We suggest that fund managers should not be able to quote just gross (pre-tax; pre-fees) returns either to clients or to the public. Gross returns can be very misleading.
This article looks at the significance of fees in the context of KiwiSaver.
For an investor to be successful, they need to achieve their financial goals and have the confidence that they will.
See what you gain from KiwiSaver if you earned $62,400 a year (before tax).
The term risk means different things to different people. For many, it is something to be avoided. For others, it is an opportunity and an acceptable part of everyday life. For investors who are prepared to take on and manage risk, there are potential benefits in the form of higher returns.
When it comes to investing, where should you get the highest returns on your capital? If we are talking long-term and are focusing on the main asset classes, the answer is probably from shares.
At some point, most of us need to save something for our retirement. The alternative is to rely totally on New Zealand superannuation. One of the best ways to save for retirement is through KiwiSaver because the government starts you off with a $1,000 kick-start and then subsidises your ongoing savings. If you are an employee, your employer may also subsidise your savings.
Most New Zealanders get within 10 to 20 years of retirement and realise they have not saved enough, to give them a better lifestyle than just NZ Super will provide. Without saving for ourselves, we become solely reliant on New Zealand Super and for most people, that is not enough.
This article discusses how Michael, a single 65-year-old just entering retirement, with retirement assets of $500,000 should invest them. We also look at how the investment strategy might vary under different circumstances. The article does not look at the wider financial issues including insurances, wills etc...
With over 1 million eligible New Zealanders not in KiwiSaver, you have to ask why? In some cases, it will be because they cannot afford to save or prefer not to. However, in many cases, it will be because it has not been explained clearly or they have simply not got around to joining...