May 3, 2026 • 41 mins
All investment accounts are a bit touch and go at the moment.
If you're checking your KiwiSaver more than a few times a year, the amount of movement could really start to get to your head.
But for those close to or at retirement age, or about to withdraw for whatever reason - a volatile market can make all the difference.
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Speaker 1 (00:05):
You're listening to the Weekend Collective podcast from News Talks V.
Speaker 2 (00:11):
Those time in all those time. Will you know what
when I send my watch back to did in on
those time? Yes, welcome back. This is the Weekend Collective.
(00:49):
We welcome in. Should I say, if you have just
joined us on Tim Beveridge and this hour is smart
Money and as you know, we invite your calls and
your participation. You know you can join us for the
conversation on eight hundred and eighty ten eighty being text
on nine two, nine to two. And as I say,
for this hour, it's welcome to smart Money. Now, okay,
so what we're going to talk about here. Look, look,
(01:09):
investment accounts where you put your money your key, we
save it. It's offen a bit touch and go, isn't it.
But if you're checking yours, you know, if you're checking
your key, we saver more than a few times a year,
or maybe even more than a few times a month,
you know the amount of movements sometimes might actually get
into your head. Then again, there are those who are
close to retirement age, might be about to withdraw for
(01:30):
whatever reason. So a volatile market can make it all
the difference Obviously there is the advice about when you
should shift from an aggressive fund to a less aggressive
fund to a conservative fund and all that sort of thing.
But the basic question is for you out there with
your key we saver, have you been just set and forget?
How often do you check your key we saver? And
(01:53):
how often should you check your key we saver? I
think the should you question will go for our guest,
and then we'll get your questions on it and your
thoughts and questions on it as well, because I imagine
that for many people it's like, well, key we save
or the government designed it. I've got to choose a fund.
I'll stick it in the fund. Okay, I've got a job.
They're sticking money and and I'll forget about it. And
maybe that's the way to go. Maybe that is the
(02:13):
way he should just set it and forget it or not,
I don't know. That's why I'm not hosting there on
my own. We get someone else and who knows what
they're talking about, and we've got a new guest in
the studio. He is a Keiwi Saber advisor at Generate
Kiwi Saber and his name is Nathan Stanners and he's
with me now for smart money Nathan.
Speaker 3 (02:32):
Gooday again, good thanks having me on.
Speaker 2 (02:34):
Yeah, good. Actually does there a twang there?
Speaker 4 (02:36):
Are you?
Speaker 5 (02:36):
An? He?
Speaker 3 (02:37):
No? I actually get that a lot though, to be fear.
Speaker 2 (02:39):
Oh, I feel like.
Speaker 3 (02:43):
I was actually coming back on the plane the other
day from Sydney and I had someone sitt the next
to me who from Duneda, and they asked if I
was coming back on holiday or going on holiday. I
was saying no, I'm actually just coming back home after
holiday in Sydney. So I do get that more often
you Yeah, yeah, I do. They get you that more
than you'd think. But I'm definitely a Kiwi from top
to bottom. So no Australian blood of me.
Speaker 2 (03:03):
Oh that's quite funny. We should get people to text
and at the end of the outside, do you think
he's Australian or key anyway, Hey, look a little bit
about you. You're a young fella for one. Tell us
about your journey into the world of money.
Speaker 3 (03:18):
Sure. So my background, of course from AMSS Nathan to
work at Generate, So I've been in all clam most
of my life. I grew up here, I went down
to the need and to get my finance degree. So
I started that, jeez about ten years ago, in twenty sixty.
Speaker 2 (03:28):
It's a finance degreel.
Speaker 3 (03:29):
So I was down at University of a Tiger and
that's a Bachelor of Commerce majoring and finance aid economics
on the side there too, but major was was financing.
Speaker 2 (03:37):
Did you know you wanted to get into finance straight
away or someone did?
Speaker 3 (03:41):
I'd say, not my why? But a big reason of
that was actually probably my dad. He spent most of
his life, you know, working quite hard for hopefully you
only got the money along the way, but he probably
didn't know how to spend it wisely or invest it.
Investing was a big wide world if he didn't know
what he was doing. In that case, actually got an
identical twin brother and he said, at least one of
you should go into.
Speaker 2 (03:59):
Your dad said at least one of you. Yes, at
least really, and what's one thing for your dad? Suggest
a career? So what you drew you into it was
it actually seeing your dad and thinking, look, it's a
hard work, but gosh, there's got to be a better
way of making your money work for you or what.
Speaker 3 (04:13):
Yeah, look at that age I was still probably seventeen
when I was deciding what I want to do. And
if I said I had a really good grand plan
that I'd stick to, I probably didn't. I went down
to UNI and I started my first paper, and I
enjoyed it. That was the main thing, right, And what
I found was after those first couple of years and
learning more about it, how you can make a real
difference with people, just yourself and your friends. Then it
was something I wanted to stick with for a while
and that led me to doing this.
Speaker 2 (04:34):
What's the stage? Actually, you said you enjoyed it first year?
It is Actually I've got to say, without getting too
distracted with this, but the journey. You know, if you
go to university and study something you're interested in, it
is amazing. Sometimes when you turn up to a lecture
and you learn start learning all the things that is
available to learn, it can be quite like, Wow, this
is amazing. And I'm guessing that was fit? What paper
(04:55):
was that?
Speaker 3 (04:56):
Jesus? A few papers that I know, Well.
Speaker 2 (04:57):
What was the paper that opened you up?
Speaker 5 (04:58):
You know?
Speaker 3 (04:59):
The one one can't menage. He's listening to this, But
Timothy Crack's a professional down Ondneeden. It's been for a
wee while and he does a three hundred level paper
which is a third year which kind of covers things
like key we saver, general investing, and just how you
can make the most out of it rather than just
the numbers that have been doing up until then. And
that was a bigger eye opener for me around the
choices you have with your money, your key WE server especially,
(05:20):
and how much difference it can make.
Speaker 2 (05:21):
Because a lot of people think, oh, how much choice
is there. You go aggressive or conservative or whatever and
make your choice and the way you go, but obviously
you learn there's a bit more to it.
Speaker 3 (05:30):
Yeah, there's a bit differitely around your provider, how much
you put in and what funds you're in as well,
and then you've got to reassess that when things changing
in your world. Just guesses what I'm here to talk about, really,
because I find that most people these days are looking
at the key we sever quite a bit generate that
a surveyed reason.
Speaker 2 (05:43):
Well, who's generate? Tell it? Remind us who generate? Can
we say?
Speaker 3 (05:46):
There are so generates? A key we owned and operated
key WE so a provider been around for about thirteen
years now, and a key is a provider in general
is someone that can invest your money on your behalf.
That's the idea there.
Speaker 2 (05:56):
So people can go with a generate key, we save
a fund.
Speaker 3 (05:58):
Yes, correct, So you're choosing the provider that invest your money,
then you choose the funds underneath that.
Speaker 2 (06:03):
Okay, So obviously you know you would probably want to
suggest people that generates a good place to stick your money.
But how often let's get onto the generic, the broader
questions of sorry, how long have you been with them?
For them, it's just where did you go when you
finished university?
Speaker 3 (06:19):
So finished university up in twenty nineteen, I started as
a investment banking analyst, so lucky enough to start my
career there, which is more corporate finance, mergers, acquisitions, capital markets.
So that for almost four years and then started to
generate the start of twenty twenty four. So just on
what was yours?
Speaker 2 (06:34):
Okay? But what was just one last question about you?
What was yours? What was the steepest learning curve where
you thought more? My goodness, I have picked up so
much in the last month, year, two years. Whatever's what's
the thing that stands out to you top of your head?
When I asked that I.
Speaker 3 (06:47):
Think my first couple of years in corporate finance were
pretty steep. My job before was more working with boards,
you know, executives and actually understanding the transactions there on
mergers and acquisition, trying to get up to speed on
running models and that sort of stuff, and then actually
are describing it to someone, whether it's in a powerpointerreaction,
in a lecture with them, or in a boardroom. So
that was probably the biggest learning curve. You go from
(07:09):
the theory under needing, which a lot was was fantastic.
Some you wasn't really going to.
Speaker 2 (07:13):
Be trust That's I sort of as you just casually
because I did a law degree and I practiced law
for a couple of years, and when you get out
with a law degree you know certain things, but you
know technical expression and you really know bugger all about
how to aze people.
Speaker 3 (07:26):
And i'd say the numbers, it's very numbers focused into needing.
But for the most part, what I found was once
you got into it, what you learned, i'd say's thirty
forty percent was going to really help you at the
start there.
Speaker 2 (07:36):
So look, key we SABOR was designed to be a
fund for everyone. That's I would I'm going to guess
without looking at any particular government policy document, but the
idea behind kee we say it if I'm just talking
off from the top of my head as a punter,
It's designed to be a way for people to invest
in their retirement. It's supposed to be easy and accessible,
nothing too where you're having to look at the you know,
(07:57):
you watch your stock rise and for I imagine that
in a way, it's sort of meant to be a
bit set and forget, but not quite so choose your
I mean as for how to choose a fund provider,
that's a whole luck of the drawer. Because every ad
for any key we save, we will say past performance
is no care future returns, which is sort of like saying, hey,
(08:22):
we're advertising you telling you how well we've done, but
guess what that might not happen, which is fair enough.
But how sit and forget? Should key we save a
be for the average kiwi cool?
Speaker 3 (08:33):
So I mean, if we look at some of the data.
Generate did a survey about six hundred people recently, and
what we found is about twenty five percent of them
and looking at it every week and about thirty percent
every month. So you could say at least fifty percent
of kiwis are looking at it at least once a month.
That's a lot in an age of technology. It's right
at your fingertips on an app, and it is a lot.
Speaker 2 (08:52):
Now I've got it on my phone and I probably
haven't looked at it for a couple of months. And look,
I'm probably not investing enough in it can being I'm
self employed, so you can tell me off about that.
Speaker 3 (09:04):
It's totally fine.
Speaker 2 (09:05):
Once a week sounds too often, yes, And.
Speaker 3 (09:07):
Look, it really depends on your circumstances. Ryan, to give
it a couple of examples there. If you look at
someone that has already water first time, has thirty plus
years to their retirement, they're in a fund. They understand
it may be a growth or aggressive fund. In that case,
they may not need to look at it monthly or
even yearly. They may look at it once every couple
of years. I've got a long time till their retirement,
and my last thing we want to do in those
(09:28):
more aggressive funds get quite attached to our balance. As
you mentioned earlier, it is going to move around a lot.
Being a long term investor involved keys of it being
an asset and moving up and down. So when you're
in that situation, I wouldn't recommend looking at it too
often unless you're someone that is quite a seasoned and
a mess.
Speaker 2 (09:42):
It's funny because I'm kind of rich risk averse in
some ways, but there's been a few things I've done
in my life which incredibly risky financially producing concerts, you know,
where you can have tens of thousands writing on whether
people buy enough tickets or not. And yet on my
key We Saber fund I was really balanced, which is
a fairly my view of a balanced fund, as it's
(10:05):
leaning on the conservative side. And then one day I
just went, oh, I bug at this, and I shoved
it to well, there was a couple of steps above.
