Increasing mortgage repayments vs Kiwisaver

[homer]

Invest in gold its going up in $$

You need to get in to the gold 3 years ago
when it was like 280 an ounce

it wil fall , in a hurry . over night actually as there always seems to be a huge release of gold to off set the demand , which means theres then to much out there , the price drops

Youll actually find that buying silver would have got you a bigger return , about 5 times as much

[Hinny]

a better bet.
..... buying classic motorcycles.
They may not appreciate, but at least you could appreciate them...

You said a mouthful there.
Buying bikes that are going to become classics might be even better. Appreciate and use them while they are new. Admire and reminisce when they, and you, are old.

[Ryder]

Too late.
I just signed up for it on Monday.
I wasn't sure what to do, so I asked the vifferbabe. She tole me I had to.
But then, she is the ASB Bank KiwiSlaver X-Spurt, so I did what she said.

Wouldn't want to go agin her and miss out on nookie...
Personally, from a "look what the Gubmint did last time we had a super scheme" point of view, and also from a "lookit the backward trend of these investments the wife's cousin signed us up for twenty years ago that are steadily going backwards while his cut trends upwards" point of view, and also also "lookit how pharkt the stock market is at the moment" point of view, I reckon paying off your mortgage and keeping your debts low is a better bet.
That, or buying classic motorcycles.
They may not appreciate, but at least you could appreciate them...

lol well its all good but no it is not compulsary. you are far better off just opening a savings account thta you ant access easily and just pay off your mortgage asap umm...and yea if the last scheme was anything to go by you'll probably end up losing what you put in anyways

[Ryder]

A couple of remarks. Will Kiwisaver still be in existance over successive governments to come? Will you reach 65 years to claim, if still possible? And with a likely recession looming can you afford 4% of wages?

Also, why is it when people buy a home, why pay principal? Take out an interest only loan! The idea is that your first home is not the one you will retire in and live happily ever after. Property value increases every 7 years and this is when you sell the home, make the profit for a bigger deposit payment for the next house, keeping interest only loan, paying the minimum and in the following 7 years repeat the cycle.

i doubt kiwisaver will be around that long but who knows. 65???...umm?! hehe pass! heck!...i cant even afford the 4% now!!!

you can go interest only buy taking principle releif but i think you can only do 11 or 12 months at a time within a certain time frame.

[Hoon]

I did the Math on kiwisaver in this thread.

The Govt can't take your money. It belongs to the Provider.

Sure Providers can go bust just like any investment scheme but you can offset this risk by going for a big bank like ASB instead of the dodgy outfits that promise an extra 1%.

If your employer would reduce your pay raise to offset their kiwisaver contributions then I would get another job. Luckily I work in a place where those that approved the pay raises have nothing to do with those that count the beans.

Don't have access to the money until you retire? Do what I said in the above thread. Contribute the minimum amount required to gain maximum benefits and invest the rest elsewhere.

Put the money in the bank you say? Show me one that pays 150% interest!

Like others said its money for jam. Sure there are some risks involved but with 150% return on your investment its well worth it.

[YellowDog]

I am glad some people seem to believe Kiwisaver to have some merit. I don't. It is just paper money that may or may not have any value in the future. Paying off your motgage is a 'real life today option' and will show some tangiable benefits.

Unless you are a young couple looking to get a deposit to buy a house, Or you are getting close to retirement age; then I can't see the point in it.

[Swoop]

Trusting this and successive gubbinment's not to tinker with or raid the piggy bank... (like previously)
No thanks.

I'll stick with the alternatives, thanks.

[homer]

hey all
i want some info
if i pay 4 % in to kiwi saver
and eventually the employer pays in %4
and the govt pays 1 %
thats 9% total , 5% of that is on top of my wages total .
so how come i actually only make $1040 dollars from the govt ,wheres the rest of what the 9 % saved could earn . Or am i missing something .
and do they then class the interest made on it as part of the savings as well

[NinjaNanna]

Some really good calculators here. http://www.stgeorge.com.au/calculato...t.asp?orc=home the "extra repayments calculator" is exactly the one you need

[Oakie]

The government doesn't pay 1%. They pay $1000 to kickstart your fund as a one off. They also pay a small amount to help cover fees. God, they may even make their own contribution up to a maximum of $1040 but I can't remember now.

[Jantar]

I'm not in Kiwisaver yet, but have had discussions about paying an extra 4% off my mortgage instead.

Does anyone have a link to calculator to figure out how much time/$$ I would save by adding 4% to my fortnightly repayments? I have found ones that will tell me how much I have to pay per fortnight to finish by 2020, but I'd like to see something a bit more comprehensive.


Cheers............................

Why not do both. Join Kiwisaver at 4% adn get your employers contributions as well. Then after 3 years when the employers contribution is also 4%, divert your 4% to your mortgage. Your employer still has to match your 4% into kiwisaver and the government give you $1043 pa as well.

isnt the mortgage the whole saving point ,
i wont be putting in to kiwi saver ,due to the fact thats its share based . no gurantees
you could pay in to it and still get nothing

You can pay the mortgage on the other hand and then sell the place bank the money in high interest account and then pay a small rent later . you still have the money you sold for .

also what happens to all the extra money that you dont get ?
if you save say 1000 a year
and the govt puts in 1000
and the employer puts in 1000
k you get 3000 for that year

what about when you put in say 1500 a year
wheres the bit from the govt
in theory they take 500 off you

rough figures ok

Two points here, not all funds are share based. You can chose between conservative (interest only), Balanced (shares, property and interest) or growth, (shares only). The government match you $ for $ up to a maximum of $1043 pa. They don't take anything off you other than tax on the profits earned by the fund, and even then the tax is capped at 30% rather than 39%.

[homer]

i do see
i would now want a 4% payrise tomorrow to cover this and then payrise per year accordingly

after all thats what most jobs in aussie work pay rates like
id then be quite happy

[doc]

You need to have some savings as well as pay off the house, cause when you retire the money tied up in the house is only good for you if you sell it!

Investment advisors will tell you your best investment is your mortgage, the savings you make in interest are tax free.
You dont start investing until your debt free.
Diversification, mix of commercial over private rental property, sharemarket the graph equates to a yoyo going up stairs. Managed funds, and cash.
Take your risks early in your life, more time to recover.

I however have been asessed as being "recklessly conservative"

Dont be greedy you don't need to wring the last little penny out your investments.