June 8, 2025 • 41 mins
Tim Beveridge is joined by Koura Wealth founder, Rupert Carlyon, to discuss the inner workings of a KiwiSaver fund and how to best use KiwiSaver.
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Speaker 1 (00:05):
You're listening to the Weekend Collective podcast from News Talks by.
Speaker 2 (00:31):
Day and welcome back to the show. This is the
Weekend Collector on Tim Beverage. If we missed her, I
had a fantastic chat with Dr w Weaver on her well,
she's a nutritional nutritional biochemist. We ended up focusing a
(00:54):
little bit about just not just burnt out but iron
and you know, how.
Speaker 3 (00:58):
To eat for.
Speaker 2 (01:01):
A healthy diet, and a bunch of broad ranging conversation
around that. But you can go and check it out
on the new Stalksby website or on iHeartRadio just look
for the Weekend Collective. And for politics, we were joined
by Erica Stanford to talk about the new parent boostvill
on the immigration side, where we're going to allow parents
to come in for longer if they're sponsored by their kids,
(01:21):
and they're changing a bit there. But also we had
a chat with with Jordan Williams from the Taxpayers Union
about polling and what questions you want to see answer
in and polling.
Speaker 3 (01:30):
It was quite interesting.
Speaker 2 (01:31):
I would recommend it just to get an explanation of
the dreaded margin of error which gets lip service in
the polls and people go what's that margin?
Speaker 3 (01:41):
Evvera all about?
Speaker 2 (01:42):
Well, Jordan was pretty good on having a chat about that,
But right now this is smart money and we are
going to have a bit of a chat about Kiwi Saver.
Speaker 3 (01:51):
The question for you is.
Speaker 2 (01:52):
Actually how much time you have spent thinking about your
key we saver profile, the company you're with. Did you
just go with the default one of your bank like
I did? Confession time? Anyway? But have you ever thought
about changing your profile or have you ever thought about
changing your company? And how often have you thought about it?
And how many of you have actually haven't done it?
Speaker 3 (02:12):
In the EI? You know what, I think I should
probably change my profile.
Speaker 2 (02:15):
I know that there are people who have done it,
because especially when it was around the time people were
looking at maybe getting into the first house, and it's
a constant thing now for first time buyers because they think, well,
hang on a minute, I want to use that money.
So I'm going to go to conservative because I'm happy
with where it's at and I don't want to risk
it any longer. So those people probably have actively done it,
But I want to know how often have you thought
(02:36):
about it and have you done it? And how did
you make the decision because I do a money out.
I'm no financial expert, and I'll be honest with you
in terms of choosing your company. I have met a
few people who've got their own funds, but I haven't
gone to them yet because I don't know. I'm going
to have to dig into that. That's a confession anyway,
to join me. We have a new guest on the show.
(02:57):
He is the founder of Cora Wealth and his name
is Rupert Carlyon and he's with us for smart Money.
Speaker 3 (03:04):
Get a Rupert.
Speaker 4 (03:05):
Good evening? Are you good?
Speaker 3 (03:07):
Good evening? I think it is evening.
Speaker 5 (03:09):
I guess winter, so it's darkouse it does make it
look wintery.
Speaker 2 (03:13):
That's the first hot take of the day. Good evening
at ten past five.
Speaker 5 (03:16):
Well, I've got young kids, so for me, this is
firmly evening time.
Speaker 2 (03:20):
So you're missing okay, so you're missing dinner time right
now and hopefully.
Speaker 5 (03:24):
Are missing all the fun stuff of the day. Oh yeah,
but the dinner and all of the absolute mayhem.
Speaker 2 (03:29):
So this is perfect, excellent, Well, welcome, good to No
wonder you're not coming to us from the home office.
It's like I've really got to go in for this one. Honey, hey,
just before we get into it, how tell us about
Coral Wealth and how long you've been involved with that
company and what you do.
Speaker 5 (03:47):
Yeah, so we're can we save a provider? We're about
five years old. We currently manage about three hundred million
dollars on behalf of about seven thousand members. I started
the business about five years ago and partnership with a
guy called Warren Coollier. Warren was previously COEO at Fish Funds.
He was a made investor at Generate c IO Chief
(04:08):
Investment Investment Officer, so he built a lot of that stuff.
And what we believed very firmly was everything that you
said in the introduction. We wanted to create an easy
way for people to make better KEI. We saber decisions
because we saw far too many people had no idea
where to put their KEYI sab far too many people
sitting in the default funds.
Speaker 4 (04:28):
And to our aunt's at all of this was.
Speaker 5 (04:29):
We were the first in market with a pretty comprehensive
digital advice tool to make allow people to make smart decisions.
Speaker 3 (04:37):
Okay, so and you've got a key we save a fund.
Speaker 4 (04:39):
Yeah, you got a key.
Speaker 3 (04:40):
As you say, you've managed However, a hundred million.
Speaker 2 (04:43):
You mentioned, does that make it where does it make
it in the scale in the scheme of things, because
what is the total KEII saver.
Speaker 3 (04:52):
Global and not global? But you know in your part
what's the pot?
Speaker 2 (04:55):
The pot's the one I'm going to write down.
Speaker 4 (04:59):
The pot.
Speaker 5 (05:00):
I'm not sure that's a technical terminology, but it's a
nice way to think about it. So the key Saber
pot's about a hundred twenty to one hundred and twenty
five billion dollars. Wow, it's a lot of that. About
sixty percent of that is actually still with the banks,
which is really interesting, right.
Speaker 2 (05:15):
Because unsurprising, I'll be honest, because I was honest there
that I just I mean, I'm self employed, so I've
got a bunch of problems to deal with on that.
Speaker 3 (05:25):
But to me, I was just.
Speaker 2 (05:26):
Like, oh, okay, yeah, the okay A and Z Yeah,
sure that's I'll go with that. And it's amazing because
there is a large number of key we Saber providers.
I don't know if people actually realize how many there are.
Speaker 5 (05:38):
A lot as as I've said a few times, it's
exactly the same as craft beer.
Speaker 4 (05:43):
Do you go on to the.
Speaker 5 (05:44):
Stude market, and you got your thirty five craft beer
providers on the supermarket and on the shelf, and key
We Saber is no different.
Speaker 4 (05:50):
You got thirty five and.
Speaker 5 (05:51):
For everyday people, it's really hard to tell the difference
because for most people, and I'm sure this is why
you haven't switched and changed, we look, we feel, we
smell the same because we are eighty five percent the same.
Speaker 2 (06:04):
Well, I guess that's because there's also some serious regulation
around key We Saber because it's not the wild West.
It needs to be something that that New Zealanders can
count on with a degree of knowing that you know
your money is not being looked after by some shyster.
And so the amount of compliance and everything does level
the playing field?
Speaker 3 (06:24):
Does that make it?
Speaker 2 (06:25):
Also because of the rules, I mean, it's the it's
the it's the benefit of that key We Saber scheme
is that it is perceived to be an absolute safe place,
risk profile separate of course.
Speaker 5 (06:37):
Well even within that right, So there is a couple
of things.
Speaker 4 (06:41):
So you're one hundred.
Speaker 5 (06:42):
Percent right that from a from a regular Troy perspective,
it's it's as safe as you can get, right, So
it's very different to the two thousand and eight finance companies,
which were most of them were just shyster's kind of
investing money.
Speaker 2 (06:54):
Oh, I still remember the ad. So here's I take
to mention the companies. But all these ridiculous they made
it sound so safe. Put your money with us.
Speaker 5 (07:02):
We'll put it this way. You know, when you've got
all black or a news presenter pitching you, that's the
time to run.
Speaker 3 (07:11):
People.
Speaker 2 (07:11):
If you ever see me fronting an ad for some fund,
run a mile. I'll be doing well out of us,
and you'll be telling them it's safe as houses.
Speaker 4 (07:20):
But look, so it is.
Speaker 5 (07:22):
It's a very strict regulatory regime, which is rightly so
because fundamentally it is the largest investment that most people
ever have. People are kind of setting their retirement all
on this. So we keep our fund separately.
Speaker 6 (07:35):
We do.
Speaker 5 (07:36):
We are pretty we are mandated to hold a safe
set of safest set of investments.
Speaker 2 (07:42):
Well that's actually a question because when I looked to
changing my fund to a more aggressive one, because I
just went and balanced because I don't know one, it
just felt, you know again, it seemed inoffensive, and then
I thought, hang on a minute, I'm optimistic coming and
being in a workplace for a while. Yet so I
shifted to growth and aggressive or something. But understanding risk
(08:04):
and key we save it is one thing to go
and make your own decisions about which of the s
and P five hundred you want to buy versus going
aggressive in your KIWI saver. Can you give us a
context for how risky is it ever? In the most
risky fund and ki saver?
Speaker 5 (08:23):
It's I'm just trying to think how to answer that, right,
because the truth is the word fund is really important.
And so because when you invest via a fund, you
get diversification, and what that means in layman speakers, fundamentally
you're going to get different markets, different sectors, and you're
going to invest in tens or hundreds or thousands of
(08:43):
different companies. And so that's why immediately by investing in
a fund typically you have actually materially reduced your risk
profile versus if you just go and try and invest
in Facebook or Microsoft on your own.
Speaker 2 (08:57):
So that sort of answers that puts it in context already,
isn't it? So it does every fund does every fund
guardless of whether it's low risk, conservative or aggressive. I
don't know what what are the names they give about
those aggressive funds, you know, hang on, oh exactly, but
even they are diversified, and so is the thing with
(09:19):
those funds is that the risk is more that a
market itself across its diversification might have some.
Speaker 3 (09:27):
Highs and lows.
Speaker 2 (09:28):
We've seen with I mean, we've seen with the Donald
Trump presidency the highs and lows of the SMP. I mean,
there might be a fund that is SMP and actually,
you know what, if you need if you need your
money in six months, it might be that might not
be the bet as opposed to in five years time.
Speaker 5 (09:42):
You know, well, yeah, because so there's three to kind
of as we think about diversification, you divers four different levels.
Right at the start, you start off an asset class,
and that's a fency way saying do you want lots
of stocks and lots of equities in your portfolio or
at a simplastic income And so the benefits when we
buy income that means we're buying bond that's pretty sable, steady,
(10:07):
doesn't really go up and down and just gives you
a fixed return. Whereas as we've seen over the last
kind of five years, the equity market, it just massively
over and above. Right, it's been dropped more than twenty
percent about ten times over the last five years, so
it's had some big, big falls.