Speaker 3 (10:14):
Okay, it's growth or aggressive possibly.
Speaker 2 (10:16):
And yeah, it wasn't crazy, and I don't regret it
at all because in fact, even regardless of what the
strait up on Moos is doing and all that sort
of stuff, I don't really look at it. And maybe
it's because there's not enough money to me to be
nervous about it. Would the amount of money you've got
in your key We saver, so like if you've got
ten or fifteen or twenty grand. Maybe people aren't thinking
(10:39):
I don't need to worry about that. But as soon
as you've got eighty to one hundred or more, is
there a correlation between the amount of money and how
often people change it?
Speaker 3 (10:47):
I wish I would know that that's that's a good question. Yeah,
it is a really good question, and it really comes
back to your circumstances. The advice that I'm giving really
doesn't take into account the amount that a person has.
It's more on their circumstances. Again, if they're closer to
sixty five and they may have a large amount there,
it is really important to make sure they're in the
right fund. A. Potentially you're reviewing that quite regularly, but
if you're someone that has just brought a first time
(11:08):
a long time to retirement, you may not need to
review it two months as long as you are in
that first So.
Speaker 2 (11:14):
So how often what would your starting point say it
be for the average keyword to have a look at
their fund.
Speaker 3 (11:19):
As soon as possible. Really, if you even't had advice especially.
Speaker 2 (11:21):
No, but let's say you've checked it recently, okay, and
you're okay, and just as a basic setting, how often
should they check.
Speaker 3 (11:30):
It geez, I'd say once every six months. There is
no rule of thumb in that case. Kind of seeing
your balance and your contributions going in and that it's
moving up and down, then it's totally healthy.
Speaker 5 (11:38):
You can know.
Speaker 3 (11:38):
What we want to avoid is getting attached to a
certain balance, and that's where there's a weekly movements or
the straight off for moves and things like that can
become you come quite attached to your balance. You want
to avoid that.
Speaker 2 (11:46):
Okay, Actually it's interesting my producer Tyra, I think you've
put this on my screen so I can say it there.
She said, what the hell? She sends me messages telling
me sometimes and she's a young person with the family
and another one on the way, and she's got KEYWI savors.
She says, I'm one in one of the more aggressive
fund most of rest of funds, and literally actually says,
(12:08):
I literally have no idea how much is in there.
If I check my balance right now, I genuinely wouldn't
know if it's gone up or down since this war started.
And she hasn't checked it in at least yes, she
hasn't checked it in a least a year. What would
you say to Tyra, would you say, because you know
she's in her early mid twenties, early mid twenties, mid twenties.
(12:28):
In fact, she's exactly in the mid twenties. I'm quite
happy for her not to check her balance for probably
another twenty years.
Speaker 3 (12:35):
Yeahver it depends the question i'd ask Tyra as what
as you go with the keep saver? Are you buying
a home soon? Have you already bought one? Those are
the key questions you want to ask because if you're
someone that wants to buy how soon, then we do
want to get some advice and aggress if I may
not be the one for you, but if you've got time,
then it can be something that works for you. That
is the idea. Circumstances are the main thing, and you're
timed to those circumstance.
Speaker 2 (12:54):
And I guess it depends what else you're doing with
your money, because I have a sneaking suspicion that Tyra
who's is hoping for some rules to change where she
can suddenly subdivide her big fat property. But she's not
holding a breath on that. But that can distract you
if you've you know what I mean. It's just there's
the Key we Save in the background. But here's where
I'm Is there a type of investor who's less inclined
(13:16):
to check the tea key we Saver because they've got
active stuff that's distracting them all the time.
Speaker 3 (13:21):
Sure, and it is how important key we Saver is
to you. Like if I spoke to a young couple
and their first time deposit was larger and to come
from the Key we Save, that very different conversation. They
are probably checking it more regularly, provided they've had advice
in the right fund, that is a far more important
thing for them. But if you're someone that again has
a first time you're investing outside of key we Save,
a key we Save is just a small contribution. Get
to get your employee contributions. It may not be as
(13:43):
something you're looking at all the time or is important
to you.
Speaker 2 (13:46):
There's a question I've got for you, and I'm amazed
I haven't ever thought of this because we've talked about
ke we Save on the show before, obviously, So there
are different fund providers, is I mean different circum Financial
circumstances can hit any fund, I guess, and some perform
better than others, and then suddenly they'll perform worse or
(14:07):
better or whatever. Is there some sort of what what
I mean is I'm trying to find a diplomatic way
of putting this. Would there ever be a trigger where
somebody is looking at these funds and going, this fund
has been performing so poorly for the last number of
months or years that we're going to consider its status
(14:28):
as a key we save a provider? What is the
quality check on these providers? Cool?
Speaker 3 (14:33):
So there's so the main one there with respective performance
is the Financial markets Authority. So when someone like a
provider that generators going to go invest someone's money, there
are a lot of parameters around that. In terms they
have to be diversified. You have to your money across
the globe and in a variety of different asset classes,
and also meeting the risk profiles of your client. That's
why you have those more conservative to those more aggressive funds.
But a really good example is a lot of it
(14:54):
is out of your control. You look at a situation
like COVID. Our aggressive fund may have been down thirty
percent in about three and a half weeks. Regardless of
how well of the job generators doing. Markets are good
to move. So you've got that regulation by for me,
in that.
Speaker 2 (15:05):
Case, it has been down or it might have been.
Speaker 3 (15:08):
In a three week peer three and a half week better
of the exact stats, but with the broader index, what
we call the S and P five hundred, which is
the US index, that would have been about down about
thirty percent in about a month, So.
Speaker 2 (15:18):
Well, it could easily go up quite quickly.
Speaker 3 (15:20):
Take exactly. And that's what you're going to see in
those more aggressive funds. So what you want to see
with your provider is that long term consistency. No provider
can make markets go up when markets are coming down
in a COVID scenario, or make them go down when
markets are going up for the most part, because they
are REGULATD.
Speaker 2 (15:34):
Is the regulation such that it's almost difficult for any
fund to really have a disaster because if you have
so for instance of Generate have a bad month because
they're attached to the S and P or they've got
a fund, you know, is would there ever be a
situation where one key we savers, let's just call it
(15:59):
mildly aggressive, it's sort of sitted in the middle, there
would have a disastrous month, and everyone asked, doesn't anyone
would go home well, why have they been why have
they been so terrible?
Speaker 3 (16:08):
They're parameters to working with that. You could see a
month where the market index is up ten percent and
a provider may only be up two or three in
that case, or vice versa. But very rarely you're going
to have a market up twenty percent and a provider
down in that case. It is just incredibly rare, and
I like to think the oversight from the FMY allows
as such that providers aren't going to be able to
do that.
Speaker 2 (16:27):
Well. That's what I mean is there's a regulation up
to a point almost guarantee that there's a level of
safety built into any fund where level.
Speaker 3 (16:33):
Of safety the guarantee word is one that would always
avoid using, especially in finances, because markets are going to
move around a lot. That is that the idea with it.
But yeah, look we are very well regulated and ultimately
if the FMA seeds are provider not fit to big
a provider, they could provoke their license in that case
to do that. So that is something that has assisted
all the time the industry and makes sure they're fit
to be doing well.
Speaker 2 (16:53):
I do get the sense, I don't know if you
would have died studied the history of the way markets
and advice has been regulated over the years. But one
does get the feeling that in New Zealand in particular,
that actually we're pretty blim and good at at setting
rules and keeping an eye on potentially dodgery operators.
Speaker 3 (17:11):
That yeah, we definitely are on There's probably one other
point I'd raise them. I think we learned from my
cousins over in Australia there because super obviously was around.
But before Key, we say, we had to have a
really good look at what they did and maybe didn't
do when they set it up, and then sit key
we save up in a really good way. But one
thing that's quite important for the listeners at home to know.
People often ask, hey, look, if my provider goes bankrupt,
what happens to my money? And the good news is
(17:32):
that your money's an't actually held directly by a provider.
It is held by an independent supervisor with their trust
in that case, so well, you are going to see
ups and downs with markets and your investments, and there's
more aggressive funds.
Speaker 2 (17:42):
So money is in those markets basically now.
Speaker 3 (17:44):
On those markets, however, you provide if they go bust tomorrow,
they can't take your money and run off or anything.
Speaker 2 (17:49):
So who's okay? So look my keeping saying with that
in Z. Because I was banking with them, I was
too lazy to look.
Speaker 3 (17:55):
At your house and that's free. Normal lots of people
are like that.
Speaker 2 (17:57):
Actually, funny enough, they're whatever the aggressive fund. I was
actually looking and going, have you got your bed mid
And I thought you would, But anyway, I haven't looked
lately because it might be that I look at it
in the break and go, oh my god. But now
where's my question? So if I've got say, I've got
my KEYP we saved with a Z. Sorry, who's actually
(18:17):
got it? Where's that money? Cool?
Speaker 3 (18:20):
So I believe that as is guardian trust?
Speaker 2 (18:22):
Who right?
Speaker 3 (18:23):
Yes, So they look after your money. They kind of
act as a custodian, so they hold your money. They
don't decide where it gets invested, but they do have
custody over that money. So in a situation where a decided,
you know, we're going bust wren you money to pay
off debts, they can't go and take all the keys
of the balance debts.
Speaker 2 (18:38):
I should have just asked where your guys is.
Speaker 3 (18:40):
Yes, we're public trust. We're public trust. So there are
a few trusts out there, Public Trust, Guardian Trust, Trust,
these executives, a few others out of the end, every
provider must have their money sitting.
Speaker 2 (18:48):
Well, you know what question I'm going to ask next? Well, sure,
well public okay, who's keeping on public trust and guardian trust?
What are the safeguards there? I mean, that's it's an
ever asking question. It's a question that can keep going.
Speaker 3 (18:59):
Like when you go the way back to the government
right in that case, in terms of their regulations, so
they were regulate public trust as much as we get
regular above it for me. So provided that we have
confidence in the scheme that we have and the government
looking after those trusts, then you be confident in the scheme.
But the main thing for the listener at home to
know is your provider can't touch your money. And on
top of that, well the government can change a lot
of things with the key weserver, they can't touch your
(19:20):
money either, which is nice. Does sit with those trusts?
Speaker 2 (19:22):
Okay, Look, we would love you to join us. We've
got quite a few text throlling and often with money,
people don't like to necessarily put their voice on the air.
But you can jump the cure if you like. We've
got lots of questions for Nathan. Nathan Stanner, he is Stanners.
