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CuriousG 
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Joined: 01 January 1900
Location: Raumati South
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 Topic: Kids Kiwisaver Accounts
Posted: 07 May 2008 at 2:09pm |
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I was unaware of this until the other day but you can open a kiwisaver account for your child now! I just opened up a bank account for Charlotte (finally) and also signed her up to kiwisaver at the same time! She gets the $1040 per year for nothing each year - over the next few years that its going to add up!
I went through ASB, I would really recommend people looking into it - free money!
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WRXnKids
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Joined: 11 February 2007
Location: Invercargill
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Posted: 07 May 2008 at 2:45pm |
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Yeah our financial advisor said the same thing he is pushing for all his clients with kids to get one opened. I just been sorting out an IRD number first then opening one for josh
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lilfatty
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Posted: 07 May 2008 at 2:56pm |
I remember the lady at National Bank telling me about that when I set up Isabelles bank account ... youve just reminded me to look into it futher.
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Mummy to Issy (3) and Elias (18 months)
I did it .. 41 kgs gone! From flab to fab in under a year  LFs weight blog
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cuppatea
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Posted: 07 May 2008 at 3:38pm |
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I don't think that is right about the $1040, she will get the initial $1000 that everyone gets for opening one and then just whatever you put in, our financial advisor said the government only match up to $1040 a year for over 18s who are making contributions through employment.
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Redbedrock
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Location: Wellington, New Zealand
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Posted: 07 May 2008 at 3:45pm |
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Yeah i understood it to be just the initial $1000, but you don't have to contribute at all and the money will jsut sit and earn interest until she decides she wants to contribute when she is 18. that's the set up we have with Westpac anyway. We figure a grand is a grand plus 18 years interest from investments
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cuppatea
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Posted: 07 May 2008 at 3:46pm |
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Yeah we are doing the same, we aren't actually paying anything into it we just have the grand sitting in it for him.
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kabe
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Posted: 07 May 2008 at 4:19pm |
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We set one up for Eva last week. You get the initial $1000 and then the account earns interest. I think you get the $1040 tax credit if you earn over $26,000.
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miss
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Posted: 07 May 2008 at 4:23pm |
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I am pretty sure CT andred are right, you just gett eh initial grand.
You need to find a scheme that you don't have to contribute to and one that has acceptable fees - as you aren't adding to it you don't want it to be eaten up with fees.
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miss
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Posted: 07 May 2008 at 4:32pm |
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Oh, if you do contibute to the account while your bubba is crowing yup then you will be entitled to have it matched up to the $1040. So if you can add to it , then it is worth it.
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MrsMojo
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Posted: 07 May 2008 at 7:27pm |
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That's right about the initial $1,000 but as few other have said you only get the $1,040 if you contribute (the govt match your contributions up to $1,040).
There are quite a few schemes that you can start with nil contribution but you'll also note in the kiwisaver info pack that although there is no min contribution atm the govt may introduce this later (so you might find you have to start contributing).
The other thing to remember is that Kiwisaver is a unit linked investment therefore it does not earn interest so don't be surprised if the fund goes down not up - esp at the moment as we have had several months of volatility in the international markets. Percentages provided in the investment statements are for illustrative purposes only and are not guarenteed. If the markets decline (and taking into account the plan fees) you may end up with nothing in the account if you don't contribute.
Then again the $1,000 is free money so as long as you're willing to contribute later if the govt choose to increase the min contribution level then it's a great idea.
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Bobbie
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Posted: 07 May 2008 at 8:55pm |
Yep we signed Rowan up along with her ASB account - you get $10 for opening one of those. So she made $1010 just by sleeping 
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cuppatea
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Posted: 07 May 2008 at 10:04pm |
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I'm pretty sure that the govt don't match the contributions for anyone under 18 they only give you the initial $1000.
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WRXnKids
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Posted: 08 May 2008 at 2:35pm |
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Goverment puts in $40 a year to pay for account fees but most places only charge $25 a year in fees. As someone else said the money doesnt earn interested as it is invested and you can chose to put it into low or high risk investments but at our childrens age high risk is better it mostly those nearing retirement that should chose low risk as they cant really afford for their saver account to drop as much. Under 18's can have their accounts contributed to by their parents or they can start contributing as soon as they start work but Goverment wont match any of it they just get the $40.
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linda
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Posted: 08 May 2008 at 3:53pm |
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We're just waiting for the IRD number to come through....its been about three weeks now and still waiting
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Alex 6 and Harry 8
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Kids Kiwisaver Accounts