Speaker 4 (10:24):
But it typically recovers.
Speaker 5 (10:25):
So what we say, So that's where we start off with, right,
So you go, hey, if you're in it for the
long haul, then you can have lots of equities and
that's going to deliver.
Speaker 4 (10:34):
A greater return over the long run.
Speaker 5 (10:35):
But if you need to get it out in six
months time, when you've just Donald Trump's made his next announcement,
You've got some problems.
Speaker 2 (10:41):
When he's decided to really doesn't like elon the EV
and well, I mean, yeah, anyway, hey, sorry kerry On.
Speaker 5 (10:49):
And then you move into kind of regions, so some
funds might be region specific, other funds might be kind
of global, and then you've got company and sector specific.
And so diversification is the name of how you make
your money, by making sure that you're never overexposed to
a single thing or a single kind of piece at all,
because lots of things are going to go up, yeah,
lots of things are going to go down. And fundamentally,
(11:12):
if you knew exactly what was going to go up
and win, well, you wouldn't even have my job, you'd
be at a hedge fund management.
Speaker 2 (11:17):
Well, the thing is, we were talking before you before
we started the show about the theory behind the key
we saver funds just actually investment in general, and there's
there's a whole space where you can go really deep
into the weeds on that stuff. How I mean, how
(11:38):
clever can people be with working out investments that are
going to give a good return? I mean, how advanced
does that theory? And what can you tell us about that?
Speaker 5 (11:48):
Look, there is so much theory, but what we are
brilliant at in the finance world is demonstrating to everyone
by talking really fast with very complicated words, that we
are we believe ourselves to be the.
Speaker 4 (12:02):
Smartest people on the own.
Speaker 5 (12:03):
The truth is thoughtments can be extremely simple if you've
got the right asset allocation and by that I mean
the right diversification. There are lots of simple products out
there that can deliver really great returns. And so we
kind of spend like you'll get people and I'm sure
you've had lots of come on this program tell you
(12:24):
that they're the greatest stockpacker, or that they do this,
they do this evidence has shown that kind of ninety
five percent of returns are delivered by simple good asset allocation,
by kind of creating the right strategy, and you just
stick with that. The person that spends all the time
trying to pick the right stock, trying to pick the
right trend slows far more often.
Speaker 3 (12:45):
It's like the bet.
Speaker 2 (12:46):
It's almost like a betting mentality, isn't It's like masts
will go down. It's just a different version of betting
on the horses, you know it.
Speaker 5 (12:53):
And within that, Look, there are always going to be bets,
and there are always going to be people that go, look,
I want to do something a little bit different. So
the most biggest one at the moment is bitcoin for example, Right.
Speaker 3 (13:03):
I actually get when I was doing.
Speaker 4 (13:05):
Because you had a we do have a bitcoin fund.
Speaker 2 (13:07):
You had a bitcoin fund, and I did see that
you were cautioning investors. It's like, okay, our bitcoin fund
has returned very well in the past, but you actually,
I think I saw you'd said, just call your jets
with your future expectations.
Speaker 3 (13:20):
We've done well, can we.
Speaker 4 (13:23):
Just we'll get that one across the FML if you've
seen that?
Speaker 3 (13:25):
So what's that?
Speaker 5 (13:27):
At my job as kind of a wow. To be
fair as an investor and with investors is to kind
of make sure people understand that, hey, that there's a
lot of risk in everything that we do. So if
I'm out there saying, hey, you should invest in bitcoin
because for the last five years it's to deliver an
annualized return on sixty percent and that's going to continue,
that's not fair because fundamentally, past performance never equals future performance,
(13:50):
and so I need to give balance. So that's why
I'm always saying, hey, it's an interesting asset. It's done really,
really well, but we have no idea what's going to
happen in the future.
Speaker 2 (13:58):
Because I will always get texts on the show saying
I'll just stick your money in bitcoin and stuff, and
you know, I've got no comment to make on it,
but it just freaks me out generally.
Speaker 5 (14:06):
Well, but I'll give you the sophisticated view on that one.
Right where you go it is risky, and let's be clear,
we're not one hundred percent sure on where it's going
to go. But if you put five percent of your
portfolio and bitcoin, that's actually got the potential to do
something really interesting for your portfolio. But it's not about
taking it all resk right, So coming back to where
(14:27):
I started diversification. The person that sits rings you up
and says put everything in bitcoin, that is truly gambling.
Whereas by putting little bits and lots of different places,
that's what's allowing you to expose yourself to some potential
for big ones.
Speaker 2 (14:42):
Okay, Look, we'd love your calls on this. When it
comes to your key we Saver fund and I know
we've done. Look we getting to know each other because
it's the first time on the show with Robert carlai On,
the founder of Curel Wealth. And when it comes to
your fund, are you sort of just settling for the
status quocus? You know, I got into it when the
government announced it there was this fund, my bank was operating.
(15:02):
I'm shoved it and balanced because that sounds kind of
not the right sort of balance of zen for me.
Speaker 3 (15:07):
But have you thought about changing?
Speaker 2 (15:10):
But what's stopping you? Give us a call eight hundred
eighty t and eighty. But also if you have actually
managed to change your profile or the company you have
got your key we sable with, what motivated you to
do it and what was the homework that you did that.
Speaker 3 (15:25):
Motivated you to go right.
Speaker 2 (15:26):
This is the decision I'm making eight hundred eighty and eighty.
It is twenty two past five news talks at b
Are you worried about funding a comfortable retirement? Well you're
not alone. The cost of living crisis is hitting up
for a lot of people, so it's no surprise people
are looking to make 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
(15:48):
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
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of four point five percent per annum after fees and
taxes paid out in monthly installments. To find out more
(16:10):
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 for Harbor Investment Funds
issued by Harbor Asset Management is available at Harborasset dot
co dot nz.
Speaker 1 (16:28):
Your Weekend Your Way, The Weekend Collective with Tim Beverage
News Dog Zebby.
Speaker 2 (16:35):
So we're talking about kiwisaver, and actually, I think my
guest Rupert Carlyin, he's the founder of Career Wealth, first
time on the show. By the way, taking your calls
put it best when we're chatting on the break, it's
really about how to take ConTroll of your kiisaver and
how many of your passengers because.
Speaker 3 (16:50):
What do we reckon?
Speaker 2 (16:51):
How many people do you think are just passengers? Rupert,
And you're just looking at all the number of people
with banks and go, well sixty percent at least.
Speaker 4 (16:57):
Yeah, well yeah, but tilt.
Speaker 5 (17:00):
I love to bash the banks because they do a
pretty shitty job on a lot of stuff, but a
lot of the banks act. Some of them are better
than others. In keysaver, that's not necessarily the end of
the world being with your bank. Here, we've got digital
advice tools, right, So over the last five years we've
had kind of about forty thousand people through those tools,
and what we find is that less than forty percent
of people are in this and the type of fund
(17:21):
that we would recommend.
Speaker 2 (17:23):
So what are these digital advice tools and how do
people check them out.
Speaker 5 (17:26):
So if you visit our website dubdub dot cod ol
wealth ko U R A W E A L T
H dot co door NZ, you'll see kind of there's
a digital advice tool you can take through. We'll do
a quick assessment of your risk profile, what your objectives
are for qisaver, some of the things that might interest you,
on where and how you want to build your KISAB,
(17:47):
and then we'll make a recommendation for you.
Speaker 4 (17:50):
But I think the interesting.
Speaker 5 (17:51):
Part about that tool for us is when we say
two things that the type of fund that we would
recommend is very different to the one that they're already in,
which means that which is normal because not many keywis
of E had financial advice. Not many people have ever
actually really thought hard about their QUI saving despite the
fact that it's going to be the largest investment they
(18:12):
ever have.
Speaker 3 (18:13):
How does it play out?
Speaker 2 (18:14):
Because you know, we have often will be making and
I will when I get a guest on and about
we're not giving specific financial advice. How does that play
into the tools that are available when they're saying what
funder should I be in? Because you were sort of
in the area of giving is it?
Speaker 4 (18:31):
It is advice.
Speaker 3 (18:32):
It is advice.
Speaker 4 (18:32):
Okay, that's advice based. Oh good, I just want to
no no, no, no, no, no.
Speaker 5 (18:39):
That's the beauty about digital advice, right So yeah, that's
that's why what we can do with our tools, because
we're brave enough to call it digital advice, is a
lot more than what the generic tools on sorted or
other things are going to do right by. And I
find it hard because there will be a lot of
generic tools that go, well, you might want this, or
you might want this. But with the fact of the
(19:00):
number of questions that we ask about you, that's how
we can make it specific and personal.
Speaker 2 (19:04):
For I might ask a question of my own time
once we have the next break. Because the funny thing
was when I went to change my I've had discussions
with a few people about it, and I thought, well,
if I'm going to work for this long and I
switched to a it's more aggressive fund and the bank said,
this is not the recommended profile for you. Would you
like to proceed anyway? And I thought, oh god, it
makes me tense.
Speaker 3 (19:24):
Yes, yeah, what the hell? But I was there anyone.
Speaker 2 (19:27):
It was just interesting that it's I had to resist
that advice.
Speaker 5 (19:32):
Yeah, But I think the other thing that I find
interesting and frustrating about key we save it, and particularly
some of the advice, particularly from the banks, is it's
a lot more conservative than the international norms. Ok, there's
a lot of key we save it for people here
in New Zealand that will be given the advice or think, well,
you're going to turn sixty five, so therefore you need
to make sure you're ready to withdraw at sixty five,
(19:53):
Whereas the truth is you're going to hopefully live till
I mean, current life expectancy for women is about eighty
seven eighty eight minutes about eighty five.
Speaker 4 (20:02):
It's only going to grow. You need your key, we.
Speaker 5 (20:04):
Save it last that whole way through. So therefore you
need to keep invested the whole way through. It needs
to be earning a return the whole way through. So
our view is that actually, people that are able to
withstand the volatility, you can keep it aggressive for a
lot longer than probably some of the traditional thinking.
Speaker 2 (20:20):
We're going to dig into that because I was having
a chat with someone on a different show about that
about why are people not more aggressive for longer? And
I think the consensus was probably we could consider that.
Speaker 5 (20:32):
Yeah, there's two parts to it, right, because when we
consider what the right tolerance for risks or and by risk,
basically we're saying should you be aggressive or conservative or
somewhere in the middle.