Should I say he's a key we Saver advisor at
Generate key we Saver. But the broader question we've thrown
out to you is how often do you check your
(19:44):
key we saver? Are you like my producer Tyra, who
just went, oh, you know, I've got some money going
in there, I'll leave it alone, and I'll leave it
to really aggressive because I'm not risk aversing. I'm young
and I've got everything to gain nothing to lose. Or
I'm not sure I'm put paraphrasing her position particularly accurately,
but how often should you check and go? Do I
need to review my provider and the type of fund
(20:06):
I've got eight hundred eighty ten eighty. If you've got
any questions for Nathan, now, I'm going to give We
will give this every time. Probably he's not going to
be giving you specific financial advice. That's what's one of
the great rules that we always adhere to. He won't
be giving you specific financial advice, but we will discuss
the circumstances you present and some ideas perhaps, but it
(20:29):
won't be specific financial advice, and he'll probably say that
every time he opens his mouth, just to be safe. Well,
because you know, it's money, it's important. We've got to
be safe with these things. It's twenty seven past five,
eight hundred eighty ten eighty. Yes, I know you're worried
about funding a comfortable retirement. Well you're not alone. The
cost of living crisis is heading home for a lot
of people, so it's no surprise that people are looking
(20:51):
for ways to make the most of their savings and
get a little bit more income to supplement their New
Zealand super. One interesting solution is to invest in an
income fund like the Harbor Income Fund. It works by
holding a mix of interest paying securities and shares that
have been designed to generate a steady and sustainable income
no matter the market. The Harbor Income Fund is actively
(21:11):
managed and currently it pays the distribution of four point
five percent per annum after fees and taxes paid out
monthly installments. To find out more about Harbor's Income Fund,
just head to their website or speak with your financial advisor.
This is not intended as personalized advice. The product disclosure
statement from Harbor Investment Funds invest issued by harbor Asset
(21:33):
Management is available at harborasset dot co dot Nz.
Speaker 1 (21:39):
Parentech, property, politics plus money, health and the week's debates.
It's all on the Weekend Collective with Tim Beveridge us
talk Zevvy.
Speaker 2 (21:48):
We thought in a discussion about key we savi could
be so fascinating. But we're joined by Nathan Standers. He's
a key we Saver advisor at key at Generate key
we Saver and we're taking your calls. Let's kick it off,
shall we?
Speaker 5 (22:00):
Matt, Hello, Hi Tim, Nathan, good show. My answer to
your question, I think how often should we look at
our key we says? I think whatever you like? Is
the answer really.
Speaker 2 (22:16):
Relaxed, doesn't it?
Speaker 5 (22:18):
Yeah, well it's just whatever whatever suits. I don't think
there's any right or wrong, you know, with a daily
might be a bit much, but it's pretty easy just
to tap you up disclaim I work in this area. Yeah.
Speaker 2 (22:35):
Actually, but do you think that there's a level of
new you know, It's like, why are you're checking it's
not going to know every day? I mean, why would
you check it every day? Aren't you just creating anxiety?
Speaker 3 (22:47):
Yeah?
Speaker 5 (22:47):
I totally Yeah, I wouldn't say every day but probably
most importantly, that there is a number that you should
be fixed on or focused on. That's what we call
your retirement number. So at some stage you know sitting
in the amount that you'd like to retire on perheps.
Imagine if you're retiring now, and that's probably a number
(23:11):
that's good to focus on and work out how much
you need to contribute over the years to get to that.
Speaker 2 (23:16):
That's a fair enough comment. But of course, well a
million dollars these days, of course I want a million
dollars to retire on in twenty years time. You'd be like,
that's not very much.
Speaker 5 (23:25):
Yes, different in different years, different lifetime.
Speaker 2 (23:28):
How much do you want to retire on enough? I
thought you were going to give us something concrete their mat.
Speaker 5 (23:39):
Well, mine's but different. I'll sell my financial advice practice,
which is not ideal. I still contribute, but at different
fair enough.
Speaker 2 (23:50):
You might not want to comment, given what you do
self employed.
Speaker 5 (23:53):
But what's interesting about to you? We have it. Early on,
people didn't realize it's equally a first home deposit account
for people at the young young age groups, equally as
a retirement account. So in the first few years, a
lot of people in the industry even didn't realize that
that that was designed that way. But it's pregnant. It's
(24:15):
very good for that.
Speaker 2 (24:16):
Actually, that's an interesting point. Yeah, that's an interesting pot.
Thank you, Matt. That's an interesting point that Matt's raised
because it does change the discussion, Nathan around when you
should You know, I've said for Tyra, you know she's
in an aggressive fun set and forget. But if you're
ready to take it out to buy your first home,
then all of a sudden you're having to behave in
the same way that a sixty five year old or
(24:38):
a sixty year old might behave exactly.
Speaker 3 (24:40):
Circumstances are the main thing worth your key we saver.
If you're getting ready to buy home, you've got a
couple of years out from that. It probably is important
to check at least every six months and get advice
on that maybe every year. I've got clients wore already
sixty five that think they may work to seventy, but
that may change that age. Things change all the time,
whether it's health or kids or job, and so actually
didn't get them in a review and making some adjustments
(25:01):
to your settings are going to be really important. So
I do agree with Matt. Where there's no right or
wrong answer on that. You can get as much as
you like as long as you're comfortable with seeing it.
Speaker 2 (25:09):
It's almost like you want to ask a psychologist how
often you just spend it. It's like, well, if you're
stressed about money, there's there will be a I mean,
I tend to think if you're obsessing about your key
we sav you should probably be looking at putting your
money into an active investment where you can make and
you know, where it's not locked away for years. You
probably want to be interested in other forms of investing too.
Speaker 3 (25:29):
Yeah, having the plan is the main part where it's
key we Saver or other investing, and it starts with advice.
If you have a plan and you've had advice like
Tara has with her key we Saver, you're comfortable. Now.
Speaker 2 (25:39):
I'm going to take another cour go and dig into
that because she said I'm with I'm with, She's with
Generaate and she said I was talking with my advisor.
I was like, who gets to talk to an advisor?
But apparently that is something you guys do. We'll dig
into that soon, but first Colleen, Hello, ah, Hi, Yeah.
Speaker 6 (25:57):
I've got I've had a Kiwi saver.
Speaker 5 (26:01):
I don't know.
Speaker 6 (26:03):
I started like because I'm old, and I suddenly realized
when sort of looking at it that it was actually
doing okay. So I up them amount of money I
was putting into it. Now now I'm I'm really quite old,
and I still got it operating. And the way I
do it it might be a little bit different than
(26:24):
what other people do, but I do watch the stock
market cvperfully, and when I saw Trump person, I took
my money out, leaving two thousand dollars in my Kiwi saving.
Because they'd set me up nasty that I could see
it on a daily basis. I took my money out
(26:46):
and then I put it back. And when I saw
the stocks going up again and listening on me radio
on the TV one night and it was quite nice,
and I saw that Trump had just bombed a run,
so I just stat up the computer butt eleven o'clock
at night and took the money out again.
Speaker 2 (27:06):
Yeah, that's an interesting one, Colleen. So you've been reacting
to world events. Possibly making a call about him becoming
president is something that you know that's fair play, But
reacting to the bombing of Iran you're probably slower than
the markets. That's a bit of a catch.
Speaker 3 (27:23):
What do you think, Nathan, Yeah, so Colin, it's very
natural to feel that way, especially with a kei. We
save it. When it does move quite quickly, you feel warrion.
You may feel like it is a rational thing to
take your money out. But the issue with markets you
did right tim They react before us, and timing the
market is almost impossible. If you were one of the
best investment experts in the world, you get it wrong
most of the time. It's probably about a coin flip
(27:44):
in tnt of time and when to get in and
out of market. So setting yourself up with the plant
and sticking to that is the idea.
Speaker 2 (27:49):
I set the Trump election aside as something you could
make a call on because people wouldn't have known. I mean,
would the markets have an answer to that straight away?
Whereas that have a pretty quick answer to Iran's just
being bombed.
Speaker 6 (28:01):
Yeah.
Speaker 3 (28:01):
The market's always pricing everything in, whether it's oil prices
or presidential candidates or whatever it may be. So it
is very hard for us to make plans for that.
It is really again taking into account your time frame,
your circumstances, your retirement and making a plan for that,
and markets are the thing regardless.
Speaker 2 (28:16):
I just checked mine. Actually that has a little bit recently,
but I'm I'm still reasonably happy with it. I won't
look at it again. Don't look at it again. Tim
on the note yourself, and now I actually tell you
what We'll take the break and I want to dig
into a little bit about what Generate doing. We've got
a bunch of texts, a lot of corresponds from people
asking for advice. So I one hundred and eighty ten
eight if you want to jump the que on that.
(28:36):
But we'll be back in just a minute. We're with
Nathan Stanners. He's a key. We saber advisor at generate Key.
We saber back in attack news Talk said, be on
Tim Beverage. We're with Nathan standersy Kee, we Saber advisor
generate Key. We save it. Let's go to Ali. Hello.
Speaker 4 (28:51):
So excuse me. A few years ago now, I was
in hospital. I had an acute situation where I was
in hospital for about five days.
Speaker 5 (29:00):
Yep.
Speaker 4 (29:01):
And this is probably going back maybe around twenty twenty one,
twenty twenty two, probably under the labor lead government and
my KEYWI Saver had always been with Fisher Funds, and
then at some point I had gone to look into
my kiwisaver and it had been defaulted over to Westpac
(29:24):
and I lost a few green in the process of that,
and I can't remember who I asked at the time,
but apparently while I was in hospital, the government had
changed some settings around Kiwi Saver and so apparently that
was why my Keywi Saver was automatically defaulted over to
a completely different provider. Do your experts know anything about
(29:45):
that being legit?
Speaker 2 (29:48):
I don't know, Nathan. Does that ring any bells with
you at all? Yeah?
Speaker 3 (29:51):
So what did change is the default providers moved from
a larger set to a smaller set, which included Westpac.
But it's very unlikely that you lost money because of that. Ultimately,
there may have been some market movements where you went
from a more conserve to a more balance fund and
that potentially you meet your investments moving around a bit
more than you're used to. But there's no scenario where
a change in government oversights or legislation would make your
(30:15):
balance go down. Just doesn't happen in that No, I.
Speaker 4 (30:18):
Totally understand that it could have been due to markets
or whatever. But it was just that there was no
consultation or permission on my behalf. It basically all just
happened without even my knowledge at the time.
Speaker 2 (30:32):
Yeah, that's unfortunate. There would have been plenty of announcement
of that from the government point of view, wouldn't.
Speaker 3 (30:37):
They or yeah, the government, yes, But also this shouldn't
have been It should have been emails coming from your
provider at the time. But you know, ultimately, I'd like
to say, probably emails aren't enough. I don't think here
we Save in general has done enough in terms of
communication with most of its members, which is something that
we try and do a lot more of, especially with
advice and having an advisor.
Speaker 2 (30:53):
So did you used to receive Actually I don't know
if I get any communication of mine at all. Actually
would have a clue. Oh my goodness, I've got a
few things, but at homework I need to do. Do
you how often do you check you can we save
the fund Eli?
Speaker 4 (31:07):
I check it fairly regularly now, especially in these current
volatile markets. But at the time I was just contributing
to it, and it was just those things in the background,
so I wasn't really checking up on it, and that's
why I was quite shocked when it came it came
about that it had been switched over and there head
(31:28):
for some reason, you know, as you say, it could
have been market volatility or whatever. Money had been lost,
and I was just like, nobody contacted me, nobody asked me,
nobody checked.
