

Financial Adviser

Investing for Your Future: 5 Foundational Principles You Need to Know

Investing – The Basics

At times, I think it can be immensely beneficial to take a step back and focus on the fundamentals. One of these topics is INVESTMENT basics I want to talk about. As most people in NZ have a bank account and their KiwiSaver Fund, they are in fact, investors already.

As billionaire investor Warren Buffett puts it, “the process of laying out money now to receive more money in the future.” Ultimately, people invest to end up with more money than they initially contributed. For instance, buying a house for $800,000 in 2018 and selling it later on in 2021 for $1,000,000 is just as valid an investment as buying shares in Xero for $1.00 and selling them for $40.00. Generally, investing is centered around the notion of having your money grow for you with minimal stress and effort. So here I would like to touch on 5 foundational principles when it comes to investing.

1.Set Money Aside So You Work Smarter, Not Harder

Most of us work hard throughout the day and set aside a portion of our income to save. This disciplined approach can help secure an improved future for ourselves, allowing us to achieve financial freedom! When done wisely, our investments have the potential to expand and generate more wealth over time. By investing our money wisely, we can work less and watch our savings grow. When you have $500,000 saved up and are 65 years old with an annual return rate of 5%, that is equivalent to a steady income of $25,000 per year. This can make all the difference when it comes to pursuing other passions or investing your time in something else entirely.

2.Investing has its downfalls – Splurging is not an Option.

Investing means that instead of spending our hard-earned money on holidays, clothing, and dining out; we can enjoy the rewards of long-term savings. Nonetheless, striking the perfect balance between spending and saving doesn’t have to be a struggle – simply decide what you can shell out and commit to it. If you’re committed to making wise investments, the value of your portfolio will steadily grow over time, providing more financial freedom and additional funds without having to work for it. Primarily investing is an effective way to secure the future.

3. Grasp the Risk and Reward Factors to Make Profitable Investments

Taking a chance when it comes to investments is common. Generally, if we’re willing to take on more risk, our rewards will be greater. To ensure that our hard-earned savings are put into investments that yield the desired outcomes, we need to start by identifying what objectives we want to accomplish. Once those goals have been finalized, then we can select suitable investment options accordingly.

4. Developing a Strategic Investment Plan From the Start Results in Profitable Gains

Effective investors share two remarkable traits: they are confident and realistic about their objectives, and meticulously research the investments that they make to ensure that they comprehend how these choices will operate before investing in something that seems like a lucrative option. Those who neglect to conduct thorough research before investing their money may face the unenviable consequence of incurring financial losses.

When we think about financial objectives like saving for retirement, purchasing a car, or owning a home; we need to ask ourselves ‘How will investing contribute to me achieving this goal?’ By setting clearly defined goals, we can determine the perfect investment strategy to begin with, thus resulting in improved returns on our capital investments over an extended period.

5.Partner with an Expert brings extra benefits

Finally, as a qualified financial adviser, I believe that partnering with an expert can greatly benefit you in investing your hard-earned money.

I understand that every individual has unique financial situations, risk tolerances, and long-term objectives. That’s why I take the time to understand your specific needs before recommending an investment strategy that aligns with your goals.

By working with a financial adviser, you can receive ongoing advice and support as you navigate the ups and downs of the market. This can help you stay on track toward achieving your financial goals while also giving you peace of mind that you have a professional guiding you in making informed decisions.

While it’s possible to invest on your own, partnering with a financial adviser can provide you with access to research and investment opportunities that may not be available to individual investors. This can save you time and potentially help you achieve greater returns on your investments.

As your financial adviser, I am committed to helping you achieve your financial goals and providing you with the support and guidance you need to make informed investment decisions. Let’s chat.


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