Speaker 4 (20:43):
There are two things.
Speaker 5 (20:44):
Right, You've got time horizon, and then you've also got
the ability to kind of how you're going to react
when things go pear shaped, as we've kind of seen
the l last couple of minutes.
Speaker 3 (20:54):
Just don't look.
Speaker 5 (20:56):
What all of the research shows is that actually, as
you get older, you're with your ability to stand stress reducers,
and so it's harder and harder to not lock. And
as this money is becoming more and more important, So
even though you might still have the time frame left
because you want to keep it there till you're nineteen
ninety five, the ability to deal with the stress of
(21:17):
when it drops reduces. So it's kind of matching those
two things on its way through.
Speaker 3 (21:21):
Right, Let's take some calls.
Speaker 2 (21:23):
Quite fascinated with the idea about how we perceive risk
as well, But let's get into the calls.
Speaker 3 (21:28):
Colin, Hello, Colin.
Speaker 7 (21:32):
High Hi, I just wanting to know if you're already
on a different key we saver. How you would change
to crow Wealth.
Speaker 5 (21:41):
It's very simple. You'd visit our website and you can
sign up online. It to a two minute process. All
you need is your driver's license and your ID number.
I would be kind of fair to say most qysa
A providers it's a very simple process on their website.
Now it's not hard and all the paperwork is done
(22:02):
in the background by us and the IOD.
Speaker 3 (22:05):
Have you been thinking of changing column?
Speaker 7 (22:07):
No that I'm talking about my grandchildren, who I think
they're just simply and I've been default one. So we'll
talk to them.
Speaker 2 (22:15):
Okay, okay, yeah, ig st help cheers Colin Pleasure. Actually,
to be honest, I mean, the best thing is if
you've got kids, if you're putting money into a fund,
well that's the first smart choice you've made anyway, and
you have a think about what fun they're and at
some stage I guess, but the first decision is get
them started.
Speaker 5 (22:33):
You've got to get them started. So for example, my kids,
my kids, I've got three very young kids. They get
twenty dollars each month that goes into their qvsaver and
so identical.
Speaker 2 (22:44):
I'm sure there's quite a few parents are like I
can handle twenty bucks.
Speaker 5 (22:48):
I can handle twenty bucks sixty bucks a week between
the three of them and lot. By the time they
get to kind of hopefully they buy a house in
their late twenties early thirties, it's going to be a
big balance. That's going to be a big chunk of
their kisaver. And when you're saving. What we do know
is that small regular country Utians Ada, And that's by
(23:08):
far and away the easiest way to try and help
people when you're kind of the grandparents. Now, the grandmother,
much to my elder sons, discussed she'll just give a
couple hundred bucks contribution to the key.
Speaker 4 (23:19):
We say a contribution, right, rather.
Speaker 2 (23:23):
Actually the power of compounding interest for pre twenty year
olds over the course of your life forty to fifty years,
that's a lot of money.
Speaker 5 (23:32):
Yeah, that's that's going to be the most valuable prison
you can give you, your children and your grandchildren.
Speaker 2 (23:37):
All right, let's take some more calls. Sarah, Hello, Sarah, Hello,
Hi use from here? Yeah, Hi, you're on here. What
would you what would you like to ask or comment on?
Speaker 8 (23:48):
Oh no, it's just well when I write it from
good in two thousand and eight, and ke we say
we just started. So I was just introduced it by
my bank. I joined it with my bank. I stayed
there up until last year, and then I looked at
the differences and I realized it wasn't really performing. So
I did my Can I switch to Milford? My sixteen
year old she just turned sixteen a few months ago,
(24:10):
and I've just put her straight onto it as well,
because compounding interested exactly as you say.
Speaker 2 (24:14):
Can I ask you when you say you did your homework,
did you just look at the I mean for most
lay people, they just look at the past performance and
go with they've done well so far. Fingers crossed?
Speaker 3 (24:24):
What did you? What did you do?
Speaker 8 (24:25):
Yeah, essentially I did. I just I just went on
a few different sites and exactly that I looked at
I was with ASB, and I looked at my bank's
performance and compared it. And I mean, I'm fifty now,
so I started at thirty three, and I just looked
at the where I would have been if I'd gone
with a different, different provider.
Speaker 9 (24:43):
When did you switch moderate Growth?
Speaker 2 (24:44):
When did you switch about a year and a half ago?
Speaker 3 (24:47):
Are you happy with the decision?
Speaker 8 (24:50):
I am Obviously the markets have gone a little bit crazy,
which is I mean, it's across the board, so it's
really hard to sort of look back and say, well,
how would that have benified? To stay with ASB. But yeah,
generally I am. I think that I definitely have semial growth.
Speaker 4 (25:03):
I think it's look the short term.
Speaker 5 (25:06):
Look, they're competitive, but Melford's a great shot, and I
think you'd be hard pressed to kind of to be
disappointed with that decision. That The key though, is you've
made your decision, You've chosen the right fund. Hopefully you've
got some advice out of the Milford guys on the
way through to make sure that you're in that right fund,
and now you just leave it there. The kind of
(25:27):
the grass is off and greener on the other side
until you get there. But don't fear just because we've
got volatile markets, just because things are going a bit
funny things. That's not the fault of Melford. That's just
what's happening in the world right now.
Speaker 2 (25:40):
Okay, good good on you, Sarah, Thank you for your call.
How small a community or bigger community?
Speaker 3 (25:45):
Is it? The key?
Speaker 2 (25:46):
We serve a fund managers, So do you all know
each other?
Speaker 5 (25:49):
Oh, yeah, most people know. If we haven't met, we
know of each other and we'll recognize each other. We
all go to the similar industry events as you've probably number.
Speaker 3 (25:59):
I've done one recently.
Speaker 2 (26:00):
But actually I was just wondering is there a sense
of collegiality or is it collegiality but backed up with
like competitiveness in terms of information shooing in conversations around
markets and trends and you know.
Speaker 5 (26:16):
So, like I was at a conference on Friday. There
were five Qisaber providers at that conference. We're all talking.
We're all kind of talking about what we're doing. Look,
some are better than others at sharing, some are. There
are definitely a couple in the industry that our outlies.
But we're extremely lucky. We've got a good industry that's growing.
(26:36):
There's a lot there for everyone, and so we're very
good at kind of making sure we work together because fundamentally,
for us, it's the product that's the most important thing.
We have to make sure Qwi's love and believe in
and trust Kiwi Saber, that's what's going to be best
for all us.
Speaker 2 (26:52):
Just before we go to the next caller, I've noticed
that just from the point of view of doing a
money show when we do different hours, that the energy
around this particular hour has picked up. And do you
notice that have you noticed that yourself in terms of
the QIS industry, that there's more energy and people thinking
about focusing on that aspect of their lives and looking
ahead and a bit more just focused on a bit
(27:15):
more than.
Speaker 3 (27:15):
We used to be.
Speaker 5 (27:16):
Oh, definitely the balance as a book, right, so the
average balance is now kind of in that thirty five
to forty thousand dollars. So for most people, keyy Saber
is there. For most people also, they've they've kind of
got to recognizing that key Saber is going to be
an important part of their retirement of where they go
in the future. And so it's changed a lot from
where it was even five to ten years ago. We've
(27:38):
seen the number of client people in default funds has
materially reduced and it's definitely become a big thing. And
I think it's really interesting. Right over the last three years,
the government twice has tried to mess with keysaber when
they got rid of or they cut the government contributions
in half. Last week, it was really interesting how many
people got very vocal against that and the big criticism.
(28:02):
I don't think the national government would have expected as
much criticism as got Two years before that, Grant Robertson
tried to put tax GST on keyy Saber fees, and
that we've.
Speaker 4 (28:12):
Got that was just that very loud.
Speaker 5 (28:16):
But it shows how much kiwis love it, and it
shows that people have brought into this and we are
moving away from our love.
Speaker 2 (28:22):
Of property right quite possibly at the moment especially all right,
oh eight one hundred and eighty ten eighty, let's talk
to Rob Hello, Hey.
Speaker 10 (28:32):
Hello Tim and and Rupert Rupert. The question I've got
is that with regard to guarantees around savings, I believe
that New Zealand has passed something through Parliament and it's
(28:55):
now sitting with Reserve Bank. And although it's not very much,
it's one hundred thousand compared to a two fifty. My
question is does that also apply to Kiwi shaver or
only shaving in a saving account.
Speaker 5 (29:18):
No, that's only going to be bank deposits held with
a registered bank within yeah, with a registered bank, so
QWI saver it's not guaranteed at all. So it's very
very different that the one wrinkle, which I think people
suspect is coming. Is it one hundred thousand dollars per account,
which means that so lock if you've got a whole
lot of money sitting in different if you've got more
(29:40):
than one hundred thousand dollars, you've got four large Australian banks,
I'd just be splitting it up and putting one hundred
grand each to make sure you get your guarantee across
each of them.
Speaker 2 (29:48):
Right, Okay, good stuff, Rob, Thanks for your call.
Speaker 3 (29:50):
We'll be back in just a month.
Speaker 2 (29:51):
We've got some more calls lined it up, and if
you'd like to join us eight hundred and eighty ten eighty.
My guest is Robert Carlyon. He's founder of Cora Wealth. Ko,
you are a easier to google.
Speaker 3 (30:02):
Them and find them. We'll be back in just a moment.
News Talks.
Speaker 4 (30:04):
He'd be don't your own America?
Speaker 2 (30:07):
Won't you need it? American?
Speaker 4 (30:11):
Enough?
Speaker 7 (30:11):
Said time?
Speaker 9 (30:14):
Crazy?
Speaker 2 (30:15):
Are you going to do this?
Speaker 11 (30:16):
Just meet me at right News Talks.
Speaker 2 (30:28):
Yes, this is a smart money. My new guest, Robert,
Robert Rupert. Sorry, Robert, I apologize. Rupert car Lyon, found
of Coral Wealth, is with us and taking your calls,
and if we've got time, I'm going to dig into
how long. We'll just get Rupert's take on how long
you should maybe consider being more aggressive for longer or
when should you be start safe making your profile more
(30:48):
safe for our attitude towards that will have dig into
that a little bit unless you call me about it
beforehand and jump in Richard, Hello.
Speaker 12 (30:56):
Good afternoon, briefer.
Speaker 7 (30:59):
Hi.