Speaker 2 (31:39):
Has it affected your enthusiasm for how you treat your
fund and how much you contribute?
Speaker 4 (31:45):
It has to be honest, I'm very unenthused about can
we save these days. I don't really see it, like
I don't know, I guess I don't really see it
as a savings plan. It is like more like a
high risk investment.
Speaker 2 (32:01):
Yeah, well that's exactly the opposite of what it's supposed
to be. That's that's a or shame you feel that way, Ali, Nathan,
What do you reckon? Yeah?
Speaker 3 (32:08):
I totally agree, Allie. And look, you're not alone. Where
can we save? Just from lack of maybe the communications
that you've got or information in the first place, where
you're left in a situation we don't understand what has happened.
And I think if you do get to sit down
with someone that explains these things to you and gives
you some good options that would make it a difference.
That's the idea.
Speaker 2 (32:25):
Hey, thanks for you call, Alie. Actually you should stay
stay tuned, Ali, because I think you might be interested
in this next part of it. Because when Tyra was
in and she's with Generate Key We Savor, she was
talking about how she was talking with her advisor and
you're a key we save her advisor. But I just
looked at that generically, but how does does Generate like
(32:47):
Literally Tyra was talking about the conversation she had with
her advisor and I was thinking, is that you guys
point of difference? Well, how do you guys operate?
Speaker 3 (32:54):
Yeah, it's definitely one. And look, choosing a provider is
really choosing a builder to come build your house, depending
on their skills, experience, how they go about it. Both
may try to do the same thing but different results
along the way. And there which are fantastic providers out there.
Of course, I'd like to think Generate is included in that.
And one of our biggest points of difference is that
no cost and obligation advice piece. We are going to
come and see you maybe at your work, at your house,
(33:15):
with your partner, at a cafe and have a conversation
about your situation and give you some recommendations, and the
value of advice is shown to be really important. Again,
if you get the right fund for your circumstances, that's
where your keys ever can work harder for you. But
if you kind of left alone you've not had advice
or good information, that's where key wes ever can be
where ends up with Alick. We're not sure.
Speaker 2 (33:34):
So can people give you a call? Somebody can call
up absolutely. Yeah.
Speaker 3 (33:38):
If you've got a double double generate wealth that cut
it in z you can actually ask to speak to
an advisor again. It'll be a no cost obligation chat.
You can find me on LinkedIn and someone like Lucas
on LinkedIn as well, who's a colleague of mine who
gave Tyra advice. So that is what we do. People
like us have dozens and dozens of clients trying to
buy a first home into retirement, and we give them
advice to start with and look after them on the gun.
Speaker 2 (33:58):
How many people I mean, is there a limit on
how often people can contact you? It's just as often
as you're available. It's like if somebody started calling you
every week, you'd be like.
Speaker 3 (34:07):
Yeah, yeah, exactly, and look for me, I definitely take
it as a bit of a privilege of trusting someone
with or they're trusting you to give them advice and
with their money. But ultimately for that, what we're going
to do is make sure that we are there. People
may have questions regularly, but if we've given them good advice,
they shouldn't have them that often.
Speaker 2 (34:23):
They're in a plan now what generally would be the guidance.
So when someone might think, oh, I spoke to many recently,
when can I call them again?
Speaker 3 (34:30):
Yeah, I look at they're volatile times and people do
pick up the phone a lot more, and I'm never
going to say no to anyone to have the conversation. Right,
They've ultimately trusted me to help them with that, so
I'm going to have a chat with them, make sure
they understand why things are moving around. The plan that
I gave them six weeks, six months, or even a
couple of years ago. It is still right for them.
But again, it is the circumstance changes when you want
to be picking up the phone and giving your advisor
(34:51):
a change.
Speaker 2 (34:51):
Hey, there was something I wanted to touch on, and
the question of understanding what risk is so, and I
was talking about the things I've risked money on in
which in the past, which with consp reduction, which is
hugely risky, and yet I understand what the risk is.
How do people actually understand who don't work in the
(35:12):
money markets, you know, they're not maybe not an active
investors either. How do you actually explain what low and
high risk is? Because there might be someone who from
a perspective, from one perspective might say, oh, look, the
aggressive fund actually is not particularly high risk either. From
some investors would look at the really aggresive funds and go,
that's not high risk, that's about medium risk. How do
(35:32):
you explain risk to people that they so they can understand.
Speaker 3 (35:36):
Itkel, So there's probably two explanations I'd want to give.
One is how those funds work, what we call fun types.
Then also what risk is to start with? And I'll
start with the latter there. So I want to split
risk into two things, risking and volatility. And I'll start
with volatility. So what volatility is is the movement of
your key, we say. In that case, so when you're
in a more aggressive fund, it does have more volatility.
You may got ten percent in a month or down
(35:56):
ten percent a month. Some of those more conservative fund
is going to be less volatile. Now the risk is
when you can't actually meet your goal. That is what
risk is. If you're someone who's close to a first
home and you're in an aggressive fund, that is high
risk because markets may four twenty percent in a few
months that they did during COVID. That is the risk.
But if you've got time before you're going to withdraw
for a first time or retirement, even those more aggressive
(36:17):
funds can be low risk for you, per se because
you have that time. We know I from looking at
long term data sets, you can stick with those funds.
Speaker 2 (36:24):
You give numbers like there's a twenty percent risk of
in this fund that your money might your fund might
waive this much or not so much.
Speaker 3 (36:30):
We give risk scores kind of out of seven per se,
which is based on how much the fund has moved
over the last week while. And the other explanation I
wanted to give was how those funds work. And there's
a very basic sense. There's more aggressive funds, your growth,
your high growth, we call it focus growth. They're going
to have more shares in them, more of your money
goes to shares, property infrastructure. Okay, back down the other end,
and there's more conservative and cash funds. You have more
(36:51):
cash shorts.
Speaker 2 (36:52):
So the more context it helps people inform themselves exactly
once they understand how the share market works and.
Speaker 3 (36:57):
All that stuff exactly. And those more aggressive funds don't
have more aggressive assets the most part, they don't have
more risky shares. It is the same shares buy and large,
but just more of your money goes towards them. So
it's not in four or five really risky companies. It's
still one hundreds. It's well diversified, but more of your
money goes towards them. And that is where that risk
and voltsil that he comes from, rather than being a
very boom or bust investment per se.
Speaker 2 (37:19):
Okay, hey, we need to take a quick moment. We'll
be back and just to tech gosh times flying where
with Nathan Standers, he's a key Saver advisor at Generate
key we Saver. If I can, I'm going to try
and squeeze in a text or two which might cover
a few bases for us from all the texts we've
received during the course of the art. But right now
it's tend to say news talks. It'd be with Nathan
Standards from Kiwi Save. He's a key Saver advisor at
(37:41):
Generate Kei We Saver. A few texts just to cap
it off all off. One says, Hi, boys, it's like
Kiwi Saver. It's good as long as it's managed. People.
I know when they turn sixty five years old, they've
had it spent in five minutes new cars and holidays.
Then the rent goes up and so on and so
on and so forth. I guess that's saying it's one
thing to have a plan for your key We saber,
(38:03):
but you've got to have a plan for how you're
going to spend it once you've cashed it out. I
guess what do you reckon?
Speaker 5 (38:08):
Yeah?
Speaker 3 (38:09):
Absolutely, I think a lot of people swecially key We
think when they get to sixty five the key We
saver it is done or they can take it all out.
But ultimately it's not really what the plan should be.
It's about getting some advice to siding whether you want
to take it out weekly, where you can take it
all out for a certain thing that is the idea.
Advice is always the key.
Speaker 2 (38:25):
Hi, I'm in the state sector retirement savings scheme dollar
for dollar is key we save a better and therefore
should I swap. Thanks for any info, Okay, not specific
financial advice, but how does it perform with.
Speaker 3 (38:36):
I'm not sure what you know they're referring to their
state sector. Is that you know a teacher's superannuation fund?
I'm really not sure.
Speaker 2 (38:42):
Let's imagine it is.
Speaker 3 (38:43):
Okay, so choice is probably the only thing. I can't
comment on returns, but key Wes have has a lot
more choice. There are thirty plus providers now worth you,
multiple fun types in each and performance over the long
term generally has been very good. But with some of
those subranuation schemes there are just less choice for the
most part, so it will be a bigger difference.
Speaker 2 (38:59):
I do know, I don't know how it works. It's
probably worth speaking with someone about it, firstly, with your
or retirement savings provide, asking what they're doing with money,
and what the choice is and what you can do
with it, because if there's an alternative where you can
shove it into kisaver, it's worth considering. Not specific financial advice.
I can see that you've got that careful look on
your face, slight.
Speaker 3 (39:19):
You know, yeah, yeah, not an expert on those schemes,
but if you've got choice where you can potentially move
it to another one worth looking into that the.
Speaker 2 (39:26):
Idea and this one sort of invites a double down
onto a conversation made earlier. But I think it's worth
repeating the sentiment of this text. This person says, Hi,
zb I piled my key we save. I pulled my
keiw wei saver out of a high risk fund the
day the Iran war started into an all cash fund.
When should I look at switching it back to lock
(39:48):
in good gain? Says Ben. Maybe we're assuming that he
has done well where he put it, But let's just
double down on you know, major global events and you
thinking you're beating the market.
Speaker 3 (40:00):
Yeah. Funnily enough, if you actually just stayed in an
aggressive fund for the last six eight weeks, you would
have been up a lot higher than a cash from
what have been So even though there was that big
drop initially, the market came back quite quickly. Earning season
in the US has been very strong, where markets are
now probably four or five percent higher than they were
pre the Iran war breaking out. So the issue there
is knowing when to go out and into markets. It's
(40:20):
very difficult to do. If you've got a time frame
set with your fund that you're in, you want to
stick with that. And it's a really clear thing we've
just seen over the last few months with how quickly
it came back.
Speaker 2 (40:29):
Oh well, hey look god, time has flown. Thanks so
much for coming in Nathan. Now again, if people want
to check out the generate key we saber it's is
a generatewealth dot code dot nz Is that right?
Speaker 3 (40:39):
I got that one, Yes, absolutely generate wealth. You can
request an advisor like myself. We'll come and see you.
Speaker 2 (40:44):
And give you something you could even ask for Nathan
if you like I can. Are there any other Nathan's there? Nathan? No,
just me Nathan Smith. Who's going to go? Who are who?
Speaker 5 (40:52):
Hey?
Speaker 3 (40:53):
Thanks so much for your time, mate, my pleasure. Thanks
for having me on.
Speaker 2 (40:56):
Good stuff. And if you've missed any of the hour,
you can go and check out any of our show.
We had a great chat with Greg Pain of course
about exercise, clothing and warming up and shoes and all
that for the hell and that was of course smart money.
So we'll look forward to your company again next weekend.
