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Toi Tupu - A deeper look into investing

E tapatahi ana a Ngāti Whātua Ōrākei ki te whakawhanaketanga o ngā uri o Tuperiri o nāianei, o anamata hoki. Mā te kōkiri i a Toi Tupu, he kaupapa penapena me te haumi, me tētahi hōtaka whakawhanake moni, e tūmanako ana ka tupu tētahi ahurea penapena me te haumi i waenganui i te hapū. Ki te piri mai koe, ka kite koe i ō moni e tupu ana i te taha o ngā rawa o te hapū me te whanake o tō māramatanga me ō mātauranga penapena me te moni.

Ngāti Whātua Ōrākei is committed to the growth of ngā uri o Tuperiri for generations to come. By delivering Toi Tupu, a savings and investment scheme, accompanied by a financial capability building programme, we hope to encourage and grow a savings and investment culture within the hapū. It is about building a bright future for the younger generation.

If you choose to participate, you will see your putea grow along with assets of the hapū and along the way strengthen your knowledge and understanding of savings and finances.

What is an investment?

To help you understand what Toi Tupu is and how it works, we need to take a look at what investment is and why it’s beneficial to you and your whānau. We have a separate glossary of terms for some of the financial terms used in this. Click on the highlighted words to read a broader definition in the glossary.

Investing is about making the most of the money you earn and growing it for your future needs. It is about putting away money now in order to make more money later.

Below we have created a fictional case study to help breakdown how this investment works:

Nikora is given $100 by his kōkara. Nikora has three choices.

Nikora’s first option is to spend the $100, which will provide him satisfaction immediately by going out for dinner or buying himself something nice. However, once the $100 is gone, he will not have any money left.

His second option is to put this money into his savings account and continue to add to it without withdrawing from it. As Nikora earns more money, he can continue to add to his savings and watch his savings grow. We will cover saving tips and tricks in future editions of Tukuna.

But – Nikora also has another option. If Nikora keeps this money in an investment fund, he can grow his $100 over time without having to put any more of his own money into the account if he doesn’t want to. It means that he cannot use his $100 now but it means he may have $200 later without having to put any more of his own money in.

When Nikora looks at his investment in several years’ time, it can increase significantly depending on his interest rate. The more money he can invest, the more money he can make over time. We call this interest.

There are many different ways to invest your money, and this is where Toi Tupu comes in. When you enrol into Toi Tupu, the Ngāti Whātua Ōrākei Trust will make annual distribution payments (when possible) to all members enrolled in the initiative. These payments are then invested on your behalf into Whai Rawa Limited, as a term deposit. Whai Rawa have a team of experts advising our investments and as we grow, so will your investment.

With Toi Tupu, like Nikora receiving money from his kōkara, you don’t need to put any of your own money into this scheme as the deposits made on your behalf by the Trust are yours.

These deposits will earn interest and grow your investment the longer you leave them in Toi Tupu, which means more money when you do eventually decide to withdraw later down the line e.g. when you want to buy a house or retire.

You may withdraw your deposits, subject to the terms and conditions of Toi Tupu, but we do advise investing long-term for the best possible growth and return on your investment.

In future you will be able to access your deposit details through your Toi Tupu account.

Have you enrolled with Toi Tupu yet?

• Enrolments for Toi Tupu are now open. You must be a registered member of Ngāti Whātua Ōrākei – to register click here.

Please note: Enrolments close Sunday 2nd June 2019 – if you are unsure if you are a member, or have any questions about Toi Tupu, you can email us at: [email protected]

 


Glossary of Toi Tupu terms

Distribution – Under the Toi Tupu scheme, a distribution is the money allocated from the Ngati Whatua Orakei Trust, to each enrolled member. This distribution is invested as a term deposit in Whai Rawa and earns interest.

Term deposit – A term deposit is an agreement to lend your money, usually for a fixed period of time (i.e. 2 years), during which you earn interest. Although Toi Tupu investments are considered term deposits, there is no fixed length of time – it is ongoing.

Interest – Interest refers to money earned as payment for lending your money to another person or institution – in this case, Whai Rawa is borrowing your money, and the interest is added to your term deposit.

Interest rate – The interest rate is how much money you will earn for lending your money (or how much you will have to pay if you are borrowing). This is how much Whai Rawa owes you for borrowing your money.

Investment – An investment is something you put your money into, with the expectation that it will return more money. Investments usually come with higher interest rates (meaning you make more money over time) compared to your bank ‘savings account’. A key reason for this difference, is money you invest could be unavailable to use for some time or come with restrictions on withdrawing.

Investment scheme/fund – An investment scheme/fund is a way for many people to put their money into the same investment. The Toi Tupu scheme is a way for registered members of Ngati Whatua Orakei to participate together,

Savings – The money a person has saved that is not needed to cover normal living expenses. The purpose of Toi Tupu is to provide an opportunity for Whanau to grow their savings and work toward their financial goals.

Savings Account – A savings account is a type of account offered by banks that provides you with a small amount of interest for leaving your money in it. Your bank may offer additional interest if you do not withdraw your money for a certain period. A savings account generally provides the lowest level of interest but allows you to access your money when you need it.