Speaker 1: You're listening to the Weekend Collective podcast from News Talks by.
Speaker 2: Day and welcome back to the show. This is the
Speaker 2: Weekend Collector on Tim Beverage. If we missed her, I
Speaker 2: had a fantastic chat with Dr w Weaver on her well,
Speaker 2: she's a nutritional nutritional biochemist. We ended up focusing a
Speaker 2: little bit about just not just burnt out but iron
Speaker 2: and you know, how.
Speaker 3: To eat for.
Speaker 2: A healthy diet, and a bunch of broad ranging conversation
Speaker 2: around that. But you can go and check it out
Speaker 2: on the new Stalksby website or on iHeartRadio just look
Speaker 2: for the Weekend Collective. And for politics, we were joined
Speaker 2: by Erica Stanford to talk about the new parent boostvill
Speaker 2: on the immigration side, where we're going to allow parents
Speaker 2: to come in for longer if they're sponsored by their kids,
Speaker 2: and they're changing a bit there. But also we had
Speaker 2: a chat with with Jordan Williams from the Taxpayers Union
Speaker 2: about polling and what questions you want to see answer
Speaker 2: in and polling.
Speaker 3: It was quite interesting.
Speaker 2: I would recommend it just to get an explanation of
Speaker 2: the dreaded margin of error which gets lip service in
Speaker 2: the polls and people go what's that margin?
Speaker 3: Evvera all about?
Speaker 2: Well, Jordan was pretty good on having a chat about that,
Speaker 2: But right now this is smart money and we are
Speaker 2: going to have a bit of a chat about Kiwi Saver.
Speaker 3: The question for you is.
Speaker 2: Actually how much time you have spent thinking about your
Speaker 2: key we saver profile, the company you're with. Did you
Speaker 2: just go with the default one of your bank like
Speaker 2: I did? Confession time? Anyway? But have you ever thought
Speaker 2: about changing your profile or have you ever thought about
Speaker 2: changing your company? And how often have you thought about it?
Speaker 2: And how many of you have actually haven't done it?
Speaker 3: In the EI? You know what, I think I should
Speaker 3: probably change my profile.
Speaker 2: I know that there are people who have done it,
Speaker 2: because especially when it was around the time people were
Speaker 2: looking at maybe getting into the first house, and it's
Speaker 2: a constant thing now for first time buyers because they think, well,
Speaker 2: hang on a minute, I want to use that money.
Speaker 2: So I'm going to go to conservative because I'm happy
Speaker 2: with where it's at and I don't want to risk
Speaker 2: it any longer. So those people probably have actively done it,
Speaker 2: But I want to know how often have you thought
Speaker 2: about it and have you done it? And how did
Speaker 2: you make the decision because I do a money out.
Speaker 2: I'm no financial expert, and I'll be honest with you
Speaker 2: in terms of choosing your company. I have met a
Speaker 2: few people who've got their own funds, but I haven't
Speaker 2: gone to them yet because I don't know. I'm going
Speaker 2: to have to dig into that. That's a confession anyway,
Speaker 2: to join me. We have a new guest on the show.
Speaker 2: He is the founder of Cora Wealth and his name
Speaker 2: is Rupert Carlyon and he's with us for smart Money.
Speaker 3: Get a Rupert.
Speaker 4: Good evening? Are you good?
Speaker 3: Good evening? I think it is evening.
Speaker 5: I guess winter, so it's darkouse it does make it
Speaker 5: look wintery.
Speaker 2: That's the first hot take of the day. Good evening
Speaker 2: at ten past five.
Speaker 5: Well, I've got young kids, so for me, this is
Speaker 5: firmly evening time.
Speaker 2: So you're missing okay, so you're missing dinner time right
Speaker 2: now and hopefully.
Speaker 5: Are missing all the fun stuff of the day. Oh yeah,
Speaker 5: but the dinner and all of the absolute mayhem.
Speaker 2: So this is perfect, excellent, Well, welcome, good to No
Speaker 2: wonder you're not coming to us from the home office.
Speaker 2: It's like I've really got to go in for this one. Honey, hey,
Speaker 2: just before we get into it, how tell us about
Speaker 2: Coral Wealth and how long you've been involved with that
Speaker 2: company and what you do.
Speaker 5: Yeah, so we're can we save a provider? We're about
Speaker 5: five years old. We currently manage about three hundred million
Speaker 5: dollars on behalf of about seven thousand members. I started
Speaker 5: the business about five years ago and partnership with a
Speaker 5: guy called Warren Coollier. Warren was previously COEO at Fish Funds.
Speaker 5: He was a made investor at Generate c IO Chief
Speaker 5: Investment Investment Officer, so he built a lot of that stuff.
Speaker 5: And what we believed very firmly was everything that you
Speaker 5: said in the introduction. We wanted to create an easy
Speaker 5: way for people to make better KEI. We saber decisions
Speaker 5: because we saw far too many people had no idea
Speaker 5: where to put their KEYI sab far too many people
Speaker 5: sitting in the default funds.
Speaker 4: And to our aunt's at all of this was.
Speaker 5: We were the first in market with a pretty comprehensive
Speaker 5: digital advice tool to make allow people to make smart decisions.
Speaker 3: Okay, so and you've got a key we save a fund.
Speaker 4: Yeah, you got a key.
Speaker 3: As you say, you've managed However, a hundred million.
Speaker 2: You mentioned, does that make it where does it make
Speaker 2: it in the scale in the scheme of things, because
Speaker 2: what is the total KEII saver.
Speaker 3: Global and not global? But you know in your part
Speaker 3: what's the pot?
Speaker 2: The pot's the one I'm going to write down.
Speaker 4: The pot.
Speaker 5: I'm not sure that's a technical terminology, but it's a
Speaker 5: nice way to think about it. So the key Saber
Speaker 5: pot's about a hundred twenty to one hundred and twenty
Speaker 5: five billion dollars. Wow, it's a lot of that. About
Speaker 5: sixty percent of that is actually still with the banks,
Speaker 5: which is really interesting, right.
Speaker 2: Because unsurprising, I'll be honest, because I was honest there
Speaker 2: that I just I mean, I'm self employed, so I've
Speaker 2: got a bunch of problems to deal with on that.
Speaker 3: But to me, I was just.