Speaker 12 (31:00):
When Kiwi Saver was started, I was in my late forties,
I think, and I was a bit financially vulnerable. That
I had a good job, so I went straight onto
eight percent and after a bit of a dallying round
with one fund, I moved into a growth active growth
(31:21):
under focus growth with it was I haven't looked back,
and I'm now into my retirement age. But I've kept working.
And I've also said on aggressive fund because I do
have some savings and you know, at least I took
a bit of a hit. But I think you mentioned
(31:43):
before that you thought New Zealanders. I don't know whether
you meant in a policy sense or just New Zealand
and the people are less aggressive. But you know, when
I do stop working, I'll start taking money out. But
I'll only take a fraction of out because I've got
a pretty substantial some in there. Now it's nearly half
a million. Now, I was pretty phenomenal. But what I've
(32:07):
found really disturbing and want when I'm coming to my
question is when I talk to some of my younger
colleagues at work. Now, I don't know what the schools
are doing to educate people about KI we Save It,
but I don't think employers are doing near enough. And
I suppose I've got to be careful, but I don't
think there's just enough encouragement for people because a lot
(32:30):
of them we're on the minimum amount of contribution. I said, well,
what sort of family? And I said, I don't know,
just when they put me on them, And do you
you know, like I might be getting at a store
as view, So I'm interested in your view.
Speaker 5 (32:44):
You're not, unfortunately, you are very much talking about the norm.
So I'll give you one stat that's really scary, right,
So fifty percent of employers in New Zealand offer what's
called a total remuneration policy, yeah, which means that actually
there is no incentive for those people to actually contribute
to Q we Save. And so how total remuneration policy
works is I say to you, I'm going to pay
(33:06):
you fifty thousand dollars if you tick the box saying
you want KEII Saber. That means that actually I'm one
and a half. I'm going to pay you forty eight
and a half thousand dollars and I'm going to put
one and a half thousand dollars into KEII Saber. So actually,
the problem we have in New Zealand is that employers
haven't yet really got fully behind QII SAB. Employers also
(33:29):
don't want to really get involved in these financial conversations
because they kind of don't want to be responsible for
recommending or being.
Speaker 4 (33:38):
Part of it right.
Speaker 5 (33:39):
And it's also hard when you're employer to have these
conversations because many business owners in New Zealand they didn't.
Speaker 4 (33:45):
Grow up with KII Saber.
Speaker 5 (33:46):
They're a business owner, so they're not used to this
kind of stuff. But it's a really, really big issue
that employers aren't doing it. We tell we've got a
program where we do reach out to and we work
with a whole lot of businesses because fundamentally, my view
is it's one of the biggest benefits that you can
give your staff, make them financially literate, make them financially confident,
(34:09):
and it costs you absolutely nothing.
Speaker 12 (34:11):
Yeah, thanks for raises the industry. Does the industry have
a strategy to work with schools and with some employers to.
Speaker 5 (34:19):
Well, look, most providers will do stuff, but Eric Stanford
has actually just launched the program with financial literacy and schools.
But there's a lot of work that needs to be
done here.
Speaker 3 (34:30):
Yeah.
Speaker 2 (34:31):
Actually, it's funny at different personality types with my daughters.
Like there's one of my daughters who will make money
because she's she's going to be more of a risk taker,
I think. But the other one she squirrels it away.
I mean, I don't think I could find it either.
But there are certain personality types that are just instantly
focused on saving and squirreling.
Speaker 5 (34:50):
It's a funny one. Some are some aren't right personally,
I've never been a great saver. No, that's why kip
save is great for me because it comes out of
my paycheck. I never see it. It just happened my
nine year old. Look, he's very good at it. My
seven year old. It'll go the dairy the next day.
Who knows how it drives but it just happens for
(35:10):
some people.
Speaker 2 (35:11):
Actually, Richard's called coming earlier. You know, you could almost
do have an interesting talkback conversation on this as to
whether and this is a very hot take and I
haven't thought about it much, so you know, forgive me
whether there almost needs to be legislation that when negotiating
a paypacket you're a negotia a remuneration that an employer
(35:37):
cannot build in the key, we save a part of it,
and that it's automatically aded on top.
Speaker 4 (35:42):
That was the legislation.
Speaker 5 (35:44):
Oh really, so back in two thousand and six when
it got first born in with Cullen and Clark and
that Labor government, that was the legislation. So therefore, if
you're an employee, you negotiating package and that's always and
even if you tell them you're not going to grab it,
are you going to go call I'll take my fifty
grand yep, yep, yep, don't worry, I won't take it
the next day.
Speaker 4 (36:03):
Sorry, I want my keep.
Speaker 5 (36:03):
We savor now, so you know it makes the money.
What happened then, So then in two thousand and nine
the National government actually introduced the ability changed it so
that you could go to total remuneration. With the changes that
were announced with the budget, the industry, I think we
kind of we knew we weren't going to get a
huge amount. We knew that government contribution was going to
get cut. That was the one thing that we were
(36:25):
all hoping for, that total remuneration policies would go. Because
if we really want to make it, if we want
a turbo charge keyp we saber and we want to
really force people to save, that's how you do.
Speaker 2 (36:35):
In fact, isn't that like Australia is more like fact
we're same as Australia.
Speaker 4 (36:39):
We are now or it was Australia. It's all compulsory.
Speaker 5 (36:42):
Well sorry, it's not compulsory, not part of.
Speaker 2 (36:45):
Our package sort of thing's well, it's all added on top.
Speaker 3 (36:48):
Yeah, okay, right.
Speaker 2 (36:49):
In fact, I'll tell you what. We'll just take another break.
We'll be back to John and just to take our
eight hundred and eighty ten eighty. It's eleven minutes to
six news talks. They'd be yes, Well, time flies when
you're having fun. We're with Rupert Carly and founder of
Currel Wealth. We have time for one very quick call. Hint, hint,
to John.
Speaker 9 (37:02):
Hello, Yeah, my key saver is with the man next
door to you. Oh, well done, and and yeah, I
mean I can't emphasize if people have a little bit
of risk tolerance and you don't steer at your keysaver,
definitely enjoin it because it's got a bit of a
bitcoin story to it. And just give you a rough idea.
(37:23):
From September through to the last financial year, my big
my keyv saver in total was up about forty Oh.
Speaker 4 (37:32):
Well, oh they've done a great job.
Speaker 3 (37:34):
Well done. Past performance.
Speaker 5 (37:36):
Well no, he's only got a little bit on bitcoin,
so that'll be a common I'm guessing you've got our
US equity fund on our bitcoin fun which have been
two of the best QY saver funs.
Speaker 9 (37:44):
Yeah.
Speaker 4 (37:44):
Correct, have you ever existed?
Speaker 3 (37:45):
Good on your John?
Speaker 2 (37:46):
Yeah?
Speaker 3 (37:47):
You how long have you got to go? In KYI saver?
Speaker 9 (37:50):
I am super aggressive. I'm an ex poker player and
I played online for you know, for some pretty decent money.
But to give you an idea, I put fifty percent
of my salary into my kiwisaver and my employer matches
ten percent of that. So and then yeah, and then
on top of that, I do because I've got two
(38:13):
small companies. I do add quite a bit to my user,
but then I've got a hatch.
Speaker 5 (38:19):
Yeah, just question, do you do the same hatch allocation
to what you've done with Codder, you know, kind of
more aggressive.
Speaker 9 (38:27):
I've gone for tearslim Ry Coast Reddy is a huge
part of it, but I've also gone for Google, Microsoft, Amazon.
Speaker 3 (38:38):
Thanks John.
Speaker 2 (38:38):
Hey, We've got to leave it there because unfortunately we
are coming towards the end of it. Actually, I guess
the thing is a very quick question. But if you've
got extramated to stick and key we Saver, would you
stick it in key we Saver or why wouldn't you
stick it into a fund where maybe.
Speaker 3 (38:50):
You can access it. I guess it's just whether you
trust yourself.
Speaker 4 (38:53):
Look, it depends on you as a person.
Speaker 5 (38:56):
I firmly believe in the structures of kind of how
we invest. So for me personally, what I do is
I've got a keyy Saver, my wife's got a key Saber,
but we do have other money sitting outside. But actually
we've run exactly the same strategy outside of qv Saber
as how I invest my kevsab because that's what I
think works.
Speaker 4 (39:15):
And that just money.
Speaker 2 (39:17):
But the tool you mentioned about that that people go
and check and see what where they should be and everything.
Speaker 3 (39:22):
How do they access that?
Speaker 5 (39:23):
So look, if they visit the codal wealth website dub
dot cold or wealth kou r A W E A
L T H dot cod NZ, if they click the
get started, go through the guided choice And what that's
going to do is take you through quite an extensive
digital advice process which will give you a recommendation of
what type of fund you should be in and you
(39:44):
whether you use that with us or someone else, but
it should give you confidence that you can make the
right q we saber decision for yourself.
Speaker 3 (39:49):
Excellent.
Speaker 2 (39:50):
Any final thoughts before we before we we got about
a minute to go, any final sort of observations.
Speaker 5 (39:55):
Or advice to people, broadly speaking, the best thing I'd
say is is take charge. Look, this is going to
be the largest investment that you are likely to ever have,
so there for give it some time, give it some attention,
do a bit of work, and make sure you're not
just sitting somewhere because it was the easy option. There
are lots of places to go, but first and foremost,
(40:16):
figure out the right type of fun for you and
then make sure you get yourself with the right provider,
because as one of the callers that already pointed out,
she would have missed out on a lot by taking
a long time to make that decision.
Speaker 3 (40:29):
Good stuff. Great to meet you, Rupert. Thanks very much
for coming in.
Speaker 2 (40:33):
You been good and go and check out Coralwealth dot
co dot nz and we'll be back next week. We've
got John Cameron for our health having Amanda Morele joins
us with Smart Money, and we'll have a new guest
for the one Roof radio show. Martin Cooper, who's managing
director of Hardcourts, will be with us as well as.
Speaker 3 (40:50):
Simon Wilson's back with us for the panel.
Speaker 2 (40:52):
That'll be fun. Look forward to that one. Thanks my producer,
Tire Roberts. Look forward to your company. Sunday at six
is next. Enjoy your Sunday evening.
Speaker 3 (40:59):
We'll catch you soon.
Speaker 6 (41:05):
It's a little good news Hot Any need Isn't it
something made me bad in the middle? Hot I Any Need?
