There are highs and lows
When you ride a rollercoaster, you’ll experience ups and downs – it’s the same for your KiwiSaver investment. Because your KiwiSaver money is often invested in shares, on the share market, it’s subject to market volatility. When the market rises and falls, your balance can increase or decrease. Sometimes gently and gradually, sometimes sharply.
When your balance dips, it’s usually not a cause for concern. Over the long term, your balance is expected to grow.
Choose a ride to suit your comfort zone
At a theme park, you might have the choice of which ride to go on. There could be a fast rollercoaster or a slower cruise. If you’re cautious, you’ll go on the slow one. But if you prefer something with a bit more power and excitement, you’ll probably jump on the faster one. It’s the same with your KiwiSaver investment.
If you’re in a growth or aggressive fund, you’ll likely experience more pronounced ups and downs in your balance but you should also get higher returns over the long term. If you’re happy with this riskier investment, it could be right for you. If you’re more cautious, or not comfortable with investing, then maybe you’re better off in a conservative fund.
Talk to your provider, they can help you work out what fund is best for you.
It’s open to (nearly) everyone
The good thing about KiwiSaver, just like theme parks rides, is it’s designed to be an experience every Kiwi can participate in.
Of course, for some rides you can’t buckle in if you have medical conditions, or are under a certain height. KiwiSaver has limits too – if you’re struggling financially, contributing to your account might not be the right choice for you at the moment. The same if you’re seriously ill, or off work.
Find out what KiwiSaver means for you before you join the ride.
You pay a fee to ride
Not much is free in life – even your KiwiSaver account! Just like the rollercoaster, you’ll pay for your experience. KiwiSaver providers charge fees and what they’re for and how much they are is sometimes not clear. You might be happy with the fees you’re charged if you’re getting great returns, or something else like excellent customer service. Is what you’re paying worth it for the ride?
It’s probably worth the experience
While KiwiSaver isn’t suited to everyone, for most people, it’s a great way to save for their first home or retirement. Just like the rollercoaster, KiwiSaver is a great experience for many. You likely won’t regret your chance to jump on board the ride of investing, headed to your destination of hopefully a better financial future. And who doesn’t want that?
And a few differences while we are here…
KiwiSaver isn’t just for fun – but it can be fun!
We know that for most of you, talking about KiwiSaver might not be as fun as a rollercoaster ride. KiwiSaver is a serious investment, aimed to make your money work for you through expected annual returns.
Restrictions on withdrawing your money underline that it’s a long-term savings scheme. But at JUNO, we’ve done our best to make your KiwiSaver balance interesting and relevant to you! And if you’ve got any questions, just contact our friendly team.
Kids can join
While young kids can’t ride a rollercoaster, here at JUNO we want kids involved early to help them set up a better financial future. We charge zero fees for all members under 18, because we don’t think providers should profit from young Kiwis. We want to encourage investing and starting early is one of the best decisions you can make.
Published November 2018
Story by Claire Connell, JUNO
Pie Funds Management Limited is the issuer of the JUNO KiwiSaver Scheme. You can read our Product Disclosure Statement here. This article is general in nature only and has not taken into account any particular person’s objectives or circumstances. Before relying on it, we recommend you speak with a financial adviser. All content is correct at time of publication date.