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Speaker 1: In nineteen twelve, an unusual Scandinavian heat wave hit the

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Speaker 1: Stockholm Olympics Marathon. Hopeful Shizukhanakuri arrived as one of Japan's

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Speaker 1: first ever Olympic athletes. He was a serious contender with

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Speaker 1: a world record time under his belt, but it had

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Speaker 1: been three brutal weeks crossing through Russia and across Europe.

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Speaker 1: He was sleep deprived and exhausted. Swedish food upset his stomach,

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Speaker 1: his coach was down with tuberculosis, and like many athletes

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Speaker 1: at the time, he believed that drinking water would impair performance. Basically,

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Speaker 1: he was screwed. Part through the race that heat got

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Speaker 1: the better of him. Half delirious, he wandered off course

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Speaker 1: into the home of a Swedish family who were hosting

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Speaker 1: the garden party. He politely requested a drink and collapsed. Embarrassed,

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Speaker 1: he quietly left for Japan the next day. Race officials

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Speaker 1: marked her MEMAA and he remained missing in Swedish records

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Speaker 1: for the next fifty years. But back home he was

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Speaker 1: determined to redeem himself. He became a celebrated running coach,

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Speaker 1: contributed to the development of running shoes in Japan. Advocated

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Speaker 1: for women and girls to participate in sports, joined efforts

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Speaker 1: to bring the Olympics to Tokyo, and he became known

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Speaker 1: as the country's father of the marathon. In nineteen sixty seven,

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Speaker 1: a Swedish TV station caught wind of Kanna Corty's unfinished

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Speaker 1: business and invited him back to officially complete the marathon.

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Speaker 1: At seventy six years old, he returned to Sweden and

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Speaker 1: crossed the finish line with a time of fifty four years,

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Speaker 1: eight months, six days, five hours, thirty two minutes and

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Speaker 1: twenty seconds. She's I said, it was a long trip

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Speaker 1: along the way. I got married, had six children and

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Speaker 1: ten grandchildren. He never got a medal, but he won

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Speaker 1: in his own way in the long run.

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Speaker 2: Is Swedish food really that bad for you?

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Speaker 3: Starting?

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Speaker 2: Quite?

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Speaker 3: Isn't it quite?

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Speaker 1: Fermented?

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Speaker 2: I think yes, Okay, I don't thinking of meatballs in

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Speaker 2: my head only because of all the ike and news

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Speaker 2: articles that.

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Speaker 1: We've sech Swedish meatballs. I think I might be thinking

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Speaker 1: of Iceland, but I'm thinking about how they like bury

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Speaker 1: whale meat in the ground and wait for it's for men.

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Speaker 2: Well, look, if that's the case, that I can totally

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Speaker 2: understand complete a marathon, too much probiotics. I'm just before

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Speaker 2: I go, I'm going to head a bit of fermented

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Speaker 2: whale meat. Say that helps my marathon efforts. But anyway, fantastic,

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Speaker 2: Hello there, Welcome back to the Wealthcack. This is episode five.

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Speaker 2: The Wealthcake is a special summer series here on Shared Lunch.

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Speaker 2: I'm Asher of course with me is Laura. Today we

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Speaker 2: are thinking long term and we're taking a look at kiwisaver.

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Speaker 2: What are the big questions we need to ask ourselves

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Speaker 2: about our ki Saber portfolio going into this year. Well,

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Speaker 2: joining us, we've got Billy from the Cheesy's Kiwi Saber team.

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Speaker 3: You know, rather than trying to predict that future is

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Speaker 3: actually focus on what you can control.

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Speaker 2: And Shares's head of super Fund's Matt McPherson to talk

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Speaker 2: the Sharesy's Kiwi Servis scheme.

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Speaker 4: Anyone can go in and have a bit more control

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Speaker 4: over the individual companies that make up the qv Service scheme.

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Speaker 2: Laura, I wanted to ask, you know, apart from the

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Speaker 2: Swedish the Swedish food chat, I want to ask, how

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Speaker 2: does Zo kind of could he fit into a today's episode?

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Speaker 1: Well, I guess your keep We Saver is more of

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Speaker 1: a marathon than a sprint.

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Speaker 2: You may get married along the way.

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Speaker 1: Maybe maybe yeah, yeah, I don't have to Yeah, takes

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Speaker 1: all kinds, but yeah, I guess maybe at some stages

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Speaker 1: you may feel like you're more on on course, and

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Speaker 1: maybe sometimes you may feel like you're a little bit

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Speaker 1: off course. Maybe sometimes you'll be in some Swedish guy's garden.

