Getting the most out of your KiwiSaver
Investing is often referred to as a journey – one that became real for a lot of New Zealanders when KiwiSaver was introduced close to 20 years ago.
Where we are on that journey will be different for each one of us.
That’s because investing is personal. We each have our own goals and objectives, our own tolerance to risk, and our own sets of experiences and biases.
At some point, KiwiSaver balances shift from small, to meaningful, to very meaningful. In a lot of cases, KiwiSaver becomes critical to the level of savings we will have when we retire.
Our choice as investors is to leave it to chance, or to create a simple method of maintaining regular reviews of our position. Regular reviews give us the best chance of a successful investing journey.
What should you consider when reviewing your KiwiSaver?
Think about what’s important to you in terms of how your money is invested. Does it matter how and where your funds are invested, or are you just focused on the overall returns? Are you looking for lots of options and particular areas to invest your money in or is one diversified fund enough? Are you more comfortable with a large corporate provider or do you prefer the idea of a smaller boutique provider? How important to you is the information they provide and the way they provide it?
Think about risk and how comfortable you are to see your balance move around. This will be partly determined by what stage of life you are in. Less risk is prudent when considering a first home purchase or if you are close to retirement but is probably not a good idea when you have 40 years of investing ahead of you.
Choose a fund provider. It’s vital you select an appropriate one, and you get value for your money. In other words, as well as all the considerations above, fees and performance should influence your decision.
Finally, you should be revisiting this assessment process at least once a year. We believe by measuring, monitoring, and managing your KiwiSaver, you may help your balance become even more meaningful.
Clearly there are multiple factors to consider when reviewing your KiwiSaver, but you don’t have to do it alone. We are always happy to answer any questions you may have. Our KiwiSaver Advice service has been set up to enable you to access our experience, and we have put together a process to make this as straightforward as possible.
So, get in touch if you want to make the most of your investment journey.