Re: Kiwisaver; Is Your Money Growing?

Postby bigJIMMY on Wed 10/Jun/09 1:03pm

phunk wrote:Thats why I dropped my contributions to the minimum and will use the extra money to invest in paying back the mortgage on the house faster, a much better investment.


that's a great idea phunk.
i might just go and do that now. i can't see a downside................ an extra 2% of wages would work nicely off the mortgage

is there?
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Re: Kiwisaver; Is Your Money Growing?

Postby Trail on Wed 10/Jun/09 1:05pm

crazychris wrote:remember, if you sign your kids up today for the $1000 gubbermint funds, they will be forever (FOREVER) stuck with kiwisaver, no matter if they want it or not. Thier crappy midnight burger flipping job will be taxed for their retirement from the first dollar they earn. You have made a decision that affects them for the rest oif their lives, with no way for them to extract themselves.


apart from the payment holiday options, which can basically be used indefinitely...

I dont think it is a bad thing at all for kiwis to have their own funds available for when they get old... so what if they are taxed flipping burgers... they will have a huge head start on other people their own age if they have been getting a grand a year for a while.
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Re: Kiwisaver; Is Your Money Growing?

Postby phunk on Wed 10/Jun/09 1:08pm

bigJIMMY wrote:
phunk wrote:Thats why I dropped my contributions to the minimum and will use the extra money to invest in paying back the mortgage on the house faster, a much better investment.


that's a great idea phunk.
i might just go and do that now. i can't see a downside................ an extra 2% of wages would work nicely off the mortgage

is there?


Paying down debt faster is generally the best return you can get.
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Re: Kiwisaver; Is Your Money Growing?

Postby michael on Wed 10/Jun/09 1:19pm

crazychris wrote:remember, if you sign your kids up today for the $1000 gubbermint funds, they will be forever (FOREVER) stuck with kiwisaver


By for ever do you mean until they are eligible for the contribution holiday?
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Re: Kiwisaver; Is Your Money Growing?

Postby bigJIMMY on Wed 10/Jun/09 3:51pm

phunk wrote:
bigJIMMY wrote:
phunk wrote:Thats why I dropped my contributions to the minimum and will use the extra money to invest in paying back the mortgage on the house faster, a much better investment.


that's a great idea phunk.
i might just go and do that now. i can't see a downside................ an extra 2% of wages would work nicely off the mortgage

is there?


Paying down debt faster is generally the best return you can get.



ah, actually there is a downside. employer contributions. say if your employer contributes 4% to match your 4%. you go down to 2% then your employer will only match it at 2%.
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Re: Kiwisaver; Is Your Money Growing?

Postby Wobbler on Wed 10/Jun/09 3:54pm

depends on your employer
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Re: Kiwisaver; Is Your Money Growing?

Postby crazychris on Wed 10/Jun/09 4:22pm

I thought they were maxed at 2% now, some recent changes?
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Re: Kiwisaver; Is Your Money Growing?

Postby sweet_P on Wed 10/Jun/09 4:55pm

Employers can contribute more than 2% if they want - it's just a minimum.

Didn't some big employer hit the news when they immediately jumped in with 4% when Kiwisaver first started? Or maybe my dicky memory is making that up...
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Re: Kiwisaver; Is Your Money Growing?

Postby Wobbler on Wed 10/Jun/09 5:00pm

I think it might have been air nz
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Re: Kiwisaver; Is Your Money Growing?

Postby shmoodiver on Wed 10/Jun/09 5:13pm

thinking doesn't become thee
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Re: Kiwisaver; Is Your Money Growing?

Postby Wobbler on Wed 10/Jun/09 5:17pm

no u
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Re: Kiwisaver; Is Your Money Growing?

Postby shmoodiver on Wed 10/Jun/09 5:30pm

:p
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Re: Kiwisaver; Is Your Money Growing?

Postby Tugboat on Wed 10/Jun/09 6:52pm

How have any of you "lost" money on Kiwisaver yet? The only way this is possible is that you have reached 65 years of age and cashed up out of a fund that didn't suit your investment needs and time you had to retirement in the first place. You don't make a loss until you realise that loss.

Most of you will be benefiting from dollar cost averaging whilst markets are low which will help compound your gains as the economy recovers. Take the Fisher Funds Kiwisaver fund for example. For pretty much the last year it's been hovering around the 70 to 75 cents per unit mark. If you're around thirty years old with 35 years till retirement then what you're looking at is dirt cheap units. If it stayed there for the next 10 years and then started increasing in value I'd be more than happy. That's not the case though and these things being cyclical there'll always be upwards and downwards movement in fund values. Fisher has gone from 72c per unit 6 weeks ago to close to 89c this week. That in itself is nearly a 25% rise in the value of the units that were purchased cheaply.

Most of the users on this site I'd presume to still be 25 years or further from retirement... forget about your Kiwisaver accounts now. Put in the pittance from your pay and take your free money from the government and your employer. Then in 10 years time take a serious look at it. If you don't understand the technicals of what your investment is (and going by what''s been said about Kiwisaver on here that's most of you) get professional advice on what is the best strategy for saving for your own retirement. Don't rely on your bank, your mates or glossy advertising to make these sorts of decisions for you.
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Re: Kiwisaver; Is Your Money Growing?

Postby DropKick on Wed 10/Jun/09 7:03pm

I'm gonna bludge off the government when I retire. I will have spent 40+ years in the highest tax bracket. time to see what all this bludging off the workers is all about :thumbsup:
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Re: Kiwisaver; Is Your Money Growing?

Postby Tugboat on Wed 10/Jun/09 7:08pm

DropKick wrote:I'm gonna bludge off the government when I retire. I will have spent 40+ years in the highest tax bracket. time to see what all this bludging off the workers is all about :thumbsup:


In 40 years time bludging off the government will also likely involve living in a box under a bridge and relying on soup kitchens for your meals! :lol:
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