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Speaker 2: So today we are talking the financial marathon of Kei

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Speaker 2: We Saber. Before we get into that, I need to

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Speaker 2: say investing involves risk. You might lose the money. To

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Speaker 2: start with, we recommend talking to a licensed financial advisor.

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Speaker 2: We recommend reading product disclosure documents before deciding to invest.

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Speaker 2: And as we're talking Kei We Saver, Cheesy's Investment Management

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Speaker 2: Limited is the issue of the Cheese's key We sab

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Speaker 2: A scheme. The product disclosure statement for the Cheza's Keep

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Speaker 2: We Save a scheme has been lodged and may be

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Speaker 2: viewed on the disclosed Register or on our documents page.

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Speaker 1: Shall we jump into it?

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Speaker 3: Hi? Everyone, my name is Billy and I'm the operations

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Speaker 3: lead for the Shares's Keyservi s game.

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Speaker 2: Billy works at shares Is and you may have seen

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Speaker 2: him on tech took, assuming you watch that talking to

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Speaker 2: Kicks or on the morning shift. We kicked off the

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Speaker 2: chat by asking him what would he like more people

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Speaker 2: to know about kiwisaver.

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Speaker 3: And one thing that is overlooking key we saver is

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Speaker 3: the government contribution and maximizing the benefits. So there was

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Speaker 3: a paper presented by the Retirement Commission about the government

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Speaker 3: contributions for twenty twenty four. About two thirds received the

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Speaker 3: full or a partial amount of the government contribution. We

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Speaker 3: know that there's scenarios as to why some people don't

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Speaker 3: get the fullhamounts. So for example, you may have turned

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Speaker 3: sixty five during the year, but it does feel like

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Speaker 3: there is a lot of government contribution that hasn't been maximized.

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Speaker 3: For every dollar that you contribute, the government is now

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Speaker 3: contributing twenty five cents captat to one hundred and sixty dollars.

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Speaker 3: The way to get the government contribution the full amount

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Speaker 3: is that you need to contribute about one thousand and

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Speaker 3: forty three dollars year out of your pay or through

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Speaker 3: a volunteer contribution that is about twenty dollars a week,

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Speaker 3: all right, So.

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Speaker 1: The key is to make sure you crack that thousand

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Speaker 1: dollars so that you can get the free money.

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Speaker 3: Yeah, just over about thousand and forty three.

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Speaker 1: I guess for some people they might be thinking that,

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Speaker 1: you know, two hundred and sixty is that it? Two

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Speaker 1: hundred and sixty dollars may sound like it's not that much,

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Speaker 1: and like is it worth it?

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Speaker 3: Two undred and sixty dollars is not much on its own,

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Speaker 3: But for example, next to say, if you join key,

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Speaker 3: we save her from the beginning. So you're sixteen and

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Speaker 3: you joined in, you have QSA right through to your

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Speaker 3: sixty five that's about forty five years. And if you

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Speaker 3: collected turns sixty dollars for the next forty five years,

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Speaker 3: that comes to about twelve thousand dollars of dumblant contributions

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Speaker 3: before investment returns. So it may feel like a little bit,

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Speaker 3: but the actual compound effect and actually the overall amount

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Speaker 3: is quite a significant portion of your ksover account when

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Speaker 3: you come to retirement.

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Speaker 1: So ken we Saver is effectively just another investment portfolio, right,

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Speaker 1: So I guess my question is how should I treat

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Speaker 1: that differently to my other investment portfolio or the rest

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Speaker 1: of my investing.

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Speaker 3: With the investment portfolio, it's unlocked, which means that if

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Speaker 3: you really needed to get that money out, you could

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Speaker 3: turn that into cash pretty quickly. And so with that

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Speaker 3: in mind, people more likely they are different goals using

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Speaker 3: the funds to pursue studies or university, looking to use

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Speaker 3: that money to create or buy a business in the future,

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Speaker 3: whereas in your KEISAB that is generally locked. You're sixty five,

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Speaker 3: you don't have a choice as to when you want

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Speaker 3: to take that money until that age, and by that

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Speaker 3: age you are looking generally towards retirement. That is one

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Speaker 3: of the key differences. The main thing here is to

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Speaker 3: look at both of those investments, the key WE saver

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Speaker 3: and the investment portfolio review, the goals review, the investment

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Speaker 3: time horizon that you're looking to invest to, and selecting

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Speaker 3: a fun type that suits that particular investment portfolio.

