When you're looking for a great way to build a nest egg there are many options available to you, from shares to property investment. But some methods more trustworthy than others.

The Financial Markets Authority (FMA) have issued a statement warning New Zealanders to be careful with cold calls that are asking them to invest in overseas companies, or to put their money into shares.

Director of Compliance for the FMA Elaine Campbell says the calls allude to 'big win' investments, around which people should be very cautious. Specifics of these phone calls that have been reported to the FMA include the following: 

  • Suggestions that you have to act quickly to make big investment returns
  • Requiring you to buy particular computer software to make the investment transaction
  • Dissuading you from seeking out professional advice on the investment

That last point should definitely be ringing alarm bells if you receive one of these calls. As always, you should always use and Authorised Financial Adviser when you're taking on guidance for making investments in property or shares, or any other stock. 

As Ms Campbell says, "if an offer sounds too good to be true, then it probably is". 

"Generally, the FMA cannot help consumers to recover funds once they have transferred sums offshore."

If you're unsure about the legitimacy of a company asking you to invest your money, always check it out. The FMA and the International Organisation of Securities Commissions issue weekly updates with the names of organisations that have been listed as operating outside of regulations.

Be especially wary if someone tries to get you involved in a scheme that offers a 'get rich quick' result, as it likely isn't true. The road to financial independence is a long one that requires patience, careful planning and the right investment advice. If you'd like some help with this, you're welcome to speak to the Authorised Financial Advisers here at Goodlife any time.  

Here's to your financial independence!

Daniel Carney
Authorised Financial Adviser / Investment Property Expert

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