HOW TO MAKE 50% ON YOUR MONEY TAX FREE
Do you want to make 50% return on your money tax free?.
Sounds too good to be true?
Some people will now be thinking that I must have fallen for one of these internet scams. The truth is thousands of New Zealanders are doing this every year which has helped to build up their wealth and it is really no secret; in fact people are encouraged to participate in this scheme by the government.
Over a million Kiwis are making 50% of their money in this scheme every week and if you have not guessed what it is, it’s KIWI SAVER.
The government will contribute $520 to your kiwisaver account per annum but you must contribute at least $1040 to get the $520. If your annual contribution is less than $1040 then your tax credit will be 50% of whatever your contribution is.
Let’s look at an example.
If 4% of your gross income is deposited into your kiwisaver account and you earn on average 50k per annum then your contribution to kiwisaver per annum is 2k.
There are countless thousands of New Zealanders who are living from payday to pay day who may struggle to contribute even $1040 annually to their kiwisaver account. If you can find a way to contribute money to your kiwisaver then it will be worthwhile in the end. What you spend your money on is what takes priority in your life so if you want a way you will find a way to reach the $1040 target.
Your employer will contribute 3% of your gross income to your kiwisaver account; it all contributes to your retirement savings.
When signing up for Kiwi Saver, you are given several options of which funds to invest your money, the degree of risk each of these funds carry depends on where your money is being invested.
The funds offering the highest return are also offering the greatest risk of loss, the thing to bear in mind us that if there is a chance of a capital gain then there is also a chance of a capital loss and there is no guarantee that a share market crash such as the 1987 black Monday one will not occur again and it is the higher risk funds which will be affected mostly.
Your tolerance to risk is another factor to consider, there is no point in investing in higher risk funds if the possibility of loss is going to cause you to lose sleep. Your age is another factor to consider; if you are young then you have the luxury of time on your side.You have more time to recover from financial setbacks.
These are just some things to think about but it’s best to speak to a financial advisor before making any decision.
