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fantastakat 
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Joined: 21 June 2010
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 Topic: Kiwisaver query and information
Posted: 21 June 2010 at 10:54am |
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A family member suggested the other day I should enrol my 3 month old in the kiwisaver scheme - they pointed out that it is $1000 "free money" for him and that I would be silly not to. I have tried to find information about the pros/cons of enroling a baby into a retirement scheme this early but have not had much luck. I think it sounds like it would be a good start for him and a way of ensuring when he is older he has some financial security and $ to invest in his first home ect, but am not sure if the fees ect negate the pros. Has anyone had any thoughts about kiwisaver and their child, or know any good info websites (other than IRD & Sorted) about this issue?
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clover
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Posted: 21 June 2010 at 11:06am |
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The cons are that when he starts working (ie part time job) he will have no choice but to make contributions to his KiwiSaver as you've made that choice for him. The second point is that by the time he is working there may well (and probably will be) other/possibly better options for him.
For the sake of $1000 that he can't get till he's 65 I wouldn't.
(I actually work for a financial advisory business and we tend to sway most people away from signing up their children.)
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caliandjack
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Posted: 21 June 2010 at 11:11am |
I looked at it, and if the money was available for their uni education as well as a house deposit then I'd consider it.
I'd rather take the same money into an ordinary bank account for my child to help pay for travel or uni fees.
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  [/url] Angel June 2012
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E&L+1
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Posted: 21 June 2010 at 12:32pm |
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We have signed E up and have a bank account for her. I don't see her having to contribute as a con as we will be wanting her to save anyway so this will be part of her savings from any job she gets and it being available as part of a house deposit is positive. We will only contribute enough to cover fees and possible a touch more, we are focusing on getting her bank account growing as this will be accessible. But it is a personal choice and you have to do your own research
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HuntersMama
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Posted: 21 June 2010 at 12:51pm |
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We signed DS up and also got him a bank account. Who knows how long the $1000 kickstart will be around for?
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caliandjack
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Posted: 21 June 2010 at 2:41pm |
If you contribute the minimum I think its $1024 a year? The government will match it.
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[/url] Angel June 2012
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Lulu
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Posted: 22 June 2010 at 3:17pm |
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It will more than likely be compulsory to contribute by the time our children are old enough to work so in my opinion, enrol now and take the $1,000!
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Lou
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clover
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Posted: 22 June 2010 at 3:35pm |
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Except there might be a better scheme then and they'll be stuck in this one..... If you are planning on contributing the $1024 to get the same amount from the government each year then I say go for it, if you are only going to enrol to get the $1000 and then contribute nothing I wouldn't.
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Nic01
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Posted: 23 June 2010 at 11:18am |
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The $1042 govt contribution is only available for over 18 year olds.
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sweetpea
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Posted: 23 June 2010 at 2:43pm |
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I too think like c&j and wish that you wsere able to use some of the money for tertiary education.
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Nothing
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Posted: 25 June 2010 at 12:49pm |
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It wouldnt hurt to set one up, you dont have to put any money in and if you sign up with Westpac before the end of july then they will wave the fees till they are 18 (around $50 year). The government doesnt match your/their contirbutions until they are over 18, and they will only be able to take out $5000 for the first home loan (if they qualify). They can go on a contributions holiday once they start working if they dont want to put money into it.
Basically its a free $1000, that will gain interest, all you need to do is 10minutes of setting up and then leave it :)
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yermasyada
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Posted: 25 June 2010 at 8:48pm |
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You also have to pay annual charges with most schemes too. Just something to factor in.
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jazzy
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Posted: 26 June 2010 at 8:14am |
 Nic01 wrote:
The $1042 govt contribution is only available for over 18 year olds. |
The $1000 start up is for everyone who opens one it has nothing to do with age.
This is what Westpac say: Westpac we'll waive the current monthly Westpac KiwiSaver administration fee in 2010, and if they make a deposit each calendar year to their Westpac Savings account, we'll continue to waive the fee until they turn 18. Offer available from 1 January 2010 until 31 July 2010
I rang Westpac & they said you only need to put a couple of $$ in the account yearly...
We are looking at doing it for our kids &the fact that they have to pay into it when they are working is great as they are saving for their futures &it may help to get their first homes.
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jazzy
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Posted: 26 June 2010 at 8:19am |
caliandjack wrote:
If you contribute the minimum I think its $1024 a year? The government will match it. |
The government wont match till they are over 18yrs so you only need to deposit a few $$ a yr to avoid paying fees till the child is 18yrs old for the Westpac.
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Kiwisaver query and information
