Do you have a windfall readily available (perhaps from a property sale or an inheritance), and would like to put it to work? Lump-sum investing may be for you.
Simply put, a lump-sum investment allows you to invest an entire amount (a lump sum) into a chosen portfolio service.
Typically, this approach is suitable for investors who have a significant sum of money, readily available for long-term investment. Timed right and with a reasonable timeframe, lump-sum investments can yield comparatively higher returns than a regular payment investment plan. As an example, if you invested $20,000 ten years ago, today you'd likely be better off than someone who contributed the same amount ($20,000) but did so in smaller amounts as a regular investment plan, rather than as an initial lump sum, over the same 10-year period. The success of the lump-sum strategy depends on what the market is doing, as well as when the lump sum is invested and when it is needed.
At Tonkin Financial, we partner with ANZ's OneAnswer – a highly regarded lump-sum investment platform that provides investors with flexibility and an extensive range of investment options, including New Zealand and international equities, fixed interest and cash.
As your adviser, we'll help you work out what to invest in to build a diversified portfolio, and when to buy and sell investments. Then, we'll liaise directly with OneAnswer to carry out the instructions on your behalf.
We welcome you to get in touch to learn more – we can help you work out if this strategy meets your needs, risk profile, and investment horizon.