INVESTMENT RETURNS
The investment markets over the quarter were dominated by commentary about China and Greece. China, because of the dramatic fall in its share market and Greece, because no one knew whether it would default on its debt and whether it will stay in the Euro. In both cases, particularly around Greece, the level of market uncertainty rose. As a result of the uncertainty, the “spare” money flowed away from Greece, away from Europe and even away from New Zealand, towards the perceived safety of the US and US cash. This saw the US dollar rise, some bond yields move slightly higher but stay low, and a high level of market volatility. The outcome was that overseas bonds declined in value and the quarter was one where global bonds had negative returns. While negative returns are undesirable, for most investors, quarterly returns are less important than 3 and 5 year returns, as the investor has no plans to realise the bonds short-term.
While Greece may continue to dominate the headlines for some time, from a long term perspective the uncertainty is not likely to change how you should invest your savings. While there are varying views on what will happen with Greece, it must be remembered that no one knows. In time, what is currently viewed as “risk” today, because of the uncertainty, will ultimately be viewed as “opportunity”.
2015 INVESTMENT SEMINARS
The final seminars for the year will be held in September and October 2015. They will be in Hawke’s Bay, Auckland and New Plymouth. Details are on our website. You can register to attend a seminar online, or by emailing us at SuperLife@SuperLife.co.nz.
DID YOU KNOW...
Life insurance
If you have a need for insurance payable on your death, SuperLife may be the answer. You can get cover through SuperLife. For example, $250,000 of cover for a 40 year old female, who does not smoke, is $3.09 a week. To see the premium rates at all ages go to costs.html or phone SuperLife for a quote.
Buying your first home
Remember the rules for taking money out of KiwiSaver to buy your first home have changed. Amounts withdrawn can now include the government paid MTC’s. You can take out all your balance above $1,000. Check out our website for details on the changes.
Take your superannuation or KiwiSaver benefit as an income in retirement
Previously most New Zealanders, when they reached retirement, took their benefit as a lump sum. Now many leave their benefit in SuperLife and take it out as required. SuperLife lets members take out their benefit as a regular income, or series of lump sums to suit their personal needs. For details check out the booklet “Thinking about your retirement”.
Saving for a child’s education - myFutureFund
myFutureFund, under SuperLife, lets you save for a child’s future education costs. You can save as little or as much as suits your circumstances. myFutureFund is a good option for aunts, uncles, grandparents and parents to save for a child, as an alternative to giving a traditional present.
Performance