Speaker 2: Like, oh, okay, yeah, the okay A and Z Yeah,
Speaker 2: sure that's I'll go with that. And it's amazing because
Speaker 2: there is a large number of key we Saber providers.
Speaker 2: I don't know if people actually realize how many there are.
Speaker 5: A lot as as I've said a few times, it's
Speaker 5: exactly the same as craft beer.
Speaker 4: Do you go on to the.
Speaker 5: Stude market, and you got your thirty five craft beer
Speaker 5: providers on the supermarket and on the shelf, and key
Speaker 5: We Saber is no different.
Speaker 4: You got thirty five and.
Speaker 5: For everyday people, it's really hard to tell the difference
Speaker 5: because for most people, and I'm sure this is why
Speaker 5: you haven't switched and changed, we look, we feel, we
Speaker 5: smell the same because we are eighty five percent the same.
Speaker 2: Well, I guess that's because there's also some serious regulation
Speaker 2: around key We Saber because it's not the wild West.
Speaker 2: It needs to be something that that New Zealanders can
Speaker 2: count on with a degree of knowing that you know
Speaker 2: your money is not being looked after by some shyster.
Speaker 2: And so the amount of compliance and everything does level
Speaker 2: the playing field?
Speaker 3: Does that make it?
Speaker 2: Also because of the rules, I mean, it's the it's
Speaker 2: the it's the benefit of that key We Saber scheme
Speaker 2: is that it is perceived to be an absolute safe place,
Speaker 2: risk profile separate of course.
Speaker 5: Well even within that right, So there is a couple
Speaker 5: of things.
Speaker 4: So you're one hundred.
Speaker 5: Percent right that from a from a regular Troy perspective,
Speaker 5: it's it's as safe as you can get, right, So
Speaker 5: it's very different to the two thousand and eight finance companies,
Speaker 5: which were most of them were just shyster's kind of
Speaker 5: investing money.
Speaker 2: Oh, I still remember the ad. So here's I take
Speaker 2: to mention the companies. But all these ridiculous they made
Speaker 2: it sound so safe. Put your money with us.
Speaker 5: We'll put it this way. You know, when you've got
Speaker 5: all black or a news presenter pitching you, that's the
Speaker 5: time to run.
Speaker 3: People.
Speaker 2: If you ever see me fronting an ad for some fund,
Speaker 2: run a mile. I'll be doing well out of us,
Speaker 2: and you'll be telling them it's safe as houses.
Speaker 4: But look, so it is.
Speaker 5: It's a very strict regulatory regime, which is rightly so
Speaker 5: because fundamentally it is the largest investment that most people
Speaker 5: ever have. People are kind of setting their retirement all
Speaker 5: on this. So we keep our fund separately.
Speaker 6: We do.
Speaker 5: We are pretty we are mandated to hold a safe
Speaker 5: set of safest set of investments.
Speaker 2: Well that's actually a question because when I looked to
Speaker 2: changing my fund to a more aggressive one, because I
Speaker 2: just went and balanced because I don't know one, it
Speaker 2: just felt, you know again, it seemed inoffensive, and then
Speaker 2: I thought, hang on a minute, I'm optimistic coming and
Speaker 2: being in a workplace for a while. Yet so I
Speaker 2: shifted to growth and aggressive or something. But understanding risk
Speaker 2: and key we save it is one thing to go
Speaker 2: and make your own decisions about which of the s
Speaker 2: and P five hundred you want to buy versus going
Speaker 2: aggressive in your KIWI saver. Can you give us a
Speaker 2: context for how risky is it ever? In the most
Speaker 2: risky fund and ki saver?
Speaker 5: It's I'm just trying to think how to answer that, right,
Speaker 5: because the truth is the word fund is really important.
Speaker 5: And so because when you invest via a fund, you
Speaker 5: get diversification, and what that means in layman speakers, fundamentally
Speaker 5: you're going to get different markets, different sectors, and you're
Speaker 5: going to invest in tens or hundreds or thousands of
Speaker 5: different companies. And so that's why immediately by investing in
Speaker 5: a fund typically you have actually materially reduced your risk
Speaker 5: profile versus if you just go and try and invest
Speaker 5: in Facebook or Microsoft on your own.
Speaker 2: So that sort of answers that puts it in context already,
Speaker 2: isn't it? So it does every fund does every fund
Speaker 2: guardless of whether it's low risk, conservative or aggressive. I
Speaker 2: don't know what what are the names they give about
Speaker 2: those aggressive funds, you know, hang on, oh exactly, but
Speaker 2: even they are diversified, and so is the thing with
Speaker 2: those funds is that the risk is more that a
Speaker 2: market itself across its diversification might have some.
Speaker 3: Highs and lows.
Speaker 2: We've seen with I mean, we've seen with the Donald
Speaker 2: Trump presidency the highs and lows of the SMP. I mean,
Speaker 2: there might be a fund that is SMP and actually,
Speaker 2: you know what, if you need if you need your
Speaker 2: money in six months, it might be that might not
Speaker 2: be the bet as opposed to in five years time.
Speaker 5: You know, well, yeah, because so there's three to kind
Speaker 5: of as we think about diversification, you divers four different levels.
Speaker 5: Right at the start, you start off an asset class,
Speaker 5: and that's a fency way saying do you want lots
Speaker 5: of stocks and lots of equities in your portfolio or
Speaker 5: at a simplastic income And so the benefits when we
Speaker 5: buy income that means we're buying bond that's pretty sable, steady,
Speaker 5: doesn't really go up and down and just gives you
Speaker 5: a fixed return. Whereas as we've seen over the last
Speaker 5: kind of five years, the equity market, it just massively
Speaker 5: over and above. Right, it's been dropped more than twenty
Speaker 5: percent about ten times over the last five years, so
Speaker 5: it's had some big, big falls.
Speaker 4: But it typically recovers.
Speaker 5: So what we say, So that's where we start off with, right,
Speaker 5: So you go, hey, if you're in it for the
Speaker 5: long haul, then you can have lots of equities and
Speaker 5: that's going to deliver.
Speaker 4: A greater return over the long run.
Speaker 5: But if you need to get it out in six
Speaker 5: months time, when you've just Donald Trump's made his next announcement,
Speaker 5: You've got some problems.