Speaker 7 (41:17):
It is a little
Speaker 1 (41:22):
For more from the Weekend Collective, Listen live to news
Talks it'd be weekends from three pm, or follow the
podcast on iHeartRadio.
You're listening to the Weekend Collective podcast from News Talks by.
Speaker 2 (00:31):
Day and welcome back to the show. This is the
Weekend Collector on Tim Beverage. If we missed her, I
had a fantastic chat with Dr w Weaver on her well,
she's a nutritional nutritional biochemist. We ended up focusing a
(00:54):
little bit about just not just burnt out but iron
and you know, how.
Speaker 3 (00:58):
To eat for.
Speaker 2 (01:01):
A healthy diet, and a bunch of broad ranging conversation
around that. But you can go and check it out
on the new Stalksby website or on iHeartRadio just look
for the Weekend Collective. And for politics, we were joined
by Erica Stanford to talk about the new parent boostvill
on the immigration side, where we're going to allow parents
to come in for longer if they're sponsored by their kids,
(01:21):
and they're changing a bit there. But also we had
a chat with with Jordan Williams from the Taxpayers Union
about polling and what questions you want to see answer
in and polling.
Speaker 3 (01:30):
It was quite interesting.
Speaker 2 (01:31):
I would recommend it just to get an explanation of
the dreaded margin of error which gets lip service in
the polls and people go what's that margin?
Speaker 3 (01:41):
Evvera all about?
Speaker 2 (01:42):
Well, Jordan was pretty good on having a chat about that,
But right now this is smart money and we are
going to have a bit of a chat about Kiwi Saver.
Speaker 3 (01:51):
The question for you is.
Speaker 2 (01:52):
Actually how much time you have spent thinking about your
key we saver profile, the company you're with. Did you
just go with the default one of your bank like
I did? Confession time? Anyway? But have you ever thought
about changing your profile or have you ever thought about
changing your company? And how often have you thought about it?
And how many of you have actually haven't done it?
Speaker 3 (02:12):
In the EI? You know what, I think I should
probably change my profile.
Speaker 2 (02:15):
I know that there are people who have done it,
because especially when it was around the time people were
looking at maybe getting into the first house, and it's
a constant thing now for first time buyers because they think, well,
hang on a minute, I want to use that money.
So I'm going to go to conservative because I'm happy
with where it's at and I don't want to risk
it any longer. So those people probably have actively done it,
But I want to know how often have you thought
(02:36):
about it and have you done it? And how did
you make the decision because I do a money out.
I'm no financial expert, and I'll be honest with you
in terms of choosing your company. I have met a
few people who've got their own funds, but I haven't
gone to them yet because I don't know. I'm going
to have to dig into that. That's a confession anyway,
to join me. We have a new guest on the show.
(02:57):
He is the founder of Cora Wealth and his name
is Rupert Carlyon and he's with us for smart Money.
Speaker 3 (03:04):
Get a Rupert.
Speaker 4 (03:05):
Good evening? Are you good?
Speaker 3 (03:07):
Good evening? I think it is evening.
Speaker 5 (03:09):
I guess winter, so it's darkouse it does make it
look wintery.
Speaker 2 (03:13):
That's the first hot take of the day. Good evening
at ten past five.
Speaker 5 (03:16):
Well, I've got young kids, so for me, this is
firmly evening time.
Speaker 2 (03:20):
So you're missing okay, so you're missing dinner time right
now and hopefully.
Speaker 5 (03:24):
Are missing all the fun stuff of the day. Oh yeah,
but the dinner and all of the absolute mayhem.
Speaker 2 (03:29):
So this is perfect, excellent, Well, welcome, good to No
wonder you're not coming to us from the home office.
It's like I've really got to go in for this one. Honey, hey,
just before we get into it, how tell us about
Coral Wealth and how long you've been involved with that
company and what you do.
Speaker 5 (03:47):
Yeah, so we're can we save a provider? We're about
five years old. We currently manage about three hundred million
dollars on behalf of about seven thousand members. I started
the business about five years ago and partnership with a
guy called Warren Coollier. Warren was previously COEO at Fish Funds.
He was a made investor at Generate c IO Chief
(04:08):
Investment Investment Officer, so he built a lot of that stuff.
And what we believed very firmly was everything that you
said in the introduction. We wanted to create an easy
way for people to make better KEI. We saber decisions
because we saw far too many people had no idea
where to put their KEYI sab far too many people
sitting in the default funds.
Speaker 4 (04:28):
And to our aunt's at all of this was.
Speaker 5 (04:29):
We were the first in market with a pretty comprehensive
digital advice tool to make allow people to make smart decisions.
Speaker 3 (04:37):
Okay, so and you've got a key we save a fund.
Speaker 4 (04:39):
Yeah, you got a key.
Speaker 3 (04:40):
As you say, you've managed However, a hundred million.
Speaker 2 (04:43):
You mentioned, does that make it where does it make
it in the scale in the scheme of things, because
what is the total KEII saver.
Speaker 3 (04:52):
Global and not global? But you know in your part
what's the pot?
Speaker 2 (04:55):
The pot's the one I'm going to write down.
Speaker 4 (04:59):
The pot.
Speaker 5 (05:00):
I'm not sure that's a technical terminology, but it's a
nice way to think about it. So the key Saber
pot's about a hundred twenty to one hundred and twenty
five billion dollars. Wow, it's a lot of that. About
sixty percent of that is actually still with the banks,
which is really interesting, right.
Speaker 2 (05:15):
Because unsurprising, I'll be honest, because I was honest there
that I just I mean, I'm self employed, so I've
got a bunch of problems to deal with on that.
Speaker 3 (05:25):
But to me, I was just.
Speaker 2 (05:26):
Like, oh, okay, yeah, the okay A and Z Yeah,
sure that's I'll go with that. And it's amazing because
there is a large number of key we Saber providers.
I don't know if people actually realize how many there are.
Speaker 5 (05:38):
A lot as as I've said a few times, it's
exactly the same as craft beer.
Speaker 4 (05:43):
Do you go on to the.
Speaker 5 (05:44):
Stude market, and you got your thirty five craft beer
providers on the supermarket and on the shelf, and key
We Saber is no different.
Speaker 4 (05:50):
You got thirty five and.
Speaker 5 (05:51):
For everyday people, it's really hard to tell the difference
because for most people, and I'm sure this is why
you haven't switched and changed, we look, we feel, we
smell the same because we are eighty five percent the same.
Speaker 2 (06:04):
Well, I guess that's because there's also some serious regulation
around key We Saber because it's not the wild West.
It needs to be something that that New Zealanders can
count on with a degree of knowing that you know
your money is not being looked after by some shyster.
And so the amount of compliance and everything does level
the playing field?
Speaker 3 (06:24):
Does that make it?
Speaker 2 (06:25):
Also because of the rules, I mean, it's the it's
the it's the benefit of that key We Saber scheme
is that it is perceived to be an absolute safe place,
risk profile separate of course.
Speaker 5 (06:37):
Well even within that right, So there is a couple
of things.
Speaker 4 (06:41):
So you're one hundred.
Speaker 5 (06:42):
Percent right that from a from a regular Troy perspective,
it's it's as safe as you can get, right, So
it's very different to the two thousand and eight finance companies,
which were most of them were just shyster's kind of
investing money.
Speaker 2 (06:54):
Oh, I still remember the ad. So here's I take
to mention the companies. But all these ridiculous they made
it sound so safe. Put your money with us.
Speaker 5 (07:02):
We'll put it this way. You know, when you've got
all black or a news presenter pitching you, that's the
time to run.
Speaker 3 (07:11):
People.
Speaker 2 (07:11):
If you ever see me fronting an ad for some fund,
run a mile. I'll be doing well out of us,
and you'll be telling them it's safe as houses.
Speaker 4 (07:20):
But look, so it is.
Speaker 5 (07:22):
It's a very strict regulatory regime, which is rightly so
because fundamentally it is the largest investment that most people
ever have. People are kind of setting their retirement all
on this. So we keep our fund separately.
Speaker 6 (07:35):
We do.
Speaker 5 (07:36):
We are pretty we are mandated to hold a safe
set of safest set of investments.
Speaker 2 (07:42):
Well that's actually a question because when I looked to
changing my fund to a more aggressive one, because I
just went and balanced because I don't know one, it
just felt, you know again, it seemed inoffensive, and then
I thought, hang on a minute, I'm optimistic coming and
being in a workplace for a while. Yet so I
shifted to growth and aggressive or something. But understanding risk
(08:04):
and key we save it is one thing to go
and make your own decisions about which of the s
and P five hundred you want to buy versus going
aggressive in your KIWI saver. Can you give us a
context for how risky is it ever? In the most
risky fund and ki saver?
Speaker 5 (08:23):
It's I'm just trying to think how to answer that, right,
because the truth is the word fund is really important.
And so because when you invest via a fund, you
get diversification, and what that means in layman speakers, fundamentally
you're going to get different markets, different sectors, and you're
going to invest in tens or hundreds or thousands of
(08:43):
different companies. And so that's why immediately by investing in
a fund typically you have actually materially reduced your risk
profile versus if you just go and try and invest
in Facebook or Microsoft on your own.
Speaker 2 (08:57):
So that sort of answers that puts it in context already,
isn't it? So it does every fund does every fund
guardless of whether it's low risk, conservative or aggressive. I
don't know what what are the names they give about
those aggressive funds, you know, hang on, oh exactly, but
even they are diversified, and so is the thing with
(09:19):
those funds is that the risk is more that a
market itself across its diversification might have some.
Speaker 3 (09:27):
Highs and lows.
Speaker 2 (09:28):
We've seen with I mean, we've seen with the Donald
Trump presidency the highs and lows of the SMP. I mean,
there might be a fund that is SMP and actually,
you know what, if you need if you need your
money in six months, it might be that might not
be the bet as opposed to in five years time.
Speaker 5 (09:42):
You know, well, yeah, because so there's three to kind
of as we think about diversification, you divers four different levels.
Right at the start, you start off an asset class,
and that's a fency way saying do you want lots
of stocks and lots of equities in your portfolio or
at a simplastic income And so the benefits when we
buy income that means we're buying bond that's pretty sable, steady,
(10:07):
doesn't really go up and down and just gives you
a fixed return. Whereas as we've seen over the last
kind of five years, the equity market, it just massively
over and above. Right, it's been dropped more than twenty
percent about ten times over the last five years, so
it's had some big, big falls.
