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Cash
Management.

Full financial planning at Balance Wealth.

Cash
Management.

Full financial planning at Balance Wealth.

When we talk about cash management, we don’t mean budgeting, it’s about properly managing the cash outside of any portfolio or investments structures. Often this gets forgotten about, or assumed to not be as important, but making sure any cash you have is well looked after, is all part of our planning.

Emergency Fund

We generally recommend holding 3-6 months’ worth of income requirement as an emergency fund. This is money that is instantly available in the event of an emergency, but ideally is still making you a bit of a return. Everyone is different though: some people don’t want to hold this much, and some want a lot more so that they can sleep at night.

Term Deposit Management

If you are holding cash outside of investments for a specific purpose or different goals, then just putting it in a term deposit with your bank may not be the best option. Through our investment platform, we have the ability to invest in term deposits from across a number of institutions, often at a much better rate than is advertised to the public. We can then switch between institutions at maturity depending on who has the best rate available, without you having to open brand new clients. This is a service we only offer to existing investment clients.

Cash Alternative Structures

If you are holding cash for a specific purpose but are happy to take a little bit of risk in order to get a slightly better return than you would from cash, there are various “cash alternative” investment options which can help meet this need. We are able to advise on these as well as helping you to fully understand what the increased risks are.

Advice on Supporting Loved Ones

You may want to help children or family financially, but often, simply giving them cash isn’t the best option if you want to protect the money for the future, or from relationship breakdowns. Also, if they live overseas and you’re distributing money from a trust, there may be some tax considerations. We can advise on different options including lending money (either at an interest rate, or with none, and either with regular repayments or not) and can also help draw up agreements and explain to family why it’s also better for them to not be simply gifted money.

Income Sources

Often our clients have multiple sources of income in retirement. This could include NZ Super, interest, perhaps some part time or casual work, rental income, other pensions and then investment income. Having a holistic view can help bring all of this together and make sense of the overall picture as well as how each income source may change over time. If you have a rental property, we may factor in selling this as you get older, but then making sure the rental income you were receiving, is replaced with something else.