When I started learning about money, I’d read an amazing blog post or listen to a great podcast and think, “Right, I’m sold on this whole index fund business.”
And then the disclaimer got me every time:
“This is not personalised advice. Only you know your current situation. Before making any decisions, consult a licensed financial adviser.”
I’d stop. Wait. Second-guess everything.
Maybe my situation was too personal. Maybe I needed custom advice. Maybe index funds were great for other people but not quite right for me.
My Failed Attempts at Buying My First Index Fund
I had several false starts before I finally invested.
Attempt 1: Chickened out because I needed to provide my driver’s licence number — and my wallet was in the car. Even walking outside to get it felt like too much friction.
Attempt 2: Got stumped at the “What’s your PIR and RWT?” section and worried I’d stuff it up and get in trouble with IRD.
Attempt 3: Hesitated right before clicking “confirm” and thought: Have I interpreted this correctly? If this author actually knew my life, would they still say this is a good idea? Which fund was I supposed to pick? How do I know I won’t choose wrong?
The disclaimer made me think my situation must be too complicated for simple, evidence-based investing.
But I Was Asking the Wrong Question
Having now completed the Financial Advisor qualification, I understand why that disclaimer exists.
It’s legally required to protect Kiwis from scammers and bad actors who might say “invest in this to double your money!”
And it applies in many different contexts — from KiwiSaver advice to property investing to choosing between term deposits.
But when it comes to global index funds specifically, here’s what I misunderstood:
The disclaimer wasn’t warning me that my situation might be too unique or complicated for index funds.
It was asking: “Are you ready to invest at all?”
Global Index Funds Are About as Vanilla as You Can Get
In medicine: “Eat a variety of whole foods — mostly plants, unprocessed” applies to almost everyone. I don’t need to know if you prefer broccoli or carrots.
In investing: “Use a low-fee global index fund” applies to almost everyone ready to invest. I don’t need to know your exact income or specific goals.
Global index funds are the investing equivalent of “drink water and get enough sleep.”
It’s not controversial to say: Anyone ready to invest should consider them.
So the Real Question Is: Are You Ready?
You’re probably NOT ready if you have:
- High-interest debt (credit cards, buy-now-pay-later schemes)
- Zero emergency savings
- Unstable income with no buffer
- You’ll need this money in the next 5-7 years
That’s not personal advice — that’s logic.
Investing in the sharemarket while carrying 20% interest debt is like trying to fill a bathtub with the plug out.
The disclaimer is checking: Is your financial foundation solid enough to invest?
Not: “Is your situation too unique for index funds?”
What’s Actually Personal
The personal part isn’t which fund to choose.
The personal part is:
- Whether your financial foundation is ready yet
- How much you can afford to invest
- Your timeline
- Ethical screening preferences
- Complex tax situations (trusts, overseas income)
But once you’ve answered “yes, I’m ready to invest” — the “which fund?” question is surprisingly simple for most people.
This is not personalised advice. Only you know your current situation. Before making any decisions, consult a licensed financial adviser.