Thursday, October 27, 2011

THAT'LL GROW THE ECONOMY, NOT.


Many thinking people agree that small business make big contributions to total employment.

To start a successful small business one needs a good idea, money, cashflow and a measure of good fortune along with massive risk and hard work.

The wizards at Labour Party Central, no, not the "cloud", but very much in the fog, have just raised the bar to impede start up business with compulsory superannuation.

An enterprising young fashion designer, a young person wanting to get on the ladder to dairy farm herd ownership or similar will need all the cash they can lay their hands on in the early days.
This idiocy will remove money from them and lock it up till the government says they can access it and should their enterprise begin to employ others then the entrepreneur will be forced to contribute 7% of any wages negotiated to Kiwi Saver.

Anyone who entered into a compulsory savings scheme with an insurance company will well know that in the startup years the contributions are swallowed up with fees, at least the first year goes to the agent setting it up.

Any equity accumulated will not be available to the cash starved young business person and who will stop the investment vehicle from doing what successive superannuation fund managers do so well, just lose it.

All together a handbrake on wealth creation, well done Labour.

9 comments:

Alan said...

Hey,

while i agree with everything you said, i just want to point out one thing about the compulsory super.

the fees on Kiwisaver are very low and the adviser gets no upfront commission (well maybe a $50 finders fee) and the renewals are only .3% on average (so $3 per $1000 per year)

agree in the past the super funds had no money for a few years as they had to pay the adviser and fees (which were usually not disclosed), but now you will actually have some money from day one in your super.

This does not detract from your shredding of labours plans though.

Anonymous said...

Jesus, what a load of shit.

"Anyone who entered into a compulsory savings scheme with an insurance company will well know that in the startup years the contributions are swallowed up with fees, at least the first year goes to the agent setting it up."

Only if you got yourself utterly ripped off by an insurance salesman like Adolf. This is 2011 old fella, the world's moved on.

Mort said...

the truth is that the money I have in Kiwisaver yields far less than the investments that I have done for myself. When I try to point out to the fundie the error of their ways they try to justify the situation with misspeak and bluster. To add insult to injury, I received a flyer from the head of the FM who had the audacity to snidely deride gold, despite the fact that if she had any brains whatsoever then its a nice hedge to have a portion of your investment capital in it in case it does go up, (which it has by 10% since slagging the stuff off- that would be about 25% better then her owns team's efforts).
I am kind of over K/S. GD has a point, new business owners would prefer the cashflow and reinvestment in themselves rather than having to subsidize the 6 figure salaries of Fundies, and the inherent clipping of the ticket of those same fundies' salaries.

Anonymous said...

"the truth is that the money I have in Kiwisaver yields far less than the investments that I have done for myself."

Sure it does mort. That's coz you're a bona fide genius. Buy dat gool!

Anonymous said...

As a personal part of my organised pension. I started buying gold over 30 years ago - in little bits like Sovereigns at $40 each. When I retired I bought and converted these slowly into cash for other cash deposits.
Over this time I averaged at $102.
I will unload some shortly at like $600 or wait further. As part of savings it has done me well.

Mort said...

Anon0719, I hope you have a few plans to get by when the next Labour Govt shafts you with an incremental progression of superannuation, and nationalises whats left of your Kiwisaver account once the banks have had their bite out of it.
Gold is money which is not subject to inflationary decline in the same manner printed currency is, hence the recent upswing over the last 3 years since the FED led central bankers on a printer go round.
Anon 2.03: Don't liquidate those sovereigns yet... theres a lot more to come.

Anonymous said...

End of Dayz! Buy gold and seeds and guns!

It's a wonder you freaks have managed to accumulate anything. Inheritances I suspect.

Mort said...

this thread has collected a rabid freako envy monger

you're the one who has come in here and tried to turn paint the rest of us as Militia types. Have a think about that for a second and tell us what group of people recently managed to avoid prosecution for that very behaviour, and would they be supporting what most people who post here support?

Anonymous said...

Mort you know full well you have nothing for anyone to envy (except your sweet sweet gold).

You're not a "militia type", you're a scared, gullible old white dude who lets Glenn Beck tell him bedtime stories and then takes investment advice from his advertisers.