Thanks to tyre Ward, my producer. Sunday at six is next.
Speaker 1 (41:15):
For more from the Weekend Collective, listen live to News
Talk SEDB weekends from three pm, or follow the podcast
on iHeartRadio.
You're listening to the Weekend Collective podcast from News Talks V.
Speaker 2 (00:11):
Those time in all those time. Will you know what
when I send my watch back to did in on
those time? Yes, welcome back. This is the Weekend Collective.
(00:49):
We welcome in. Should I say, if you have just
joined us on Tim Beveridge and this hour is smart
Money and as you know, we invite your calls and
your participation. You know you can join us for the
conversation on eight hundred and eighty ten eighty being text
on nine two, nine to two. And as I say,
for this hour, it's welcome to smart Money. Now, okay,
so what we're going to talk about here. Look, look,
(01:09):
investment accounts where you put your money your key, we
save it. It's offen a bit touch and go, isn't it.
But if you're checking yours, you know, if you're checking
your key, we saver more than a few times a year,
or maybe even more than a few times a month,
you know the amount of movements sometimes might actually get
into your head. Then again, there are those who are
close to retirement age, might be about to withdraw for
(01:30):
whatever reason. So a volatile market can make it all
the difference Obviously there is the advice about when you
should shift from an aggressive fund to a less aggressive
fund to a conservative fund and all that sort of thing.
But the basic question is for you out there with
your key we saver, have you been just set and forget?
How often do you check your key we saver? And
(01:53):
how often should you check your key we saver? I
think the should you question will go for our guest,
and then we'll get your questions on it and your
thoughts and questions on it as well, because I imagine
that for many people it's like, well, key we save
or the government designed it. I've got to choose a fund.
I'll stick it in the fund. Okay, I've got a job.
They're sticking money and and I'll forget about it. And
maybe that's the way to go. Maybe that is the
(02:13):
way he should just set it and forget it or not,
I don't know. That's why I'm not hosting there on
my own. We get someone else and who knows what
they're talking about, and we've got a new guest in
the studio. He is a Keiwi Saber advisor at Generate
Kiwi Saber and his name is Nathan Stanners and he's
with me now for smart money Nathan.
Speaker 3 (02:32):
Gooday again, good thanks having me on.
Speaker 2 (02:34):
Yeah, good. Actually does there a twang there?
Speaker 4 (02:36):
Are you?
Speaker 5 (02:36):
An? He?
Speaker 3 (02:37):
No? I actually get that a lot though, to be fear.
Speaker 2 (02:39):
Oh, I feel like.
Speaker 3 (02:43):
I was actually coming back on the plane the other
day from Sydney and I had someone sitt the next
to me who from Duneda, and they asked if I
was coming back on holiday or going on holiday. I
was saying no, I'm actually just coming back home after
holiday in Sydney. So I do get that more often
you Yeah, yeah, I do. They get you that more
than you'd think. But I'm definitely a Kiwi from top
to bottom. So no Australian blood of me.
Speaker 2 (03:03):
Oh that's quite funny. We should get people to text
and at the end of the outside, do you think
he's Australian or key anyway, Hey, look a little bit
about you. You're a young fella for one. Tell us
about your journey into the world of money.
Speaker 3 (03:18):
Sure. So my background, of course from AMSS Nathan to
work at Generate, So I've been in all clam most
of my life. I grew up here, I went down
to the need and to get my finance degree. So
I started that, jeez about ten years ago, in twenty sixty.
Speaker 2 (03:28):
It's a finance degreel.
Speaker 3 (03:29):
So I was down at University of a Tiger and
that's a Bachelor of Commerce majoring and finance aid economics
on the side there too, but major was was financing.
Speaker 2 (03:37):
Did you know you wanted to get into finance straight
away or someone did?
Speaker 3 (03:41):
I'd say, not my why? But a big reason of
that was actually probably my dad. He spent most of
his life, you know, working quite hard for hopefully you
only got the money along the way, but he probably
didn't know how to spend it wisely or invest it.
Investing was a big wide world if he didn't know
what he was doing. In that case, actually got an
identical twin brother and he said, at least one of
you should go into.
Speaker 2 (03:59):
Your dad said at least one of you. Yes, at
least really, and what's one thing for your dad? Suggest
a career? So what you drew you into it was
it actually seeing your dad and thinking, look, it's a
hard work, but gosh, there's got to be a better
way of making your money work for you or what.
Speaker 3 (04:13):
Yeah, look at that age I was still probably seventeen
when I was deciding what I want to do. And
if I said I had a really good grand plan
that I'd stick to, I probably didn't. I went down
to UNI and I started my first paper, and I
enjoyed it. That was the main thing, right, And what
I found was after those first couple of years and
learning more about it, how you can make a real
difference with people, just yourself and your friends. Then it
was something I wanted to stick with for a while
and that led me to doing this.
Speaker 2 (04:34):
What's the stage? Actually, you said you enjoyed it first year?
It is Actually I've got to say, without getting too
distracted with this, but the journey. You know, if you
go to university and study something you're interested in, it
is amazing. Sometimes when you turn up to a lecture
and you learn start learning all the things that is
available to learn, it can be quite like, Wow, this
is amazing. And I'm guessing that was fit? What paper
(04:55):
was that?
Speaker 3 (04:56):
Jesus? A few papers that I know, Well.
Speaker 2 (04:57):
What was the paper that opened you up?
Speaker 5 (04:58):
You know?
Speaker 3 (04:59):
The one one can't menage. He's listening to this, But
Timothy Crack's a professional down Ondneeden. It's been for a
wee while and he does a three hundred level paper
which is a third year which kind of covers things
like key we saver, general investing, and just how you
can make the most out of it rather than just
the numbers that have been doing up until then. And
that was a bigger eye opener for me around the
choices you have with your money, your key WE server especially,
(05:20):
and how much difference it can make.
Speaker 2 (05:21):
Because a lot of people think, oh, how much choice
is there. You go aggressive or conservative or whatever and
make your choice and the way you go, but obviously
you learn there's a bit more to it.
Speaker 3 (05:30):
Yeah, there's a bit differitely around your provider, how much
you put in and what funds you're in as well,
and then you've got to reassess that when things changing
in your world. Just guesses what I'm here to talk about, really,
because I find that most people these days are looking
at the key we sever quite a bit generate that
a surveyed reason.
Speaker 2 (05:43):
Well, who's generate? Tell it? Remind us who generate? Can
we say?
Speaker 3 (05:46):
There are so generates? A key we owned and operated
key WE so a provider been around for about thirteen
years now, and a key is a provider in general
is someone that can invest your money on your behalf.
That's the idea there.
Speaker 2 (05:56):
So people can go with a generate key, we save
a fund.
Speaker 3 (05:58):
Yes, correct, So you're choosing the provider that invest your money,
then you choose the funds underneath that.
Speaker 2 (06:03):
Okay, So obviously you know you would probably want to
suggest people that generates a good place to stick your money.
But how often let's get onto the generic, the broader
questions of sorry, how long have you been with them?
For them, it's just where did you go when you
finished university?
Speaker 3 (06:19):
So finished university up in twenty nineteen, I started as
a investment banking analyst, so lucky enough to start my
career there, which is more corporate finance, mergers, acquisitions, capital markets.
So that for almost four years and then started to
generate the start of twenty twenty four. So just on
what was yours?
Speaker 2 (06:34):
Okay? But what was just one last question about you?
What was yours? What was the steepest learning curve where
you thought more? My goodness, I have picked up so
much in the last month, year, two years. Whatever's what's
the thing that stands out to you top of your head?
When I asked that I.
Speaker 3 (06:47):
Think my first couple of years in corporate finance were
pretty steep. My job before was more working with boards,
you know, executives and actually understanding the transactions there on
mergers and acquisition, trying to get up to speed on
running models and that sort of stuff, and then actually
are describing it to someone, whether it's in a powerpointerreaction,
in a lecture with them, or in a boardroom. So
that was probably the biggest learning curve. You go from
(07:09):
the theory under needing, which a lot was was fantastic.
Some you wasn't really going to.
Speaker 2 (07:13):
Be trust That's I sort of as you just casually
because I did a law degree and I practiced law
for a couple of years, and when you get out
with a law degree you know certain things, but you
know technical expression and you really know bugger all about
how to aze people.
Speaker 3 (07:26):
And i'd say the numbers, it's very numbers focused into needing.
But for the most part, what I found was once
you got into it, what you learned, i'd say's thirty
forty percent was going to really help you at the
start there.
Speaker 2 (07:36):
So look, key we SABOR was designed to be a
fund for everyone. That's I would I'm going to guess
without looking at any particular government policy document, but the
idea behind kee we say it if I'm just talking
off from the top of my head as a punter,
It's designed to be a way for people to invest
in their retirement. It's supposed to be easy and accessible,
nothing too where you're having to look at the you know,
(07:57):
you watch your stock rise and for I imagine that
in a way, it's sort of meant to be a
bit set and forget, but not quite so choose your
I mean as for how to choose a fund provider,
that's a whole luck of the drawer. Because every ad
for any key we save, we will say past performance
is no care future returns, which is sort of like saying, hey,
(08:22):
we're advertising you telling you how well we've done, but
guess what that might not happen, which is fair enough.
But how sit and forget? Should key we save a
be for the average kiwi cool?
Speaker 3 (08:33):
So I mean, if we look at some of the data.
Generate did a survey about six hundred people recently, and
what we found is about twenty five percent of them
and looking at it every week and about thirty percent
every month. So you could say at least fifty percent
of kiwis are looking at it at least once a month.
That's a lot in an age of technology. It's right
at your fingertips on an app, and it is a lot.
Speaker 2 (08:52):
Now I've got it on my phone and I probably
haven't looked at it for a couple of months. And look,
I'm probably not investing enough in it can being I'm
self employed, so you can tell me off about that.
Speaker 3 (09:04):
It's totally fine.
Speaker 2 (09:05):
Once a week sounds too often, yes, And.
Speaker 3 (09:07):
Look, it really depends on your circumstances. Ryan, to give
it a couple of examples there. If you look at
someone that has already water first time, has thirty plus
years to their retirement, they're in a fund. They understand
it may be a growth or aggressive fund. In that case,
they may not need to look at it monthly or
even yearly. They may look at it once every couple
of years. I've got a long time till their retirement,
and my last thing we want to do in those
(09:28):
more aggressive funds get quite attached to our balance. As
you mentioned earlier, it is going to move around a lot.
Being a long term investor involved keys of it being
an asset and moving up and down. So when you're
in that situation, I wouldn't recommend looking at it too
often unless you're someone that is quite a seasoned and
a mess.
Speaker 2 (09:42):
It's funny because I'm kind of rich risk averse in
some ways, but there's been a few things I've done
in my life which incredibly risky financially producing concerts, you know,
where you can have tens of thousands writing on whether
people buy enough tickets or not. And yet on my
key We Saber fund I was really balanced, which is
a fairly my view of a balanced fund, as it's
(10:05):
leaning on the conservative side. And then one day I
just went, oh, I bug at this, and I shoved
it to well, there was a couple of steps above.
