Scaresies chat page

[stoploss]

I get what you were saying but it isn’t a bank account. It’s a portfolio so it’s going to go up and down in value over the years. There is no guarantee you will get back what you put in (even though we know you probably will over the long term) - the value of your portfolio could be less or more when you want to withdraw it. Having said that, in any given year you are right - you put in the minimum amount and get the full govt contribution, which is a 50% return on your one annual deposit. But that doesn’t really translate to your overall return over time, when you decide to withdraw it.

Or maybe I am just as confused as you now

JAK, some KiwiSaver providers have cash funds or defensive so apart from inflation if you were worried about the market tanking you could do this to ensure the numbers work.

[Rawz]

Absolutely it's a very good and safe investment, and yes looking at annual return as a percentage of your portfolio in this case is definitely irrelevant since your return isn't based on the size of your portfolio. The point of my reply was to show why dobby41 and you disagreed about the return, since you guys were looking at different ways of calculating return.

Anyway I made a spreadsheet https://docs.google.com/spreadsheets...it?usp=sharing

edit: Just realised the kiwisaver govt contribution is $521.43 and not $512, but the %'s remain the same regardless

Now add a 8% annual return on the portfolio sum to really confuse BaaBaa

[Baa_Baa]

Now add a 8% annual return on the portfolio sum to really confuse BaaBaa

No need to be a Dick, from the outset I said a cash KiwiSaver, and ignored the annual interest to keep it simple. Obviously if the KiwiSaver was earning interest or making additional gains per annum, the total ROI would be even better.

[SailorRob]

Arguing over semantics.

Valuenz knows what's going on, read their explanations.

Maybe another way to think about it is ask how you could get a better return on your $1000 than doing what Baa_Baa suggests.

[Rawz]

No need to be a Dick, from the outset I said a cash KiwiSaver, and ignored the annual interest to keep it simple. Obviously if the KiwiSaver was earning interest or making additional gains per annum, the total ROI would be even better.

Sorry. For what you are both talking about you are both right.

[Baa_Baa]

Maybe another way to think about it is ask how you could get a better return on your $1000 than doing what Baa_Baa suggests.

What I find incredible is that "as many as 1,862,000 didn’t contribute at all in the year to 31 March 2022 (compared to 1,483,000 the year before);" That's a lot of free money left on the table!

5 expert KiwiSaver savings tips for 2023
3. Make sure you don’t miss out on the extra $500 from the government!
Every year KiwiSaver account owners between 18 and 65 years can get an extra $521.43 from the government. To be eligible, you need to make sure you contribute at least $1,042.86 to your KiwiSaver account between July 1 and June 30 every year.

I would hope that the Sharsies Kiwisavers at least get their annual free money.

[Fortunecookie]

What I find incredible is that "as many as 1,862,000 didn’t contribute at all in the year to 31 March 2022 (compared to 1,483,000 the year before);" That's a lot of free money left on the table!

5 expert KiwiSaver savings tips for 2023
3. Make sure you don’t miss out on the extra $500 from the government!
Every year KiwiSaver account owners between 18 and 65 years can get an extra $521.43 from the government. To be eligible, you need to make sure you contribute at least $1,042.86 to your KiwiSaver account between July 1 and June 30 every year.

I would hope that the Sharsies Kiwisavers at least get their annual free money.

Exactly. It is a very basic way to look at the concept of discounting in whatever way you look it. Sorry to say this, but if someone cannot digest this concept and is an advocate for value investing. They will struggle to see value in companies.

[ValueNZ]

What I find incredible is that "as many as 1,862,000 didn’t contribute at all in the year to 31 March 2022 (compared to 1,483,000 the year before);" That's a lot of free money left on the table!

5 expert KiwiSaver savings tips for 2023
3. Make sure you don’t miss out on the extra $500 from the government!
Every year KiwiSaver account owners between 18 and 65 years can get an extra $521.43 from the government. To be eligible, you need to make sure you contribute at least $1,042.86 to your KiwiSaver account between July 1 and June 30 every year.

I would hope that the Sharsies Kiwisavers at least get their annual free money.

Does that figure include people under 18 who aren't eligible for the free government money anyway?

[Fortunecookie]

Does that figure include people under 18 who aren't eligible for the free government money anyway?

Then don't put your money in KS. Invest separately until you are eligible.

Edit: the only real incentive to invest in KS is because you get the employer and govt contributions. Otherwise why have your money locked until 65.

Without these incentives you can invest outside KS and do as you wish with your money.

[ValueNZ]

Then don't put your money in KS. Invest separately until you are eligible.

Edit: the only real incentive to invest in KS is because you get the employer and govt contributions. Otherwise why have your money locked until 65.

Without these incentives you can invest outside KS and do as you wish with your money.

That was my point exactly, those 1.8 million people are probably largely made up of people not eligible for the employer and govt contributions meaning they aren't leaving money on the table by not contributing to their KS.