Don’t Rob Yourself!
Are you maximizing the potential of your KiwiSaver, or unknowingly robbing your future self of substantial savings? As a financial adviser in New Zealand, I urge you to consider the crucial aspect of choosing the right KiwiSaver provider and fund. Why does it make sense to change providers and funds? Let's delve into this and uncover the significant difference it can make in securing your financial future.
In today's investment landscape, the best industry practice emphasizes lean investment companies. Even growth funds offered by banks often carry a conservative component within them. However, here's where the game-changing aspect lies: a comparative case study highlighting the substantial difference a well-chosen fund can make.
Imagine a 27-year-old individual earning a modest $100,000 per year, with a KiwiSaver starting balance of $10,000 and a 3% annual contribution. Let's analyze this scenario in a growth fund offered by a bank. If this individual aims to retire at 65, their funds would grow to approximately $580,000. Now, picture if this same person had switched funds – the growth would have surged to around $720,000! Yes, that's a staggering $140,000 difference simply by making a wise fund choice or potentially losing out on this significant sum by not making a switch.
But wait, there's more to consider beyond these eye-opening numbers. Management fees play a crucial role in determining your overall returns. Banks typically charge around 1.25%, whereas investment providers may charge around 0.9%. A seemingly minor difference of 0.35%, right? However, let's break it down further: even if a bank fund generates a 0.2% higher return, after deducting fees, you're still at a loss of 0.15% in total returns.
The essence here is crystal clear – the choice of KiwiSaver provider and fund isn't merely about returns; it's about optimizing your future financial security. With a careful selection, you can potentially amass a considerably larger retirement nest egg. It's about safeguarding your hard-earned money from being eroded by high fees and conservative investment strategies.
Now, the call to action is apparent – don't rob yourself of a prosperous future. Take charge of your KiwiSaver today! As a financial adviser well-versed in navigating the intricate KiwiSaver landscape, I invite you to make an appointment with me. Let's explore the optimal KiwiSaver options tailored to your unique financial goals, ensuring you maximize your potential returns and secure a brighter financial future.
Contact me now, and let's pave the way for a robust and flourishing retirement.
Call, Text or E-Mail to discuss:
Julia@brokerintel.net
020 41560804
