Geekzone: technology news, blogs, forums
Guest
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.


2 posts

Wannabe Geek


Topic # 59431 6-Apr-2010 09:01
Send private message

60 year old alraedy in Kiwisaver with Gareth Morgan who has made me $38 in last 3 years on $9000 investment.
This is not good when my colleagues are getting 7%

Create new topic
BDFL - Memuneh
61173 posts

Uber Geek
+1 received by user: 11946

Administrator
Trusted
Geekzone
Lifetime subscriber

3535 posts

Uber Geek
+1 received by user: 125

Trusted

  Reply # 315254 6-Apr-2010 10:56
Send private message

jonesboy2: 60 year old alraedy in Kiwisaver with Gareth Morgan who has made me $38 in last 3 years on $9000 investment.
This is not good when my colleagues are getting 7%

I too am with GM Kiwisaver, having been there since the scheme was opened.

When I joined, it was around 20 years until I expected to spend the money, so I selected the "Growth" option, as you may have done.  Results have been disappointing I admit, but there is still 17 years to go, so I am prepared to wait it out a bit longer and see.

I have invested a similar amount of money to you (well, actually, the government contributed more than half of it) and my account is currently worth about 5% less than the total invested.  But given that I contributed less than half, that is still a pretty good return, and chances are it will improve in the next 17 years.

If I wanted consistent growth, and was closer to retirement such as you are, I would have selected the "Balanced" or "Conservative" funds.  The latter has made a positive return since inception I think, although it may be less than competing offerings.

My GM Kiwisaver account is only a very small part of my investment portfolio, and it is for the long term.  Given the ructions in financial markets over the past 3 years, I don't think it has done too badly, but sure, there is room for improvement.

What I especially like, is the way they tell you exactly where your money is invested, right down to the cent.  Many other funds don't do this, and from past experience it can be alarming to find out -- after the event -- where your money was made or lost.  I would rather be kept informed all the way through, and GM Kiwisaver are exemplary in this regard.

Would I trust GM Kiwisaver with my entire investment portfolio?  No way.

Diversification is key, and if nothing else, the events of the past 3 years should have taught that lesson to anyone.







2 posts

Wannabe Geek


  Reply # 315256 6-Apr-2010 11:01
Send private message

Thanks for that info. I just don't like the way Gareth criticises everone else with his holier than thou approach. His GMK group are third from bottom with performance over the last year out of over 30 providers.
i think i will change anyway.

3535 posts

Uber Geek
+1 received by user: 125

Trusted

  Reply # 315257 6-Apr-2010 11:06
Send private message

jonesboy2: Thanks for that info. I just don't like the way Gareth criticises everone else with his holier than thou approach.

Agreed -- it does get a bit tiresome after a while.  However, he has been instrumental in bringing some much-needed accountability into the financial planning industry.

jonesboy2: His GMK group are third from bottom with performance over the last year out of over 30 providers.  i think i will change anyway.

Yep, like I said, plenty of room for improvement...

This is the great thing about Kiwisaver:  You can switch providers any time you like, usually at no cost.





8027 posts

Uber Geek
+1 received by user: 387

Trusted
Subscriber

  Reply # 315266 6-Apr-2010 11:23
Send private message

Which performance ranking are you looking at?  If you mean the morningstar rankings are you aware those rankings are pre tax (different investments are taxed at different rates), post fees (some providers don't list all the fees they charge in the totals).  I wouldn't rely on those rankings, sadly they are often quoted in the media.

Have you been following the news about how the "top" performing fund Hujlich was found to be topping up funds to artificially maintain a high unit price?

Do you trust unit prices to be a accurate indication of performance when there is such week accountability and oversight in the financial industry in NZ?

Anyway interesting topic...






61 posts

Master Geek


  Reply # 319530 16-Apr-2010 22:05
Send private message

i'm with ING and current gain is about 1%... guess it's better than losing the money to finance companies eh?

424 posts

Ultimate Geek
+1 received by user: 2


  Reply # 319552 16-Apr-2010 23:01
Send private message

What bugs me are the fees. 35 years with Kiwisaver and you've paid about $40,000 in fees, according the Kiwisaver calculator in some .nz advertising.

If 2 million people are in the above situation, that's a 2 billion dollar per year industry (40 years from now...). Not in the investments, but in the fees.

3282 posts

Uber Geek
+1 received by user: 208

Trusted

  Reply # 319672 17-Apr-2010 16:06
Send private message

Do you expect them to invest your money for free? That's how the investment industry makes their money! $1,000 a year may seem like a lot, but that is only 1% if you have $100K invested, 0.5% if you have $200K and so on.

If we have a $2b/year industry (say $200b+ fund under management), wouldn't that be great for NZers?

61 posts

Master Geek


  Reply # 321280 21-Apr-2010 12:51
Send private message

bazzer: Do you expect them to invest your money for free? That's how the investment industry makes their money! $1,000 a year may seem like a lot, but that is only 1% if you have $100K invested, 0.5% if you have $200K and so on.

If we have a $2b/year industry (say $200b+ fund under management), wouldn't that be great for NZers?

61 posts

Master Geek


  Reply # 321281 21-Apr-2010 12:51
Send private message

bazzer: Do you expect them to invest your money for free? That's how the investment industry makes their money! $1,000 a year may seem like a lot, but that is only 1% if you have $100K invested, 0.5% if you have $200K and so on.

If we have a $2b/year industry (say $200b+ fund under management), wouldn't that be great for NZers?


a $2b/year industry, macro-economically it is good for the country - i wouldn't say it's good for average NZers, though they will be affected more or less in some way, that's why i say: macro-economically.

another thing is how many people's receiving this $2b, wealthy re-distribution is the key for a balanced society.  don't forget wall street execs annual package has got that whole country angry, of course except those who gets paid handsomely and their direct families...

Create new topic

Twitter »

Follow us to receive Twitter updates when new discussions are posted in our forums:



Follow us to receive Twitter updates when news items and blogs are posted in our frontpage:



Follow us to receive Twitter updates when tech item prices are listed in our price comparison site:



Geekzone Live »

Try automatic live updates from Geekzone directly in your browser, without refreshing the page, with Geekzone Live now.



Are you subscribed to our RSS feed? You can download the latest headlines and summaries from our stories directly to your computer or smartphone by using a feed reader.

Alternatively, you can receive a daily email with Geekzone updates.