KiwiSaver

The following is a selection of articles mainly from January 2005 to the present. To explore this topic in more depth and access earlier columns, please use the search box.

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Articles

NZ Herald August 23 2008

Q&As: 64-year-old can't believe how good KiwiSaver is for him
KiwiSaver providers give wrong info to a would-be investor
Retired man questions my advice about bonds

Syndicated column August 19 2008: KiwiSaver more flexible and generous than commonly thought

Two lesser known features of KiwiSaver make it more user friendly than many people realise. They could entice non-joiners into taking part in a scheme which - after all - they are helping to fund, as taxpayers.

NZ Herald article January 17 2008: Perspectives article on poor KiwiSaver performance

Earlier Herald article criticising KiwiSaver is misleading for two reasons.

NZ Herald article December 19 2007: Concern over remarks on old-age support largely unwarranted

People should not be put off joining KiwiSaver because entitlement may eventually occur later

NZ Herald August 16 2008

Q&As: Advice on investment during retirement has worked for these readers
KiwiSaver contributions holidays will be easy to take
Reader dislikes last week's answer on KiwiSaver fund performance

NZ Herald August 9 2008

Q&As: Reader wants a list showing how KiwiSaver funds have performed, but I won't oblige.
Why farmers mingle their work and personal expenses.
More reasons why taxing families as one unit might harm more than it helps.

NZ Herald August 2 2008

Q&As: 3 Q&As on whether New Zealand should raise GST and reduce income tax - including how some farmers cheat on their taxes, and whether we want to encourage people to work longer hours.
Why KiwiSaver providers are highly unlikely to suffer the same fate as many finance companies.

NZ Herald July 26 2008

Q&As: Would it be better to raise GST and lower income tax?
Possible raising of retirement age not a good reason to stay out of KiwiSaver.

NZ Herald july 19 2008

Q&As: Stop worrying about money, says former spendthrift, now in his seventies.
Employee KiwiSaver can do very nicely thank you if she or he has several employers.
Let's list the KiwiSaver good guy employers, rather than the others.
Employer is confused by government's planned KiwiSaver changes.

NZ Herald July 12 2008

Article and then two Q&As about the Government's proposed changes to prevent employers from paying less to KiwiSaver employees than to other employees.

Syndicated column July 8 2008: Older KiwiSavers get the best deal

Several readers aged 55 to 64 have asked what KiwiSaver holds for them. The answer is "heaps". The scheme is particularly attractive for this age group for two reasons:

NZ Herald July 5 2008

Q&As: Average Joe Bloggs, sick of the rich and poor ripping off the system, seeks tax breaks.
"Fair Go" television show overlooked three important points when criticising KiwiSaver for children.

NZ Herald June 28 2008

Q&As: Why older people get a better deal from KiwiSaver, but younger people should nevertheless still join.
Do interest-only mortgages qualify for mortgage diversion?

Syndicated column June 24 2008: Hope and help for first home buyers

Things are looking up for would-be first home buyers, left out in the cold in the recent house price boom. The numbers are finally getting better, and government assistance is increasing.

NZ Herald June 21 2008

Q&As: 2 Q&As on whether homeowners should sell and be renters for a while, to cash in on falling house prices?
Should 62-year-old buy a rental property or join KiwiSaver?

NZ Herald June 14 2008

Q&As: KiwiSaver naysayer is the one who is "light on fact".
Self-employed KiwiSaver must contribute 4 per cent of pay when he takes a job - but he won't starve.
Inland Revenue "clarifies and expands" its position on mortgage interest deductions after a family home is rented out.

Syndicated column June 7 2008: Take action now to get full KiwiSaver tax credit

June is the month of reckoning for KiwiSaver members who want to be sure they get as big a tax credit as possible from the government. But judging from reader emails and questions at seminars, there's a fair bit of confusion about it all.

NZ Herald June 7 2008

Q&As: Many KiwiSavers double the money they put in the scheme, and some triple or even quadruple it.
Act now to make sure you get the full KiwiSaver tax credit.

NZ Herald May 31 2008

Q&As: 2 Q&As on how the self-employed can make the most of KiwiSaver.
More to come on tax deductibility of mortgage interest when you rent out your former home.

NZ Herald May 17 2008

Q&As: 61-year-old struggling to pay off mortgage considers renting out her house and becoming a tenant elsewhere.
Self-employed man wants to get back "over payment" into KiwiSaver

NZ Herald May 10 2008

Q&As: Grandma will help grandson more by opening her own KiwiSaver account and giving him the savings.
Ultraconservative KiwiSaver funds are as safe as bank accounts, and bring much higher returns.
Is lack of self control more prevalent now than in the past?
Government bonds have their place for the ordinary investor.

