Why are people not in KiwiSaver? – Part 2
Emails and texts from listeners:
– No income of her own
– Self employed
– Employer talked worker out of it
– Worries about investment
– Fees
– Ethical investing
– Too little money
– Too old
– Control of investments
– Don’t trust govt
– Lack of govt guarantee
Q&As:
– Family tree doesn’t explain why women are worse off in retirement
– Should we give more NZ Super to those in need?
– Reader seeks ideas on giving to charity
– Offset mortgage one way parents can help children buy a home — but not a tax break
– Look beyond bank adviser
– Investors in KiwiSaver and other funds pay slightly less tax
If you can learn to handle risk, you’ll get more out of your KiwiSaver fund.
Ask someone which KiwiSaver fund they are in, and most will name their provider — a bank or other financial institution. But the provider doesn’t matter nearly as much as which type of fund you’re in.
WOMEN AND MONEY
Q&As:
– A new kitchen might be best use of $15,000 no longer needed
– What can 66-year-old do to improve her situation? Maybe work longer
– How to find a suitable managed fund
– When lending to family, have a way to get your money out
Why are people not in KiwiSaver?
Analysis by Commission for Financial Capability of negative comments on social media and internet discussion boards, plus emails from listeners:
– Lack of security
– Government policies
– Other “better” investments
– Earning too little to bother
Q&As:
– Loan within family might work, but there’s lots to consider
– How to find KiwiSaver funds that are pretty much fully invested in shares
– No rules about KiwiSaver fund names
– Tax rate should be called “marginal” — or should it?
Q&As:
– Couple should make children their priority while the kids are young
– KiwiSaver gives children a good start, despite the lack of incentives
– Don’t blame bank for getting son’s KiwiSaver tax rate wrong
– Expanding the “cut back on gifts” idea to birthdays, Christmas and Mother’s Day
– Inflation tougher on superannuitants, but reader still has options
Plus:
– I’m doing two talks in Tauranga on November 3
THE BEST WAY TO INVEST IN SHARES
A listener’s letter and Mary’s response:
– Starting early is good
– Drip feeding is good
– You don’t need to research companies
– Buy more or less randomly — but vary industries
– Understand a share’s volatility
Q&As:
– Low interest not as bad as it seems — when we check out inflation
– Ideas for retiree struggling because of low interest
– Should retirement savings go into high-earning KiwiSaver fund?
– Apartment ownership not worry-free
– My tax gripe shot down
Low fees are key, but what other factors play into savvy KiwiSaver planning?
Is it wise for a husband and wife to be in the same KiwiSaver scheme?