Speaker 3 (10:14):
Okay, it's growth or aggressive possibly.
Speaker 2 (10:16):
And yeah, it wasn't crazy, and I don't regret it
at all because in fact, even regardless of what the
strait up on Moos is doing and all that sort
of stuff, I don't really look at it. And maybe
it's because there's not enough money to me to be
nervous about it. Would the amount of money you've got
in your key We saver, so like if you've got
ten or fifteen or twenty grand. Maybe people aren't thinking
(10:39):
I don't need to worry about that. But as soon
as you've got eighty to one hundred or more, is
there a correlation between the amount of money and how
often people change it?
Speaker 3 (10:47):
I wish I would know that that's that's a good question. Yeah,
it is a really good question, and it really comes
back to your circumstances. The advice that I'm giving really
doesn't take into account the amount that a person has.
It's more on their circumstances. Again, if they're closer to
sixty five and they may have a large amount there,
it is really important to make sure they're in the
right fund. A. Potentially you're reviewing that quite regularly, but
if you're someone that has just brought a first time
(11:08):
a long time to retirement, you may not need to
review it two months as long as you are in
that first So.
Speaker 2 (11:14):
So how often what would your starting point say it
be for the average keyword to have a look at
their fund.
Speaker 3 (11:19):
As soon as possible. Really, if you even't had advice especially.
Speaker 2 (11:21):
No, but let's say you've checked it recently, okay, and
you're okay, and just as a basic setting, how often
should they check.
Speaker 3 (11:30):
It geez, I'd say once every six months. There is
no rule of thumb in that case. Kind of seeing
your balance and your contributions going in and that it's
moving up and down, then it's totally healthy.
Speaker 5 (11:38):
You can know.
Speaker 3 (11:38):
What we want to avoid is getting attached to a
certain balance, and that's where there's a weekly movements or
the straight off for moves and things like that can
become you come quite attached to your balance. You want
to avoid that.
Speaker 2 (11:46):
Okay, Actually it's interesting my producer Tyra, I think you've
put this on my screen so I can say it there.
She said, what the hell? She sends me messages telling
me sometimes and she's a young person with the family
and another one on the way, and she's got KEYWI savors.
She says, I'm one in one of the more aggressive
fund most of rest of funds, and literally actually says,
(12:08):
I literally have no idea how much is in there.
If I check my balance right now, I genuinely wouldn't
know if it's gone up or down since this war started.
And she hasn't checked it in at least yes, she
hasn't checked it in a least a year. What would
you say to Tyra, would you say, because you know
she's in her early mid twenties, early mid twenties, mid twenties.
(12:28):
In fact, she's exactly in the mid twenties. I'm quite
happy for her not to check her balance for probably
another twenty years.
Speaker 3 (12:35):
Yeahver it depends the question i'd ask Tyra as what
as you go with the keep saver? Are you buying
a home soon? Have you already bought one? Those are
the key questions you want to ask because if you're
someone that wants to buy how soon, then we do
want to get some advice and aggress if I may
not be the one for you, but if you've got time,
then it can be something that works for you. That
is the idea. Circumstances are the main thing, and you're
timed to those circumstance.
Speaker 2 (12:54):
And I guess it depends what else you're doing with
your money, because I have a sneaking suspicion that Tyra
who's is hoping for some rules to change where she
can suddenly subdivide her big fat property. But she's not
holding a breath on that. But that can distract you
if you've you know what I mean. It's just there's
the Key we Save in the background. But here's where
I'm Is there a type of investor who's less inclined
(13:16):
to check the tea key we Saver because they've got
active stuff that's distracting them all the time.
Speaker 3 (13:21):
Sure, and it is how important key we Saver is
to you. Like if I spoke to a young couple
and their first time deposit was larger and to come
from the Key we Save, that very different conversation. They
are probably checking it more regularly, provided they've had advice
in the right fund, that is a far more important
thing for them. But if you're someone that again has
a first time you're investing outside of key we Save,
a key we Save is just a small contribution. Get
to get your employee contributions. It may not be as
(13:43):
something you're looking at all the time or is important
to you.
Speaker 2 (13:46):
There's a question I've got for you, and I'm amazed
I haven't ever thought of this because we've talked about
ke we Save on the show before, obviously, So there
are different fund providers, is I mean different circum Financial
circumstances can hit any fund, I guess, and some perform
better than others, and then suddenly they'll perform worse or
(14:07):
better or whatever. Is there some sort of what what
I mean is I'm trying to find a diplomatic way
of putting this. Would there ever be a trigger where
somebody is looking at these funds and going, this fund
has been performing so poorly for the last number of
months or years that we're going to consider its status
(14:28):
as a key we save a provider? What is the
quality check on these providers? Cool?
Speaker 3 (14:33):
So there's so the main one there with respective performance
is the Financial markets Authority. So when someone like a
provider that generators going to go invest someone's money, there
are a lot of parameters around that. In terms they
have to be diversified. You have to your money across
the globe and in a variety of different asset classes,
and also meeting the risk profiles of your client. That's
why you have those more conservative to those more aggressive funds.
But a really good example is a lot of it
(14:54):
is out of your control. You look at a situation
like COVID. Our aggressive fund may have been down thirty
percent in about three and a half weeks. Regardless of
how well of the job generators doing. Markets are good
to move. So you've got that regulation by for me,
in that.
Speaker 2 (15:05):
Case, it has been down or it might have been.
Speaker 3 (15:08):
In a three week peer three and a half week better
of the exact stats, but with the broader index, what
we call the S and P five hundred, which is
the US index, that would have been about down about
thirty percent in about a month, So.
Speaker 2 (15:18):
Well, it could easily go up quite quickly.
Speaker 3 (15:20):
Take exactly. And that's what you're going to see in
those more aggressive funds. So what you want to see
with your provider is that long term consistency. No provider
can make markets go up when markets are coming down
in a COVID scenario, or make them go down when
markets are going up for the most part, because they
are REGULATD.
Speaker 2 (15:34):
Is the regulation such that it's almost difficult for any
fund to really have a disaster because if you have
so for instance of Generate have a bad month because
they're attached to the S and P or they've got
a fund, you know, is would there ever be a
situation where one key we savers, let's just call it
(15:59):
mildly aggressive, it's sort of sitted in the middle, there
would have a disastrous month, and everyone asked, doesn't anyone
would go home well, why have they been why have
they been so terrible?
Speaker 3 (16:08):
They're parameters to working with that. You could see a
month where the market index is up ten percent and
a provider may only be up two or three in
that case, or vice versa. But very rarely you're going
to have a market up twenty percent and a provider
down in that case. It is just incredibly rare, and
I like to think the oversight from the FMY allows
as such that providers aren't going to be able to
do that.
Speaker 2 (16:27):
Well. That's what I mean is there's a regulation up
to a point almost guarantee that there's a level of
safety built into any fund where level.
Speaker 3 (16:33):
Of safety the guarantee word is one that would always
avoid using, especially in finances, because markets are going to
move around a lot. That is that the idea with it.
But yeah, look we are very well regulated and ultimately
if the FMA seeds are provider not fit to big
a provider, they could provoke their license in that case
to do that. So that is something that has assisted
all the time the industry and makes sure they're fit
to be doing well.
Speaker 2 (16:53):
I do get the sense, I don't know if you
would have died studied the history of the way markets
and advice has been regulated over the years. But one
does get the feeling that in New Zealand in particular,
that actually we're pretty blim and good at at setting
rules and keeping an eye on potentially dodgery operators.
Speaker 3 (17:11):
That yeah, we definitely are on There's probably one other
point I'd raise them. I think we learned from my
cousins over in Australia there because super obviously was around.
But before Key, we say, we had to have a
really good look at what they did and maybe didn't
do when they set it up, and then sit key
we save up in a really good way. But one
thing that's quite important for the listeners at home to know.
People often ask, hey, look, if my provider goes bankrupt,
what happens to my money? And the good news is
(17:32):
that your money's an't actually held directly by a provider.
It is held by an independent supervisor with their trust
in that case, so well, you are going to see
ups and downs with markets and your investments, and there's
more aggressive funds.
Speaker 2 (17:42):
So money is in those markets basically now.
Speaker 3 (17:44):
On those markets, however, you provide if they go bust tomorrow,
they can't take your money and run off or anything.
Speaker 2 (17:49):
So who's okay? So look my keeping saying with that
in Z. Because I was banking with them, I was
too lazy to look.
Speaker 3 (17:55):
At your house and that's free. Normal lots of people
are like that.
Speaker 2 (17:57):
Actually, funny enough, they're whatever the aggressive fund. I was
actually looking and going, have you got your bed mid
And I thought you would, But anyway, I haven't looked
lately because it might be that I look at it
in the break and go, oh my god. But now
where's my question? So if I've got say, I've got
my KEYP we saved with a Z. Sorry, who's actually
(18:17):
got it? Where's that money? Cool?
Speaker 3 (18:20):
So I believe that as is guardian trust?
Speaker 2 (18:22):
Who right?
Speaker 3 (18:23):
Yes, So they look after your money. They kind of
act as a custodian, so they hold your money. They
don't decide where it gets invested, but they do have
custody over that money. So in a situation where a decided,
you know, we're going bust wren you money to pay
off debts, they can't go and take all the keys
of the balance debts.
Speaker 2 (18:38):
I should have just asked where your guys is.
Speaker 3 (18:40):
Yes, we're public trust. We're public trust. So there are
a few trusts out there, Public Trust, Guardian Trust, Trust,
these executives, a few others out of the end, every
provider must have their money sitting.
Speaker 2 (18:48):
Well, you know what question I'm going to ask next? Well, sure,
well public okay, who's keeping on public trust and guardian trust?
What are the safeguards there? I mean, that's it's an
ever asking question. It's a question that can keep going.
Speaker 3 (18:59):
Like when you go the way back to the government
right in that case, in terms of their regulations, so
they were regulate public trust as much as we get
regular above it for me. So provided that we have
confidence in the scheme that we have and the government
looking after those trusts, then you be confident in the scheme.
But the main thing for the listener at home to
know is your provider can't touch your money. And on
top of that, well the government can change a lot
of things with the key weserver, they can't touch your
(19:20):
money either, which is nice. Does sit with those trusts?
Speaker 2 (19:22):
Okay, Look, we would love you to join us. We've
got quite a few text throlling and often with money,
people don't like to necessarily put their voice on the air.
But you can jump the cure if you like. We've
got lots of questions for Nathan. Nathan Stanner, he is Stanners.
