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.


View this topic in a long page with up to 500 replies per page Create new topic
1 | 2 | 3


131 posts

Master Geek
+1 received by user: 1


  Reply # 481528 15-Jun-2011 15:11
Send private message

english is my second language so I only knew a bit about the kiwi saver.All my friends are signed up with it so I joined it as well.I even sign up for my son who is 3 years old so I imagine that when he is 18 years old he may end up to a dept with the kiwisaver.

13371 posts

Uber Geek
+1 received by user: 1601


  Reply # 481536 15-Jun-2011 17:13
Send private message

timtim: english is my second language so I only knew a bit about the kiwi saver.All my friends are signed up with it so I joined it as well.I even sign up for my son who is 3 years old so I imagine that when he is 18 years old he may end up to a dept with the kiwisaver.


 

You could tell them that, and see if they will let you out of it. Not sure if they provide their terms in other languages, but they probably should these days. I don't think signing up a child is the worst idea, as it is likely that kiwisaver will be compulsory by then. I don't htink they should charge fees for people under 18, as they don't get the tax benefits.  $1000 in 15 years time will probably be worth very little with inflation.

 
 
 
 


6433 posts

Uber Geek
+1 received by user: 1569


  Reply # 481542 15-Jun-2011 17:28
Send private message

timtim: english is my second language so I only knew a bit about the kiwi saver.All my friends are signed up with it so I joined it as well.I even sign up for my son who is 3 years old so I imagine that when he is 18 years old he may end up to a dept with the kiwisaver.


I don't think it is possible to go into debt.

And even if it was, the chances of it happening are vanishingly unlikely.

8020 posts

Uber Geek
+1 received by user: 386

Trusted
Subscriber

  Reply # 481653 15-Jun-2011 22:49
Send private message

timtim: english is my second language so I only knew a bit about the kiwi saver.All my friends are signed up with it so I joined it as well.I even sign up for my son who is 3 years old so I imagine that when he is 18 years old he may end up to a dept with the kiwisaver.


Change to a conservative provider that is making higher returns than their fees off the existing balance.

 

13371 posts

Uber Geek
+1 received by user: 1601


  Reply # 481658 15-Jun-2011 22:57
Send private message

Ragnor:
timtim: english is my second language so I only knew a bit about the kiwi saver.All my friends are signed up with it so I joined it as well.I even sign up for my son who is 3 years old so I imagine that when he is 18 years old he may end up to a dept with the kiwisaver.


Change to a conservative provider that is making higher returns than their fees off the existing balance.


 


 

You can also switch to a cash fund, which is invested solely in bank deposits, thus you can never lose money, and the fees are slightly less. The only thing is over the long term, the returns will likely to be less.

8020 posts

Uber Geek
+1 received by user: 386

Trusted
Subscriber

  Reply # 481820 16-Jun-2011 12:51
Send private message

Actually the problem here is that many of the providers have a minimum annual fee or a monthly membership fee.

If say the annual management fee is $30-50ish and you only have $1000 balance you will actually lose money over time unless your fund makes greater than 4-5% return which at the moment isn't happening.

This will only really effect you at low balances when not contributing.  Once you have a high enough balance the return (as long as the provider is going a dood job) should be higher than the fees.

So the advice is pretty much the same consider changing to a cash or conservative or a better performing provider with low fees.

When you are working again I would consider contributing 2% to your kiwisaver and 2% to your kids (remember when you contribute your employer matches your contribution so this is effectively an initial 100% return on your investment), the higher the balance the easier the return from the fund covers the annual management fee.

At the end of the day you got the $1000 kickstart for nothing, so you haven't really lost anything.


3252 posts

Uber Geek
+1 received by user: 207

Trusted

  Reply # 481865 16-Jun-2011 14:18
Send private message

I just don't understand why this guy signed up himself (and his kids!) for Kiwisaver in the first place?

8020 posts

Uber Geek
+1 received by user: 386

Trusted
Subscriber

  Reply # 481879 16-Jun-2011 14:33
Send private message

Most brokers and agents were going around telling everyone to signup and signup your kids too to get the fee $1000 before they remove it.

Undoubtedly some self interest at play there.



13371 posts

Uber Geek
+1 received by user: 1601


  Reply # 481880 16-Jun-2011 14:35
Send private message

Ragnor: Most brokers and agents were going around telling everyone to signup and signup your kids too to get the fee $1000 before they remove it.

Undoubtedly some self interest at play there.





I read something about that. People who signed up in that way should contact kiwisaver for advice.

940 posts

Ultimate Geek
+1 received by user: 68


  Reply # 482185 17-Jun-2011 12:26
Send private message

I have a kiwisaver account with Kiwibank.

Their fees are pretty transparent.

The value of the units that you have includes all fees and charges except a $1 per month administration fee, which is good because you know where you are at any given time.

