News & Opinion

Opinion: Small amounts often

10 April 2017

Opinion: Small amounts often


I have been reflecting for some time now of my time as a child, when I used to save 50 cents per week through the ASB 1080 Club. Some of you might recall Kashin, the Asian elephant whom ASB gifted to the Auckland Zoo in 1972. Kashin became the key advertising symbol for ASB and it didn’t take long for her to become a star attraction at Auckland Zoo for generations of young New Zealanders. Kashin is a play on the words “cash in”, but it also means “compassionate” in Hindi.

The elephant-shaped moneybox (which ASB has now re-incarnated into a digital moneybox linked to parent’s smartphone banking apps), is an ingenious idea to encourage good savings habits in kids, as an elephant never forgets. It got me thinking that with bank deposit rates so low, why not encourage people of all ages to invest (rather than save) small amounts often, in order to achieve the higher returns that commercial real estate can offer?

We can take note of Stephen Covey’s5 advice to “start with the end in mind”. Well, with the recent announcement by the Government that it will raise the retirement age in 20 years to 67, most of us and certainly our children, in the end, will need either a moneybox of funds to live from or have created a passive income which will replace our salaries when we are no longer able to work. While there are many strategies to get you there (including winning the lottery) - these are the only likely possibilities.

Smart people make calculated investments and experience tells me that the compounded effect of low-risk small investment over time (such as investing in commercial property portfolios), will far outweigh oneoff singularly large investments of a higher risk.

This brings me back to education and why we should be encouraging and teaching our younger generations how to invest in their future. Going forward, PMG will be working on a number of initiatives geared towards assisting Kiwis into generating wealth for themselves and their families and we’ll share our efforts with you.

Next time you sit down with your loved ones, I encourage you to have a conversation around what they are doing towards their financial future.


Daniel Lem

Director & Head of Investment