Too often Kiwis will accept poor performance and just go with the flow.
But we shouldn’t really do that.
The KiwiSaver providers that have had poor performance are doing a marketing push and suggesting that you stick with your current KiwiSaver Provider because it’s the market not the provider that is performing badly.
They say “that’s the way it is at the moment, and it’ll come right”.
Of course, we all hope that the markets will come right and that our investments do recover, but that shouldn’t stop us from at least from reviewing what investments we have, and how they’re being managed .
Why Is Your KiwiSaver Performing Badly?
Why is it that your KiwiSaver investment is performing badly when there are others out there that are doing fine?
Should you just accept the comments that all KiwiSaver providers are doing badly when in fact that’s not the case.
KiwiSaver providers (like the banks, who are also often providers) rely on the complacency that Kiwis are renown for. As a nation we tend to get used to accept the way things are without questioning why we do this in life, but we also do it with things like our investments and our mortgages and our other finances too.
- We will accept a poor performance with our KiwiSaver.
- We will accept the interest rates that the banks offer for a mortgage.
- We will accept the often higher interest rates that the banks and credit providers charge us for the “privilege” of using their money.
While the nation of Kiwis accepts these things, the banks and other providers continue to roll out record profits. It’s no wonder that they will market to us trying to instill in us that poor performance is okay.
Instead of just sitting on the fence and waiting for things to come right maybe we should be more proactive and actually review not only our KiwiSaver but review our mortgages and review our finances.
You might be very surprised how much better you can get a few just reviewed things and looked around.
We should stop accepting complacency and demand great service and care competitive offerings.
We should find out and understand where KiwiSaver providers differ, and what benefits they are offering or providing that may help us manage and remove the risks associated with our investments.
Today is a good day to stop sitting on the fence.
Some Features Are Important But Often Ignored
There are three key things that your KiwiSaver should have;
- Diversification – this is a fundamental concept with any investment portfolio like Kiwisaver.
- Managing asset allocation as you age – KiwiSaver providers have various asset allocations that you can select or are automatically selected depending on your tolerance for risk and time for an investment.
- Downside mitigation – this is important with any investment and including KiwiSaver. Some use Universa which has acted like an insurance policy for those institutional investors that opted for the protection offered with the Black Swan Protection Protocol.
These are three important features of an investment structure that we believe you should consider when selecting which fund manager you want to look after your KiwiSaver.
Let’s check what your KiwiSaver provider offers – please select your provider to see how protected you are:
If your KiwiSaver provides these three important features then you have chosen well, but if it doesn’t then you should look to switch your provider to one that does offer them.
Can I Switch My KiwiSaver Today?
If you are not happy with your KiwiSaver and have worked out which provider you would be happy with then you should get off the fence and switch today.
As financial advisers we can help answer your questions and process the switching of your KiwiSaver in 5-minutes, or you can contact us directly to arrange if that’s easier.