Speaker 2: When he's decided to really doesn't like elon the EV
Speaker 2: and well, I mean, yeah, anyway, hey, sorry kerry On.
Speaker 5: And then you move into kind of regions, so some
Speaker 5: funds might be region specific, other funds might be kind
Speaker 5: of global, and then you've got company and sector specific.
Speaker 5: And so diversification is the name of how you make
Speaker 5: your money, by making sure that you're never overexposed to
Speaker 5: a single thing or a single kind of piece at all,
Speaker 5: because lots of things are going to go up, yeah,
Speaker 5: lots of things are going to go down. And fundamentally,
Speaker 5: if you knew exactly what was going to go up
Speaker 5: and win, well, you wouldn't even have my job, you'd
Speaker 5: be at a hedge fund management.
Speaker 2: Well, the thing is, we were talking before you before
Speaker 2: we started the show about the theory behind the key
Speaker 2: we saver funds just actually investment in general, and there's
Speaker 2: there's a whole space where you can go really deep
Speaker 2: into the weeds on that stuff. How I mean, how
Speaker 2: clever can people be with working out investments that are
Speaker 2: going to give a good return? I mean, how advanced
Speaker 2: does that theory? And what can you tell us about that?
Speaker 5: Look, there is so much theory, but what we are
Speaker 5: brilliant at in the finance world is demonstrating to everyone
Speaker 5: by talking really fast with very complicated words, that we
Speaker 5: are we believe ourselves to be the.
Speaker 4: Smartest people on the own.
Speaker 5: The truth is thoughtments can be extremely simple if you've
Speaker 5: got the right asset allocation and by that I mean
Speaker 5: the right diversification. There are lots of simple products out
Speaker 5: there that can deliver really great returns. And so we
Speaker 5: kind of spend like you'll get people and I'm sure
Speaker 5: you've had lots of come on this program tell you
Speaker 5: that they're the greatest stockpacker, or that they do this,
Speaker 5: they do this evidence has shown that kind of ninety
Speaker 5: five percent of returns are delivered by simple good asset allocation,
Speaker 5: by kind of creating the right strategy, and you just
Speaker 5: stick with that. The person that spends all the time
Speaker 5: trying to pick the right stock, trying to pick the
Speaker 5: right trend slows far more often.
Speaker 3: It's like the bet.
Speaker 2: It's almost like a betting mentality, isn't It's like masts
Speaker 2: will go down. It's just a different version of betting
Speaker 2: on the horses, you know it.
Speaker 5: And within that, Look, there are always going to be bets,
Speaker 5: and there are always going to be people that go, look,
Speaker 5: I want to do something a little bit different. So
Speaker 5: the most biggest one at the moment is bitcoin for example, Right.
Speaker 3: I actually get when I was doing.
Speaker 4: Because you had a we do have a bitcoin fund.
Speaker 2: You had a bitcoin fund, and I did see that
Speaker 2: you were cautioning investors. It's like, okay, our bitcoin fund
Speaker 2: has returned very well in the past, but you actually,
Speaker 2: I think I saw you'd said, just call your jets
Speaker 2: with your future expectations.
Speaker 3: We've done well, can we.
Speaker 4: Just we'll get that one across the FML if you've
Speaker 4: seen that?
Speaker 3: So what's that?
Speaker 5: At my job as kind of a wow. To be
Speaker 5: fair as an investor and with investors is to kind
Speaker 5: of make sure people understand that, hey, that there's a
Speaker 5: lot of risk in everything that we do. So if
Speaker 5: I'm out there saying, hey, you should invest in bitcoin
Speaker 5: because for the last five years it's to deliver an
Speaker 5: annualized return on sixty percent and that's going to continue,
Speaker 5: that's not fair because fundamentally, past performance never equals future performance,
Speaker 5: and so I need to give balance. So that's why
Speaker 5: I'm always saying, hey, it's an interesting asset. It's done really,
Speaker 5: really well, but we have no idea what's going to
Speaker 5: happen in the future.
Speaker 2: Because I will always get texts on the show saying
Speaker 2: I'll just stick your money in bitcoin and stuff, and
Speaker 2: you know, I've got no comment to make on it,
Speaker 2: but it just freaks me out generally.
Speaker 5: Well, but I'll give you the sophisticated view on that one.
Speaker 5: Right where you go it is risky, and let's be clear,
Speaker 5: we're not one hundred percent sure on where it's going
Speaker 5: to go. But if you put five percent of your
Speaker 5: portfolio and bitcoin, that's actually got the potential to do
Speaker 5: something really interesting for your portfolio. But it's not about
Speaker 5: taking it all resk right, So coming back to where
Speaker 5: I started diversification. The person that sits rings you up
Speaker 5: and says put everything in bitcoin, that is truly gambling.
Speaker 5: Whereas by putting little bits and lots of different places,
Speaker 5: that's what's allowing you to expose yourself to some potential
Speaker 5: for big ones.
Speaker 2: Okay, Look, we'd love your calls on this. When it
Speaker 2: comes to your key we Saver fund and I know
Speaker 2: we've done. Look we getting to know each other because
Speaker 2: it's the first time on the show with Robert carlai On,
Speaker 2: the founder of Curel Wealth. And when it comes to
Speaker 2: your fund, are you sort of just settling for the
Speaker 2: status quocus? You know, I got into it when the
Speaker 2: government announced it there was this fund, my bank was operating.
Speaker 2: I'm shoved it and balanced because that sounds kind of
Speaker 2: not the right sort of balance of zen for me.
Speaker 3: But have you thought about changing?
Speaker 2: But what's stopping you? Give us a call eight hundred
Speaker 2: eighty t and eighty. But also if you have actually
Speaker 2: managed to change your profile or the company you have
Speaker 2: got your key we sable with, what motivated you to
Speaker 2: do it and what was the homework that you did that.
Speaker 3: Motivated you to go right.
Speaker 2: This is the decision I'm making eight hundred eighty and eighty.
Speaker 2: It is twenty two past five news talks at b
Speaker 2: Are you worried about funding a comfortable retirement? Well you're
Speaker 2: not alone. The cost of living crisis is hitting up
Speaker 2: for a lot of people, so it's no surprise people
Speaker 2: are looking to make for ways to make the most
Speaker 2: of their savings and get a little bit more income
Speaker 2: to supplement their New Zealand super One interesting solution is
Speaker 2: to invest in an income fund like the Harbor Income Fund.