Speaker 4 (10:24):
But it typically recovers.
Speaker 5 (10:25):
So what we say, So that's where we start off with, right,
So you go, hey, if you're in it for the
long haul, then you can have lots of equities and
that's going to deliver.
Speaker 4 (10:34):
A greater return over the long run.
Speaker 5 (10:35):
But if you need to get it out in six
months time, when you've just Donald Trump's made his next announcement,
You've got some problems.
Speaker 2 (10:41):
When he's decided to really doesn't like elon the EV
and well, I mean, yeah, anyway, hey, sorry kerry On.
Speaker 5 (10:49):
And then you move into kind of regions, so some
funds might be region specific, other funds might be kind
of global, and then you've got company and sector specific.
And so diversification is the name of how you make
your money, by making sure that you're never overexposed to
a single thing or a single kind of piece at all,
because lots of things are going to go up, yeah,
lots of things are going to go down. And fundamentally,
(11:12):
if you knew exactly what was going to go up
and win, well, you wouldn't even have my job, you'd
be at a hedge fund management.
Speaker 2 (11:17):
Well, the thing is, we were talking before you before
we started the show about the theory behind the key
we saver funds just actually investment in general, and there's
there's a whole space where you can go really deep
into the weeds on that stuff. How I mean, how
(11:38):
clever can people be with working out investments that are
going to give a good return? I mean, how advanced
does that theory? And what can you tell us about that?
Speaker 5 (11:48):
Look, there is so much theory, but what we are
brilliant at in the finance world is demonstrating to everyone
by talking really fast with very complicated words, that we
are we believe ourselves to be the.
Speaker 4 (12:02):
Smartest people on the own.
Speaker 5 (12:03):
The truth is thoughtments can be extremely simple if you've
got the right asset allocation and by that I mean
the right diversification. There are lots of simple products out
there that can deliver really great returns. And so we
kind of spend like you'll get people and I'm sure
you've had lots of come on this program tell you
(12:24):
that they're the greatest stockpacker, or that they do this,
they do this evidence has shown that kind of ninety
five percent of returns are delivered by simple good asset allocation,
by kind of creating the right strategy, and you just
stick with that. The person that spends all the time
trying to pick the right stock, trying to pick the
right trend slows far more often.
Speaker 3 (12:45):
It's like the bet.
Speaker 2 (12:46):
It's almost like a betting mentality, isn't It's like masts
will go down. It's just a different version of betting
on the horses, you know it.
Speaker 5 (12:53):
And within that, Look, there are always going to be bets,
and there are always going to be people that go, look,
I want to do something a little bit different. So
the most biggest one at the moment is bitcoin for example, Right.
Speaker 3 (13:03):
I actually get when I was doing.
Speaker 4 (13:05):
Because you had a we do have a bitcoin fund.
Speaker 2 (13:07):
You had a bitcoin fund, and I did see that
you were cautioning investors. It's like, okay, our bitcoin fund
has returned very well in the past, but you actually,
I think I saw you'd said, just call your jets
with your future expectations.
Speaker 3 (13:20):
We've done well, can we.
Speaker 4 (13:23):
Just we'll get that one across the FML if you've
seen that?
Speaker 3 (13:25):
So what's that?
Speaker 5 (13:27):
At my job as kind of a wow. To be
fair as an investor and with investors is to kind
of make sure people understand that, hey, that there's a
lot of risk in everything that we do. So if
I'm out there saying, hey, you should invest in bitcoin
because for the last five years it's to deliver an
annualized return on sixty percent and that's going to continue,
that's not fair because fundamentally, past performance never equals future performance,
(13:50):
and so I need to give balance. So that's why
I'm always saying, hey, it's an interesting asset. It's done really,
really well, but we have no idea what's going to
happen in the future.
Speaker 2 (13:58):
Because I will always get texts on the show saying
I'll just stick your money in bitcoin and stuff, and
you know, I've got no comment to make on it,
but it just freaks me out generally.
Speaker 5 (14:06):
Well, but I'll give you the sophisticated view on that one.
Right where you go it is risky, and let's be clear,
we're not one hundred percent sure on where it's going
to go. But if you put five percent of your
portfolio and bitcoin, that's actually got the potential to do
something really interesting for your portfolio. But it's not about
taking it all resk right, So coming back to where
(14:27):
I started diversification. The person that sits rings you up
and says put everything in bitcoin, that is truly gambling.
Whereas by putting little bits and lots of different places,
that's what's allowing you to expose yourself to some potential
for big ones.
Speaker 2 (14:42):
Okay, Look, we'd love your calls on this. When it
comes to your key we Saver fund and I know
we've done. Look we getting to know each other because
it's the first time on the show with Robert carlai On,
the founder of Curel Wealth. And when it comes to
your fund, are you sort of just settling for the
status quocus? You know, I got into it when the
government announced it there was this fund, my bank was operating.
(15:02):
I'm shoved it and balanced because that sounds kind of
not the right sort of balance of zen for me.
Speaker 3 (15:07):
But have you thought about changing?
Speaker 2 (15:10):
But what's stopping you? Give us a call eight hundred
eighty t and eighty. But also if you have actually
managed to change your profile or the company you have
got your key we sable with, what motivated you to
do it and what was the homework that you did that.
Speaker 3 (15:25):
Motivated you to go right.
Speaker 2 (15:26):
This is the decision I'm making eight hundred eighty and eighty.
It is twenty two past five news talks at b
Are you worried about funding a comfortable retirement? Well you're
not alone. The cost of living crisis is hitting up
for a lot of people, so it's no surprise people
are looking to make 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
(15:48):
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
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of four point five percent per annum after fees and
taxes paid out in monthly installments. To find out more
(16:10):
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 for Harbor Investment Funds
issued by Harbor Asset Management is available at Harborasset dot
co dot nz.
Speaker 1 (16:28):
Your Weekend Your Way, The Weekend Collective with Tim Beverage
News Dog Zebby.
Speaker 2 (16:35):
So we're talking about kiwisaver, and actually, I think my
guest Rupert Carlyin, he's the founder of Career Wealth, first
time on the show. By the way, taking your calls
put it best when we're chatting on the break, it's
really about how to take ConTroll of your kiisaver and
how many of your passengers because.
Speaker 3 (16:50):
What do we reckon?
Speaker 2 (16:51):
How many people do you think are just passengers? Rupert,
And you're just looking at all the number of people
with banks and go, well sixty percent at least.
Speaker 4 (16:57):
Yeah, well yeah, but tilt.
Speaker 5 (17:00):
I love to bash the banks because they do a
pretty shitty job on a lot of stuff, but a
lot of the banks act. Some of them are better
than others. In keysaver, that's not necessarily the end of
the world being with your bank. Here, we've got digital
advice tools, right, So over the last five years we've
had kind of about forty thousand people through those tools,
and what we find is that less than forty percent
of people are in this and the type of fund
(17:21):
that we would recommend.
Speaker 2 (17:23):
So what are these digital advice tools and how do
people check them out.
Speaker 5 (17:26):
So if you visit our website dubdub dot cod ol
wealth ko U R A W E A L T
H dot co door NZ, you'll see kind of there's
a digital advice tool you can take through. We'll do
a quick assessment of your risk profile, what your objectives
are for qisaver, some of the things that might interest you,
on where and how you want to build your KISAB,
(17:47):
and then we'll make a recommendation for you.
Speaker 4 (17:50):
But I think the interesting.
Speaker 5 (17:51):
Part about that tool for us is when we say
two things that the type of fund that we would
recommend is very different to the one that they're already in,
which means that which is normal because not many keywis
of E had financial advice. Not many people have ever
actually really thought hard about their QUI saving despite the
fact that it's going to be the largest investment they
(18:12):
ever have.
Speaker 3 (18:13):
How does it play out?
Speaker 2 (18:14):
Because you know, we have often will be making and
I will when I get a guest on and about
we're not giving specific financial advice. How does that play
into the tools that are available when they're saying what
funder should I be in? Because you were sort of
in the area of giving is it?
Speaker 4 (18:31):
It is advice.
Speaker 3 (18:32):
It is advice.
Speaker 4 (18:32):
Okay, that's advice based. Oh good, I just want to
no no, no, no, no, no.
Speaker 5 (18:39):
That's the beauty about digital advice, right So yeah, that's
that's why what we can do with our tools, because
we're brave enough to call it digital advice, is a
lot more than what the generic tools on sorted or
other things are going to do right by. And I
find it hard because there will be a lot of
generic tools that go, well, you might want this, or
you might want this. But with the fact of the
(19:00):
number of questions that we ask about you, that's how
we can make it specific and personal.
Speaker 2 (19:04):
For I might ask a question of my own time
once we have the next break. Because the funny thing
was when I went to change my I've had discussions
with a few people about it, and I thought, well,
if I'm going to work for this long and I
switched to a it's more aggressive fund and the bank said,
this is not the recommended profile for you. Would you
like to proceed anyway? And I thought, oh god, it
makes me tense.
Speaker 3 (19:24):
Yes, yeah, what the hell? But I was there anyone.
Speaker 2 (19:27):
It was just interesting that it's I had to resist
that advice.
Speaker 5 (19:32):
Yeah, But I think the other thing that I find
interesting and frustrating about key we save it, and particularly
some of the advice, particularly from the banks, is it's
a lot more conservative than the international norms. Ok, there's
a lot of key we save it for people here
in New Zealand that will be given the advice or think, well,
you're going to turn sixty five, so therefore you need
to make sure you're ready to withdraw at sixty five,
(19:53):
Whereas the truth is you're going to hopefully live till
I mean, current life expectancy for women is about eighty
seven eighty eight minutes about eighty five.
Speaker 4 (20:02):
It's only going to grow. You need your key, we.
Speaker 5 (20:04):
Save it last that whole way through. So therefore you
need to keep invested the whole way through. It needs
to be earning a return the whole way through. So
our view is that actually, people that are able to
withstand the volatility, you can keep it aggressive for a
lot longer than probably some of the traditional thinking.
Speaker 2 (20:20):
We're going to dig into that because I was having
a chat with someone on a different show about that
about why are people not more aggressive for longer? And
I think the consensus was probably we could consider that.
Speaker 5 (20:32):
Yeah, there's two parts to it, right, because when we
consider what the right tolerance for risks or and by risk,
basically we're saying should you be aggressive or conservative or
somewhere in the middle.
Speaker 4 (20:43):
There are two things.