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Speaker 1: Okay, so when it comes down to make those investment choices,

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Speaker 1: then a conversation that we seem to hear a lot

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Speaker 1: with GB saver is that sort of like conservative versus

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Speaker 1: growth or aggressive kind of question. Is there like one

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Speaker 1: correct approach to determining which one of those might be

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Speaker 1: right for you? Or different life stages. How does that work?

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Speaker 3: I wouldn't say there's a correct approach. The general approach

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Speaker 3: here is if you look at an aggressive fund, majority

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Speaker 3: of the money is invested in assets that are more volatile,

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Speaker 3: have greater exposure to the ups and downs, so when

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Speaker 3: there is a downturn, it could take some time to recover,

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Speaker 3: and so that's why it's recommended that someone that has

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Speaker 3: an investment timeframe of about ten plus years is generally

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Speaker 3: suited to that. On the flip side, where a conservative fund,

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Speaker 3: seventy percent of the money is invested in defensive assets,

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Speaker 3: so cash and bonds. The remaining thirty percent is invested

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Speaker 3: in growth. As sets conservative, it's much less volatile. With that,

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Speaker 3: it's geared towards an investor or someone that is looking

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Speaker 3: to use their money in the next three years. And

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Speaker 3: the reason why I think there's no correct approach is

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Speaker 3: that every individual has quite different circumstances. So, for example,

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Speaker 3: you may have someone that is retiring at sixty five

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Speaker 3: very soon, but may potentially be in a very volatile

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Speaker 3: fund because they actually don't need to touch those key

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Speaker 3: resaver funds because they've got other investments to draw down on. Again,

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Speaker 3: it's one of those things where the situation is very

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Speaker 3: different for everyone, and that's why a financial advisor will

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Speaker 3: help provide tailored financial plan that suits your needs.

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Speaker 1: Speaking of individuals, just I'll make it about myself for

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Speaker 1: a moment. So for me, retirement feels like it's quite

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Speaker 1: a long way away. It's hard for me to sort

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Speaker 1: of imagine like, it's my life going to look like,

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Speaker 1: how do I know that I'm kind of making the

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Speaker 1: right decisions now with my keiisaver for a future that

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Speaker 1: feels so far away.

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Speaker 3: You know, rather than trying to predict that future is

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Speaker 3: actually focus on what you can control. And so what

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Speaker 3: you can control is around what goals do you want

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Speaker 3: to achieve in retirement? For example, is it to live

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Speaker 3: a retirement lifestyle that gives you choices and options, or

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Speaker 3: is it a retirement lifestyle where you can afford to

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Speaker 3: pay the bills and have food on the table. Once

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Speaker 3: you have an idea of those goals, there's a number

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Speaker 3: of ways to work out what you need to live

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Speaker 3: that lifestyle in retirement and dollar values per week and

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Speaker 3: so the Sorded website has a great retirement calculator where

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Speaker 3: you can put all that information and put in your

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Speaker 3: current investments, your keiwisaver, your investment portfolio, any cash based

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Speaker 3: on that, it will give you a figure of how

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Speaker 3: much you're going to have at retirement and if there's

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Speaker 3: a gap, and that gap is quite important because that

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Speaker 3: allows you to make some proactive decisions. So you may

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Speaker 3: decide that you want to increase your key We Saber

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Speaker 3: contributions to bridge that gap, or you may want to

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Speaker 3: set up an investment portfolio that is alongside your key

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Speaker 3: We Saber investing towards your retirement as well.

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Speaker 2: We'll be back with Billy shortly. But first, Laura, I

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Speaker 2: thought it'd be cool if we talked about our ke

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Speaker 2: We Saber experiences. Okay, I was one of those guys that,

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Speaker 2: you know, I'm old enough that I was around when

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Speaker 2: they first had that government incentive to join keypsaber, and

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Speaker 2: I just I was again one of that was a

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Speaker 2: cliche of I don't know what this is, I don't

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Speaker 2: trust it. Why are people taking my money? And it

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Speaker 2: took me quite a while to come around to signing

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Speaker 2: up for Keepsaber. So I do actually understand that there

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Speaker 2: is a little lack of awareness out there for some people.

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Speaker 1: Yeah, I actually had a different type of misconception. So

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Speaker 1: I was in key Wesaber like from the age of Aten.

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Speaker 1: When my dad really encouraged me to get into it,

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Speaker 1: he was like, this is free money from the government,

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Speaker 1: and this is actually going to be really important for

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Speaker 1: you later on. But I definitely did not understand that

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Speaker 1: ki Wei Saver was an investment. I didn't figure that out,

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Speaker 1: I'd say for at least ten years.

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Speaker 2: You're just like, it's sort of like a savings thing.