Should I say he's a key we Saver advisor at
Generate key we Saver. But the broader question we've thrown
out to you is how often do you check your
(19:44):
key we saver? Are you like my producer Tyra, who
just went, oh, you know, I've got some money going
in there, I'll leave it alone, and I'll leave it
to really aggressive because I'm not risk aversing. I'm young
and I've got everything to gain nothing to lose. Or
I'm not sure I'm put paraphrasing her position particularly accurately,
but how often should you check and go? Do I
need to review my provider and the type of fund
(20:06):
I've got eight hundred eighty ten eighty. If you've got
any questions for Nathan, now, I'm going to give We
will give this every time. Probably he's not going to
be giving you specific financial advice. That's what's one of
the great rules that we always adhere to. He won't
be giving you specific financial advice, but we will discuss
the circumstances you present and some ideas perhaps, but it
(20:29):
won't be specific financial advice, and he'll probably say that
every time he opens his mouth, just to be safe. Well,
because you know, it's money, it's important. We've got to
be safe with these things. It's twenty seven past five,
eight hundred eighty ten eighty. Yes, I know you're worried
about funding a comfortable retirement. Well you're not alone. The
cost of living crisis is heading home for a lot
of people, so it's no surprise that people are looking
(20:51):
for ways to make the most of their savings and
get a little bit more income to supplement their New
Zealand super. One interesting solution is to invest in an
income fund like the Harbor Income Fund. It works by
holding a mix of interest paying securities and shares that
have been designed to generate a steady and sustainable income
no matter the market. The Harbor Income Fund is actively
(21:11):
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monthly installments. To find out more about Harbor's Income Fund,
just head to their website or speak with your financial advisor.
This is not intended as personalized advice. The product disclosure
statement from Harbor Investment Funds invest issued by harbor Asset
(21:33):
Management is available at harborasset dot co dot Nz.
Speaker 1 (21:39):
Parentech, property, politics plus money, health and the week's debates.
It's all on the Weekend Collective with Tim Beveridge us
talk Zevvy.
Speaker 2 (21:48):
We thought in a discussion about key we savi could
be so fascinating. But we're joined by Nathan Standers. He's
a key we Saver advisor at key at Generate key
we Saver and we're taking your calls. Let's kick it off,
shall we?
Speaker 5 (22:00):
Matt, Hello, Hi Tim, Nathan, good show. My answer to
your question, I think how often should we look at
our key we says? I think whatever you like? Is
the answer really.
Speaker 2 (22:16):
Relaxed, doesn't it?
Speaker 5 (22:18):
Yeah, well it's just whatever whatever suits. I don't think
there's any right or wrong, you know, with a daily
might be a bit much, but it's pretty easy just
to tap you up disclaim I work in this area. Yeah.
Speaker 2 (22:35):
Actually, but do you think that there's a level of
new you know, It's like, why are you're checking it's
not going to know every day? I mean, why would
you check it every day? Aren't you just creating anxiety?
Speaker 3 (22:47):
Yeah?
Speaker 5 (22:47):
I totally Yeah, I wouldn't say every day but probably
most importantly, that there is a number that you should
be fixed on or focused on. That's what we call
your retirement number. So at some stage you know sitting
in the amount that you'd like to retire on perheps.
Imagine if you're retiring now, and that's probably a number
(23:11):
that's good to focus on and work out how much
you need to contribute over the years to get to that.
Speaker 2 (23:16):
That's a fair enough comment. But of course, well a
million dollars these days, of course I want a million
dollars to retire on in twenty years time. You'd be like,
that's not very much.
Speaker 5 (23:25):
Yes, different in different years, different lifetime.
Speaker 2 (23:28):
How much do you want to retire on enough? I
thought you were going to give us something concrete their mat.
Speaker 5 (23:39):
Well, mine's but different. I'll sell my financial advice practice,
which is not ideal. I still contribute, but at different
fair enough.
Speaker 2 (23:50):
You might not want to comment, given what you do
self employed.
Speaker 5 (23:53):
But what's interesting about to you? We have it. Early on,
people didn't realize it's equally a first home deposit account
for people at the young young age groups, equally as
a retirement account. So in the first few years, a
lot of people in the industry even didn't realize that
that that was designed that way. But it's pregnant. It's
(24:15):
very good for that.
Speaker 2 (24:16):
Actually, that's an interesting point. Yeah, that's an interesting pot.
Thank you, Matt. That's an interesting point that Matt's raised
because it does change the discussion, Nathan around when you
should You know, I've said for Tyra, you know she's
in an aggressive fun set and forget. But if you're
ready to take it out to buy your first home,
then all of a sudden you're having to behave in
the same way that a sixty five year old or
(24:38):
a sixty year old might behave exactly.
Speaker 3 (24:40):
Circumstances are the main thing worth your key we saver.
If you're getting ready to buy home, you've got a
couple of years out from that. It probably is important
to check at least every six months and get advice
on that maybe every year. I've got clients wore already
sixty five that think they may work to seventy, but
that may change that age. Things change all the time,
whether it's health or kids or job, and so actually
didn't get them in a review and making some adjustments
(25:01):
to your settings are going to be really important. So
I do agree with Matt. Where there's no right or
wrong answer on that. You can get as much as
you like as long as you're comfortable with seeing it.
Speaker 2 (25:09):
It's almost like you want to ask a psychologist how
often you just spend it. It's like, well, if you're
stressed about money, there's there will be a I mean,
I tend to think if you're obsessing about your key
we sav you should probably be looking at putting your
money into an active investment where you can make and
you know, where it's not locked away for years. You
probably want to be interested in other forms of investing too.
Speaker 3 (25:29):
Yeah, having the plan is the main part where it's
key we Saver or other investing, and it starts with advice.
If you have a plan and you've had advice like
Tara has with her key we Saver, you're comfortable. Now.
Speaker 2 (25:39):
I'm going to take another cour go and dig into
that because she said I'm with I'm with, She's with
Generaate and she said I was talking with my advisor.
I was like, who gets to talk to an advisor?
But apparently that is something you guys do. We'll dig
into that soon, but first Colleen, Hello, ah, Hi, Yeah.
Speaker 6 (25:57):
I've got I've had a Kiwi saver.
Speaker 5 (26:01):
I don't know.
Speaker 6 (26:03):
I started like because I'm old, and I suddenly realized
when sort of looking at it that it was actually
doing okay. So I up them amount of money I
was putting into it. Now now I'm I'm really quite old,
and I still got it operating. And the way I
do it it might be a little bit different than
(26:24):
what other people do, but I do watch the stock
market cvperfully, and when I saw Trump person, I took
my money out, leaving two thousand dollars in my Kiwi saving.
Because they'd set me up nasty that I could see
it on a daily basis. I took my money out
(26:46):
and then I put it back. And when I saw
the stocks going up again and listening on me radio
on the TV one night and it was quite nice,
and I saw that Trump had just bombed a run,
so I just stat up the computer butt eleven o'clock
at night and took the money out again.
Speaker 2 (27:06):
Yeah, that's an interesting one, Colleen. So you've been reacting
to world events. Possibly making a call about him becoming
president is something that you know that's fair play, But
reacting to the bombing of Iran you're probably slower than
the markets. That's a bit of a catch.
Speaker 3 (27:23):
What do you think, Nathan, Yeah, so Colin, it's very
natural to feel that way, especially with a kei. We
save it. When it does move quite quickly, you feel warrion.
You may feel like it is a rational thing to
take your money out. But the issue with markets you
did right tim They react before us, and timing the
market is almost impossible. If you were one of the
best investment experts in the world, you get it wrong
most of the time. It's probably about a coin flip
(27:44):
in tnt of time and when to get in and
out of market. So setting yourself up with the plant
and sticking to that is the idea.
Speaker 2 (27:49):
I set the Trump election aside as something you could
make a call on because people wouldn't have known. I mean,
would the markets have an answer to that straight away?
Whereas that have a pretty quick answer to Iran's just
being bombed.
Speaker 6 (28:01):
Yeah.
Speaker 3 (28:01):
The market's always pricing everything in, whether it's oil prices
or presidential candidates or whatever it may be. So it
is very hard for us to make plans for that.
It is really again taking into account your time frame,
your circumstances, your retirement and making a plan for that,
and markets are the thing regardless.
Speaker 2 (28:16):
I just checked mine. Actually that has a little bit recently,
but I'm I'm still reasonably happy with it. I won't
look at it again. Don't look at it again. Tim
on the note yourself, and now I actually tell you
what We'll take the break and I want to dig
into a little bit about what Generate doing. We've got
a bunch of texts, a lot of corresponds from people
asking for advice. So I one hundred and eighty ten
eight if you want to jump the que on that.
(28:36):
But we'll be back in just a minute. We're with
Nathan Stanners. He's a key. We saber advisor at generate Key.
We saber back in attack news Talk said, be on
Tim Beverage. We're with Nathan standersy Kee, we Saber advisor
generate Key. We save it. Let's go to Ali. Hello.
Speaker 4 (28:51):
So excuse me. A few years ago now, I was
in hospital. I had an acute situation where I was
in hospital for about five days.
Speaker 5 (29:00):
Yep.
Speaker 4 (29:01):
And this is probably going back maybe around twenty twenty one,
twenty twenty two, probably under the labor lead government and
my KEYWI Saver had always been with Fisher Funds, and
then at some point I had gone to look into
my kiwisaver and it had been defaulted over to Westpac
(29:24):
and I lost a few green in the process of that,
and I can't remember who I asked at the time,
but apparently while I was in hospital, the government had
changed some settings around Kiwi Saver and so apparently that
was why my Keywi Saver was automatically defaulted over to
a completely different provider. Do your experts know anything about
(29:45):
that being legit?
Speaker 2 (29:48):
I don't know, Nathan. Does that ring any bells with
you at all? Yeah?
Speaker 3 (29:51):
So what did change is the default providers moved from
a larger set to a smaller set, which included Westpac.
But it's very unlikely that you lost money because of that. Ultimately,
there may have been some market movements where you went
from a more conserve to a more balance fund and
that potentially you meet your investments moving around a bit
more than you're used to. But there's no scenario where
a change in government oversights or legislation would make your
(30:15):
balance go down. Just doesn't happen in that No, I.
Speaker 4 (30:18):
Totally understand that it could have been due to markets
or whatever. But it was just that there was no
consultation or permission on my behalf. It basically all just
happened without even my knowledge at the time.
Speaker 2 (30:32):
Yeah, that's unfortunate. There would have been plenty of announcement
of that from the government point of view, wouldn't.
Speaker 3 (30:37):
They or yeah, the government, yes, But also this shouldn't
have been It should have been emails coming from your
provider at the time. But you know, ultimately, I'd like
to say, probably emails aren't enough. I don't think here
we Save in general has done enough in terms of
communication with most of its members, which is something that
we try and do a lot more of, especially with
advice and having an advisor.
Speaker 2 (30:53):
So did you used to receive Actually I don't know
if I get any communication of mine at all. Actually
would have a clue. Oh my goodness, I've got a
few things, but at homework I need to do. Do
you how often do you check you can we save
the fund Eli?
Speaker 4 (31:07):
I check it fairly regularly now, especially in these current
volatile markets. But at the time I was just contributing
to it, and it was just those things in the background,
so I wasn't really checking up on it, and that's
why I was quite shocked when it came it came
about that it had been switched over and there head
(31:28):
for some reason, you know, as you say, it could
have been market volatility or whatever. Money had been lost,
and I was just like, nobody contacted me, nobody asked me,
nobody checked.