Money column for May 10 08

NZ Herald May 3 2008

Q&As: Measuring movements of the Kiwi dollar against the US dollar can be quite misleading.
Last week's boss responds to my response to him!
KiwiSaver tough on small businesses.
Many reasons to use Indian labour rather than NZ labour.
NZ workers not so bad.

Syndicated column April 29 2008: Ethical investing likely to catch on here

Ethical investing - which has been increasingly popular in other western countries - is likely to catch on in New Zealand now that KiwiSaver providers have to state in their investment documents whether they offer this option.

NZ Herald April 26 2008

Q&As: KiwiSaver the last straw for employer of "whinging, incompetent" New Zealanders
Reserve Bank offers some reassurance for reader worried that NZ banks could be caught up in their foreign parent's woes ...
.... But if you're still worried, consider the safest investments of all, government securities.

NZ Herald April 12 2008

Q&As: Monkey story a great yarn, but it's not about the share market.
Reader's concerns about banks' exposure to foreign exchange risk are unfounded.
61-year-old should think hard before selling her house and enjoying some of the proceeds.
Man about to retire can still get plenty from KiwiSaver.

Syndicated column April 15 2008: 3 ways that KiwiSaver just got even better

This month is a big one for KiwiSaver, with several changes taking effect that make the scheme more attractive - including a little publicised tax break.

NZ Herald April 12 2008

Q&A: 3 Q&As on whether New Zealand banks are safe, whether it's best to spread your money around several banks, and bank credit ratings.
Should entrepreneurial types stay out of KiwiSaver?

NZ Herald April 5 2008

Q&As: The best KiwiSaver fund for a 23-year-old depends on her house-buying plans.
Angry Blue Chip investor muddles my opinion with a reader's opinion.
A reader suggests why online tax payments sometimes go wrong.

Syndicated column April 1 2008: In defence of writing lots about KiwiSaver

No journalist likes to be accused of doing PR for the government. So when the editor of one of the newspapers that runs this column recently suggested I was "championing" KiwiSaver, it got me thinking.

NZ Herald March 8 2008

Q&As: A landlord's threats are perhaps a little hasty - but he has a point.
A KiwiSaver misunderstands the ups and downs of the market.
Are property shares a good option for young man saving to buy his first home?

Syndicated column March 4 2008: What a difference a year or two makes

Most people have lists - either written or in their heads - of things to do, and certain items never seem to make it to the top. If one of those is to join KiwiSaver, push it to Number One promptly. Delay is probably costing you much more than you realise - unless you are 60 to 64.

NZ Herald March 1 2008

Q&As: Five Q&As about employers contributing extra to KiwiSaver, at no cost to them:
· An employee can take advantage of this in more than one job.
· Employers are reimbursed for voluntary as well as compulsory contributions.
· Why even mean employers might go along with it.
· Employers can contribute any amount.
· How salary sacrifice works, and how higher employer contributions can boost it.

NZ Herald February 23 2008

Q&As: A middle-of-nowhere section might not be the best choice for a 25-year-old's savings while he studies.
Have delays in processing KiwiSaver contributions hurt savers in the recent tumultuous markets?
How to top up your KiwiSaver contributions so you get the full tax credit.

Syndicated column February 19 2008 - Mortgage diversion well worth it for many

The term "mortgage diversion" will be on more and more lips as KiwiSaver approaches its first anniversary in July.

It's not too early to think about whether this feature of the scheme - available after 12 months membership - would work well if you are already in KiwiSaver, or could attract you into the scheme.

NZ Herald February 16 2008

Q&As: Bonus money in KiwiSaver for most employees - if they can get their bosses to play along.
When you need to top up your KiwiSaver contributions to $1043, to get the full tax credit.

NZ Herald February 9 2008

Q&As: Calculator tells reader to stop saving and live it up a bit.
Reader who finds KiwiSaver nauseating has a scary list of things that could go wrong....
...But another one applauds KiwiSaver, while sitting on the home ownership sidelines.

Syndicated column February 5 2008: Share plunge arguably good for KiwiSaver

Despite some irresponsible reporting, the low returns on many KiwiSaver funds in their first few months are no reason not to join up. I'd even say the rough start was good in some ways.

The one big worry is that people have read a few headlines and decided to stay away from KiwiSaver without understanding what's really happening.

