Welcome to /r/PersonalFinanceNZ, the brand-new subreddit for personal finance discussion for Kiwis! Between KiwiSaver, interest-free student loans, and high interest rates generally, a lot of the generic personal finance advice doesn't really apply to us.
Over the next few days I'll be building up the wiki and FAQ section. If there's anything you particularly want addressed, either submit a question or comment below.
Just starting out with investment education and want to start a portfolio and from what I can gather I should go for InvestNow Vanguard.
My question is: Will this mean a diversity investment portfolio of fixed income and assets?
I'm a little confused on how to diversify my investment portfolio? Any tips would be great thanks!
I'm 29 moved back to nz this year after 2.5years travel. 6k kiwisaver (only started thus year) 30k student loan debt and average income of 90k-125k. About to start a new job and feel its impossible for me to get into the property market game next year as I would like to buy to rent and pay off my morrgage but it seems I would have to pay a 40% deposit to rent on purchase. Is there anyway I can get round this?!
Love this subreddit and thanks for all the free material! You guys are legends!
Hi, I am currently really bad at doing a weekly budget. I made my own budget on Excel that is not very good, and end up changing it all the time. I also always forget to actually do the budget on any said day off the week.
I was hoping for some tips or experiences on how you streamline your 'budgeting routine'(?). E.g: if there is a good Excel template you use, is monthly easier or is there a good app for it?
Thanks for the help!
I wrote this post then never posted, trying a shorter version.
I have inherited a chunk of cash (200k'ish). I don't have a mortgage, I have modest shareholding and kiwisaver, income is steady and I have a reasonable surplus.
I could pay it off the mortgage my kids have, guaranteed saving of about $8500 per annum of tax paid money. But the ungrateful little shitbags probably wouldn't ever give it back.
I fully intend to blow a chunk of it on something ridiculous, but haven't worked out what yet, but I expect to have 200k remaining.
I am reluctant to throw it straight into a fund, I recently sold down shares in AirNZ to help my kids buy a house, I suppose I could purchase more (the dividend I got this week was about 5% of what it would have been, which made me sad). The war chest feels a little empty right now, about $40k or so.
Someone suggested I see a financial advisor, but I would be more interested in what random suggestions a bunch of internet strangers might have.
This week on the Stock Market Movers podcast we focus on the two current takeover situations on the NZX - Tegel Chicken and Tilt Renewables. This is an interesting episode because we are joined by Hamesh Sharma from Australasian Trading Management - the first guest that we have had on the show. We dive a bit deeper into the history of the takeover offers and analyse the response of the various boards as well as the likely outcomes.
You can listen on Spotify, iTunes or by keying in Stock Market Movers wherever you get your podcasts. Otherwise you can use the link below:
Shall we pick a school night and a topic and yell at each other about our opposing or collective views? We could even get an AMA in there if we are organized.
What's the thought of the collective?
A few years ago I transferred one of my UK pensions to a kiwisaver (now trapped unless I want to pay tax to HMRC). My second UK pension was lost for a long time (given to another retired member when it was taken over by another UK pension company and I wasn’t notified) and I’m finally in the process of transferring it to a QROPS superannuation scheme here in NZ.
I want to keep contributing 15% household income into pensions, but I’m not sure of the best way to split that up amongst my pensions.
Out of curiosity, what would you do? (I’m looking for some general ideas and options to research not a guarantee.) I could just keep the minimum going into the kiwisaver (to get the benefits) and the remainder into the QROPS superannuation. Or possibly open a third pension account (no UK contributions) that I will have full control over without a risk of HMRC changing rules again.
I’m a stay at home parent with another on the way, so I won’t have any employer contributions for the foreseeable future.
I'm a little confused about how bonds work.
It would seem that the best rate I can get on a term deposit is around the 3.7% mark so I thought some of these bonds on the NZDX looked a bit better.
I see they have (price , change, volume, value and outstanding column's)
How does that work ?
Can someone explain this or point me to a how to page, cheers
I saw an ad on my instagram feed for a “free real estate investment workshop” by Rich Dad Education to be held in Auckland in October. I just thought it was suspicious as hell. I did a simple google search on the topic but I wanted to know what opinions r/personalFinanceNZ has on this business. If it’s a scam (or close to one) I hope they gtfo.
So I had my 6 monthly review today and I bitched out at didn’t ask for more money. I’ve never negotiated my pay before coz I always thought it’s been on par but I feel like I deserve more because of the responsibilities I have now. My work offered me 5% + KPI bonus but I’m feeling disappointed in myself coz I feel like I should’ve negotiated. My manager is being demoted from her job starting Monday next week and I felt like she was rushing through my review. For example, I requested something else and she basically told me to wait until next week when the new manager starts. I don’t wana sound like a greedy troll but I really feel like I deserve more. Do you think I should request another meeting or do you think I’ve missed my chance and should wait for my next review? I’m disappointed in myself for now having my own back, heeeeelllppp
What is the most reliable and cheapest car I can buy between 5-7k? I don't want spend above that amount because I have hear too many people having their cars got stolen, damaged, scarred, windows broke, etc.
Also when buying a used car in NZ, what mileage and price point is the sweetpoint for the best reliability and lowest running cost, repairs and maintenance?
Preferably 1.5L, small-mid size hatchback or sedan (corolla size vehicles). Boring cars are okay. Reliability and low running cost are priority.
First time posting so be kind!
I am 22 years old and on a Salary of $75,000 plus bonuses and will soon be on $91,000 base plus commission with an OTE of $130-140,000.
I came from a challenging background but now i am very lucky financially and have worked hard to get where I am in terms of earnings.
My financial literacy can definitely be improved but I was wondering if anyone could suggest anything helpful on the following.
Currently my KiwiSaver is with ASB and have heard there are better providers out there, namely Simplicity- what is everyones thoughts on Simplicity?
I have heard about getting into Index Funds, does anyone have any wisdom on this topic and can recommend who to go through?
Can anyone suggest any general personal finance books/blogs/websites for me to get into?
My goal is to be financially independent and retire at 45-50 with some passive income supporting me and family.
I am in a stable relationship and my partner earns $55,000 a year.
My biggest financial burden is a $14,000 Personal Loan from the Bank which I am paying off as a priority.
I just have this question about FIRE in NZ.
When you FIRE,your income is basically the dividend of your portfolio or other investments you have.
Question 1 :My question is, do you get charged an income tax for this or the PIE would kick in and you get the dividends as nett pay? Assuming you are in a PIE fund ofcourse.
Question 2: What other taxes are there when you FIRE?
I just can’t get my head around the calculation when you’re here in NZ.
Thanks a lot.
Question for someone from the insurance industry.
I'm a believer in self insurance for most of life's ups and downs, except for house insurance and third party car insurance (the big stuff).
Just had our financial check up done by the bank and I'm considering life insurance while I'm still youngish.
My hesitation is that I don't want to blacklist myself (if that is a thing) by asking questions. I dont drink because I learned alcohol does not agree with me, but i still enjoy letting go every now and then, smoking pot fills that void.
So my question is, if i do apply for life instance, should I declare on the application form I am a smoker and leave it at that?
Is it possible down the line the insurance company learns I smoke pot and cancels the policy?
Has anyone got experience with this type of scenario? Do insurance company's even care if people smoke pot?
It’s amazing how much space is wasted in the average home. People are literally throwing money away on space they are not using. This video exposes how most are loosing money that could literally set them free financially. https://youtu.be/9wyU-f0ux2Y
Will we ever learn that the more we own, the more that owns us?
Hi there. Some questions regarding lending as a student who has nearly finished university looking to get into home ownership ASAP.
Just wondering what qualifies as an “other lender”. If my parents are able to take out a mortgage on their current property and foot the entire cost of a KiwiBuild, would they be considered an “other lender”?
Also, an alternative - having never worked full time (a student who worked part time all my life) would a job offer or employment agreement take a place of a pay slip as evidence of income in assessing a home loan? I have a bit of savings and if scraped together with a contribution from my parents I can have enough for a KiwiBuild deposit.
