01 February 2022

Protecting your Prosperity in the Year of the Tiger

CNY

The FMA has put together some tips on how  you can look after your hard-earned savings and protect your wealth in 2022, the Year of the Tiger.

Check your investments and insurance policies

It’s important to check what fund you’re in because it could mean a difference of thousands of dollars at retirement.

Insurance helps provide peace of mind if the unexpected were to happen but it’s important to review it regularly.

If you’re investing, watch out for scams

Scammers are active in the community and are increasingly using more sophisticated techniques to trick New Zealanders out of their money.

  • Be aware of investment scams, particularly those involving sending money overseas or to a New Zealand bank account whose recipient name does not match the company name
  • Search for them on New Zealand government websites to check they are legitimate. Anyone offering investments in New Zealand should be on the Financial Services Providers Register and should not be on the FMA’s list of public warnings.
  • If you come across an entity that you think could be a scam, contact the FMA.

Protect yourself – and remember to stay calm

Share markets rise and fall, which is a normal part of investing.  The next market event could happen at any time, and it might take a few years for markets to recover from a downturn.  History shows us that markets can and do come back – but it might take time. Read more about share market volatility.

Before that happens, there’s a few things you can do to make sure you and your investments are best positioned to weather any potential ups and downs.

  • Take a long-term view: it’s generally a better idea to buy and hold rather than trying to time the market. When markets go down, it’s often better to stay the course to allow time to recover. If you sell, you crystallize the loss;
  • Diversify: spread your risk over several different types of investments
  • Do your due diligence: research the investment to understand what you’re investing in. Remember past returns don't guarantee future performance

For more information, visit the FMA’s website: