The Sarcasm Report v.11

KiwiSavers opt for growth schemes

Schemes? Yeah, me too! I want to be paid in Royal Cubits!

Tomorrow the first parcels of KiwiSaver cash pour into fund managers from the IRD, and a survey of the schemes on the market shows investors are opting for the higher end of the risk spectrum.

Here is another survey of a scheme. It is always good to start with one drawn up by someone who has been in the business a long time, say an archaeologist.

The money heading toward fund managers will be substantial.

There's just no arguing with that. Fund managers do need yachts and what not.

Savers have had to choose investment managers as well as which funds to invest in, and it appears they have by and large been making good decisions.

According to industry sources I take it? Would this group include the fund managers? Are they looking out the front window or are they content with the view out the back window?

Industry sources suggest most savers are wisely steering clear of the low risk, low return Kiwisaver default funds. Instead, they prefer higher risk, higher return funds such as balanced funds and growth funds.

That is a wise move, as is starting early, because a couple of per cent extra a year makes a big difference in the long haul.

It is a wise move that was done wisely. Splendid. It reminds me of the time an executive where I once worked was quoted in the news. He said, and I paraphrase from memory, "It is a fun environment with creativity and fun." I'm fairly sure I have the quote right. It was somewhat etched into my brain since we were experiencing layoffs at the time and the morale was the worst I'd ever seen it. If someone uses the same word on you twice (wisely and/or fun), be afraid, be very afraid, lol.

This is not investment advice of course. I'm not a fund manager nor do I play one on the Internet.