Kiwisaver Strategy

[Panda-NZ-]

NZX is a good alternative to the S&P500.

During boom: S&P500, unhedged and no margin.

Afterwards switch to the NZX and call asb/booster.
https://fundfinder.sorted.org.nz/fun...cial-services/

[kiora]

I back the aggressive fund any day
https://milfordasset.com/funds-perfo...ew-performance
Returns to 31/10/2021 (After fees)

1 Month 3 Months 6 Months 1 Year 3 Year (p.a.) 5 Year (p.a.) Inception (p.a.) View Chart
KiwiSaver Cash Fund 0.04% 0.13% 0.22% 0.42% - - 0.40%
KiwiSaver Conservative Fund -1.27% -1.02% -0.15% 2.89% 5.27% 5.55% 7.98%
KiwiSaver Moderate Fund -0.49% 0.13% 1.89% 8.84% - - 12.29%
KiwiSaver Balanced Fund 0.48% 1.78% 4.53% 16.40% 11.71% 10.53% 10.43%
KiwiSaver Active Growth Fund 0.80% 2.56% 5.86% 23.80% 14.28% 12.78% 13.03%
KiwiSaver Aggressive Fund 2.62% 1.98% 7.48% 26.30% - - 18.76%

[SBQ]

I back the aggressive fund any day
https://milfordasset.com/funds-perfo...ew-performance
Returns to 31/10/2021 (After fees)

1 Month 3 Months 6 Months 1 Year 3 Year (p.a.) 5 Year (p.a.) Inception (p.a.) View Chart
KiwiSaver Cash Fund 0.04% 0.13% 0.22% 0.42% - - 0.40%
KiwiSaver Conservative Fund -1.27% -1.02% -0.15% 2.89% 5.27% 5.55% 7.98%
KiwiSaver Moderate Fund -0.49% 0.13% 1.89% 8.84% - - 12.29%
KiwiSaver Balanced Fund 0.48% 1.78% 4.53% 16.40% 11.71% 10.53% 10.43%
KiwiSaver Active Growth Fund 0.80% 2.56% 5.86% 23.80% 14.28% 12.78% 13.03%
KiwiSaver Aggressive Fund 2.62% 1.98% 7.48% 26.30% - - 18.76%

But not after taxes at the individual level (RWT). When you minus what's really going on, the end results won't be so spectacular over a long term multi-decade outcome.

The robbing of compound returns are significant as described by Buffet and Jack Bogle.

[Panda-NZ-]

Capitals gains are completely exempt aren't they, unlike in nearly all other countries:

https://www.booster.co.nz/media/9707...ver-scheme.pdf

The returns don't seem much different with changing PIRs

[kiora]

But not after taxes at the individual level (RWT). When you minus what's really going on, the end results won't be so spectacular over a long term multi-decade outcome.

The robbing of compound returns are significant as described by Buffet and Jack Bogle.

Maybe some have missed the point I was trying to make.
The point is not about being investing in K/S or another investment
Rather which K/S fund to be in once they had decided to invest in K/S

I understand it is difficult to compare retirement savings country by country as ours are taxed before deposited in K/S & along the way?
Compared to a lot of other countries it is taxed when withdrawn with a massive liability at the end

[SBQ]

Capitals gains are completely exempt aren't they, unlike in nearly all other countries:

https://www.booster.co.nz/media/9707...ver-scheme.pdf

The returns don't seem much different with changing PIRs

Have you heard of FIF? For someone quite active in this forum, i'm surprised you've not studied the impact what FIF has when any individual or KS fund chooses to buy a foreign share or ETF such as the Vanguard ETF, or Berkshire Hathaway, or even AAPL. The only exemption you are thinking of is buying NZ based equities (or those that may trade on the ASX that qualify to be exempted from FIF). But at the end of the day, it's not very wise to hold all the investments in just NZ companies.

FIF is max 5% if you choose the FDR method. This is significant because if a managed fund does not beat 5% per year, then it doesn't leave much in terms of returns for their clients. On years with spectacular returns says 15%, that extra 10% gain is captured under FIF in the following year (as it is reflected on the portfolio balance).

I've worked through the math when compared to other countries like US or Canada where matching employer contribution schemes like KS, they go with 'deferred' taxation. Everything is grown tax free until at time of retirement, where the person chooses how much they want to withdraw so they pay tax on only what they want out, vs in NZ, if you want to contribute more to KS, then it's only those on the high income tax bracket that can (and IRD rubs it's hands all the way - which is why PIE funds came about).

