<strong>Police</strong><strong>New</strong>sThe Voice of <strong>Police</strong>“A ship in <strong>the</strong> harbour is safe,but that’s not whatships are built for.”William SheddRisk in moderation is not <strong>to</strong> be feared.Ra<strong>the</strong>r it should be embraced as aningredient that is necessary <strong>to</strong> achievingsomething worthwhile. Whe<strong>the</strong>r buildinga relationship, a business or a career, allof <strong>the</strong>se things have an element ofrisk. Investing is <strong>the</strong> same. The aim is<strong>to</strong> control or <strong>limit</strong> <strong>the</strong> risk by applyingsensible strategies so <strong>the</strong> outcome hasa greater chance for success.Spicers provide <strong>Police</strong> Welfare Fund members access <strong>to</strong> quality financial planning, investmentand superannuation advice at specially negotiated rates. Phone 0800 ON BEAT (0800 66 2328)138A disclosure statement is available on request and free of charge.
<strong>New</strong> <strong>Zealand</strong> <strong>Police</strong> <strong>Association</strong>Investment pearls of wisdomBy Spicers, providers of <strong>Police</strong> Financial Planning.One secret <strong>to</strong> successful investing is <strong>to</strong> buy low and sell high. While <strong>the</strong>reare no guarantees when it comes <strong>to</strong> investing, if you apply <strong>the</strong> followingprinciples you should do just fine.If it sounds <strong>to</strong>o good <strong>to</strong> be true, itprobably isIf you ever hear <strong>the</strong> phrase ‘low risk, highreturn’ <strong>the</strong>n stand back and have a very closelook at what’s on offer. If someone is offeringyou a higher return than what is availableelsewhere in <strong>the</strong> market, <strong>the</strong>n ‘sure as eggs’<strong>the</strong>re will be additional risk involved. It maynot be apparent in fancy charts showing aseries of his<strong>to</strong>ric returns or in <strong>the</strong> advertisingliterature, but <strong>the</strong>re’ll be risk embedded in<strong>the</strong>re somewhere. If you don’t feel qualified <strong>to</strong>analyse what’s on offer yourself, ask someonewho is and whom you trust.Spread your risk by diversifyingA lack of diversification is a common mistakemade by inves<strong>to</strong>rs. Don’t put all your eggs inone basket. If you have a mix of investments,such as property, shares, fixed interest andcash, <strong>the</strong>n you are more likely <strong>to</strong> even outyour investment returns over <strong>time</strong>, even ifyour investments are affected by short-termvolatility in a particular sec<strong>to</strong>r. Perhaps <strong>the</strong>most important lesson some inves<strong>to</strong>rs willlearn from <strong>the</strong> latest financial crisis is that <strong>the</strong>yshould have been even more diversified than<strong>the</strong>y were.Establish a financial planFinancial planning is a must do <strong>to</strong> becomewell-<strong>to</strong>-do. Focus first on what will make youhappy and <strong>the</strong>n <strong>the</strong> wealth side will fall in<strong>to</strong>place. What are your wants and needs? Whendo you want <strong>to</strong> retire? What kind of income doyou need? Once you know <strong>the</strong>se answers, <strong>the</strong>nyou can make a plan. Research has shown thatpeople who rate <strong>the</strong>mselves as highly satisfiedwith <strong>the</strong>ir lives also have a sense of feelingin control of <strong>the</strong>ir financial situation – and afinancial plan.Research your optionsInvesting blindly is asking for trouble. Do yourhomework. A lot of inves<strong>to</strong>rs will spend more<strong>time</strong> planning <strong>the</strong>ir holiday on <strong>the</strong> Internetthan researching <strong>the</strong>ir investments or workingwith a good financial adviser who can providequalified guidance.Good advice is invaluableWith <strong>the</strong> seemingly infinite number ofinvestment opportunities available <strong>to</strong>day,selecting an investment that will make <strong>the</strong>most of your money can be difficult. Whenmaking investment decisions for yourhard-earned cash, enlisting <strong>the</strong> services of aqualified financial adviser can prove invaluable.Patience is a virtueWhen investing, it’s important <strong>to</strong> rememberthat patience is a virtue. Investing for <strong>the</strong>long-term can give <strong>the</strong> benefit of long-termmarket appreciation and compounding returns.Patience