If you want to invest in shares, managed funds, or other financial products, you have a lot of different options. And there is a range of advisers based on how much you want to invest.
On the low end, if you have $1,000 in KiwiSaver, some of the banks have advisers that you can call and talk to about your investment.
Then there are financial advisers like Angela McKnight from AMA Capital. She specialises in high-net-worth individuals (usually those with $1 million+ to invest).
Now, most investment advisers have minimum investment amounts. Some will specialise in helping clients who have $50,000 – $100,000 to invest.
Or if you want to talk to an adviser at ANZ Private Bank, they usually only work with people who have $1.5 million+ to invest.
When we say minimum amounts to invest, that’s money in KiwiSaver, term deposits or shares.
It doesn’t include wealth within your properties. Because investment advisers can’t manage that wealth.
But if you were to sell a property and invest the leftover funds in shares, that does count.
The real trouble is that most investment advisers won’t state their minimium investment amounts on their website.
And some companies, like Milford or Craigs, will have different teams of people to talk to based on how much you want to invest. So it can all be a bit confusing.
Obviously, if you invest $1 million with the likes of Milford, then you’ll get a different type of service than if you have $10,000 to invest from your KiwiSaver.
Can you just ask an adviser what their minimum is?
Yes. You should. And don't be shy. One financial adviser said on their website that they work with high-net-worth individuals.
An investor approached them asking how much money they needed to be ‘high net worth'. The financial adviser said that their minimum investment was $250,000.
These investors had $2.5 million to invest. 10x more than the adviser’s minimum!
Even people with a lot of money get shy and don’t know what ‘high net worth’ means! So don’t feel shy about asking an adviser what the minimum amount they manage is.
Just remember, the more you have to invest, the more personalised the service becomes.
If you’ve got $25k in your KiwiSaver, you’ll probably be calling a support line.
If you’ve got $2.5 million, expect regular meetings, customised strategies, and a fancy lunch.