@kiora:

Well without a doubt, it's been proven the one that chooses the more aggressive allocation will have more returns at the end on a long term investment plan. Warren Buffet himself tells others the same. 'Don't let managed funds choose your allocation between equities vs bonds or fixed term assets... you should be invested FULLY in equities regardless if you are looking to invest for multi-decade investment plan. Having a % that say KS shows is invested in fixed term assets is basically saying the investors don't have a clue to keep some of their cash holdings in a bank account.

[TeslaGod]

Kiwi saver is a joke/

A bad year for me is 15%pa/

I aim for 20 to 30% return on equities

I'm excluding the massive gains the past 2 year's due to the Fed expanding the money supply 40%.

Kiwisaver hedge too much with bonds/there also using covered calls to bet against there own buys

It's stupid/that's why kiwisaver gets an average return of 8/9%

Hedge funds only work if you have 1m+ /the Portfolio manager is basically protecting the rich and there wealth while everyone else is getting SreweD on returns.

[BIRMANBOY]

Kiwi Saver was set up to be a pension fund for all Kiwi workers...its premise is to encourage and assist people in saving for retirement. As such it would be a "bad look" if the investment profile allowed for anything other than stable and relatively conservative investment decisions. Your returns of 20-30% are impossible unless there is extensive risk involved and pension schemes achieving those sorts of returns are not going to be able to deliver at that level year after year..if ever. So I'm not sure what relevence your comments have. Retirement funds look for steady year on year growth not yo=yo investing. A good year is embraced of course but a bad year and the bad publicity that goes with it will kill the whole premise behind retirement investments and KS would become a laughing stock. Investing with 20-30% returns is not investing its gambling and governments dont take kindly to that sort of behaviour. Hopefully you are not working in the retirement industry...if so please let us know so we can avoid your fund

Kiwi saver is a joke/

A bad year for me is 15%pa/

I aim for 20 to 30% return on equities

I'm excluding the massive gains the past 2 year's due to the Fed expanding the money supply 40%.

Kiwisaver hedge too much with bonds/there also using covered calls to bet against there own buys

It's stupid/that's why kiwisaver gets an average return of 8/9%

Hedge funds only work if you have 1m+ /the Portfolio manager is basically protecting the rich and there wealth while everyone else is getting SreweD on returns.

[TeslaGod]

Kiwi Saver was set up to be a pension fund for all Kiwi workers...its premise is to encourage and assist people in saving for retirement. As such it would be a "bad look" if the investment profile allowed for anything other than stable and relatively conservative investment decisions. Your returns of 20-30% are impossible unless there is extensive risk involved and pension schemes achieving those sorts of returns are not going to be able to deliver at that level year after year..if ever. So I'm not sure what relevence your comments have. Retirement funds look for steady year on year growth not yo=yo investing. A good year is embraced of course but a bad year and the bad publicity that goes with it will kill the whole premise behind retirement investments and KS would become a laughing stock. Investing with 20-30% returns is not investing its gambling and governments dont take kindly to that sort of behaviour. Hopefully you are not working in the retirement industry...if so please let us know so we can avoid your fund

No

I do not "YOLO" invest

I definitely don't use hedge funds but I do use index funds to hold as cash reserves rather than bond's or cash/

20 to 30% is very achievable/I can also guarantee the fund managers invest exactly the same way as me on there own personal portfolio.

With there commission.

It's just a matter of understanding true compounding growth/understanding your companies/staying away from dividends/bond's and cash.

Using margin the way it's meant to be used safely and responsibly to accelerate your return.

The problem with media in New Zealand is they promote the share market as being risky.

Like NZ real estate if you plan your strategy on risk and reward /it's not risky at all .

If you set it and forget it then you probably deserve to blow your account up.

You grow old getting rich slowly/I retired at 36.

[BIRMANBOY]

Your super-human investment capacity is something to be admired...I'm surprised your talents have not been suitably rewarded with the recognition your ego is obviously so desperate to receive lol. Headhunters must be lining up in droves to lure you away to Switzerland in private jets where you will presumably establish your own fund and be adored by all and sundry.

No

I do not "YOLO" invest

I definitely don't use hedge funds but I do use index funds to hold as cash reserves rather than bond's or cash/

20 to 30% is very achievable/I can also guarantee the fund managers invest exactly the same way as me on there own personal portfolio.

With there commission.

It's just a matter of understanding true compounding growth/understanding your companies/staying away from dividends/bond's and cash.

Using margin the way it's meant to be used safely and responsibly to accelerate your return.

The problem with media in New Zealand is they promote the share market as being risky.

Like NZ real estate if you plan your strategy on risk and reward /it's not risky at all .

If you set it and forget it then you probably deserve to blow your account up.

You grow old getting rich slowly/I retired at 36.