NZ Herald February 2 2008

Q&As: Does the share price slump disprove standard investment advice? And should advisers make economic forecasts?
KiwiSaver member is doing superbly despite the slump - as are all other members.
A reader objects to the idea that KiwiSaver is a gift from the government.

NZ Herald January 26 2008

Q&As: 3 Q&As about recent negative Herald articles about KiwiSaver returns in the early months - and why they are misleading. We also discuss how KiwiSaver membership forecasts are made - with an apology to Michael Cullen and Peter Dunne - and how repaying a mortgage fast is a type of saving.

NZ Herald article December 19 2007: Concern over remarks on old-age support largely unwarranted

People should not be put off joining KiwiSaver because entitlement may eventually occur later

NZ Herald December 15 2007

Q&As: Courses and grants help beneficiaries set up their own businesses.
Big earner is wrong to think KiwiSaver is not for him.
Why KiwiSaver money sits around at Inland Revenue for several weeks - although at least it earns interest.

Syndicated column December 11 2007: Can't afford KiwiSaver? That's unlikely

A reader protests that, despite my suggestion that everyone under 65 should sign up to KiwiSaver, "reality has it that not many of us can afford it!"

NZ Herald December 1 2007

Q&As: In defence of so many questions about KiwiSaver - and a challenge to readers.
Getting the best out of KiwiSaver for a non-earning wife and college kids.
Getting the best out of KiwiSaver for an early retiree on a low income.

NZ Herald November 24 2007

Q&As: Eggs in baskets don't really apply to term deposits, but there's another way to diversify.
Taxing options if you take flatmates in to help you pay the mortgage.
2 Q&As on how to make the most of KiwiSaver if you are in and out of the work force.

NZ Herald November 17 2007

Q&As: Why don't banks lend money for share investment?
2 Q&As on how you can best help your grandchildren (or children) into KiwiSaver
Christmas gifts for those who really need them

NZ Herald November 10 2007

Q&As: Is now a good time for a 36-year-old to buy a house? And if so, should it be a bigger house, so she can take in tenants?
Four Q&As on how KiwiSaver works - or doesn't work - for those living overseas or planning to live overseas.

NZ Herald November 3 2007

Q&As: Why does the price of our milk rise when overseas demand goes up?
How and when to take a KiwiSaver contributions holiday - for children and adults.
Two Q&As on KiwiSaver tax credits and timing.

Syndicated column October 30 2007: Can't afford KiwiSaver or saving elsewhere? You should still join

Close to half of New Zealanders 18 and over who haven't yet retired say they are unlikely or very unlikely to join KiwiSaver, a recent AMP survey shows. But a glance at their reasons for not joining suggests they don't yet understand the scheme's flexibility. They are missing out needlessly.

NZ Herald October 27 2007

Q&As: Twenty-eight-year-old with two rental houses wonders if this is a good time to buy a rental apartment.
Difficulties finding a KiwiSaver provider to accept tiny contributions from low-paid worker.
Saving kiwis.

Holm Truths Spring 2007

KiwiSaver - Why not? New Zealanders are coming up with many different reasons not to join KiwiSaver. But none of them really holds water for anyone under 65.

Syndicated column October 16 2007: KiwiSaver survives readers' challenges

It must be the noisier people who criticize KiwiSaver on the grounds that they don't trust the government.

Such mistrust has been a common theme in readers' letters. And yet a recent AMP survey of non-retired people 18 and over shows just 3 per cent of those unlikely to join KiwiSaver say it's because they don't trust the current or future government.

I was surprised, too, that only two readers responded to the challenge in my last column "to come up with a government change - that's at all likely to happen in a democracy - that...

Syndicated column October 2 2007: Big bad government unlikely to spoil KiwiSaver

Every now and then, someone says to me, "The government must be paying you for all that favourable publicity about KiwiSaver". It's not, of course. And in any case, my coverage has been far from totally positive.

As I've often said, KiwiSaver distorts savings decisions, because you can save only in certain types of vehicles.

Also, the government - in other words the taxpayers - is paying many KiwiSaver members thousands of dollars to do saving they would do anyway. True, other members will save more because of KiwiSaver, but whether the whole...

NZ Herald September 22 2007

Q&As: KiwiSaver totals over the years should be adjusted for inflation - but let's not get carried away.
People receiving ACC payments or Paid Parental Leave have a choice in KiwiSaver.
Early retirement plans won't be harmed by membership in KiwiSaver.