Speaker 5 (20:44):
Right, You've got time horizon, and then you've also got
the ability to kind of how you're going to react
when things go pear shaped, as we've kind of seen
the l last couple of minutes.
Speaker 3 (20:54):
Just don't look.
Speaker 5 (20:56):
What all of the research shows is that actually, as
you get older, you're with your ability to stand stress reducers,
and so it's harder and harder to not lock. And
as this money is becoming more and more important, So
even though you might still have the time frame left
because you want to keep it there till you're nineteen
ninety five, the ability to deal with the stress of
(21:17):
when it drops reduces. So it's kind of matching those
two things on its way through.
Speaker 3 (21:21):
Right, Let's take some calls.
Speaker 2 (21:23):
Quite fascinated with the idea about how we perceive risk
as well, But let's get into the calls.
Speaker 3 (21:28):
Colin, Hello, Colin.
Speaker 7 (21:32):
High Hi, I just wanting to know if you're already
on a different key we saver. How you would change
to crow Wealth.
Speaker 5 (21:41):
It's very simple. You'd visit our website and you can
sign up online. It to a two minute process. All
you need is your driver's license and your ID number.
I would be kind of fair to say most qysa
A providers it's a very simple process on their website.
Now it's not hard and all the paperwork is done
(22:02):
in the background by us and the IOD.
Speaker 3 (22:05):
Have you been thinking of changing column?
Speaker 7 (22:07):
No that I'm talking about my grandchildren, who I think
they're just simply and I've been default one. So we'll
talk to them.
Speaker 2 (22:15):
Okay, okay, yeah, ig st help cheers Colin Pleasure. Actually,
to be honest, I mean, the best thing is if
you've got kids, if you're putting money into a fund,
well that's the first smart choice you've made anyway, and
you have a think about what fun they're and at
some stage I guess, but the first decision is get
them started.
Speaker 5 (22:33):
You've got to get them started. So for example, my kids,
my kids, I've got three very young kids. They get
twenty dollars each month that goes into their qvsaver and
so identical.
Speaker 2 (22:44):
I'm sure there's quite a few parents are like I
can handle twenty bucks.
Speaker 5 (22:48):
I can handle twenty bucks sixty bucks a week between
the three of them and lot. By the time they
get to kind of hopefully they buy a house in
their late twenties early thirties, it's going to be a
big balance. That's going to be a big chunk of
their kisaver. And when you're saving. What we do know
is that small regular country Utians Ada, And that's by
(23:08):
far and away the easiest way to try and help
people when you're kind of the grandparents. Now, the grandmother,
much to my elder sons, discussed she'll just give a
couple hundred bucks contribution to the key.
Speaker 4 (23:19):
We say a contribution, right, rather.
Speaker 2 (23:23):
Actually the power of compounding interest for pre twenty year
olds over the course of your life forty to fifty years,
that's a lot of money.
Speaker 5 (23:32):
Yeah, that's that's going to be the most valuable prison
you can give you, your children and your grandchildren.
Speaker 2 (23:37):
All right, let's take some more calls. Sarah, Hello, Sarah, Hello,
Hi use from here? Yeah, Hi, you're on here. What
would you what would you like to ask or comment on?
Speaker 8 (23:48):
Oh no, it's just well when I write it from
good in two thousand and eight, and ke we say
we just started. So I was just introduced it by
my bank. I joined it with my bank. I stayed
there up until last year, and then I looked at
the differences and I realized it wasn't really performing. So
I did my Can I switch to Milford? My sixteen
year old she just turned sixteen a few months ago,
(24:10):
and I've just put her straight onto it as well,
because compounding interested exactly as you say.
Speaker 2 (24:14):
Can I ask you when you say you did your homework,
did you just look at the I mean for most
lay people, they just look at the past performance and
go with they've done well so far. Fingers crossed?
Speaker 3 (24:24):
What did you? What did you do?
Speaker 8 (24:25):
Yeah, essentially I did. I just I just went on
a few different sites and exactly that I looked at
I was with ASB, and I looked at my bank's
performance and compared it. And I mean, I'm fifty now,
so I started at thirty three, and I just looked
at the where I would have been if I'd gone
with a different, different provider.
Speaker 9 (24:43):
When did you switch moderate Growth?
Speaker 2 (24:44):
When did you switch about a year and a half ago?
Speaker 3 (24:47):
Are you happy with the decision?
Speaker 8 (24:50):
I am Obviously the markets have gone a little bit crazy,
which is I mean, it's across the board, so it's
really hard to sort of look back and say, well,
how would that have benified? To stay with ASB. But yeah,
generally I am. I think that I definitely have semial growth.
Speaker 4 (25:03):
I think it's look the short term.
Speaker 5 (25:06):
Look, they're competitive, but Melford's a great shot, and I
think you'd be hard pressed to kind of to be
disappointed with that decision. That The key though, is you've
made your decision, You've chosen the right fund. Hopefully you've
got some advice out of the Milford guys on the
way through to make sure that you're in that right fund,
and now you just leave it there. The kind of
(25:27):
the grass is off and greener on the other side
until you get there. But don't fear just because we've
got volatile markets, just because things are going a bit
funny things. That's not the fault of Melford. That's just
what's happening in the world right now.
Speaker 2 (25:40):
Okay, good good on you, Sarah, Thank you for your call.
How small a community or bigger community?
Speaker 3 (25:45):
Is it? The key?
Speaker 2 (25:46):
We serve a fund managers, So do you all know
each other?
Speaker 5 (25:49):
Oh, yeah, most people know. If we haven't met, we
know of each other and we'll recognize each other. We
all go to the similar industry events as you've probably number.
Speaker 3 (25:59):
I've done one recently.
Speaker 2 (26:00):
But actually I was just wondering is there a sense
of collegiality or is it collegiality but backed up with
like competitiveness in terms of information shooing in conversations around
markets and trends and you know.
Speaker 5 (26:16):
So, like I was at a conference on Friday. There
were five Qisaber providers at that conference. We're all talking.
We're all kind of talking about what we're doing. Look,
some are better than others at sharing, some are. There
are definitely a couple in the industry that our outlies.
But we're extremely lucky. We've got a good industry that's growing.
(26:36):
There's a lot there for everyone, and so we're very
good at kind of making sure we work together because fundamentally,
for us, it's the product that's the most important thing.
We have to make sure Qwi's love and believe in
and trust Kiwi Saber, that's what's going to be best
for all us.
Speaker 2 (26:52):
Just before we go to the next caller, I've noticed
that just from the point of view of doing a
money show when we do different hours, that the energy
around this particular hour has picked up. And do you
notice that have you noticed that yourself in terms of
the QIS industry, that there's more energy and people thinking
about focusing on that aspect of their lives and looking
ahead and a bit more just focused on a bit
(27:15):
more than.
Speaker 3 (27:15):
We used to be.
Speaker 5 (27:16):
Oh, definitely the balance as a book, right, so the
average balance is now kind of in that thirty five
to forty thousand dollars. So for most people, keyy Saber
is there. For most people also, they've they've kind of
got to recognizing that key Saber is going to be
an important part of their retirement of where they go
in the future. And so it's changed a lot from
where it was even five to ten years ago. We've
(27:38):
seen the number of client people in default funds has
materially reduced and it's definitely become a big thing. And
I think it's really interesting. Right over the last three years,
the government twice has tried to mess with keysaber when
they got rid of or they cut the government contributions
in half. Last week, it was really interesting how many
people got very vocal against that and the big criticism.
(28:02):
I don't think the national government would have expected as
much criticism as got Two years before that, Grant Robertson
tried to put tax GST on keyy Saber fees, and
that we've.
Speaker 4 (28:12):
Got that was just that very loud.
Speaker 5 (28:16):
But it shows how much kiwis love it, and it
shows that people have brought into this and we are
moving away from our love.
Speaker 2 (28:22):
Of property right quite possibly at the moment especially all right,
oh eight one hundred and eighty ten eighty, let's talk
to Rob Hello, Hey.
Speaker 10 (28:32):
Hello Tim and and Rupert Rupert. The question I've got
is that with regard to guarantees around savings, I believe
that New Zealand has passed something through Parliament and it's
(28:55):
now sitting with Reserve Bank. And although it's not very much,
it's one hundred thousand compared to a two fifty. My
question is does that also apply to Kiwi shaver or
only shaving in a saving account.
Speaker 5 (29:18):
No, that's only going to be bank deposits held with
a registered bank within yeah, with a registered bank, so
QWI saver it's not guaranteed at all. So it's very
very different that the one wrinkle, which I think people
suspect is coming. Is it one hundred thousand dollars per account,
which means that so lock if you've got a whole
lot of money sitting in different if you've got more
(29:40):
than one hundred thousand dollars, you've got four large Australian banks,
I'd just be splitting it up and putting one hundred
grand each to make sure you get your guarantee across
each of them.
Speaker 2 (29:48):
Right, Okay, good stuff, Rob, Thanks for your call.
Speaker 3 (29:50):
We'll be back in just a month.
Speaker 2 (29:51):
We've got some more calls lined it up, and if
you'd like to join us eight hundred and eighty ten eighty.
My guest is Robert Carlyon. He's founder of Cora Wealth. Ko,
you are a easier to google.
Speaker 3 (30:02):
Them and find them. We'll be back in just a moment.
News Talks.
Speaker 4 (30:04):
He'd be don't your own America?
Speaker 2 (30:07):
Won't you need it? American?
Speaker 4 (30:11):
Enough?
Speaker 7 (30:11):
Said time?
Speaker 9 (30:14):
Crazy?
Speaker 2 (30:15):
Are you going to do this?
Speaker 11 (30:16):
Just meet me at right News Talks.
Speaker 2 (30:28):
Yes, this is a smart money. My new guest, Robert,
Robert Rupert. Sorry, Robert, I apologize. Rupert car Lyon, found
of Coral Wealth, is with us and taking your calls,
and if we've got time, I'm going to dig into
how long. We'll just get Rupert's take on how long
you should maybe consider being more aggressive for longer or
when should you be start safe making your profile more
(30:48):
safe for our attitude towards that will have dig into
that a little bit unless you call me about it
beforehand and jump in Richard, Hello.
Speaker 12 (30:56):
Good afternoon, briefer.
Speaker 7 (30:59):
Hi.
