Make hard savers of us all
CMC boss Chris Smith would turn us all into super KiwiSavers, if he had the chance.
If he were prime minister for a day, Chris Smith, the general manager at CMC Markets, would turn us into a nation of hard savers.
He’d hike KiwiSaver contributions from employers, and put us on track to narrow the gap on Australia’s massive super savings pool.
CMC exists to help people trade markets and take risks for gain,
at the very opposite end of the risk spectrum to steady KiwiSaver default funds.
Do you consider yourself financially savvy?
Yes, I believe I am financially savvy. I’ve had a passion for the markets from a young age and have been working within the financial industry for the last 12 years.
What has been some of the best money advice you’ve been given?
I’ve had lots of good advice. I think diversification and investing in quality companies and property is time-tested advice. Pay yourself first, is advice I always remember from Tony Robbins’ books around saving.
Did your upbringing shape your attitude to money?
Yes, I think it did. I didn’t grow up with strong financial guidance, but I started reading and learning from investment books early on. I grew up in a middle class working family who taught me that a good work ethic and education for a career was vital.
What was the first paid work you did?
I started working from a very young age with the paper round and delivering circulars. I then moved onto supermarkets and then petrol stations while at school. I think all the common jobs when you’re young teach you important customer service skills and work ethic to set a good base.
How do you sum up your feelings towards spending?
I’m probably a bit relaxed about spending sometimes and could be more sensible. I always ensure I’m working towards longer-term goals and remind myself the key advice to always spend less than I earn.
What’s been your best investment decision?
Start saving early ... The earlier that kids can understand this, the better. Chris Smith, CMC Markets
Investing in myself would probably be my best investment so far; having that solid education and being determined to keep learning has allowed me to build a longterm career.
I have benefited from buying and selling shares since I was 17 and a few years ago, I saw the opportunity for rental property investment outside of Auckland in Hamilton.
If a child asked you the best way to make money, what would you say?
Start saving early! I would probably explain the power of compounding returns in simple terms; this has to be one of the best investing lessons. The earlier that kids can understand this, the better.
If you were prime minister for a day, and could do one thing that would transform people’s money lives, what would it be?
Building retirement savings is so important, so I would double Kiwisaver compulsory contributions to 6 per cent employer from 3 per cent and move this to 8 per cent by 2018. Employees could decide on their matching level., as the jump would have an effect on lower incomes. I would also remove any income tax on pure retirement investment funds and target fees charged.New Zealand is well behind our Australian friends who have over A$2 trillion in superannuation assets. I also like the idea of removing GST from fruit and vegetables.