The Reserve Bank today released a new edition of its popular guide to managing the risks involved in saving and investing.
Upside, downside: A guide to risk for savers and investors has been commissioned by the Reserve Bank and written by investment commentator and bestselling author, Mary Holm.
The 64-page publication is a revised version of Mary Holm's 2004 booklet Snakes and Ladders. It includes updated information and explains how investment risks apply to KiwiSaver.
More than 70,000 copies of the first edition have been distributed to the public, financial planners, accountants, budgeting services and organisations since it was published eight years ago.
Reserve Bank Governor Alan Bollard said he expects the updated edition to be as valuable and sought after as the first.
"The book's basic messages are timeless – namely that risk and return go hand in hand; that a full understanding of risks is critical, and that risk is not necessarily bad when properly understood. The Global Financial Crisis has demonstrated how important this is," Dr Bollard said.
Mary Holm said the messages in Upside, Downside are based on research and observations over many decades.
"When I was updating this book, I noticed that the 2004 version included warnings about borrowing heavily to invest, and about investing in higher-risk fixed interest such as finance company deposits - issues that weren't worrying many people back then. But those who heeded the warnings will be glad they did!" she said.
View the PDF version of Upside, downside: A guide to risk for savers and investors (PDF 1MB).
Media contact:
Naomi Mitchell
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Ph 04 471 3960, 027 485 9474, [email protected]