Kiwisaver Strategy

[Aaron]

That defeats the purpose and looks like double dipping. Good reason why I told wifey to keep opting out of Kiwi Saver.

No doubt kiwisaver saver has been a gold mine for fund managers and although I am not mad keen on investing in funds because of the fees.

The $521 tax credit would be one reason to join Kiwisaver but when you say "opt-out" I am assuming your wife is working for wages. Therefore not joining Kiwisaver means she misses out on the compulsory employer contributions which would be like a 3% pay rise. An additional 3% of her gross wages less the employer contribution superannuation tax (ESCT) going straight into her retirement savings every pay day. That should more than cover the fees.
Although I can't agree entirely with 777 I would suggest you relook at the pros and cons of joining Kiwisaver.

There are other cons including having that money tied up until retirement(this could also be a pro). I imagine eventually they will require Kiwisaver funds to be turned into annuities at retirement so people don't blow it all. Especially if we ever start means testing NZ super. Although this is wild speculation at this stage and an annuity isn't the end of the world.

My Kiwisaver strategy currently is to put it all in the most conservative fund and will switch back to grow after the next GFC.