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How can you know your KiwiSaver money is safe?
Posted in Kiwisaver, Retirement, Savings on
New Zealand KiwiSaver balances are growing. If you've got an increasingly sizeable chunk sitting in your account, you might wonder how safe that money is. Part of that licensing process requires fund managers to have client money held by a third party. "The assets of all the KiwiSaver schemes are held in trust, meaning the assets are not directly owned by the provider itself," Mulholand said.
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Where in the world is your KiwiSaver?
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Taking a tour of the investments made by your KiwiSaver fund is like taking a tour of the world. Falls in international sharemarkets are teaching KiwiSaver that their retirement savings aren't invested entirely in bank term deposits. A decade after launch, KiwiSaver appears to still be a bit of a mystery to many people putting money into it from their pay packets. A large chunk of KiwiSaver money is invested in company shares, and in interest-paying bonds, here in New Zealand. But more than half of KiwiSaver money heads overseas giving KiwiSavers stakes in some of the world's largest, most successful companies.
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KiwiSaver: Doing it wrong like throwing away a winning Lotto ticket
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Being in the wrong KiwiSaver scheme has been compared to throwing away a first division-winning Lotto ticket. More than 400,000 Kiwis continue to invest in default KiwiSaver funds, which are more conservative. They're much less likely to lose money when the market tanks, but the long-term returns are generally lower than more aggressive schemes.
View moreDespite recent market volatility most KiwiSavers should be happy with their investment. Now is not the time to be cutting and running or you will miss the benefits of long term investing.
Posted in Kiwisaver, Retirement, Savings on
In the past few days equity markets have tumbled worldwide. A major correction is underway in both the bond and stock markets. Reading the headlines will make anyone nervous about what is ahead for investors. If you are a KiwiSaver you may well be wondering what to do, too. As Retirement Commissioner Diane Maxwell says, "KiwiSaver is a long game that will have bumpy patches, but will pay off in the end and make a huge difference to your retirement.” Read more here.
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Markets are volatile, don't worry focus on the long term
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Share markets are having a rough October - which has been a tricky month for investors historically. Readers of our newsletters will know we have been expecting a volatile year and have been positioned more defensively than usual as a result. We would like to remind our members that KiwiSaver is a long term investment and we would recommend staying the course through this volatility and not making any changes to their fund selection because of it. In the long term shares will outperform bonds - but at the end of the day the decision is yours. Here is an article from the last market drop in February that is still just as true today.
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Study sheds light on KiwiSaver 'don't knows'
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The latest Commission for Financial Capability (CFFC) survey for the World Investor Week, highlights 28% of those surveyed did not know whether their fund was in the conservative, balanced or growth categories. This equates to an estimated 800,000 KiwiSaver members. Further to this, the survey also suggested that 10% were unaware of the annual Member Tax Credit (Government Contribution) of $521.43 that some member's may potentially be eligible for.
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Generate issues Responsible Investment Policy and becomes a signatory to the United Nations Principles for Responsible Investment.
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We have formalised how we take into consideration environmental, social and governance issues in our investment making decision process. We have also committed to being a Signatory to the UNPRI. See our full policy here.
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Janine Starks: Choosing the right KiwiSaver fund can earn you an extra $1.4m in savings
Posted in Kiwisaver, Retirement, Savings on
Janine Starks: "Imagine four colleagues who sit next to each other for 30 years in the same job. They live in the same size houses of the same value and have very similar lives. Each diligently squirrels away $5000 a year into a KiwiSaver fund. Would you assume they'd have similar retirements? The answer will shock you."
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Getting KiwiSaver right from the start
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Many people in KiwiSaver schemes don't get the basics right, says Henry Tongue, chief executive of KiwiSaver provider Generate. While their mistakes can seem small today, compound interest means they snowball over the decades. In the long run, they can make a huge difference to your retirement income.
View moreWhat happens to your KiwiSaver in a divorce?
Posted in Kiwisaver, Retirement, Savings on
"I'm 30 and separating from my partner of five years. So far, we have been able to agree on the details of the split ourselves. Is it true that our KiwiSavers need to be split between us? And how do you actually do this? I've chosen to contribute more to my KiwiSaver, whereas my partner is more of a spender, so I'm hoping she won't insist on taking some of mine..." For more explaination, read more here
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