Inside Money

Business writer David Chaplin blogs on personal finance

Inside Money: A letter to the future

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Dear Future Me, listen up, for I must tell you why I chose to click the 'confirm' button. Photo / Thinkstock
Dear Future Me, listen up, for I must tell you why I chose to click the 'confirm' button. Photo / Thinkstock

Dear Future Me

It was with a heavy heart and the familiar stomach-churning sensation of regret that today I wired you a further $1042.86 as per our (non legally-binding) agreement.

I must tell you my hand hovered twitchily over the mouse for some time before clicking on the 'Confirm' button, authorising the KSS transaction to proceed.

Immediately, my primary financial services provider notified me a $0.25 charge had been incurred a sign, perhaps, of things to come?

For rather than sending it to you direct I have entrusted the money for the next couple of decades in the care of some people I don't know very well. They have made no promises about what shape my money will be in when it gets to you (but the terms of their own remuneration have been secured).

However, these strangers do yak on about the 'magic of compounding' and how higher returns might be achieved over the long-term (whatever that is) if I take on a extra risk at least that's what their historical models suggest.

Let me know how that works out will you?

To sweeten the deal, the government has promised to throw in a further $521.43 if I get the money to you by June 30 an offer just good enough to consider.

(Although, I do recall paying the government much more than that after completing my GST103 (GST and Provisional Tax) return last month.)

With luck, by the time you receive it our KiwiSaver provider will have turned this $1564.29 (less fees and other charges) into something more substantial or at least not diminished its purchasing power beyond recognition. Depending on how that goes, this year's contribution plus the other funds I have sent you already (and any future payments I may remit) could:

bankroll your regular winter retreat somewhere tropical;

go towards that new hip;

pay for a lamb roast down the RSA one Sunday.

I hope you use this money wisely, I know I wouldn't.

Which brings me to my final word of warning. Whatever you do, do not spend a cent of our precious financial reserves backing the Dutch football team to win a major international trophy - it won't happen this time either. Try to learn something from history.

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