Share plunge arguably good for KiwiSaver. Despite some irresponsible reporting, the low returns on many KiwiSaver funds in their first few months are no reason not to join up. I’d even say the rough start was good in some ways. The one big worry is that people have read a few headlines and decided to stay away from KiwiSaver without understanding what’s really happening.
Q&As: Does the share price slump disprove standard investment advice? And should advisers make economic forecasts?; KiwiSaver member is doing superbly despite the slump — as are all other members; A reader objects to the idea that KiwiSaver is a gift from the government.
3 Q&As about recent negative Herald articles about KiwiSaver returns in the early months — and why they are misleading. We also discuss how KiwiSaver membership forecasts are made — with an apology to Michael Cullen and Peter Dunne — and how repaying a mortgage fast is a type of saving.
Perspectives article on poor KiwiSaver performance. Earlier Herald article criticising KiwiSaver is misleading for two reasons.
Concern over remarks on old-age support largely unwarranted. People should not be put off joining KiwiSaver because entitlement may eventually occur later.
Q&As: Courses and grants help beneficiaries set up their own businesses; Big earner is wrong to think KiwiSaver is not for him; Why KiwiSaver money sits around at Inland Revenue for several weeks — although at least it earns interest.
Can’t afford KiwiSaver? That’s unlikely. A reader protests that, despite my suggestion that everyone under 65 should sign up to KiwiSaver, “reality has it that not many of us can afford it!”
Q&As: Why 20 shares are much better than two; Reader claims diversification is not a great idea. I disagree; Is land a lower risk investment than a share fund?
Q&As: In defence of so many questions about KiwiSaver — and a challenge to readers; Getting the best out of KiwiSaver for a non-earning wife and college kids; Getting the best out of KiwiSaver for an early retiree on a low income.
How same is the same housing market? A reader has taken issue with a comment in my last column that “the vast majority of current homeowners… could just sit out a plunge in house prices, or else sell and buy in the same market and suffer no loss.”