Retirement in NZ

Mary HOLM << How to make the most of your money>>

1. Spend:

Get rid of our unwanted stuff to another lucky family Xmas

save 1 dollar is a true 1 dollar but earn 1 dollar you need to pay tax

2. compare:

Compare KiwiSaver and managed funds at sorted.org.nz

Compare term deposit interest rates on interest.co.nz

3. index funds - a good choice

index funds called passive or tracker funds are usually share funds that invest in all the shares in a market index, such as NZX580

p142 drip-feeding into a low-fee non-kiwisaver index fund over a few months would work best.

“If you’re investing for the long term, especially for retirement, unhedged is usually better. You get the benefit of currency diversification, and over time the ups and downs tend to balance out.” — Mary Holm, RNZ Money Talks

4. Rules to invest by

Dollar cost averaging - dripping monthly.

Drip-feeding out not so good.

You don't want your money sitting around in a low-interest bank account for too long. So investing it in the fund fairly fast - perhaps in 3 or 4 lots, each a month apart.

“Retirement Planning in New Zealand” by Martin Hawe