Kiwisaver Strategy

[CJ]

I see they have a management fee of 0.65%. The smartFONZ etc also have a management fee of about 0.6%. Are you going to be stung twice for management fees, I couldn't see anything that said you wouldn't be.

I never thought of that. However, this would be the same for most funds wouldn't it except those that invest directly. Ie. the fee you see is for the admin of the fund, and does not include the fees of any of the funds they invest in. Having said that, I would have though Smartkiwi got a volume discount off the smartFonz fees fund.

It's probably worth back testing the shares and seeing how it performs with a 200 day MA. FNZ.NZ is smartFONZ, I'm sure it is possible to find the other ones too.
Also how often can you change between the different funds, it may be restricted to x times per year?

I would also check how many switches you get per year.

The question has made me think. Does anybody have a kiwisaver stategy. Given the long term, locked in nature of the investment, I have always thought of it as a set and forget type of investment. Now that it 5 figure sum, it probably pays to think about it more.

http://www.superlifekiwisaver.co.nz/...ntoptions.aspx could be another option. they have low fees and free, unlimited switching.

[wbosher]

I only signed up to Kiwisaver about six months ago, mainly because the returns on my private super were appaling when the market was racing up in leaps and bounds, and to take advantage of the "free" money or course.

My strategy is to treat the fund as if it were a long term investment/trade, using primarily T/A but basic macro F/A as well, a similar strategy to lou from the sound of it. Most providers will allow you a certain number of free switches per year I think.

[lou]

I gave smartkiwi an email to investigate a couple of concerns that were raised in the thread.

My Email:
The management fee is quoted on the website being .65% for +$30,000. The ETF that smart kiwi invests in also have fees as well. Does that mean we pay the smartkiwi management fees and the ETF management fees?
Are there any fees for transferring between the different smartkiwi options i.e between growth, balanced, and conservative?
How long does it take to process a switch between two different smartkiwi options?
The smartkiwi website says that the growth fund invests in the FONZ and MOZY. What ratio does the fund invest each ETF?

Smartkiwi response:
No absolutely not. That would definitely be double dipping which would be very unfair and incredibly unethical. What happens is that Smarkiwi will pay the full management fee, this is unavoidable with the way the fund has been set up, however what we then do is continuously calculate a rebate which is paid to the fund to offset the fee. So the net result is that the member is only charged the advertised fee.

There is no charge for changing between funds. In fact you change every month if you wish. The only fee you will ever be charged for anything is the 0.65% management fee. This fee is all inclusive. No front end fee, no trustee fee, no brokerage fee just the management fee and thats it. If you decided to switch between funds it would take one week to complete the transfer.

The Growth Fund invests 60% of its assets in FONZ and 40% in MOZY. There is a small amount left in cash to facilitate transfers in and out however this is negligible.

[blackcap]

I gave smartkiwi an email to investigate a couple of concerns that were raised in the thread.

My Email:
The management fee is quoted on the website being .65% for +$30,000. The ETF that smart kiwi invests in also have fees as well. Does that mean we pay the smartkiwi management fees and the ETF management fees?
Are there any fees for transferring between the different smartkiwi options i.e between growth, balanced, and conservative?
How long does it take to process a switch between two different smartkiwi options?
The smartkiwi website says that the growth fund invests in the FONZ and MOZY. What ratio does the fund invest each ETF?

Smartkiwi response:
No absolutely not. That would definitely be double dipping which would be very unfair and incredibly unethical. What happens is that Smarkiwi will pay the full management fee, this is unavoidable with the way the fund has been set up, however what we then do is continuously calculate a rebate which is paid to the fund to offset the fee. So the net result is that the member is only charged the advertised fee.

There is no charge for changing between funds. In fact you change every month if you wish. The only fee you will ever be charged for anything is the 0.65% management fee. This fee is all inclusive. No front end fee, no trustee fee, no brokerage fee just the management fee and thats it. If you decided to switch between funds it would take one week to complete the transfer.

The Growth Fund invests 60% of its assets in FONZ and 40% in MOZY. There is a small amount left in cash to facilitate transfers in and out however this is negligible.

Im with Smartkiwi as well and happy to date. but my question is... I like the theory behind your strategy of swapping mind,.... how can you anticipate a bull or a bear market in advance?

[lou]

Im with Smartkiwi as well and happy to date. but my question is... I like the theory behind your strategy of swapping mind,.... how can you anticipate a bull or a bear market in advance?

That is a good question. If I had a full proof way of anticipating a bull or bear market I would not be sharing it here. I would be on my way to the bank laughing.

The main statistic I am using for predicting if it is bull a bear market is the 200 day MA. When the price goes below the 200MA the price is trending down (bearish). When the price goes above the 200MA the price is trending up (bullish).

The 200MA is my main signal however before I decide to switch from a growth to conservative I will take a broader look at what is happening in the market/world.

Does anybody else have a good/simple way of deciding if it is a bear or a bull market?