How do I know if I’m in the right KiwiSaver fund for my goals?
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Choosing the right KiwiSaver fund is essential to ensure your savings grow in line with your retirement goals. Here’s how you can assess whether you’re in the right fund:
Understand Your Risk Tolerance: KiwiSaver funds typically range from conservative to growth funds. Conservative funds have lower risk but lower potential returns, while growth funds involve higher risk with the potential for higher returns. Younger investors may prefer growth funds as they have more time to ride out market fluctuations, while those nearing retirement might lean towards conservative options.
Evaluate Your Time Horizon: Consider when you’ll need the funds. If retirement is decades away, you might benefit from a fund that emphasizes growth. If it’s closer, shifting to a more stable fund could help protect your savings from market volatility.
Check Fund Performance: While past performance isn’t everything, it gives you an idea of how well the fund has been managed over time. Compare your fund’s performance against similar funds and ensure it’s delivering competitive returns. Check out here to know more – https://milfordasset.com/what-we-offer/kiwisaver
Match Funds with Your Goals: If you have specific goals, such as buying your first home, some KiwiSaver providers offer funds tailored for shorter-term savings.
Seek Professional Advice: If you’re unsure, speaking to a financial adviser can help you understand your options and make an informed decision.
Providers like Milford Asset Management offer a variety of KiwiSaver funds designed to cater to different risk levels and goals. They also provide tools and resources to help members select the right fund. Regularly reviewing your KiwiSaver fund, especially after major life changes, ensures it continues to align with your objectives.
Switching to the right fund is straightforward, and doing so can make a significant difference to your retirement savings over time. Take the time to review your current fund and ensure it’s the best fit for your needs.