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Speaker 1: You're listening to the Saturday Morning with Jack team podcast

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Speaker 1: from NEWSTALKSTB.

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Speaker 2: It is fourteen minutes to eleven on Newstalk ZB. Today

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Speaker 2: is the twenty second of June. That means we're through

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Speaker 2: the winter solstice. It means there are only a few

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Speaker 2: days left before we hit the cutoff for the government

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Speaker 2: contribution to key we save A Personal finance expert Lisa

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Speaker 2: Dudson from Acumen is with us this morning. Hey Lisa,

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Speaker 2: good morning Jack. It's so good to be talking. So

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Speaker 2: talk us through what we need to have sorted. In

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Speaker 2: order to get the maximum government contribution.

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Speaker 3: By the thirtieth of June, which is where the Key

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Speaker 3: to Savor year ends, it must have contributed one thousand

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Speaker 3: and forty two during that previous twelve months for the

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Speaker 3: government to pop five hundred and twenty one dollars into

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Speaker 3: your PV Saber account.

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Speaker 2: And why is this so important?

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Speaker 3: Well, because it ends up you know, I mean, you know,

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Speaker 3: five hundred and twenty one is essentially free money, right

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Speaker 3: as long as you contribute to the found important two

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Speaker 3: per year. And it may not seem like a lot,

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Speaker 3: but when you start adding that into a time factor,

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Speaker 3: that adds up to quite aficant amount of money over

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Speaker 3: the long term if you're in your twenties, right, and

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Speaker 3: you don't want to be in a situation where you're

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Speaker 3: not maximizing every dollar that you can get.

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Speaker 2: Yeah, it's I mean, it's it's the classic compound interesting, right,

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Speaker 2: But it's funny if you think about investments, like, there

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Speaker 2: is no investment on earth that is guaranteed to give

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Speaker 2: you a fifty percent return as safely as this.

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Speaker 3: Right, absolutely, you know, and it's free money. And the

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Speaker 3: thing I always loved that qusaper is a compulsory kind

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Speaker 3: of locked in nature of it, which you know, you know,

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Speaker 3: as a lot of value when you think about the

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Speaker 3: long term and when you get to know the sixty

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Speaker 3: five age where you can get those funds that accumulated

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Speaker 3: over time, and Albert Einstein talked about it compounding into

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Speaker 3: a spring, the aped wonder of the world, you know,

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Speaker 3: so money does significantly grow over time.

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Speaker 2: Yeah, it's surprising to me that anyone would miss this,

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Speaker 2: But people missing new experience, Oh yeah, they do.

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Speaker 3: And I think you sometimes it's a case of people

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Speaker 3: not really understanding it might be then going, oh, what,

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Speaker 3: it's only five hundred and twenty one dollars, whereas I go,

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Speaker 3: I understand the power of that over time, and you know,

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Speaker 3: sometimes as they just you know, it's they forget about.

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Speaker 3: That's the other big thing, because I do come across

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Speaker 3: people that kind of what they do is there. They

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Speaker 3: may be self employed, so they put the money in.

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Speaker 3: They have to contribute themselves rather than through you've been

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Speaker 3: an employee, and then might go, oh well, I'll just

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Speaker 3: put the lump on on every year, whereas my experiences

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Speaker 3: is you better to do that on a monthly basis,

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Speaker 3: because then you know for sure that you know you've

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Speaker 3: put enough money in to get that free government contribution.

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Speaker 2: Yeah yeah, right, So Lances flicked some message this morning

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Speaker 2: to say, if I deposit one and forty two into

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Speaker 2: my kids key, we save it. Do they get the

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Speaker 2: government contribution even if they're not working.

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Speaker 3: No, unless they're over eighteen, which they're not really it

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Speaker 3: cared by then, so you only get that to become eighteen.

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Speaker 2: But if you're not working and you are over the

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Speaker 2: age of eighteen and you and you contribute that minimum,

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Speaker 2: you do get the government contribution, right.

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Speaker 3: Yeah, yeah, you know, and to give in again. And

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Speaker 3: if people did, it's a normal of money. But if

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Speaker 3: I don't talking about my Cuba because I'm self empoyed,

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Speaker 3: I've only ever put the minimum in. So that's two

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Speaker 3: thousand and seven as an example, you know, the aeenth

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Speaker 3: to a start king saber, like the first month that

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Speaker 3: it was that was started. You know, I've got like

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Speaker 3: seventy five thousand dollars for in my cubsabor.

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Speaker 2: Wow.

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Speaker 3: You know, and that's by putting one thousand and forty

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Speaker 3: two in per year getting the gun from contribution albeit

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Speaker 3: the first cutting up to you head about five or so,

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Speaker 3: five or seven years, You've got a fact that they

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Speaker 3: next a dollar for dollar to two thousand and forty two,

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Speaker 3: whereas now it's obviously they paid sixteen cents on the dollar.

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Speaker 2: Yeah, it's pretty amazing.

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Speaker 1: Eh. Yeah.

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Speaker 2: So that's that's an important point. So I'll tell you

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Speaker 2: what I do. I I have my superannuation thing, and

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Speaker 2: my work has a scheme that they had always had

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Speaker 2: a scheme that was set up kind of independently the

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Speaker 2: key we saver. So what I do is I do

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Speaker 2: the work scheme, but then in addition to that, I

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Speaker 2: do the one thousand and forty two dollars because like

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Speaker 2: I said, I'm always just like our fifty percent return,

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Speaker 2: thank you very much. Plus whatever game you get. Yeah,

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Speaker 2: so it just seems like an absolute no brainer. But

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Speaker 2: one of those things you do have to get sordered

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Speaker 2: right now.

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Speaker 3: Yea, that's right. And you know, it's like a lot

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Speaker 3: of things in life. You know, we've got a greatly

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Speaker 3: long list of things we need to kind of do

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Speaker 3: in our in our world, right, we just need to

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Speaker 3: make it important enough that well remember to actually do it.

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Speaker 2: Yeah, yeah, no, that's great advice. Thank you so much, Lisa.

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Speaker 2: That is Lisa Dudson. You can find her, of course

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Speaker 2: at akimen dot co dot nz.

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Speaker 1: For more from Saturday Morning with Jack Tame, listen live

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Speaker 1: to News Talk z B from nine am Saturday, or

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