Kiwisaver
Next to your home, KiwiSaver is most people's largest investment, so it is important that it is set up in a way that maximises returns to allow you to live the retirement that you want.
Why use an adviser?
Like insurance, we can give you options. Rather than going to one provider who only has their line of products, we are able to suit the best fund to you, from a variety of options.
We are also there as things change, so that we can assist with first home buyer withdrawals, changing your funds as your needs change, as well as transferring an overseas pension.
Why Join Kiwisaver?
Many small contributions add up to a lot. When this is combined with compound growth (interest being earned on interest), the returns are significant.
Without KiwiSaver, what is the plan for retirement? Government Superannuation is currently 672.22 per fortnight after tax per. This is for a person living as a couple.
Balancing risk and return
When determining the type of KiwiSaver fund that suits you, it is important to consider your own attitude to risk and volatility and that the most important aspect is time. Specifically, how long it will be before you are able to withdraw your funds out?
Essentially there are two times when you can withdraw your money - when you are buying your first house, and at age 65.
This means that for a lot of time there are many years until you can withdraw your money. Therefore it is inconsequential whether your funds go up or down during this time, it only matters when you need to take them out.
As a general guideline, based on your needs, you would chose:
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Withdrawing funds within two years, you would choose a defensive fund.
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Withdrawing funds within two to five years, you would choose a conservative fund.
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Withdrawing funds after more than five years, you would choose a balanced or aggressive fund.
Although the prospect of volitile balances may be daunting, the difference in the end result can be huge.
The above figures are based on a 30 year old earning $70,000pa and contributing 3%.
The lower figure of $494,969 is based on a moderate fund returning 3%.
The higher figure of $1,129,575 is based on a geared growth fund returning 6.6%.
These figures are from KiwiSaver provider Booster, are inflation adjusted, and are net of fees and tax.
Our providers
We currently have three KiwiSaver providers that we use, and each one has benefits for different people.
Can I change Kiwisaver Providers?
Yes, and it's very easy. All we need is some identity documents and IRD number, then we can discuss the best options for you.