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Speaker 1: I don't know, like, yeah, it's like money for the

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Speaker 1: future that the government does something with. Yeah. I think

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Speaker 1: understanding that your kiwisab is an investment, that it has

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Speaker 1: the benefits of compounding, I think that that's a really

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Speaker 1: beneficial kind of motivator to get you to really like

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Speaker 1: understand the role that that's going to play for you

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Speaker 1: down the line, and why time plays such an important

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Speaker 1: role with that portfolio.

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Speaker 2: All right, let's get back to Billy and chat about

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Speaker 2: the recent changes that have been made to Kiwisaber.

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Speaker 3: Yeah, some of the changes that have already happened. One

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Speaker 3: July twenty twenty five, the government contribution has reduced from

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Speaker 3: five hundred and twenty one dollars to two hundred and

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Speaker 3: sixty dollars. The second change is thatxteen and seventeen year

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Speaker 3: olds now will have the ability to receive the government contribution.

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Speaker 3: There was also an income cap introduce, meaning that if

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Speaker 3: you earned over one hundred and eighty thousand dollars a

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Speaker 3: year in income, you will no longer be eligible for

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Speaker 3: the government contribution. What is happening this year at one

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Speaker 3: April twenty twenty six is that the employee contribution will

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Speaker 3: be increasing from three percent to three point five percent.

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Speaker 3: The sixteen and seventeen year olds will also be eligible

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Speaker 3: for a matching employer contribution as well, and from one

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Speaker 3: April twenty twenty eight, there will be a four percent

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Speaker 3: increase in the contribution from three and a half, meaning

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Speaker 3: that your key we say with contributions will total eight percent.

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Speaker 1: If you could give people just one thing to take

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Speaker 1: away from this episode to think about when it comes

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Speaker 1: to there keyisaver in twenty twenty six, what would that be?

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Speaker 3: Review their financial situation and check if they're in the

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Speaker 3: right fund type and if they're not in the right

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Speaker 3: fund type, go onto the sort of website, use the

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Speaker 3: key we Saver calculator and work out the right fund

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Speaker 3: type that is suitable for them. The one thing I

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Speaker 3: will mention is that there are still hundreds of thousands

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Speaker 3: of people and a key we saver default fund, and

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Speaker 3: the key we Saver default fund is a balance fund.

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Speaker 1: Just for people who may not know what do we

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Speaker 1: mean by a default fund.

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Speaker 3: A default fund is when you go into employment and

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Speaker 3: you don't have a keysaver, the government will allocate you

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Speaker 3: to a default fund. So there are currently five default

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Speaker 3: providers and you would be shuffled into one of those

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Speaker 3: funds and that would be your your KeyServer accounts hold.

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Speaker 3: There's no reason why you can't choose where you want

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Speaker 3: to go, and you can do that by signing up

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Speaker 3: to another provider call.

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Speaker 1: So it's sort of like if you don't tell them

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Speaker 1: where to put it, they will just stick it into

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Speaker 1: one of those.

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Speaker 3: For you, they will automatically put it into one of those,

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Speaker 3: and then it's to you whether you want to stay there.

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Speaker 3: This might be suitable for you, but it's best to

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Speaker 3: check that it is. And you know, by being in

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Speaker 3: the wrong fun type, it could be tens of thousands,

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Speaker 3: if not of dollars that you're missing out on when

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Speaker 3: you retire.

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Speaker 1: Yeah. Right, So that's your future.

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Speaker 3: That's the future. Yeah, and that's your that's your that's

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Speaker 3: your retirement.

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Speaker 2: I don't know if you knew this, Laura bit Shares

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Speaker 2: Is actually has our own KII Saber scheme.

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Speaker 1: I've actually heard about this.

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Speaker 3: Well, that is good.

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Speaker 2: Seeing as it's part of your job, that is good.

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Speaker 2: I thought right now would be a good time to

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Speaker 2: bring in an expert on the Shares's keep Saber scheme.

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Speaker 2: This is Matt McPherson, who is the head of super

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Speaker 2: and Funds, basically our KIV saber. Last year he came

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Speaker 2: on Shared Lunch and explained a little bit about what

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Speaker 2: makes our keep we Saber scheme so unique and how

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Speaker 2: you can sort of test it out try before buying.

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Speaker 4: Our chevsaver scheme is a bit unique in that we've

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Speaker 4: introduced the idea that anyone can go in and have

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Speaker 4: a bit more control over the individual companies that make

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Speaker 4: up their qv server scheme. So we thought it was

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Speaker 4: really important to let people do that in a really

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Speaker 4: safe and kind of experimental way outside of having to

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Speaker 4: use their actual money. We have an investment plan builder.

