Sack the inaccurate journalists. A reader reports that she and her family “were quite astounded to find you recommend (KiwiSaver) so unreservedly.” “I’ve read several articles recently by other journalists, who have pointed out that one’s savings could well be handled — in the interim before one retires — so poorly that there could be none left to collect on retirement.
No tricks behind KiwiSaver doubling of money. A reader has “one or two problems” with my last column, in which I said people are silly not to sign up to KiwiSaver. “Your comments that ‘twice as much comes out at retirement’ and ‘triple the money in, triple the money out’… make one huge assumption — that the provider the investor chooses over time does not lose any money — a highly unlikely scenario surely!”, says the reader.
KiwiSaver: Be in to win. Ever since the government announced its added incentives to KiwiSaver last month, everyone is talking about the retirement savings scheme. And well they might. While I still have reservations about the distortion of savings decisions, and while many employers are angry at being forced to contribute, practically all individuals will be better in than out.
Riding to the rescue of diversification. Diversification — a key element to successful investing for most people — has taken a bashing in the press lately. Even David McEwen, who writes this column alternately with me, quoted criticism of diversification on this page a few weeks ago. I feel bound to leap in and defend it.
Back to the creepy stuff. Well, he did it. Despite my impassioned plea in this column in February last year, Finance Minister Michael Cullen took away our chewing gum tax cut in the recent Budget. And we’re much bigger losers than most people realise.
Readers respond on KiwiSaver tax breaks. Three readers were unhappy with my last column, in which I said the KiwiSaver tax breaks expected in the upcoming Budget will benefit only some people, at the expense of New Zealand as a whole.
Think again about those KiwiSaver tax breaks. Many readers were no doubt pleased to hear of Winston Peters’ recent hints that the May 17 Budget will include tax breaks in the KiwiSaver retirement savings scheme. But only some will benefit — and it will be at the expense of others, and the country as a whole.
Obsessed with property? Not us. New Zealanders are not as property mad — or as mortgage mad — as we’ve been led to believe, recent research shows.
New tax rules not so bad. As the new tax regime on shares in countries beyond Australasia takes effect, many taxpayers seem to think it’s tougher than it really is.
KiwiSaver enticing enough already. KiwiSaver, the new retirement savings scheme starting July 1, is coming in for criticism that is doesn’t include more tax incentives. But I’m glad of that.