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934 posts

Ultimate Geek


  #2374432 12-Dec-2019 20:49
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Jase2985:

 

BlinkyBill:

 

gbwelly

 

.... I got auto enrolled, might have got something in an envelope that sat on the dining table for a month or so until I threw it away, can't remember.

 

 

 

 

I hope you have corrected the assignment to one of the default schemes, otherwise you are losing quite a bit of money.

 

 

likely not loosing money, just not making as much money as you could in a similar scheme with a different provider.

 

 

All right, let me explain. If you are auto-enrolled you will be assigned, randomly, one of approx 5 default providers. You will be enrolled in their conservative fund. Conservative funds are the safest but provide the lowest returns. Conservative funds are best for those who need their money in the shorter term and don’t provide the best results over the medium or longer term. Conservative funds are not good choices for those without access to to their money for 10 years+, which is most KiwiSaver participants. 

 

So you will lose money compared to being in a more appropriate medium to long term fund structure; and so it pays to have your money in a balanced or a growth fund, if you are 10 years or more from 65. A 25-year old on the average wage will lose many many thousands of $ if they are in a conservative fund compared to if they are in a growth fund. If that’s not losing money, I don’t know what is.

 

the retirement commissioner has recommended to the government that the default funds not be conservative.

 

in any event, simply letting a random algorithm manage your money for you isn’t a good idea, it would pay, literally, to get some advice if you lack awareness or confidence in managing your money.





BlinkyBill


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  #2374437 12-Dec-2019 21:11
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Jase2985:

gbwelly:


Jase2985:


OldGeek:


I joined over a decade ago, and the provider I am with now bought out the provide I joined.  Things do change.



you would would have been sent information about that change.



That reads to me as very snarky. I wouldn't have a clue either about drawing mine down. I got auto enrolled, might have got something in an envelope that sat on the dining table for a month or so until I threw it away, can't remember.


 



is it snarky when someone tell you the truth? or you just cant handle someone telling you the truth?


the op and your self have been given all the information, because the kiwi saver providers have to give you all the information by law. if you choose to ignore it and dont understand how your plan works, you cant blame anyone but yourself.



It's great that you remember the exact terms of every service you buy. Us mere mortals are somewhat less fortunate.

 
 
 
 


903 posts

Ultimate Geek

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  #2374511 13-Dec-2019 07:33
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This thread is great, so far we have had Jack Nicholson show up and it's been inferred to me that I lack awareness or confidence in managing my money, all because someone posted a PSA that it might take longer than you expect to draw down your Kiwisaver. Gold.

 

 








299 posts

Ultimate Geek


  #2374515 13-Dec-2019 07:51
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Thank you for the heads up OP. As someone who is many years away from seeing the release of my KiwiSaver, I like you, would have actually expected the funds to be available with a bit of paperwork and a few days notice. Weeks is certainly not what I would expect. So thank you again for taking the time to share this knowledge.

 

Ignore the negative/snarky remarks from people who have made it known that they literally read the EULA every time they install software. 





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  #2374532 13-Dec-2019 08:13
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So now we know that it takes weeks, how is it determined what the actual withdrawal date is?  If someone is in a fund that's heavily invested in sharemarkets, a single day's fluctuation could mean hundreds of dollars of difference to the final amount.

 

Disclaimer: I am another who is not intimate with the T&Cs of the provider and scheme I'm in and I can't be bothered to read them at this stage in my life.





"I have noticed even people who claim everything is predestined, and that we can do nothing to change it, look before they cross the road." -  Stephen Hawking


359 posts

Ultimate Geek

Lifetime subscriber

  #2374540 13-Dec-2019 08:36
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Thanks OP good note of caution about possible delays.

 

I know that it can take awhile when changing providers, and withdrawing from an old company scheme years ago. 

 

I'm now with Simplicity for Kiwisaver, and have a separate investment fund with same returns and low fees.  I can withdraw from the investment fund if required, there is a downloadable form to enter amount and sign, scan and email.  Should take a few days according to their website.  Can set up regular withdrawals.

 

Recommend switching your provider, if you are not happy with them. 





:)


4678 posts

Uber Geek


  #2374597 13-Dec-2019 10:19
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floydbloke:

 

So now we know that it takes weeks, how is it determined what the actual withdrawal date is?  If someone is in a fund that's heavily invested in sharemarkets, a single day's fluctuation could mean hundreds of dollars of difference to the final amount.

 

 

Any partly reasonable KS stash of a 4-500K would likely move by thousands every day....

 

One way to guard against this is to transfer the funds you are looking to withdraw into a conservative cash fund (most of the KS providers have such an option). then you are not on tender hooks watching wall street every morning and hoping its not 1987 all over again :)


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