Why I Quit KiwiSaver - Should You?

Why I Quit KiwiSaver - Should You?

KiwiSaver is what the majority of people in New Zealand use for their retirement but there are a lot of major limiations with this scheme. I'll be showing you why KiwiSaver might not be as good as you think it is and discussing a potentially far more effective strategy to securing your first home and a comfortable retirement.

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I am NOT a financial advisor! This video is for entertainment purposes only

#investing #stockmarket #KiwiSaver

[kalebbennetts]

What u missed out was Tax, if you invest in kiwi saver sure the returns and lower but so are the taxes. 28% is the highest u will be taxed with kiwi saver regardless of your income. With the s&p500 you will pay up to 39% tax and need to file taxes yourself.
I also don't believe you deducted taxes from either which gives people a return that is nowhere near accurate

[ShadowMatterYT]

Such a good video mate. Well presented and easy to understand. Love these investment videos. Keep em coming 😉

[sureinlayin]

I’m 30. My last year of KiwiSaver I made 6000, with all contributions considered. 4% of mine, 3% of the employer and $500 Govt. I’m taking all of my funds out to buy a first home, which will leave me with the base $1000 left in KiwiSaver.

If I move this to SuperLife, which invests in S&P, theoretically I could make 1.8 million by retirement. Pretty good investment for something I’ve barely noticed.

[Joat_Musik]

Great advice thankyou! I'm liking the idea of having the 3% on kiwi saver and then investing in the S&P 500 separately...for someone with absolutely no knowledge in investing...what is your opinion on how I should go about it? what are the steps I need to take to invest in the S&P500 index fund? through what company? etc... Thanks!

[veragini]

There are some kiwisaver found that are almost 90% investing in foreign shares like OneAnswer KiwiSaver Scheme - Sustainable International Share Fund which can be good as it follows PIE tax. But, yes going for S&P500 could result in higher returns. However, people need to pay attention to FIF rule if investing directly via a foreign found/etf etc.

[daphnelatu]

Great video!! I've signed up for a Hatch account because of your videos and I plan to put in $200 - $300 a week to invest in US EFTs. I'm hoping to buy a house in Auckland within 7 years with my investments. Is this a sound plan and do you have any advice? Thanks in advance!

[TWEQDvideo]

Great video. How about Kiwisaver, just put in the minimum to get the $521 from.the Govt, that would be a 50% return.
For the bulk of one's investing put into S&P200 (VOO)

[Rose-xqsd]

Can you withdraw your money when deciding to opt out?

[andrewknight]

Love your videos. Can you do one on currency trading? There seems to be huge potential here if you know what you are doing?

[BigBaoisWatching]

Thanks for the video. What about the gov contribution, I count it as a good way to get my tax refunded. I just put 1050 in every year in growth fund for that part. BTW I have other investment in ETF, US NZ stock markets and crypto currency. Keeping kiwi saver also be considered as diversify my investment.

[kaptainkiwi]

Kiwisaver is only a tool for making a passive income stream it shouldn't be used as a primary tool one should be using as many investment tools as possible because the diversity of your money is far more important than just expecting KS to do all the work I use multiple investment tools including EFT's with sharies App international EFT's with Hatch as well as using a growth fund with my KS also using some of my KS to use as a deposit for a house and using that to create income from Room Rental and re-investing that income into my Investment Tools I don't worry about reducing the Mortage too fast because the Capital of the house is more important that's my opinion and what I do.

[tekootianderson]

There is a NZ platform that accepts KS as a retirement fund.

[BrentColeman]

Definitely agree! In the banking sector its common for staff to have a TEC package where the employer contributions are effectively paid for by the employee, in addition to their own contributions. Without the benefit, and now that I've bought a home, I've halted all contributions. In index funds I have better returns, lower fees, and the freedom to liquidate if needed.

[scottwilson]

Well put together video! Agree the first home grant valuations, looks super frustrating for people trying to get it! A few points, It is pretty easy for most people to qualify for the government contribution $521.43 for contributing $1042.86 per year. There is also one kiwisaver provider (superlife) that I know of which you could invest entirely on the S&P500 if you wanted too, although the fees (0.54% + admin fee) will still be higher than investing out of kiwisaver. You make great points with around returns and fees over the long term can make a huge difference. Everyone's situation is different but a hybrid strategy could be to contribute enough to get the government contribution and then invest any extra out of kiwisaver in Index funds as you've mentioned. There is definitely some pros and cons. All the best with your channel!

[jd]

How do you get out of Kiwisave? What is the best way

[TWEQDvideo]

All your content should to used in schools to teach financial literacy.

[mvb]

I've been in for just under 14 years. I still don't have enough for a deposit on a house. That's at 5%. At the rate house prices are up. I should have a deposit when I'm 50. At that age. The bank won't give me a mortgage. I'll never pay it off before I retire.