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| Thread ID: 144031 | 2017-06-11 10:48:00 | KiwiSaver - If not working? | James432213 (17469) | PC World Chat |
| Post ID | Timestamp | Content | User | ||
| 1436441 | 2017-06-12 06:42:00 | AND likely returns of between 10% - 15% depending on your scheme. 10% - 15% on 38k even if you're unemployed? |
James432213 (17469) | ||
| 1436442 | 2017-06-12 07:00:00 | Employment status has no bearing on the investment returns. | fred_fish (15241) | ||
| 1436443 | 2017-06-13 00:23:00 | Employment status has no bearing on the investment returns. Where are you getting your 10% - 15% figures from? According to the ASB and ANZ calculator I would have an estimated balance of $674,961 and $759,000, respectively at age 65 if I put in 38k with an annually voluntary contribution of $6000 under a "growth fund". Whereas, I would earn $775,9904 @ 4.1%(asb(5 yrs T.D is 4.3%)) I would start a new investment every year at the 5yr rate) with a a annually voluntary contribution of $6000. Unless I'm missing something vital, my calculations conclude T.D > KiwiSaver, in this context. comms.anz.co.nz www.asb.co.nz |
James432213 (17469) | ||
| 1436444 | 2017-06-13 12:51:00 | Your numbers don't add up. fundfinder.sorted.org.nz sorted.org.nz |
fred_fish (15241) | ||
| 1436445 | 2017-06-13 22:57:00 | Your numbers don't add up. fundfinder.sorted.org.nz sorted.org.nz The formula of the sorted savings calculator is not reflective of mine. I created a python program which I have verified by hand. eg, (year 1) 38,000 + 6000 = 44,000 x (interest rate 1.041) = 45,804. Then (year 2) 45,804 + 6000 = 51,804 x (interest rate 1.041) = 53,927. etc ... up to (year 39) age 65.(I'm 26 btw) The difference between the sorted calculator and mine is roughly $300,000. (Something obviously is not been considered with the sorted calculator) The "ANZ KiwiSaver Scheme Growth Fund" on sorted as stated via your link states a 10.89% return. If I invested at that rate I'd end up with a whopping $5.5 Million!, compared to the ANZ KiwiSaver calculator, projecting me only $759,000. I get the feeling the interest rates on sorted are misleading. Something is not adding up. I'm confused. I may have to contact them to clarify. |
James432213 (17469) | ||
| 1436446 | 2017-06-14 09:00:00 | Your calculations assume you are earning interest on the whole 6k for the whole year, which wont be the case if you're paying in weekly or such. The sorted calculators have the option of allowing for inflation or not - this makes quite a difference to the reported result and I suspect is what the difference in your comparison is. The kiwisaver calculators also make a number of assumptions, and presumably, are relatively conservative with the forcast investment returns, which are shown in the previously linked table before tax and fees (as is the TD rate). Your initial simple question "which will generate the most money from my 6k" is clearly the one giving the highest annual return (which based on past performance is Kiwisaver "growth" funds - PLUS you will get the additional $521 pa free, even if not working). Clearly, there are other factors for you to consider, and equally clearly, future returns cannot be predicted with certainty, but over the long term you could expect a growth fund to outperform a TD (effectively the equivalent of a ks cash fund, but without the 'buying power' of a big investor) by a considerable margin. |
fred_fish (15241) | ||
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