Speaker 2: It works by holding a mix of interest paying securities
Speaker 2: and shares that have been designed to generate a steady
Speaker 2: and sustainable income no matter the market. The Harbor Income
Speaker 2: Fund is actively managed and currently it pays the distribution
Speaker 2: of four point five percent per annum after fees and
Speaker 2: taxes paid out in monthly installments. To find out more
Speaker 2: about Harbor's Income Fund, just head to their website or
Speaker 2: speak with your financial advisor. This is not intended as
Speaker 2: personalized advice. The Product Disclosure Statement for Harbor Investment Funds
Speaker 2: issued by Harbor Asset Management is available at Harborasset dot
Speaker 2: co dot nz.
Speaker 1: Your Weekend Your Way, The Weekend Collective with Tim Beverage
Speaker 1: News Dog Zebby.
Speaker 2: So we're talking about kiwisaver, and actually, I think my
Speaker 2: guest Rupert Carlyin, he's the founder of Career Wealth, first
Speaker 2: time on the show. By the way, taking your calls
Speaker 2: put it best when we're chatting on the break, it's
Speaker 2: really about how to take ConTroll of your kiisaver and
Speaker 2: how many of your passengers because.
Speaker 3: What do we reckon?
Speaker 2: How many people do you think are just passengers? Rupert,
Speaker 2: And you're just looking at all the number of people
Speaker 2: with banks and go, well sixty percent at least.
Speaker 4: Yeah, well yeah, but tilt.
Speaker 5: I love to bash the banks because they do a
Speaker 5: pretty shitty job on a lot of stuff, but a
Speaker 5: lot of the banks act. Some of them are better
Speaker 5: than others. In keysaver, that's not necessarily the end of
Speaker 5: the world being with your bank. Here, we've got digital
Speaker 5: advice tools, right, So over the last five years we've
Speaker 5: had kind of about forty thousand people through those tools,
Speaker 5: and what we find is that less than forty percent
Speaker 5: of people are in this and the type of fund
Speaker 5: that we would recommend.
Speaker 2: So what are these digital advice tools and how do
Speaker 2: people check them out.
Speaker 5: So if you visit our website dubdub dot cod ol
Speaker 5: wealth ko U R A W E A L T
Speaker 5: H dot co door NZ, you'll see kind of there's
Speaker 5: a digital advice tool you can take through. We'll do
Speaker 5: a quick assessment of your risk profile, what your objectives
Speaker 5: are for qisaver, some of the things that might interest you,
Speaker 5: on where and how you want to build your KISAB,
Speaker 5: and then we'll make a recommendation for you.
Speaker 4: But I think the interesting.
Speaker 5: Part about that tool for us is when we say
Speaker 5: two things that the type of fund that we would
Speaker 5: recommend is very different to the one that they're already in,
Speaker 5: which means that which is normal because not many keywis
Speaker 5: of E had financial advice. Not many people have ever
Speaker 5: actually really thought hard about their QUI saving despite the
Speaker 5: fact that it's going to be the largest investment they
Speaker 5: ever have.
Speaker 3: How does it play out?
Speaker 2: Because you know, we have often will be making and
Speaker 2: I will when I get a guest on and about
Speaker 2: we're not giving specific financial advice. How does that play
Speaker 2: into the tools that are available when they're saying what
Speaker 2: funder should I be in? Because you were sort of
Speaker 2: in the area of giving is it?
Speaker 4: It is advice.
Speaker 3: It is advice.
Speaker 4: Okay, that's advice based. Oh good, I just want to
Speaker 4: no no, no, no, no, no.
Speaker 5: That's the beauty about digital advice, right So yeah, that's
Speaker 5: that's why what we can do with our tools, because
Speaker 5: we're brave enough to call it digital advice, is a
Speaker 5: lot more than what the generic tools on sorted or
Speaker 5: other things are going to do right by. And I
Speaker 5: find it hard because there will be a lot of
Speaker 5: generic tools that go, well, you might want this, or
Speaker 5: you might want this. But with the fact of the
Speaker 5: number of questions that we ask about you, that's how
Speaker 5: we can make it specific and personal.
Speaker 2: For I might ask a question of my own time
Speaker 2: once we have the next break. Because the funny thing
Speaker 2: was when I went to change my I've had discussions
Speaker 2: with a few people about it, and I thought, well,
Speaker 2: if I'm going to work for this long and I
Speaker 2: switched to a it's more aggressive fund and the bank said,
Speaker 2: this is not the recommended profile for you. Would you
Speaker 2: like to proceed anyway? And I thought, oh god, it
Speaker 2: makes me tense.
Speaker 3: Yes, yeah, what the hell? But I was there anyone.
Speaker 2: It was just interesting that it's I had to resist
Speaker 2: that advice.
Speaker 5: Yeah, But I think the other thing that I find
Speaker 5: interesting and frustrating about key we save it, and particularly
Speaker 5: some of the advice, particularly from the banks, is it's
Speaker 5: a lot more conservative than the international norms. Ok, there's
Speaker 5: a lot of key we save it for people here
Speaker 5: in New Zealand that will be given the advice or think, well,
Speaker 5: you're going to turn sixty five, so therefore you need
Speaker 5: to make sure you're ready to withdraw at sixty five,
Speaker 5: Whereas the truth is you're going to hopefully live till
Speaker 5: I mean, current life expectancy for women is about eighty
Speaker 5: seven eighty eight minutes about eighty five.
Speaker 4: It's only going to grow. You need your key, we.
Speaker 5: Save it last that whole way through. So therefore you
Speaker 5: need to keep invested the whole way through. It needs
Speaker 5: to be earning a return the whole way through. So
Speaker 5: our view is that actually, people that are able to
Speaker 5: withstand the volatility, you can keep it aggressive for a
Speaker 5: lot longer than probably some of the traditional thinking.
Speaker 2: We're going to dig into that because I was having
Speaker 2: a chat with someone on a different show about that
Speaker 2: about why are people not more aggressive for longer? And
Speaker 2: I think the consensus was probably we could consider that.