Thanks in advance!
So basically I have no clue when it comes to investing, and I’d like to understand the jargun and such behind different places I can be investing my money. Ideally I’d want to invest in a bunch of different things but I’d like some input from some of you guys, cheers.
Hi all, this isn't strictly personal finance, but I can't find a more relevant sub for this. After a search I found that a similar question has been asked before (Optimal way to buy business vehicle) but after reading it doesn't really answer my question.
So back in April I started a small Ltd company. It's profitable and there'll be money left over at year end. I've started looking into how to empty the account to minimise the business tax exposure, but I feel that there has to be a better way than dumping all the money into a 33% PAYE for myself. One of the things I've looked into is purchasing a vehicle.
I'm having trouble understanding how depreciation works in terms of accounting and tax exposure. I called the IRD tonight but the lady I spoke with was friendly but didn't seem to have a clue - she had to look it up and even then couldn't answer the question properly. Here are some numbers, so I can explain where I'm at a little better.
Let's say that the business has $10,000 profit at the end of the year. And let's say that I buy a vehicle for $10,000 to avoid the 28% company tax by reducing the profit to zero. Depreciation is at 21% per year, so lets just call it $8,000 after a year with a $2,000 depreciation.
Now here's where things get confusing in my head. I asked whether I can claim the full $10,000 as expenses against the income (bringing the profit to zero) in the first year, or only the $2,000 part of the 21% first year depreciation (meaning that I'm liable for 28% tax on the remaining $8,000). When I was talking with the lady at IRD, she said that I can offset the full amount in the first year because it's a business expense, but then also called the $2,000 'expenses'. I asked why the $2,000 was called 'expenses' when the full $10,000 could be offset as 'expenses', and she said that the full amount could be offset immediately, with 21% of the remaining value offset in the following years until it's worth zero.
Now colour me confused, because it sounds like she's saying that I can offset $10,000 in the first year as an expense, plus $2,000 in the second year as a depreciation expense, $1,800 (ish) in the third, and so on. In essence, over five years I'd be offsetting $20,000 against the income for a $10,000 vehicle. Now I really can't believe that IRD would allow that - when I explained it like that, she had to go away and read up on depreciation before coming back confirming her initial statement. I highly doubt that it works like that and I don't think she understood. Or is it me that doesn't understand it?
As a side question, if you can only expense the amount depreciated in the each year (Year1 $2k, Year2 $1.8k etc) and the remaining amounts (Year1 $8k, Year2 $6.2k etc) are taxable 'profits', then wouldn't it actually be cheaper to take out a $10k business loan and buy the car with that at ~10% interest (also can be offset) instead of 28% business tax as a loan isn't income?
Please help me Reddit gurus!
I had an account with ANZ Securities, but they no longer trade with USA stocks. Which would be the best company to do this from NZ, and are there any that do live trading? I'm liking at some fortune 500 companies. Thanks.
At what age/stage in life does it become important to have a will?
If you are young, have no partner, no children, no house, no car, does it matter if you die interstate?
I don't expect to die anytime soon but this article got me thinking: https://www.stuff.co.nz/business/money/107075695/package-deal-kiwisaver-and-a-will
I've spent a few hours reading tax documentation and interpretation on buying and selling investment stock. I understand PIE/PIR and FIF rules, but can't figure out what I owe IRD when I finally start to sell my investments in 15 years time, assuming investments in PIE/PIR ETF funds.
I'm not sure how you would work out 'gain' either. If I buy $150 a week for 15 years, and sell $10k worth, how is it possible to calculate tax on that?
I'd love it if someone could point me at some IRD documentation or other credible source.
Thank you all.
EDIT: Just realised there might be some confusion. I'm specifically talking about buying a local Vanguard fund (e.g. https://smartshares.co.nz/types-of-funds/smartlarge/us-500). The dividends are so low I'm clearly buying with an intent to sell at a profit, so think it should be subject to tax. I've just no idea how that can calculated.
EDIT: Thanks for the great answers on here everyone!