Kiwisaver providers

[lb99]

am in kiwisaver, not to worried about the govt contribution, plugging away at 8% with my employer paying in 2% which I think is going to rise soon, I dont know much about the money thing and have never saved before, so this kind of compulsory saving is good for me, it is growing nicely.

I am with a default provider (asb) on a default scheme(?), but it concerns me greatly that my provider is most likely using my money to make money for them, rather than for me.
what can I do about this, cause I detest the big co-orperates, all they do is funnel the money to the top and screw the little guy.

[malfunconz]

jeez if you have any doubts about making money by clever manipulation and accumulation (to name two) put it under your pillow and sleep easy ......

[jaffaonajappa]

Without knowing the pros and cons of this, ahem, 'scheme' - Im sure they make some some salary for several teams of Admin and broker type peeps, and the brokers are possibly increasing their leverage power by purchasing with kiwi saver funds?? But the checks in this scheme were quite watertight - gubermint has set it up so the trust/fund itself is the only entity that benefits.

But some expert is bound to come along and explain it soon....?

As well as some conspiracy nuts.

But if it was me...id be putting the 'minimum' amount into it (4%?), and using that other 4% of my income on something I could control directly. (Like next years rego fees ROFL);/

[Scouse]

If you dont like the big organisations managing your contributions then move your funds to another provider like the Fisher fund or gareth Morgan

[Oakie]

I went with Fidelity Life. Smallish Kiwi based, ethical company performing well across different plans. Good financial security rating too.

[pete376403]

They're all (the Kiwisaver providers) going to be making money out of you - why else would they be in it?
I'm with Gareth Morgan for no other reason than he does adventure rides and, having made enough out of Sams Trade-Me venture, he might be less inclined to rip me off.
However I do know that there is more money in an account with my name on it that at any other time of my life, so it's working for me. Actually the return sucks - after 2 years the difference between the total value of the account, and what I have contributed is $145.91 (at least it's not a loss)

[superman]

There are far many better investments out there. Kiwisaver is good for people who have no idea about these however.

Though I guess kiwisaver's guaranteed... I think? So no chance of losing it to stupid corporate dicks who play around with your money.

[lb99]

If you dont like the big organisations managing your contributions then move your funds to another provider like the Fisher fund or gareth Morgan

yeah thats kinda my plan but I have no idea at all about this stuff. it hurts my head just thinking about it

[lb99]

I do know that there is more money in an account with my name on it that at any other time of my life.....

thats me, cant save to save myself

[NighthawkNZ:Me]

There are far many better investments out there. Kiwisaver is good for people who have no idea about these however.

Though I guess kiwisaver's guaranteed... I think? So no chance of losing it to stupid corporate dicks who play around with your money.

Guaranteed by whom, Kiwisaver isn't guaranteed... diffentitly not by gooberment.

Aussie had a similar scheme and just as many of the people were coming into retirement age many of the finance company's went bust...

[Oakie]

With greatest respect to previous posters, anyone who sees the growth on their account as not great should re-focus and take into account their employers contribution. I put in 2%, my employer puts in 2%. Straight away I'm getting a 100% return on my investment and that's before you even look at growth in the account. Find me another safe investment that does that and I'll look at it.

[NighthawkNZ:Me]

With greatest respect to previous posters, anyone who sees the growth on their account as not great should re-focus and take into account their employers contribution. I put in 2%, my employer puts in 2%. Straight away I'm getting a 100% return on my investment and that's before you even look at growth in the account. Find me another safe investment that does that and I'll look at it.

Not saying it is not a good investment because it is, and its pretty simple, what I am saying though its not garanteed... nothing really is in this day and age.

[Highlander]

With greatest respect to previous posters, anyone who sees the growth on their account as not great should re-focus and take into account their employers contribution. I put in 2%, my employer puts in 2%. Straight away I'm getting a 100% return on my investment and that's before you even look at growth in the account. Find me another safe investment that does that and I'll look at it.

At this stage the Government throws some in as well. I can't think of anywhere I can put that money to get legally get that kind of return.

am in kiwisaver, not to worried about the govt contribution, plugging away at 8% with my employer paying in 2% which I think is going to rise soon, I dont know much about the money thing and have never saved before, so this kind of compulsory saving is good for me, it is growing nicely.

I am with a default provider (asb) on a default scheme(?), but it concerns me greatly that my provider is most likely using my money to make money for them, rather than for me.
what can I do about this, cause I detest the big co-orperates, all they do is funnel the money to the top and screw the little guy.

It is gauranteed that they are making a profit off your investment, that is a fact of life, best you get used to it.
Like Mr Oakie has said the eplopyer and government contribution makes the scheme worth being in.
The next bit, you say you are paying in 8%, I considered that and figured that the employer is required to pay in 2% (to increase to 3% as required by this years budget) and the Government matches my contributions to a maximum of $1040 per year (about to be halved by this years budget). So long as I sontribute at least $1040 per year, I am geting the maximum "free money" anything over that I should use to pay off any debt I have then divert either into KiwiSaver or other form of investment (term deposit, shares or what ever).