My son also has a Kiwibank kiwisaver account which started with $1000. It was up to about $1100 the other week, which is pretty good (about ~5% return over the two years he has had it in this uncertain investment environment).

My returns are tracking at about 12%pa since I moved it to Kiwibank (excluding additional deposits).

Jon

1943 posts

Uber Geek
+1 received by user: 127

Trusted

  Reply # 482705 18-Jun-2011 23:16
Send private message

timtim: I mean closing Kiwisaver acount completely


What would be the point of closing it completely unless you are transferring savings to another kind of scheme? If you could just withdraw the savings then it would be gone whenever some debt collector comes calling. As far as I know, even IRD or bankruptcy lawyers cant force you to draw down the savings. Does create a problem if you die, all goes into your estate so takes a while for relatives or partner to get anything from it.




Qualified in business, certified in fibre, stuck in copper, have to keep going  ^_^

637 posts

Ultimate Geek
+1 received by user: 2

Trusted

  Reply # 482718 19-Jun-2011 04:28
Send private message

webwat:
timtim: I mean closing Kiwisaver acount completely


What would be the point of closing it completely unless you are transferring savings to another kind of scheme? If you could just withdraw the savings then it would be gone whenever some debt collector comes calling. As far as I know, even IRD or bankruptcy lawyers cant force you to draw down the savings. Does create a problem if you die, all goes into your estate so takes a while for relatives or partner to get anything from it.

You may want to look at http://www.kiwisaver.govt.nz/already/sit-change/change-personal/ then.  Bankruptcy lawyers can certainly pursue your Kiwisaver investments; and during relationship breakups they are also considered family assets.

The easiest way to withdraw Kiwisaver money is to buy a house, or move overseas.

80 posts

Master Geek


  Reply # 482810 19-Jun-2011 15:07
Send private message

That $1000 is taxpayer money, that the government gives back to you (or in your case, takes off other taxpayers) for joining the scheme.

I haven't joined it, because I like to be more independent and I don't agree with the government calling money it gives back to us "free"! Plus retirement is a looong way off for me, there'll be a small percentage of us who die before we get to use it!

But you've learnt a valuable lesson - before you sign up to something <b>read the details</b>.

8020 posts

Uber Geek
+1 received by user: 386

Trusted
Subscriber

  Reply # 482951 19-Jun-2011 22:14
Send private message

tristanb: That $1000 is taxpayer money, that the government gives back to you (or in your case, takes off other taxpayers) for joining the scheme.

I haven't joined it, because I like to be more independent and I don't agree with the government calling money it gives back to us "free"! Plus retirement is a looong way off for me, there'll be a small percentage of us who die before we get to use it!

But you've learnt a valuable lesson - before you sign up to something read the details.


I suggest you might want to consider:

- The current pension scheme isn't going to survive the baby boomers retiring en masse.
- The retirement age will have to be increased from 65 as people are living longer most countries have changed the age upwards.

Given the above you might want to rethink saving for your retirement from the time you start working or asap given when gen x and y get to retiring the pension scheme isn't going to be anything like it is currently.



 

3252 posts

Uber Geek
+1 received by user: 207

Trusted

  Reply # 483030 20-Jun-2011 09:13
Send private message

PenultimateHop: The easiest way to withdraw Kiwisaver money is to buy a house, or move overseas.

I'm not sure I'd agree that moving overseas for a year before getting the money is the "easiest" way.  Plus, you can't get the MTC.  The best and easiest way is to contract a serious (but not terminal) illness.  That way you get all the money!

1 | 2 | 3
View this topic in a long page with up to 500 replies per page 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:





News »

New Zealand government to create digital advisory group
Posted 16-Dec-2017 08:47


Australia datum changes means whole country moving 1.8 metres north-east
Posted 16-Dec-2017 08:39


UAV Traffic Management Trial launching today in New Zealand
Posted 12-Dec-2017 16:06


UFB connections pass 460,000
Posted 11-Dec-2017 11:26


The Warehouse Group to adopt IBM Cloud to support digital transformation
Posted 11-Dec-2017 11:22


Dimension Data peeks into digital business 2018
Posted 11-Dec-2017 10:55


2018 Cyber Security Predictions
Posted 7-Dec-2017 14:55


Global Govtech Accelerator to drive public sector innovation in Wellington
Posted 7-Dec-2017 11:21


Stuff Pix media strategy a new direction
Posted 7-Dec-2017 09:37


Digital transformation is dead
Posted 7-Dec-2017 09:31


Fake news and cyber security
Posted 7-Dec-2017 09:27


Dimension Data New Zealand strengthens cybersecurity practice
Posted 5-Dec-2017 20:27


Epson NZ launches new Expression Premium Photo range
Posted 5-Dec-2017 20:26


Eventbrite and Twickets launch integration partnership in Australia and New Zealand
Posted 5-Dec-2017 20:23


New Fujifilm macro lens lands in New Zealand
Posted 5-Dec-2017 20:16



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.