Syndicated column September 18 2007: Combining kids and KiwiSaver

Every New Zealander under 65 will benefit from joining KiwiSaver, including newborns. But the rules - and how to make the most of them - are different for children, and many readers have questions about that. Here are a couple:

NZ Herald September 2007

Q&As: Should a couple with 3 children move to a bigger house in town or take a bet on a coastal property?
Are KiwiSaver bond funds as conservative as they seem?

NZ Herald September 8 2007

Q&As: Join KiwiSaver even if you are already in another super scheme - but no double dipping!
Can an employee get around the 4 per cent minimum contribution to KiwiSaver?
Is KiwiSaver for government employees too good to be true?
Choosing between KiwiSaver and another work scheme

Syndicated column September 4 2007: Ins and Outs of KiwiSaver tax credit

Judging by readers' questions, confusion reigns about the government's KiwiSaver tax credits, which match members' contributions up to $20 a week or $1042.86 a year.

The tax credits are paid to every contributing KiwiSaver member 18 and over until they reach NZ Super age (currently 65) or five years after joining, whichever is later. For example, if you join at age 63, you will continue to get the credits until five years later, when you are 68.

NZ Herald September 1 2007

Q&As: How the typical KiwiSaver investment fund differs from a finance company
Would it work for the government to sign a contract that it wouldn't change KiwiSaver over the years?
More winning entries for the KiwiSaver book

NZ Herald August 25 2007

Q&As: Following last week's first Q&A, a reader suggests another way to bring overseas money to New Zealand.
Who's right, Gareth or me, on tax credit start dates?
We find eight providers who will accept one-off payments into KiwiSaver.
More winners of books.

Syndicated column August 21 2007: KiwiSaver bringing out the best in many

One aspect of KiwiSaver that I'm enjoying is the way people are helping one another understand it. This came through in several entries to our giveaway of my book "KiwiSaver: How to make it work for you."

Entrants had to say in 40 words or less why they should win one of 30 copies of the book. Some wanted it book to help their children, some their parents and some their workmates.

NZ Herald August 18 2007

Q&As: Man lives in NZ but his savings are in the US. When should he bring the money here, in light of the dollar's fluctuations?
3 Q&As on when the KiwiSaver tax credit begins - depending on when you join and/or start making contributions.
More winners in our giveaway of "KiwiSaver: How to make it work for you".

NZ Herald August 11 2007

Q&As: KiwiSaver is just right for 30-year-old son having difficulty saving for his first home.
Why sign up a one-year-old for KiwiSaver?
Also: Some winning entries in the "KiwiSaver: How to make it work for you" giveaway.

Syndicated column August 7 2007: Misunderstandings about KiwiSaver abound

Predictably, given that KiwiSaver is new, complex and not yet fully formed, there are many misunderstandings about it.

NZ Herald August 4 2007

Q&As: How can employees get around the KiwiSaver restrictions on them, and how much should you contribute for your children?
A mother worries about whether she should sign up her children in KiwiSaver.
Also: Some winning entries in the KiwiSaver book contest.

NZ Herald July 28 2007

Q&As: KiwiSaver providers that are offering ethical investment funds.
More on ethical KiwiSaver funds.
Will the KiwiSaver kick-start be around for a while?
Could the government take KiwiSaver money to repay student loans?
Oops! Too much haste.
Sack adviser who recently recommended Bridgecorp.

Syndicated column July 24 2007: Sack the inaccurate journalists

A reader reports that she and her family "were quite astounded to find you recommend (KiwiSaver) so unreservedly."

"I've read several articles recently by other journalists, who have pointed out that one's savings could well be handled - in the interim before one retires - so poorly that there could be none left to collect on retirement.

NZ Herald July 21 2007

Q&As: Are the 65-pluses getting a raw deal?
One reader thinks richer superannuitants are already spoilt.
Self-employed reader doesn't realise what a good deal he's on to.
KiwiSaver options for small business couple.

Holm Truths Winter 2007

A scheme for everyone: KiwiSaver is a good idea for every NZ resident under 65 - including self-employed, beneficiaries, adults not in the work force and children.
Also in this issue: From the mailbox - A financial planner offers some gems of wisdom, but I'm not totally convinced.

NZ Herald July 14 2007

30 talented readers will win copies of KiwiSaver book
Q&As: How the KiwiSaver tax credit is calculated, and details for self-employed people.
KiwiSaver and taxation, plus more for the self-employed

Syndicated column July 7 2007: No tricks behind KiwiSaver doubling of money

A reader has "one or two problems" with my last column, in which I said people are silly not to sign up to KiwiSaver.

