Demystifying investing and helping people plan for a better retirement - AMP.
People talk to mechanics about keeping their car running well or take advice from a doctor about preventative medicine. Why, then, don’t New Zealanders feel comfortable about getting help with their finances?
That’s a reticence that AMP’s Robyn Conway, Workplace Manager for AMP, is keen to overcome.
By taking advice, the average person can have a significantly better financial future, she says: “A tiny little conversation that takes maybe half an hour can be the difference of hundreds of thousands of dollars over someone’s lifetime.”
Conway manages a team of workplace consultants who advise workers ranging from checkout operators to chief executives. “One of the key messages is the sooner you start paying attention to your KiwiSaver or investment, the better the long-term outcome will be,” she says.
By making the right financial choices, AMP customers often retire with higher than average balances – and advice with AMP is available to everyone. As well as workplace advice, AMP offers telephone and in person appointments, allowing people of all walks of life to get help. After making an appointment, the first call is usually around 30 minutes long, with shorter follow-ups if needed.
“Advice is not just for rich people,” says Conway. “Anyone in this country who has KiwiSaver has an investment and therefore they should be getting some form of advice.” AMP advisers work in a friendly and supportive manner to help a wide range of clients achieve their goals.
It doesn’t need to be a scary or complicated conversation, Conway says. The advisers break down and simplify money and investing. No question is too basic: “A lot of customers just start with ‘what is KiwiSaver’?”
Even difficult topics such as volatility can be demystified. ‘Where has my money gone’? is a common question fielded by advisers when investments have a periodic dip. The answer is that KiwiSaver and fund prices can go down in volatile times, but usually grow more than inflation over the long term.
A wider circle
People often think they don’t have money to invest, says Conway. However, once they see how their balances build up from their employer’s 3 per cent contribution and the annual government contributions, they can make informed decisions and tweak their budget to free up money for KiwiSaver.
One couple Conway’s team helped was able to buy a first home faster than anticipated: “Our adviser helped maximise their KiwiSaver investment over a couple of years, set them up with proper fund reviews, then walked them through the process of using KiwiSaver to buy the home.”
The advice paid dividends for more than one generation of the family. “They signed their children up to KiwiSaver so they could learn about the value of compounding returns over time [and] be better set up by the time they leave school.”
When word gets around a workplace, colleagues often come forward with questions about money. Conway had one customer who made an unfortunate decision without taking advice. He transferred his funds out of a growth fund when the market fell, potentially locking his losses in.
“We had a conversation and I explained the impact of what he had done. He then referred five or six other colleagues to have a conversation because they’d all been talking about doing a similar thing, which, depending on their goals and circumstances, might not be the best approach.”
AMP’s financial advisers and experienced and trained nominated representatives also deal with investing questions for customers who are further down their investing journey, and work with them on solutions for their needs.
Diverse advice
If customers’ questions relate to other specialist areas such as life or general insurance, they are referred to in-house experts or a sister company. Or if it’s budgeting or financial hardship issues, the adviser may refer the customer on to not-for-profit and government funded agencies that can help such as MoneyTalks or the Citizens Advice Bureau.
The younger the better
Understanding the basics early makes a real tangible difference in the long term. Younger people have longer to enhance the growth of their investment due to compounding interest.
Conways says advisers feel especially satisfied when helping young people get started in their financial journey: “One adviser helped a customer who was referred to us by a family member. He was only 19 and was in his first job. We helped pick the right KiwiSaver fund for him to save for a home.”
Stepping into retirement
At the other end of the investing continuum, AMP advisers get questions from clients about what to do at age 65. Some want to move their savings to term deposits. An adviser might suggest partial withdrawals when necessary, but keeping a chunk of money in KiwiSaver or other funds to maximise the investment earnings and make the capital last longer, says Conway.
More than a helping hand
Speaking with an adviser before making any large financial or investment decisions can prove wise. The advisers can sometimes help people avoid making inappropriate decisions. One 77-year-old wanted to grow her money fast, without taking risks, which sadly isn’t possible.
Another customer avoided making a big mistake earlier this year thanks to his AMP adviser. “One of our customers was deciding to withdraw some of his funds. Probing a bit more, the adviser thought the investment sounded a bit fishy. Our fraud team confirmed that the company he was investing in didn’t actually exist. That conversation saved a large sum of money going to a fraudster overseas.”
Tools for the job
AMP also has a range of tools on its website that anyone can use to make more informed decisions around money. The Retirement Calculator tool can calculate what a person’s retirement income will look like, or run what-if scenarios.
The MyAMP app enables customers to view account balances and transactions, see how investments are performing, change funds, and make extra contributions. AMP also has an online financial fitness check, a tax rate checker, home and building insurance calculators and a “fund quiz”, which uses algorithms to recommend investments.
How to get started
Getting started is as simple as calling 0800 267 5494, or arranging an interview via www.amp.co.nz. Existing customers can open communications such as their monthly account update from AMP and click to arrange an appointment.
AMP advice teams range in age from early 20s to about 55 years of age, with many different ethnicities represented. Customers can ask for advisers they can relate to. Once assigned to an adviser, customers can continue to work with the same person if they choose and will be given a phone number and email address for contact.