Super_BQ
12th February 2008, 01:20 PM
Came across an interesting article which I think people who are in Kiwi Saver or thinking about joining Kiwi Saver should look at.
http://www.nzherald.co.nz/section/3/story.cfm?c_id=3&objectid=10486415
It brings light to some posts i've made back last year on the problems of a gov't compulsory funding scheme for retirement. If other larger nations have a difficult time imposing a state wide pension scheme, what chance would NZ have to prove otherwise?
"In all but five of the KiwiSaver funds, savers would be better off if they had slept with their funds under the mattress for the first six months of operation before allowing for the Government contribution," he said.
We should all know the performance of any fund should not be based on the 1st inception year of operation as mentioned here,
"Over the lifetime of their investing, there will be such pockets of weakness and performance will not always be positive. [But] history has always shown that investment markets go up over an extended period."
In some previous post i've made (you can search it), it's a common belief that the majority of managed funds (or mutual funds) do not outperform the index. That is if you factor in the amount of commissions and fees Kiwi Saver appointed funds (and other managed funds) take, they do worse than to simply put your investment in the sharemarket index. For eg. in the US if you want to buy an index of the Nasdaq, you could buy the shares QQQ which mimics the index return.
In another note, I highly recommend the investment ideas of Warren Buffet (http://en.wikipedia.org/wiki/Warren_Buffett)- who IMO sets the standard that other managed funds should follow. So good that in 2007, it had an impressive return of over 28% (http://www.cnbc.com/id/22453430/?__source=yahoo%7Cheadline%7Cquote%7Ctext%7C&par=yahoo)- best ever since 1998.
BQ
http://www.nzherald.co.nz/section/3/story.cfm?c_id=3&objectid=10486415
It brings light to some posts i've made back last year on the problems of a gov't compulsory funding scheme for retirement. If other larger nations have a difficult time imposing a state wide pension scheme, what chance would NZ have to prove otherwise?
"In all but five of the KiwiSaver funds, savers would be better off if they had slept with their funds under the mattress for the first six months of operation before allowing for the Government contribution," he said.
We should all know the performance of any fund should not be based on the 1st inception year of operation as mentioned here,
"Over the lifetime of their investing, there will be such pockets of weakness and performance will not always be positive. [But] history has always shown that investment markets go up over an extended period."
In some previous post i've made (you can search it), it's a common belief that the majority of managed funds (or mutual funds) do not outperform the index. That is if you factor in the amount of commissions and fees Kiwi Saver appointed funds (and other managed funds) take, they do worse than to simply put your investment in the sharemarket index. For eg. in the US if you want to buy an index of the Nasdaq, you could buy the shares QQQ which mimics the index return.
In another note, I highly recommend the investment ideas of Warren Buffet (http://en.wikipedia.org/wiki/Warren_Buffett)- who IMO sets the standard that other managed funds should follow. So good that in 2007, it had an impressive return of over 28% (http://www.cnbc.com/id/22453430/?__source=yahoo%7Cheadline%7Cquote%7Ctext%7C&par=yahoo)- best ever since 1998.
BQ