What have eggs, baskets, advice and the 'missing middle' got in common?
Everyone knows the proverb “don’t put all your eggs into one basket”. My mother’s interpretation, when growing up through the depression and war years, was don’t put all your savings into one bank.
The proverb could have saved many New Zealanders from losing their savings in the 1987 share market crash. Much of that outcome, which was significantly worse in New Zealand compared to other countries, was around lack of regulation, transparency and greed.
More recently, investors were hurt by thinking they had diversified by spreading their savings amongst different finance companies, driven primarily by falling interest rates in banks and cost of living expenses. The return seemed better, however, as we all know, the risks were far higher than the return offered.
It now seems that outside business, residential property and KiwiSaver, those who have built up savings and are nearing retirement are most likely to just leave it in the bank and, on the face of it with all the above, who can blame them?
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