RNZ's money correspondent Susan Edmunds answers your questions. Photo: RNZ
Send your questions to susan.edmunds@rnz.co.nz
I somehow never got around to joining KiwiSaver. When it launched, I was still paying off my student loan and only working part-time and it didn't feel as though I had the money to spare. I've kept opting out and now I wonder if I've left it too late? Is there any point me joining when I'm nearing 50?
I think it always makes sense to start saving and investing if you can.
You might be able to accumulate more than you expect in the next few years. Sorted's calculator says someone who is 50, earning $75,000 and starting from scratch in a growth fund contributing 4 percent plus an employer's 4 percent could have $105,043 saved at 65.
If you keep working beyond that point, as an increasing number of people do, you could keep adding to your savings and investments.
I think it's a really good idea for anyone who is employed to be in KiwiSaver because it's usually the only way to get your employer to help with your retirement savings. It makes sense to contribute whatever your employer is willing to match, otherwise you're leaving money on the table.
We made an offer on a house that we really like and had to get a valuation as part of the home loan approval. It's come back $20,000 less than the offer we made. What can we do?
There are a few things you can do.
The first would be to see whether the vendor is willing to knock the price down by $20,000 so that the sale price is in line with the valuation.
The second would be to see if you can negotiate with your lender to approve a loan with the new value.
This is more likely to succeed if you had more deposit than the minimum required by the bank. If you had a 17 percent deposit, for example, you might be able to get them to approve the loan with a 15 percent deposit of the new value.
It's worth noting that if this takes you up a step in loan-to-value ratio (LVR) above 80 percent it could mean you have to pay a higher low-equity margin or fee.
If that doesn't work, you might need to cover the difference yourself, if you have the money available to you.
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