Smooth The Road: Plan & Invest. Edition Two, August 2022.
If you've met me, you'll know KiwiSaver is a real passion of mine.
It's a brilliant vehicle for helping you into your first home or a great way to help prepare for retirement.
But for many people, it's neglected.
The most common issue I come across are clients being in the wrong fund for their time horizon.
If you’re among the 381,000 KiwiSaver members that joined KiwiSaver upon starting work and have done nothing else, this might be you if you're still sitting in a default fund.
Other issues are having an inappropriate asset allocation for their life stage or paying the incorrect rate of tax (PIR).
Along with these issues that many people don’t realise they have, are common questions, such as:
How much will I have in my KiwiSaver when I retire?
How long will it last once I start spending it?
How does the first home grant work?
How much of it can I take for my first home?
What happens if I’m self-employed and am not contributing to it? Should I be? If so, how much?
Am I eligible for the $521 per year from the government?
What fund should I be in?
What’s the difference between having my KiwiSaver with a bank versus a provider?
Are there socially responsible fund options that I could consider?
If any of these questions seem relevant to you, perhaps you could take advantage of a complimentary KiwiSaver review to give you certainty that you’re set up appropriately.
The implications of being in the wrong fund type can for some people, especially those with a fair amount of time before retirement, mean missing out on tens or even hundreds of thousands of dollars by age 65.
I'm proud to back Booster 100% as a KiwiSaver provider. But who are they and why have we partnered with them?
They’re a New Zealand owned company who genuinely give back through funding innovation and cutting-edge research.
They’re an investment company, not an Australian owned bank so the profits actually stay in this country and investment is their strength.
They were the first provider to offer a Socially Responsible KiwiSaver Fund certified by the RIAA and they're proactive.
They are one of the few KiwiSaver providers in NZ that reach out to every single client to review their KiwiSaver Fund to make sure it's appropriate and they champion financial advice.
Make sure you take the time to check in on your KiwiSaver and align it to your situation and your values.
This newsletter aims to help New Zealanders on the path to financial freedom with tips and tricks from the professional financial planning process. Stay tuned for more handy insights and knowledge.
If you are ready to take the next step and want to look at how working with a financial adviser for your planning and investment needs may benefit you, please reach out for an initial no-obligation chat - I would love to hear from you.