You need to be certain that your KiwiSaver investment is working for you. Simply putting in your monthly contribution and hoping that it will be enough for your retirement is not enough. Become an active investor and talk to an adviser today.
KiwiSaver can be a great benefit to your life in New Zealand if it is properly managed. It can be a tool to provide a comfortable retirement or help towards your first home. It all depends on how you manage your KiwiSaver investment in the long-term.
There are two key ways KiwiSaver can assist with your first home deposit;
- HomeStart Grant
Since you can only apply for a withdrawal or grant once you have made an offer on a property or land for a new build, we strongly recommend you consult our experts for advice on seeking pre-approval.
The current age of retirement in New Zealand is 65 years. This means you are not entitled to NZ superannuation until you reach this milestone, and the amount can vary from around $285 to $390 per week per person. Even if you have paid off your home in full, and have no debt, living from day to day on this amount could be challenging.
Compiling a sound risk profile is a very useful way to find the optimum level of investment for you.
When making the big decision to invest your money, KiwiSaver schemes offer a variety of fund types to suit your particular needs. Choosing the type you want to buy into should be based on key factors such as; the risk and return associated with the fund, the service level and the fees charged.
Commonly referred to as PIR your Prescribed Investor Rate is the tax rate you elect when investing into certain types of managed funds. These managed funds are known as portfolio investment entity (PIE) or PIE’s and the income generated from these funds is known as PIE Income. This tax should not be confused with Resident Withholding Tax.
Those who have been following share markets will know that returns during 2018 have been more variable (both up and down) than in the few years prior, which were unusually smooth.
In the past, we have written how volatility can be a friend to the long-term investor, by providing the opportunity to add to investments when prices are lower. October has provided an interesting test to this point, with global share markets finishing October down 6.5% on average (albeit only partly offsetting a 16% rise over the previous 12 months).
It is a changing world, one that is moving very quickly. Moore’s Law is a quoted observation that states computing power double every 2 years or so. With this rapid increase is computing power, ‘Big Business’ is putting this new technology to work (and making a profit).