"Your comments that 'twice as much comes out at retirement' and 'triple the money in, triple the money out'... make one huge assumption - that the provider the investor chooses over time does not lose any money - a highly unlikely scenario surely!", says the reader.

NZ Herald July 7 2007

Q&As: What happens to KiwiSaver accounts in a divorce?
How KiwiSaver might affect NZ Super, and what you should do about it.
A source of basic KiwiSaver information
The NZ share market index that includes dividends has been misleading in the past. How much does it matter?

NZ Herald June 30 2007

Q&As: Three Q&As about KiwiSaver - reimbursement of employer contributions; is daughter overseas eligible?; when is mortgage diversion helpful?; where can you get the information that was in the three Herald supplements about KiwiSaver?
Rental property running costs mount up over the years.

Syndicated column June 26 2007: KiwiSaver - be in to win

Ever since the government announced its added incentives to KiwiSaver last month, everyone is talking about the retirement savings scheme. And well they might.

While I still have reservations about the distortion of savings decisions, and while many employers are angry at being forced to contribute, practically all individuals will be better in than out.

NZ Herald June 23 2007

Q&As: Nearly 65-year-old should grab chance to join KiwiSaver. People over 60 do particularly well out of it.
Why dividends should be included when we look at the performance of the NZ share market.

NZ Herald June 16 2007

Q&As: A big fan of property investing scares me with his lack of knowledge.
I'm accused of hypocrisy and bias.
In praise of boring old index funds and learning about them.
KiwiSaver: Will the kick-start be around for a while? What happens when an employee gets a lump sum? A clarification about access to the money in bankruptcy.

Syndicated column May 29 2007: Back to the creepy stuff

Well, he did it. Despite my impassioned plea in this column in February last year, Finance Minister Michael Cullen took away our chewing gum tax cut in the recent Budget. And we're much bigger losers than most people realise.

Syndicated column May 15 2007: Readers respond on KiwiSaver tax breaks

Three readers were unhappy with my last column, in which I said the KiwiSaver tax breaks expected in the upcoming Budget will benefit only some people, at the expense of New Zealand as a whole.

Syndicated column April 28 2007: Think again about those KiwiSaver tax breaks

Many readers were no doubt pleased to hear of Winston Peters' recent hints that the May 17 Budget will include tax breaks in the KiwiSaver retirement savings scheme. But only some will benefit - and it will be at the expense of others, and the country as a whole.

NZ Herald April 14 2007

Q&As: A tax on house sales, to subsidise first home owners, is a lovely idea that wouldn't work.
Renting and saving elsewhere can leave you better off than home ownership.
Semi-retired couple who sold their home and rent are probably doing fine.

Syndicated column March 20 2007: KiwiSaver enticing enough already

KiwiSaver, the new retirement savings scheme starting July 1, is coming in for criticism that is doesn't include more tax incentives. But I'm glad of that.

NZ Herald March 3 2007

Seeking your questions about KiwiSaver
Q&As: Are home equity release (HER) schemes - which lend to retired people with homes but little income - a rip-off?
Sentinel defends its HER schemes, but they are still expensive compared with possible alternatives.

NZ Herald February 24 2007

Seeking your questions about KiwiSaver
Q&As: Woman in mid 50s, who is renting, explores options for buying a home
2 Q&As about the $50,000 threshold in the new regime on taxation of international shares

NZ Herald October 14 2006

Q&As: Why I won't do research on an Aussie resource index fund.
Too little time to study the new tax plans for international share investments.

Syndicated column July 18 2006: Owning your home not always the best option

Most New Zealanders grow up expecting to own their own home, but soaring house prices have made it harder for people to get into the market. Does that matter? Is home ownership all it's cracked up to be?

Holm Truths autumn 06

Stuff and happiness: Buying things you don't really need

Also in this issue: From the Mailbox - Should a young man buy himself a house?

NZ Herald August 6 2005

Q&As: 18-year-old should wait a bit before buying a house.
Saving for the grandchildren - how much risk is good?
Rental property depreciation risks.

NZ Herald June 11 2005

Q&AS: Paying extra for using a credit card.
Distortions when considering how good an investment your home is.
First home buyers should probably wait.

Syndicated column May 31 2005: How KiwiSaver will work for you

How you might react to the KiwiSaver programme in the recent budget depends on your circumstances.

Under the programme, scheduled to start in April 2007, employed people, the self-employed or beneficiaries can contribute 4 or 8 per cent of their income to a saving fund.