Speaker 5: Yeah, there's two parts to it, right, because when we
Speaker 5: consider what the right tolerance for risks or and by risk,
Speaker 5: basically we're saying should you be aggressive or conservative or
Speaker 5: somewhere in the middle.
Speaker 4: There are two things.
Speaker 5: Right, You've got time horizon, and then you've also got
Speaker 5: the ability to kind of how you're going to react
Speaker 5: when things go pear shaped, as we've kind of seen
Speaker 5: the l last couple of minutes.
Speaker 3: Just don't look.
Speaker 5: What all of the research shows is that actually, as
Speaker 5: you get older, you're with your ability to stand stress reducers,
Speaker 5: and so it's harder and harder to not lock. And
Speaker 5: as this money is becoming more and more important, So
Speaker 5: even though you might still have the time frame left
Speaker 5: because you want to keep it there till you're nineteen
Speaker 5: ninety five, the ability to deal with the stress of
Speaker 5: when it drops reduces. So it's kind of matching those
Speaker 5: two things on its way through.
Speaker 3: Right, Let's take some calls.
Speaker 2: Quite fascinated with the idea about how we perceive risk
Speaker 2: as well, But let's get into the calls.
Speaker 3: Colin, Hello, Colin.
Speaker 7: High Hi, I just wanting to know if you're already
Speaker 7: on a different key we saver. How you would change
Speaker 7: to crow Wealth.
Speaker 5: It's very simple. You'd visit our website and you can
Speaker 5: sign up online. It to a two minute process. All
Speaker 5: you need is your driver's license and your ID number.
Speaker 5: I would be kind of fair to say most qysa
Speaker 5: A providers it's a very simple process on their website.
Speaker 5: Now it's not hard and all the paperwork is done
Speaker 5: in the background by us and the IOD.
Speaker 3: Have you been thinking of changing column?
Speaker 7: No that I'm talking about my grandchildren, who I think
Speaker 7: they're just simply and I've been default one. So we'll
Speaker 7: talk to them.
Speaker 2: Okay, okay, yeah, ig st help cheers Colin Pleasure. Actually,
Speaker 2: to be honest, I mean, the best thing is if
Speaker 2: you've got kids, if you're putting money into a fund,
Speaker 2: well that's the first smart choice you've made anyway, and
Speaker 2: you have a think about what fun they're and at
Speaker 2: some stage I guess, but the first decision is get
Speaker 2: them started.
Speaker 5: You've got to get them started. So for example, my kids,
Speaker 5: my kids, I've got three very young kids. They get
Speaker 5: twenty dollars each month that goes into their qvsaver and
Speaker 5: so identical.
Speaker 2: I'm sure there's quite a few parents are like I
Speaker 2: can handle twenty bucks.
Speaker 5: I can handle twenty bucks sixty bucks a week between
Speaker 5: the three of them and lot. By the time they
Speaker 5: get to kind of hopefully they buy a house in
Speaker 5: their late twenties early thirties, it's going to be a
Speaker 5: big balance. That's going to be a big chunk of
Speaker 5: their kisaver. And when you're saving. What we do know
Speaker 5: is that small regular country Utians Ada, And that's by
Speaker 5: far and away the easiest way to try and help
Speaker 5: people when you're kind of the grandparents. Now, the grandmother,
Speaker 5: much to my elder sons, discussed she'll just give a
Speaker 5: couple hundred bucks contribution to the key.
Speaker 4: We say a contribution, right, rather.
Speaker 2: Actually the power of compounding interest for pre twenty year
Speaker 2: olds over the course of your life forty to fifty years,
Speaker 2: that's a lot of money.
Speaker 5: Yeah, that's that's going to be the most valuable prison
Speaker 5: you can give you, your children and your grandchildren.
Speaker 2: All right, let's take some more calls. Sarah, Hello, Sarah, Hello,
Speaker 2: Hi use from here? Yeah, Hi, you're on here. What
Speaker 2: would you what would you like to ask or comment on?
Speaker 8: Oh no, it's just well when I write it from
Speaker 8: good in two thousand and eight, and ke we say
Speaker 8: we just started. So I was just introduced it by
Speaker 8: my bank. I joined it with my bank. I stayed
Speaker 8: there up until last year, and then I looked at
Speaker 8: the differences and I realized it wasn't really performing. So
Speaker 8: I did my Can I switch to Milford? My sixteen
Speaker 8: year old she just turned sixteen a few months ago,
Speaker 8: and I've just put her straight onto it as well,
Speaker 8: because compounding interested exactly as you say.
Speaker 2: Can I ask you when you say you did your homework,
Speaker 2: did you just look at the I mean for most
Speaker 2: lay people, they just look at the past performance and
Speaker 2: go with they've done well so far. Fingers crossed?
Speaker 3: What did you? What did you do?
Speaker 8: Yeah, essentially I did. I just I just went on
Speaker 8: a few different sites and exactly that I looked at
Speaker 8: I was with ASB, and I looked at my bank's
Speaker 8: performance and compared it. And I mean, I'm fifty now,
Speaker 8: so I started at thirty three, and I just looked
Speaker 8: at the where I would have been if I'd gone
Speaker 8: with a different, different provider.
Speaker 9: When did you switch moderate Growth?
Speaker 2: When did you switch about a year and a half ago?
Speaker 3: Are you happy with the decision?
Speaker 8: I am Obviously the markets have gone a little bit crazy,
Speaker 8: which is I mean, it's across the board, so it's
Speaker 8: really hard to sort of look back and say, well,
Speaker 8: how would that have benified? To stay with ASB. But yeah,
Speaker 8: generally I am. I think that I definitely have semial growth.
Speaker 4: I think it's look the short term.
Speaker 5: Look, they're competitive, but Melford's a great shot, and I
Speaker 5: think you'd be hard pressed to kind of to be
Speaker 5: disappointed with that decision. That The key though, is you've
Speaker 5: made your decision, You've chosen the right fund. Hopefully you've
Speaker 5: got some advice out of the Milford guys on the
Speaker 5: way through to make sure that you're in that right fund,
Speaker 5: and now you just leave it there. The kind of
Speaker 5: the grass is off and greener on the other side
Speaker 5: until you get there. But don't fear just because we've
Speaker 5: got volatile markets, just because things are going a bit
Speaker 5: funny things. That's not the fault of Melford. That's just
Speaker 5: what's happening in the world right now.