means sticking <strong>to</strong> your investmentstrategy and not letting short-term volatilitydeter you from <strong>the</strong> achievement of your longtermgoals.Just do itWhatever your circumstances, no matter howmuch money you have, take <strong>the</strong> opportunity <strong>to</strong>get good advice about how <strong>to</strong> invest wisely foryour future.Spicers provide <strong>Police</strong> Welfare Fundmembers access <strong>to</strong> quality financialplanning, investment and superannuationadvice at specially negotiated rates.Phone 0800 ON BEAT (0800 66 2328).Buying a new home orrefinancing can be an expensiveprocess, even with <strong>to</strong>day’s low interestrates. We aim <strong>to</strong> make it easier on<strong>Police</strong> Welfare Fund members’ pockets.So for a <strong>limit</strong>ed <strong>time</strong> those drawing downa new <strong>Police</strong> Home Loan will be eligiblefor six months free home insurancethrough <strong>the</strong> Welfare Fund’s <strong>Police</strong> Fire &General Insurance*.Members eligible for <strong>the</strong> free covershould contact our Member ServicesTeam on 0800 500 122. You will need acopy of your loan document fromThe National Bank or ANZ.<strong>Police</strong> Home Loan PackageWhe<strong>the</strong>r you’re refinancing, buying yourfirst home, selling, investing in property,building or looking for ways <strong>to</strong> manageyour current home loan – a <strong>Police</strong> HomeLoan through The National Bank or ANZmay be able <strong>to</strong> help.The <strong>Police</strong> Welfare Fund Home Loanpackage provides attractive benefits <strong>to</strong><strong>Police</strong> Welfare Fund members and <strong>the</strong>irimmediate family, like:• No Home Loan application fee• A contribution of $500 <strong>to</strong>wards legal fees• A small fee of $100 for a <strong>to</strong>p-up on anexisting loanFor borrowing 80% or <strong>lower</strong> of a property’svalue:• 0.50% pa off <strong>the</strong> standard National Bankor ANZ Floating and Flexible Home Loaninterest rates• The lowest possible rate on fixed interestrate loans without having <strong>to</strong> negotiate andregardless of your loan sizeOur <strong>Police</strong> Welfare Fund Home Loanpackage is highly competitive and flexible.For more information or <strong>to</strong> apply for <strong>the</strong> <strong>Police</strong>Welfare Fund Home Loan Package visitwww.policeassn.org.nz“All life is an experiment. The more experiments you make <strong>the</strong> better.”- Ralph Waldo Emerson (American essayist and philosopher).“It is not <strong>the</strong> strongest of <strong>the</strong> species that survives, not <strong>the</strong> most intelligent thatsurvives. It is <strong>the</strong> one that is <strong>the</strong> most adaptable <strong>to</strong> change.”- Charles Darwin (English scientist).“Doubt is a pain <strong>to</strong>o lonely <strong>to</strong> know that faith is his twin bro<strong>the</strong>r.”- Kahlil Gibran (Acclaimed Lebanese poet, artist and writer).The National Bank and ANZ’s lending criteria, terms, conditions and fees apply. Forborrowing over 80% of a property’s value, a low equity premium on a graduatedscale will apply, and a registered valuer’s report will be required. Eligibilty <strong>to</strong> apply fora <strong>Police</strong> Home Loan package is at <strong>the</strong> discretion of <strong>the</strong> <strong>Police</strong> Welfare Fund Limitedand applicants must be current members of <strong>the</strong> Fund. This home loan package is notavailable for low documentation home loans or loans approved through a broker. Fora copy of The National Bank or ANZ Disclosure Statement and full details (includingterms and conditions) contact any branch of The National Bank of <strong>New</strong> <strong>Zealand</strong> (par<strong>to</strong>f ANZ Bank Limited) nor <strong>the</strong> ANZ.*<strong>Police</strong> Fire & General Insurance will be subject <strong>to</strong> <strong>the</strong> standard underwritingterms and conditions and is provided through <strong>the</strong> <strong>Police</strong> Welfare Fund not byThe National Bank or ANZ. Members are eligible for one period of six months free<strong>Police</strong> Fire & General Home Insurance premium only, per member, regardless of <strong>the</strong>term of <strong>Police</strong> Home Loan taken. <strong>Police</strong> Fire & General Insurance is underwritten byLumley General Insurance (NZ) Limited.06-2010June 2010139
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