Kapiti Financial Advice Limited – KiwiSaver and Investment
A Massey University report reveals a widening gap between NZ Superannuation and the cost of living in retirement. The New Zealand Retirement Expenditure Guidelines Annual Update 2023 examines various lifestyle choices and the savings that are required to fund the respective lifestyle. The study shows that your geographic location (metropolitan v provincial) and your personal … Read more
An article on Stuff this week highlighted the strong performance of Milford and Generate KiwiSaver funds over the longer term, as reported in the June 2023 quarter Morningstar KiwiSaver survey. Morningstar is an international financial services firm which conducts investment research, including their quarterly KiwiSaver survey. The Stuff article notes that Milford has been a … Read more
As expected, the RBNZ raised the Official Cash Rate (OCR) by 50 basis points to 3.0% this week. The Bank also raised the future track for the OCR, forecasting a peak of 4.1% by mid 2023, slightly higher than in the previous May Monetary Policy Statement. The Reserve Bank upped their forecasts for non-tradeable inflation … Read more
It has been a pretty good period for equities over the last six weeks or so, with the NZX up 9% since the start of July, matching similar stories in Australia and the US. Last week stocks picked-up on headline news that in the United States the consumer price index rose at a slower pace … Read more
NZ Funds have released their Monthly Review for April 2022. It reveals that the fund manager has used S&P500 and Nasdaq put options to generate significant returns in April, in a share market that has been falling. They intend to continue using put options while market volatility remains high and tending to the downside. NZ … Read more
In their latest Investment Insight NZ Funds discuss a problem that has been concerning me for a long while. Fixed interest securities, such as bonds, have an important role in the portfolios of clients with a low tolerance to risk or a short time-horizon. They provide low risk and a steady interest income throughout the … Read more
NZ Funds have released their Investment Report for the first half 2021. They believe that professional financial advice can help you understand and manage investment risk and navigate your choice of manager, asset allocation and contribution rate. NZ Funds expect local and international shares will continue to rise over the medium term, but at a … Read more
This week, financial commentator Janine Starks wrote an opinion piece titled Why you’re probably investing too much in KiwiSaver: https://www.stuff.co.nz/business/opinion-analysis/300321717/why-youre-probably-investing-too-much-in-kiwisaver The question is raised because your savings are essentially locked-in until you turn 65 years of age. Special rules ensure KiwiSaver funds held through to retirement, with some exceptions around first home purchase and financial … Read more
Annual fund charges published by KiwiSaver and managed fund providers allow investors to compare the cost of having your money managed by the respective providers. This stands in contrast to fees charged by share brokers and investment advisory firms, which can be difficult to calculate. Indeed, there can be multiple levels of fees which can … Read more
Doing well, as well as doing good examines the financial argument for investing in businesses that manage their environmental and social risks. It is no surprise that companies with a strong sustainability ethos do indeed gain advantages from a good reputation, a strong brand, loyal customers and staff motivated by a strong vision. The present … Read more