Speaker 2: Okay, good good on you, Sarah, Thank you for your call.
Speaker 2: How small a community or bigger community?
Speaker 3: Is it? The key?
Speaker 2: We serve a fund managers, So do you all know
Speaker 2: each other?
Speaker 5: Oh, yeah, most people know. If we haven't met, we
Speaker 5: know of each other and we'll recognize each other. We
Speaker 5: all go to the similar industry events as you've probably number.
Speaker 3: I've done one recently.
Speaker 2: But actually I was just wondering is there a sense
Speaker 2: of collegiality or is it collegiality but backed up with
Speaker 2: like competitiveness in terms of information shooing in conversations around
Speaker 2: markets and trends and you know.
Speaker 5: So, like I was at a conference on Friday. There
Speaker 5: were five Qisaber providers at that conference. We're all talking.
Speaker 5: We're all kind of talking about what we're doing. Look,
Speaker 5: some are better than others at sharing, some are. There
Speaker 5: are definitely a couple in the industry that our outlies.
Speaker 5: But we're extremely lucky. We've got a good industry that's growing.
Speaker 5: There's a lot there for everyone, and so we're very
Speaker 5: good at kind of making sure we work together because fundamentally,
Speaker 5: for us, it's the product that's the most important thing.
Speaker 5: We have to make sure Qwi's love and believe in
Speaker 5: and trust Kiwi Saber, that's what's going to be best
Speaker 5: for all us.
Speaker 2: Just before we go to the next caller, I've noticed
Speaker 2: that just from the point of view of doing a
Speaker 2: money show when we do different hours, that the energy
Speaker 2: around this particular hour has picked up. And do you
Speaker 2: notice that have you noticed that yourself in terms of
Speaker 2: the QIS industry, that there's more energy and people thinking
Speaker 2: about focusing on that aspect of their lives and looking
Speaker 2: ahead and a bit more just focused on a bit
Speaker 2: more than.
Speaker 3: We used to be.
Speaker 5: Oh, definitely the balance as a book, right, so the
Speaker 5: average balance is now kind of in that thirty five
Speaker 5: to forty thousand dollars. So for most people, keyy Saber
Speaker 5: is there. For most people also, they've they've kind of
Speaker 5: got to recognizing that key Saber is going to be
Speaker 5: an important part of their retirement of where they go
Speaker 5: in the future. And so it's changed a lot from
Speaker 5: where it was even five to ten years ago. We've
Speaker 5: seen the number of client people in default funds has
Speaker 5: materially reduced and it's definitely become a big thing. And
Speaker 5: I think it's really interesting. Right over the last three years,
Speaker 5: the government twice has tried to mess with keysaber when
Speaker 5: they got rid of or they cut the government contributions
Speaker 5: in half. Last week, it was really interesting how many
Speaker 5: people got very vocal against that and the big criticism.
Speaker 5: I don't think the national government would have expected as
Speaker 5: much criticism as got Two years before that, Grant Robertson
Speaker 5: tried to put tax GST on keyy Saber fees, and
Speaker 5: that we've.
Speaker 4: Got that was just that very loud.
Speaker 5: But it shows how much kiwis love it, and it
Speaker 5: shows that people have brought into this and we are
Speaker 5: moving away from our love.
Speaker 2: Of property right quite possibly at the moment especially all right,
Speaker 2: oh eight one hundred and eighty ten eighty, let's talk
Speaker 2: to Rob Hello, Hey.
Speaker 10: Hello Tim and and Rupert Rupert. The question I've got
Speaker 10: is that with regard to guarantees around savings, I believe
Speaker 10: that New Zealand has passed something through Parliament and it's
Speaker 10: now sitting with Reserve Bank. And although it's not very much,
Speaker 10: it's one hundred thousand compared to a two fifty. My
Speaker 10: question is does that also apply to Kiwi shaver or
Speaker 10: only shaving in a saving account.
Speaker 5: No, that's only going to be bank deposits held with
Speaker 5: a registered bank within yeah, with a registered bank, so
Speaker 5: QWI saver it's not guaranteed at all. So it's very
Speaker 5: very different that the one wrinkle, which I think people
Speaker 5: suspect is coming. Is it one hundred thousand dollars per account,
Speaker 5: which means that so lock if you've got a whole
Speaker 5: lot of money sitting in different if you've got more
Speaker 5: than one hundred thousand dollars, you've got four large Australian banks,
Speaker 5: I'd just be splitting it up and putting one hundred
Speaker 5: grand each to make sure you get your guarantee across
Speaker 5: each of them.
Speaker 2: Right, Okay, good stuff, Rob, Thanks for your call.
Speaker 3: We'll be back in just a month.
Speaker 2: We've got some more calls lined it up, and if
Speaker 2: you'd like to join us eight hundred and eighty ten eighty.
Speaker 2: My guest is Robert Carlyon. He's founder of Cora Wealth. Ko,
Speaker 2: you are a easier to google.
Speaker 3: Them and find them. We'll be back in just a moment.
Speaker 3: News Talks.
Speaker 4: He'd be don't your own America?
Speaker 2: Won't you need it? American?
Speaker 4: Enough?
Speaker 7: Said time?
Speaker 9: Crazy?
Speaker 2: Are you going to do this?
Speaker 11: Just meet me at right News Talks.
Speaker 2: Yes, this is a smart money. My new guest, Robert,
Speaker 2: Robert Rupert. Sorry, Robert, I apologize. Rupert car Lyon, found
Speaker 2: of Coral Wealth, is with us and taking your calls,
Speaker 2: and if we've got time, I'm going to dig into
Speaker 2: how long. We'll just get Rupert's take on how long
Speaker 2: you should maybe consider being more aggressive for longer or
Speaker 2: when should you be start safe making your profile more
Speaker 2: safe for our attitude towards that will have dig into
Speaker 2: that a little bit unless you call me about it
Speaker 2: beforehand and jump in Richard, Hello.
Speaker 12: Good afternoon, briefer.
Speaker 7: Hi.