Speaker 2 (31:39):
Has it affected your enthusiasm for how you treat your
fund and how much you contribute?
Speaker 4 (31:45):
It has to be honest, I'm very unenthused about can
we save these days. I don't really see it, like
I don't know, I guess I don't really see it
as a savings plan. It is like more like a
high risk investment.
Speaker 2 (32:01):
Yeah, well that's exactly the opposite of what it's supposed
to be. That's that's a or shame you feel that way, Ali, Nathan,
What do you reckon? Yeah?
Speaker 3 (32:08):
I totally agree, Allie. And look, you're not alone. Where
can we save? Just from lack of maybe the communications
that you've got or information in the first place, where
you're left in a situation we don't understand what has happened.
And I think if you do get to sit down
with someone that explains these things to you and gives
you some good options that would make it a difference.
That's the idea.
Speaker 2 (32:25):
Hey, thanks for you call, Alie. Actually you should stay
stay tuned, Ali, because I think you might be interested
in this next part of it. Because when Tyra was
in and she's with Generate Key We Savor, she was
talking about how she was talking with her advisor and
you're a key we save her advisor. But I just
looked at that generically, but how does does Generate like
(32:47):
Literally Tyra was talking about the conversation she had with
her advisor and I was thinking, is that you guys
point of difference? Well, how do you guys operate?
Speaker 3 (32:54):
Yeah, it's definitely one. And look, choosing a provider is
really choosing a builder to come build your house, depending
on their skills, experience, how they go about it. Both
may try to do the same thing but different results
along the way. And there which are fantastic providers out there.
Of course, I'd like to think Generate is included in that.
And one of our biggest points of difference is that
no cost and obligation advice piece. We are going to
come and see you maybe at your work, at your house,
(33:15):
with your partner, at a cafe and have a conversation
about your situation and give you some recommendations, and the
value of advice is shown to be really important. Again,
if you get the right fund for your circumstances, that's
where your keys ever can work harder for you. But
if you kind of left alone you've not had advice
or good information, that's where key wes ever can be
where ends up with Alick. We're not sure.
Speaker 2 (33:34):
So can people give you a call? Somebody can call
up absolutely. Yeah.
Speaker 3 (33:38):
If you've got a double double generate wealth that cut
it in z you can actually ask to speak to
an advisor again. It'll be a no cost obligation chat.
You can find me on LinkedIn and someone like Lucas
on LinkedIn as well, who's a colleague of mine who
gave Tyra advice. So that is what we do. People
like us have dozens and dozens of clients trying to
buy a first home into retirement, and we give them
advice to start with and look after them on the gun.
Speaker 2 (33:58):
How many people I mean, is there a limit on
how often people can contact you? It's just as often
as you're available. It's like if somebody started calling you
every week, you'd be like.
Speaker 3 (34:07):
Yeah, yeah, exactly, and look for me, I definitely take
it as a bit of a privilege of trusting someone
with or they're trusting you to give them advice and
with their money. But ultimately for that, what we're going
to do is make sure that we are there. People
may have questions regularly, but if we've given them good advice,
they shouldn't have them that often.
Speaker 2 (34:23):
They're in a plan now what generally would be the guidance.
So when someone might think, oh, I spoke to many recently,
when can I call them again?
Speaker 3 (34:30):
Yeah, I look at they're volatile times and people do
pick up the phone a lot more, and I'm never
going to say no to anyone to have the conversation. Right,
They've ultimately trusted me to help them with that, so
I'm going to have a chat with them, make sure
they understand why things are moving around. The plan that
I gave them six weeks, six months, or even a
couple of years ago. It is still right for them.
But again, it is the circumstance changes when you want
to be picking up the phone and giving your advisor
(34:51):
a change.
Speaker 2 (34:51):
Hey, there was something I wanted to touch on, and
the question of understanding what risk is so, and I
was talking about the things I've risked money on in
which in the past, which with consp reduction, which is
hugely risky, and yet I understand what the risk is.
How do people actually understand who don't work in the
(35:12):
money markets, you know, they're not maybe not an active
investors either. How do you actually explain what low and
high risk is? Because there might be someone who from
a perspective, from one perspective might say, oh, look, the
aggressive fund actually is not particularly high risk either. From
some investors would look at the really aggresive funds and go,
that's not high risk, that's about medium risk. How do
(35:32):
you explain risk to people that they so they can understand.
Speaker 3 (35:36):
Itkel, So there's probably two explanations I'd want to give.
One is how those funds work, what we call fun types.
Then also what risk is to start with? And I'll
start with the latter there. So I want to split
risk into two things, risking and volatility. And I'll start
with volatility. So what volatility is is the movement of
your key, we say. In that case, so when you're
in a more aggressive fund, it does have more volatility.
You may got ten percent in a month or down
(35:56):
ten percent a month. Some of those more conservative fund
is going to be less volatile. Now the risk is
when you can't actually meet your goal. That is what
risk is. If you're someone who's close to a first
home and you're in an aggressive fund, that is high
risk because markets may four twenty percent in a few
months that they did during COVID. That is the risk.
But if you've got time before you're going to withdraw
for a first time or retirement, even those more aggressive
(36:17):
funds can be low risk for you, per se because
you have that time. We know I from looking at
long term data sets, you can stick with those funds.
Speaker 2 (36:24):
You give numbers like there's a twenty percent risk of
in this fund that your money might your fund might
waive this much or not so much.
Speaker 3 (36:30):
We give risk scores kind of out of seven per se,
which is based on how much the fund has moved
over the last week while. And the other explanation I
wanted to give was how those funds work. And there's
a very basic sense. There's more aggressive funds, your growth,
your high growth, we call it focus growth. They're going
to have more shares in them, more of your money
goes to shares, property infrastructure. Okay, back down the other end,
and there's more conservative and cash funds. You have more
(36:51):
cash shorts.
Speaker 2 (36:52):
So the more context it helps people inform themselves exactly
once they understand how the share market works and.
Speaker 3 (36:57):
All that stuff exactly. And those more aggressive funds don't
have more aggressive assets the most part, they don't have
more risky shares. It is the same shares buy and large,
but just more of your money goes towards them. So
it's not in four or five really risky companies. It's
still one hundreds. It's well diversified, but more of your
money goes towards them. And that is where that risk
and voltsil that he comes from, rather than being a
very boom or bust investment per se.
Speaker 2 (37:19):
Okay, hey, we need to take a quick moment. We'll
be back and just to tech gosh times flying where
with Nathan Standers, he's a key Saver advisor at Generate
key we Saver. If I can, I'm going to try
and squeeze in a text or two which might cover
a few bases for us from all the texts we've
received during the course of the art. But right now
it's tend to say news talks. It'd be with Nathan
Standards from Kiwi Save. He's a key Saver advisor at
(37:41):
Generate Kei We Saver. A few texts just to cap
it off all off. One says, Hi, boys, it's like
Kiwi Saver. It's good as long as it's managed. People.
I know when they turn sixty five years old, they've
had it spent in five minutes new cars and holidays.
Then the rent goes up and so on and so
on and so forth. I guess that's saying it's one
thing to have a plan for your key We saber,
(38:03):
but you've got to have a plan for how you're
going to spend it once you've cashed it out. I
guess what do you reckon?
Speaker 5 (38:08):
Yeah?
Speaker 3 (38:09):
Absolutely, I think a lot of people swecially key We
think when they get to sixty five the key We
saver it is done or they can take it all out.
But ultimately it's not really what the plan should be.
It's about getting some advice to siding whether you want
to take it out weekly, where you can take it
all out for a certain thing that is the idea.
Advice is always the key.
Speaker 2 (38:25):
Hi, I'm in the state sector retirement savings scheme dollar
for dollar is key we save a better and therefore
should I swap. Thanks for any info, Okay, not specific
financial advice, but how does it perform with.
Speaker 3 (38:36):
I'm not sure what you know they're referring to their
state sector. Is that you know a teacher's superannuation fund?
I'm really not sure.
Speaker 2 (38:42):
Let's imagine it is.
Speaker 3 (38:43):
Okay, so choice is probably the only thing. I can't
comment on returns, but key Wes have has a lot
more choice. There are thirty plus providers now worth you,
multiple fun types in each and performance over the long
term generally has been very good. But with some of
those subranuation schemes there are just less choice for the
most part, so it will be a bigger difference.
Speaker 2 (38:59):
I do know, I don't know how it works. It's
probably worth speaking with someone about it, firstly, with your
or retirement savings provide, asking what they're doing with money,
and what the choice is and what you can do
with it, because if there's an alternative where you can
shove it into kisaver, it's worth considering. Not specific financial advice.
I can see that you've got that careful look on
your face, slight.
Speaker 3 (39:19):
You know, yeah, yeah, not an expert on those schemes,
but if you've got choice where you can potentially move
it to another one worth looking into that the.
Speaker 2 (39:26):
Idea and this one sort of invites a double down
onto a conversation made earlier. But I think it's worth
repeating the sentiment of this text. This person says, Hi,
zb I piled my key we save. I pulled my
keiw wei saver out of a high risk fund the
day the Iran war started into an all cash fund.
When should I look at switching it back to lock
(39:48):
in good gain? Says Ben. Maybe we're assuming that he
has done well where he put it, But let's just
double down on you know, major global events and you
thinking you're beating the market.
Speaker 3 (40:00):
Yeah. Funnily enough, if you actually just stayed in an
aggressive fund for the last six eight weeks, you would
have been up a lot higher than a cash from
what have been So even though there was that big
drop initially, the market came back quite quickly. Earning season
in the US has been very strong, where markets are
now probably four or five percent higher than they were
pre the Iran war breaking out. So the issue there
is knowing when to go out and into markets. It's
(40:20):
very difficult to do. If you've got a time frame
set with your fund that you're in, you want to
stick with that. And it's a really clear thing we've
just seen over the last few months with how quickly
it came back.
Speaker 2 (40:29):
Oh well, hey look god, time has flown. Thanks so
much for coming in Nathan. Now again, if people want
to check out the generate key we saber it's is
a generatewealth dot code dot nz Is that right?
Speaker 3 (40:39):
I got that one, Yes, absolutely generate wealth. You can
request an advisor like myself. We'll come and see you.
Speaker 2 (40:44):
And give you something you could even ask for Nathan
if you like I can. Are there any other Nathan's there? Nathan? No,
just me Nathan Smith. Who's going to go? Who are who?
Speaker 5 (40:52):
Hey?
Speaker 3 (40:53):
Thanks so much for your time, mate, my pleasure. Thanks
for having me on.
Speaker 2 (40:56):
Good stuff. And if you've missed any of the hour,
you can go and check out any of our show.
We had a great chat with Greg Pain of course
about exercise, clothing and warming up and shoes and all
that for the hell and that was of course smart money.
So we'll look forward to your company again next weekend.
Thanks to tyre Ward, my producer. Sunday at six is next.
Speaker 1 (41:15):
For more from the Weekend Collective, listen live to News
Talk SEDB weekends from three pm, or follow the podcast
on iHeartRadio.
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