Speaker 12 (31:00):
When Kiwi Saver was started, I was in my late forties,
I think, and I was a bit financially vulnerable. That
I had a good job, so I went straight onto
eight percent and after a bit of a dallying round
with one fund, I moved into a growth active growth
(31:21):
under focus growth with it was I haven't looked back,
and I'm now into my retirement age. But I've kept working.
And I've also said on aggressive fund because I do
have some savings and you know, at least I took
a bit of a hit. But I think you mentioned
(31:43):
before that you thought New Zealanders. I don't know whether
you meant in a policy sense or just New Zealand
and the people are less aggressive. But you know, when
I do stop working, I'll start taking money out. But
I'll only take a fraction of out because I've got
a pretty substantial some in there. Now it's nearly half
a million. Now, I was pretty phenomenal. But what I've
(32:07):
found really disturbing and want when I'm coming to my
question is when I talk to some of my younger
colleagues at work. Now, I don't know what the schools
are doing to educate people about KI we Save It,
but I don't think employers are doing near enough. And
I suppose I've got to be careful, but I don't
think there's just enough encouragement for people because a lot
(32:30):
of them we're on the minimum amount of contribution. I said, well,
what sort of family? And I said, I don't know,
just when they put me on them, And do you
you know, like I might be getting at a store
as view, So I'm interested in your view.
Speaker 5 (32:44):
You're not, unfortunately, you are very much talking about the norm.
So I'll give you one stat that's really scary, right,
So fifty percent of employers in New Zealand offer what's
called a total remuneration policy, yeah, which means that actually
there is no incentive for those people to actually contribute
to Q we Save. And so how total remuneration policy
works is I say to you, I'm going to pay
(33:06):
you fifty thousand dollars if you tick the box saying
you want KEII Saber. That means that actually I'm one
and a half. I'm going to pay you forty eight
and a half thousand dollars and I'm going to put
one and a half thousand dollars into KEII Saber. So actually,
the problem we have in New Zealand is that employers
haven't yet really got fully behind QII SAB. Employers also
(33:29):
don't want to really get involved in these financial conversations
because they kind of don't want to be responsible for
recommending or being.
Speaker 4 (33:38):
Part of it right.
Speaker 5 (33:39):
And it's also hard when you're employer to have these
conversations because many business owners in New Zealand they didn't.
Speaker 4 (33:45):
Grow up with KII Saber.
Speaker 5 (33:46):
They're a business owner, so they're not used to this
kind of stuff. But it's a really, really big issue
that employers aren't doing it. We tell we've got a
program where we do reach out to and we work
with a whole lot of businesses because fundamentally, my view
is it's one of the biggest benefits that you can
give your staff, make them financially literate, make them financially confident,
(34:09):
and it costs you absolutely nothing.
Speaker 12 (34:11):
Yeah, thanks for raises the industry. Does the industry have
a strategy to work with schools and with some employers to.
Speaker 5 (34:19):
Well, look, most providers will do stuff, but Eric Stanford
has actually just launched the program with financial literacy and schools.
But there's a lot of work that needs to be
done here.
Speaker 3 (34:30):
Yeah.
Speaker 2 (34:31):
Actually, it's funny at different personality types with my daughters.
Like there's one of my daughters who will make money
because she's she's going to be more of a risk taker,
I think. But the other one she squirrels it away.
I mean, I don't think I could find it either.
But there are certain personality types that are just instantly
focused on saving and squirreling.
Speaker 5 (34:50):
It's a funny one. Some are some aren't right personally,
I've never been a great saver. No, that's why kip
save is great for me because it comes out of
my paycheck. I never see it. It just happened my
nine year old. Look, he's very good at it. My
seven year old. It'll go the dairy the next day.
Who knows how it drives but it just happens for
(35:10):
some people.
Speaker 2 (35:11):
Actually, Richard's called coming earlier. You know, you could almost
do have an interesting talkback conversation on this as to
whether and this is a very hot take and I
haven't thought about it much, so you know, forgive me
whether there almost needs to be legislation that when negotiating
a paypacket you're a negotia a remuneration that an employer
(35:37):
cannot build in the key, we save a part of it,
and that it's automatically aded on top.
Speaker 4 (35:42):
That was the legislation.
Speaker 5 (35:44):
Oh really, so back in two thousand and six when
it got first born in with Cullen and Clark and
that Labor government, that was the legislation. So therefore, if
you're an employee, you negotiating package and that's always and
even if you tell them you're not going to grab it,
are you going to go call I'll take my fifty
grand yep, yep, yep, don't worry, I won't take it
the next day.
Speaker 4 (36:03):
Sorry, I want my keep.
Speaker 5 (36:03):
We savor now, so you know it makes the money.
What happened then, So then in two thousand and nine
the National government actually introduced the ability changed it so
that you could go to total remuneration. With the changes that
were announced with the budget, the industry, I think we
kind of we knew we weren't going to get a
huge amount. We knew that government contribution was going to
get cut. That was the one thing that we were
(36:25):
all hoping for, that total remuneration policies would go. Because
if we really want to make it, if we want
a turbo charge keyp we saber and we want to
really force people to save, that's how you do.
Speaker 2 (36:35):
In fact, isn't that like Australia is more like fact
we're same as Australia.
Speaker 4 (36:39):
We are now or it was Australia. It's all compulsory.
Speaker 5 (36:42):
Well sorry, it's not compulsory, not part of.
Speaker 2 (36:45):
Our package sort of thing's well, it's all added on top.
Speaker 3 (36:48):
Yeah, okay, right.
Speaker 2 (36:49):
In fact, I'll tell you what. We'll just take another break.
We'll be back to John and just to take our
eight hundred and eighty ten eighty. It's eleven minutes to
six news talks. They'd be yes, Well, time flies when
you're having fun. We're with Rupert Carly and founder of
Currel Wealth. We have time for one very quick call. Hint, hint,
to John.
Speaker 9 (37:02):
Hello, Yeah, my key saver is with the man next
door to you. Oh, well done, and and yeah, I
mean I can't emphasize if people have a little bit
of risk tolerance and you don't steer at your keysaver,
definitely enjoin it because it's got a bit of a
bitcoin story to it. And just give you a rough idea.
(37:23):
From September through to the last financial year, my big
my keyv saver in total was up about forty Oh.
Speaker 4 (37:32):
Well, oh they've done a great job.
Speaker 3 (37:34):
Well done. Past performance.
Speaker 5 (37:36):
Well no, he's only got a little bit on bitcoin,
so that'll be a common I'm guessing you've got our
US equity fund on our bitcoin fun which have been
two of the best QY saver funs.
Speaker 9 (37:44):
Yeah.
Speaker 4 (37:44):
Correct, have you ever existed?
Speaker 3 (37:45):
Good on your John?
Speaker 2 (37:46):
Yeah?
Speaker 3 (37:47):
You how long have you got to go? In KYI saver?
Speaker 9 (37:50):
I am super aggressive. I'm an ex poker player and
I played online for you know, for some pretty decent money.
But to give you an idea, I put fifty percent
of my salary into my kiwisaver and my employer matches
ten percent of that. So and then yeah, and then
on top of that, I do because I've got two
(38:13):
small companies. I do add quite a bit to my user,
but then I've got a hatch.
Speaker 5 (38:19):
Yeah, just question, do you do the same hatch allocation
to what you've done with Codder, you know, kind of
more aggressive.
Speaker 9 (38:27):
I've gone for tearslim Ry Coast Reddy is a huge
part of it, but I've also gone for Google, Microsoft, Amazon.
Speaker 3 (38:38):
Thanks John.
Speaker 2 (38:38):
Hey, We've got to leave it there because unfortunately we
are coming towards the end of it. Actually, I guess
the thing is a very quick question. But if you've
got extramated to stick and key we Saver, would you
stick it in key we Saver or why wouldn't you
stick it into a fund where maybe.
Speaker 3 (38:50):
You can access it. I guess it's just whether you
trust yourself.
Speaker 4 (38:53):
Look, it depends on you as a person.
Speaker 5 (38:56):
I firmly believe in the structures of kind of how
we invest. So for me personally, what I do is
I've got a keyy Saver, my wife's got a key Saber,
but we do have other money sitting outside. But actually
we've run exactly the same strategy outside of qv Saber
as how I invest my kevsab because that's what I
think works.
Speaker 4 (39:15):
And that just money.
Speaker 2 (39:17):
But the tool you mentioned about that that people go
and check and see what where they should be and everything.
Speaker 3 (39:22):
How do they access that?
Speaker 5 (39:23):
So look, if they visit the codal wealth website dub
dot cold or wealth kou r A W E A
L T H dot cod NZ, if they click the
get started, go through the guided choice And what that's
going to do is take you through quite an extensive
digital advice process which will give you a recommendation of
what type of fund you should be in and you
(39:44):
whether you use that with us or someone else, but
it should give you confidence that you can make the
right q we saber decision for yourself.
Speaker 3 (39:49):
Excellent.
Speaker 2 (39:50):
Any final thoughts before we before we we got about
a minute to go, any final sort of observations.
Speaker 5 (39:55):
Or advice to people, broadly speaking, the best thing I'd
say is is take charge. Look, this is going to
be the largest investment that you are likely to ever have,
so there for give it some time, give it some attention,
do a bit of work, and make sure you're not
just sitting somewhere because it was the easy option. There
are lots of places to go, but first and foremost,
(40:16):
figure out the right type of fun for you and
then make sure you get yourself with the right provider,
because as one of the callers that already pointed out,
she would have missed out on a lot by taking
a long time to make that decision.
Speaker 3 (40:29):
Good stuff. Great to meet you, Rupert. Thanks very much
for coming in.
Speaker 2 (40:33):
You been good and go and check out Coralwealth dot
co dot nz and we'll be back next week. We've
got John Cameron for our health having Amanda Morele joins
us with Smart Money, and we'll have a new guest
for the one Roof radio show. Martin Cooper, who's managing
director of Hardcourts, will be with us as well as.
Speaker 3 (40:50):
Simon Wilson's back with us for the panel.
Speaker 2 (40:52):
That'll be fun. Look forward to that one. Thanks my producer,
Tire Roberts. Look forward to your company. Sunday at six
is next. Enjoy your Sunday evening.
Speaker 3 (40:59):
We'll catch you soon.
Speaker 6 (41:05):
It's a little good news Hot Any need Isn't it
something made me bad in the middle? Hot I Any Need?
Speaker 7 (41:17):
It is a little
Speaker 1 (41:22):
For more from the Weekend Collective, Listen live to news
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