Speaker 12: When Kiwi Saver was started, I was in my late forties,
Speaker 12: I think, and I was a bit financially vulnerable. That
Speaker 12: I had a good job, so I went straight onto
Speaker 12: eight percent and after a bit of a dallying round
Speaker 12: with one fund, I moved into a growth active growth
Speaker 12: under focus growth with it was I haven't looked back,
Speaker 12: and I'm now into my retirement age. But I've kept working.
Speaker 12: And I've also said on aggressive fund because I do
Speaker 12: have some savings and you know, at least I took
Speaker 12: a bit of a hit. But I think you mentioned
Speaker 12: before that you thought New Zealanders. I don't know whether
Speaker 12: you meant in a policy sense or just New Zealand
Speaker 12: and the people are less aggressive. But you know, when
Speaker 12: I do stop working, I'll start taking money out. But
Speaker 12: I'll only take a fraction of out because I've got
Speaker 12: a pretty substantial some in there. Now it's nearly half
Speaker 12: a million. Now, I was pretty phenomenal. But what I've
Speaker 12: found really disturbing and want when I'm coming to my
Speaker 12: question is when I talk to some of my younger
Speaker 12: colleagues at work. Now, I don't know what the schools
Speaker 12: are doing to educate people about KI we Save It,
Speaker 12: but I don't think employers are doing near enough. And
Speaker 12: I suppose I've got to be careful, but I don't
Speaker 12: think there's just enough encouragement for people because a lot
Speaker 12: of them we're on the minimum amount of contribution. I said, well,
Speaker 12: what sort of family? And I said, I don't know,
Speaker 12: just when they put me on them, And do you
Speaker 12: you know, like I might be getting at a store
Speaker 12: as view, So I'm interested in your view.
Speaker 5: You're not, unfortunately, you are very much talking about the norm.
Speaker 5: So I'll give you one stat that's really scary, right,
Speaker 5: So fifty percent of employers in New Zealand offer what's
Speaker 5: called a total remuneration policy, yeah, which means that actually
Speaker 5: there is no incentive for those people to actually contribute
Speaker 5: to Q we Save. And so how total remuneration policy
Speaker 5: works is I say to you, I'm going to pay
Speaker 5: you fifty thousand dollars if you tick the box saying
Speaker 5: you want KEII Saber. That means that actually I'm one
Speaker 5: and a half. I'm going to pay you forty eight
Speaker 5: and a half thousand dollars and I'm going to put
Speaker 5: one and a half thousand dollars into KEII Saber. So actually,
Speaker 5: the problem we have in New Zealand is that employers
Speaker 5: haven't yet really got fully behind QII SAB. Employers also
Speaker 5: don't want to really get involved in these financial conversations
Speaker 5: because they kind of don't want to be responsible for
Speaker 5: recommending or being.
Speaker 4: Part of it right.
Speaker 5: And it's also hard when you're employer to have these
Speaker 5: conversations because many business owners in New Zealand they didn't.
Speaker 4: Grow up with KII Saber.
Speaker 5: They're a business owner, so they're not used to this
Speaker 5: kind of stuff. But it's a really, really big issue
Speaker 5: that employers aren't doing it. We tell we've got a
Speaker 5: program where we do reach out to and we work
Speaker 5: with a whole lot of businesses because fundamentally, my view
Speaker 5: is it's one of the biggest benefits that you can
Speaker 5: give your staff, make them financially literate, make them financially confident,
Speaker 5: and it costs you absolutely nothing.
Speaker 12: Yeah, thanks for raises the industry. Does the industry have
Speaker 12: a strategy to work with schools and with some employers to.
Speaker 5: Well, look, most providers will do stuff, but Eric Stanford
Speaker 5: has actually just launched the program with financial literacy and schools.
Speaker 5: But there's a lot of work that needs to be
Speaker 5: done here.
Speaker 3: Yeah.
Speaker 2: Actually, it's funny at different personality types with my daughters.
Speaker 2: Like there's one of my daughters who will make money
Speaker 2: because she's she's going to be more of a risk taker,
Speaker 2: I think. But the other one she squirrels it away.
Speaker 2: I mean, I don't think I could find it either.
Speaker 2: But there are certain personality types that are just instantly
Speaker 2: focused on saving and squirreling.
Speaker 5: It's a funny one. Some are some aren't right personally,
Speaker 5: I've never been a great saver. No, that's why kip
Speaker 5: save is great for me because it comes out of
Speaker 5: my paycheck. I never see it. It just happened my
Speaker 5: nine year old. Look, he's very good at it. My
Speaker 5: seven year old. It'll go the dairy the next day.
Speaker 5: Who knows how it drives but it just happens for
Speaker 5: some people.
Speaker 2: Actually, Richard's called coming earlier. You know, you could almost
Speaker 2: do have an interesting talkback conversation on this as to
Speaker 2: whether and this is a very hot take and I
Speaker 2: haven't thought about it much, so you know, forgive me
Speaker 2: whether there almost needs to be legislation that when negotiating
Speaker 2: a paypacket you're a negotia a remuneration that an employer
Speaker 2: cannot build in the key, we save a part of it,
Speaker 2: and that it's automatically aded on top.
Speaker 4: That was the legislation.
Speaker 5: Oh really, so back in two thousand and six when
Speaker 5: it got first born in with Cullen and Clark and
Speaker 5: that Labor government, that was the legislation. So therefore, if
Speaker 5: you're an employee, you negotiating package and that's always and
Speaker 5: even if you tell them you're not going to grab it,
Speaker 5: are you going to go call I'll take my fifty
Speaker 5: grand yep, yep, yep, don't worry, I won't take it
Speaker 5: the next day.
Speaker 4: Sorry, I want my keep.
Speaker 5: We savor now, so you know it makes the money.
Speaker 5: What happened then, So then in two thousand and nine
Speaker 5: the National government actually introduced the ability changed it so
Speaker 5: that you could go to total remuneration. With the changes that
Speaker 5: were announced with the budget, the industry, I think we
Speaker 5: kind of we knew we weren't going to get a
Speaker 5: huge amount. We knew that government contribution was going to
Speaker 5: get cut. That was the one thing that we were
Speaker 5: all hoping for, that total remuneration policies would go. Because
Speaker 5: if we really want to make it, if we want
Speaker 5: a turbo charge keyp we saber and we want to
Speaker 5: really force people to save, that's how you do.
