KiwiSaver has been with us for over 13 years. In this time, have you ever wondered how your KiwiSaver has stacked up against the other KiwiSaver funds available? Having your hard-earned savings in a poor performing fund instead of a high performing one may have cost you thousands of dollars.
There is a lot to think about when sorting out your KiwiSaver fund and getting it wrong can be costly. There are a few common mistakes you can avoid that can improve the return on your fund:
- Choosing the right KiwiSaver Fund Manager: Whilst past performance is no indicator of future performance, some fund managers are just not up to it and haven’t been for years. It’s hard! Being able to pick a consistently high performing fund manager without access to research and performance tools makes it hard for the everyday investor.
- Choosing the wrong fund: The key objective when determining the appropriate fund is to maximise your return for any given level of risk. Kiwisaver funds are grouped according to their varying levels of risk, these can range from low, medium and high. Understanding your risk profile, your time horizon then investing your money appropriately will be the biggest determinate of returns for your Kiwisaver account.
- Fees: Are you paying too much in fees? Knowing what you are paying in fees in relation to your returns can impact on your fund’s performance – the higher the fees the lower the returns.
- Are you contributing enough? Firstly, are you investing at least $1,042.86 per year to receive the maximum Government contribution. Secondly, are you investing enough to meet your retirement goals.
- Tax: Knowing you are on the correct tax rate – if it is too high you will not get this refunded, however if you are not paying enough you may incur a tax bill. So, it is worthwhile getting this right.
At Ark, we review many of the Kiwisaver fund managers on offer, researching their performance, fee structure and their risk return processes to determine which fund is best suited for you. We have chosen the best performers in the Kiwisaver space to provide our valuable clients with great options from fund managers that have delivered outstanding performances consistently. We will work with you to ensure you are contributing the right amount of money according to your retirement goals and that you are investing in the correct fund that is in line with your tolerance to risk.
Now, you have access to these award-winning performers and can turbo-charge your investment into fulfilling your retirement dreams. Act now and begin the journey to financial freedom with us.