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Speaker 4: It's on our website. You can go through and correct

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Speaker 4: your investment plan see what fees, see what level of risk,

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Speaker 4: look at all the different companies and ETFs and funds

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Speaker 4: and things we have available. If you like it, you

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Speaker 4: can actually import it into the app. Because everyone's qpsaver

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Speaker 4: can actually be different with us, and so we can't

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Speaker 4: just say, oh, you're paying one percent for your qv saver,

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Speaker 4: because I could choose a fund much lower than that

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Speaker 4: that I could add some of my own picks, and

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Speaker 4: the price level and the risk level of each portfolio

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Speaker 4: could be quite different. And so you can do it

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Speaker 4: in a way where we will do all that maths

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Speaker 4: for you and present it back in a way that

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Speaker 4: you can compare to other schemes.

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Speaker 2: We as Matt, how the scheme actually works and what

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Speaker 2: you can do if you want to find out more.

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Speaker 4: We have a concept of guardrails, and guardrails are investment

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Speaker 4: limits that we apply to your investment plan, which is

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Speaker 4: your standing instructions on how to invest contributions as they

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Speaker 4: arrive into the scheme, and those guardrails require you to

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Speaker 4: have at least fifty percent of your contributions invested into

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Speaker 4: a base fund, which is a diversified fund. You can

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Speaker 4: have one hundred percent invested into a diversified fund if

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Speaker 4: you want, but no less than fifty percent. And then

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Speaker 4: we have around one hundred and fifty companies in ETFs

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Speaker 4: from New Zealand and the States. The maximum for each

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Speaker 4: of those is five percent, So I could have ten

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Speaker 4: companies at five percent each, or I could have one

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Speaker 4: hundred companies at half a percent each. For example, included

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Speaker 4: and my investment plan, and as money arrived into the scheme,

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Speaker 4: it would be invested according to those proportions. I'd recommend

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Speaker 4: you have a look at the Investment Plan Builder, so

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Speaker 4: head to our website. You'll find your way to the

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Speaker 4: QI Saber sit. It's pretty well signposted. Have a look

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Speaker 4: at it. There's nothing like being able to actually have

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Speaker 4: a play with something when it's not your money and

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Speaker 4: get comfortable with the idea and if so, you know,

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Speaker 4: follow the prompts.

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Speaker 2: Thank you to Matt McPherson.

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Speaker 1: There.

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Speaker 2: I head a super and funds at Cheesy's for a

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Speaker 2: little bit inful in that Cheesy's keyservice scheme and Laura,

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Speaker 2: I thought it could be good to do some takeaways

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Speaker 2: today as there's been quite a lot covered.

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Speaker 1: So I reckon if I was going to take one

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Speaker 1: thing away from all of this, it's come up a

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Speaker 1: few times. If you don't already know, go and check

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Speaker 1: what fund you're in and just make sure that it

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Speaker 1: really makes sense for your stage and your situation.

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Speaker 2: Also, I thought it was cool how Billy pointed out

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Speaker 2: the government contributes twenty five cents for every dollar that

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Speaker 2: you put into your kvsaver, up to a maximum of

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Speaker 2: two hundred and sixty dollars and seventy two cents per year.

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Speaker 2: And to get that full amount, you've got to contribute

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Speaker 2: one thousand and forty two dollars and eighty six cents.

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Speaker 1: Okay, Yeah, And then just to repeat it one more time,

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Speaker 1: do go and have a look on sorded just to

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Speaker 1: check how you're tracking towards retirement and whether maybe you

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Speaker 1: need to do a little bit of course correction.

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Speaker 2: All right, Well, on our next episode, on episode six

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Speaker 2: of the Wealth Kick, we're going to be talking about

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Speaker 2: leveling up your investments. Until next time.

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Speaker 1: Thank you, Laur, Thank you Asher.

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Speaker 5: Imagine a world where every dollar you have is working

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Speaker 5: towards your wealth goals. Now you can on cheers, E's

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Speaker 5: see your shares alongside your kiwisaver, balance, your crypto and

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Speaker 5: your savings and for every dollar you spend on your

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Speaker 5: spend cat and one percent towards your wealth. Your wealth

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Speaker 5: finally together on Cheersy's Chezy's Investment Management Limited. It's the

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00:18:58,960 --> 00:19:02,000
Speaker 5: issuer of the chezis Quy Savers scheme. View the Ladge

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00:19:02,040 --> 00:19:03,679
Speaker 5: bds on our website.