Speaker 2: In fact, isn't that like Australia is more like fact
Speaker 2: we're same as Australia.
Speaker 4: We are now or it was Australia. It's all compulsory.
Speaker 5: Well sorry, it's not compulsory, not part of.
Speaker 2: Our package sort of thing's well, it's all added on top.
Speaker 3: Yeah, okay, right.
Speaker 2: In fact, I'll tell you what. We'll just take another break.
Speaker 2: We'll be back to John and just to take our
Speaker 2: eight hundred and eighty ten eighty. It's eleven minutes to
Speaker 2: six news talks. They'd be yes, Well, time flies when
Speaker 2: you're having fun. We're with Rupert Carly and founder of
Speaker 2: Currel Wealth. We have time for one very quick call. Hint, hint,
Speaker 2: to John.
Speaker 9: Hello, Yeah, my key saver is with the man next
Speaker 9: door to you. Oh, well done, and and yeah, I
Speaker 9: mean I can't emphasize if people have a little bit
Speaker 9: of risk tolerance and you don't steer at your keysaver,
Speaker 9: definitely enjoin it because it's got a bit of a
Speaker 9: bitcoin story to it. And just give you a rough idea.
Speaker 9: From September through to the last financial year, my big
Speaker 9: my keyv saver in total was up about forty Oh.
Speaker 4: Well, oh they've done a great job.
Speaker 3: Well done. Past performance.
Speaker 5: Well no, he's only got a little bit on bitcoin,
Speaker 5: so that'll be a common I'm guessing you've got our
Speaker 5: US equity fund on our bitcoin fun which have been
Speaker 5: two of the best QY saver funs.
Speaker 9: Yeah.
Speaker 4: Correct, have you ever existed?
Speaker 3: Good on your John?
Speaker 2: Yeah?
Speaker 3: You how long have you got to go? In KYI saver?
Speaker 9: I am super aggressive. I'm an ex poker player and
Speaker 9: I played online for you know, for some pretty decent money.
Speaker 9: But to give you an idea, I put fifty percent
Speaker 9: of my salary into my kiwisaver and my employer matches
Speaker 9: ten percent of that. So and then yeah, and then
Speaker 9: on top of that, I do because I've got two
Speaker 9: small companies. I do add quite a bit to my user,
Speaker 9: but then I've got a hatch.
Speaker 5: Yeah, just question, do you do the same hatch allocation
Speaker 5: to what you've done with Codder, you know, kind of
Speaker 5: more aggressive.
Speaker 9: I've gone for tearslim Ry Coast Reddy is a huge
Speaker 9: part of it, but I've also gone for Google, Microsoft, Amazon.
Speaker 3: Thanks John.
Speaker 2: Hey, We've got to leave it there because unfortunately we
Speaker 2: are coming towards the end of it. Actually, I guess
Speaker 2: the thing is a very quick question. But if you've
Speaker 2: got extramated to stick and key we Saver, would you
Speaker 2: stick it in key we Saver or why wouldn't you
Speaker 2: stick it into a fund where maybe.
Speaker 3: You can access it. I guess it's just whether you
Speaker 3: trust yourself.
Speaker 4: Look, it depends on you as a person.
Speaker 5: I firmly believe in the structures of kind of how
Speaker 5: we invest. So for me personally, what I do is
Speaker 5: I've got a keyy Saver, my wife's got a key Saber,
Speaker 5: but we do have other money sitting outside. But actually
Speaker 5: we've run exactly the same strategy outside of qv Saber
Speaker 5: as how I invest my kevsab because that's what I
Speaker 5: think works.
Speaker 4: And that just money.
Speaker 2: But the tool you mentioned about that that people go
Speaker 2: and check and see what where they should be and everything.
Speaker 3: How do they access that?
Speaker 5: So look, if they visit the codal wealth website dub
Speaker 5: dot cold or wealth kou r A W E A
Speaker 5: L T H dot cod NZ, if they click the
Speaker 5: get started, go through the guided choice And what that's
Speaker 5: going to do is take you through quite an extensive
Speaker 5: digital advice process which will give you a recommendation of
Speaker 5: what type of fund you should be in and you
Speaker 5: whether you use that with us or someone else, but
Speaker 5: it should give you confidence that you can make the
Speaker 5: right q we saber decision for yourself.
Speaker 3: Excellent.
Speaker 2: Any final thoughts before we before we we got about
Speaker 2: a minute to go, any final sort of observations.
Speaker 5: Or advice to people, broadly speaking, the best thing I'd
Speaker 5: say is is take charge. Look, this is going to
Speaker 5: be the largest investment that you are likely to ever have,
Speaker 5: so there for give it some time, give it some attention,
Speaker 5: do a bit of work, and make sure you're not
Speaker 5: just sitting somewhere because it was the easy option. There
Speaker 5: are lots of places to go, but first and foremost,
Speaker 5: figure out the right type of fun for you and
Speaker 5: then make sure you get yourself with the right provider,
Speaker 5: because as one of the callers that already pointed out,
Speaker 5: she would have missed out on a lot by taking
Speaker 5: a long time to make that decision.
Speaker 3: Good stuff. Great to meet you, Rupert. Thanks very much
Speaker 3: for coming in.
Speaker 2: You been good and go and check out Coralwealth dot
Speaker 2: co dot nz and we'll be back next week. We've
Speaker 2: got John Cameron for our health having Amanda Morele joins
Speaker 2: us with Smart Money, and we'll have a new guest
Speaker 2: for the one Roof radio show. Martin Cooper, who's managing
Speaker 2: director of Hardcourts, will be with us as well as.
Speaker 3: Simon Wilson's back with us for the panel.
Speaker 2: That'll be fun. Look forward to that one. Thanks my producer,
Speaker 2: Tire Roberts. Look forward to your company. Sunday at six
Speaker 2: is next. Enjoy your Sunday evening.
Speaker 3: We'll catch you soon.
Speaker 6: It's a little good news Hot Any need Isn't it
Speaker 6: something made me bad in the middle? Hot I Any Need?
Speaker 7: It is a little
Speaker 1: For more from the Weekend Collective, Listen live to news
Speaker 1: Talks it'd be weekends from three pm, or follow the
Speaker 1: podcast on iHeartRadio.