r/PersonalFinanceNZ

My partner and I are handing in our notices soon. Late 40s, both of us.

It’s not that we hate our jobs — but we don’t love them either — it’s more that we’ve realised time is the scarce, and we’d rather spend this stretch of life with our kids and doing things that matter to us than pounding out more time in the office.

We can afford it - using a conservative withdrawal rate. That part we’ve done the maths on.

What I can’t get my head around is the asset allocation question, because our situation isn’t “retired, full stop” and it isn’t “sabbatical, back in 12 months” either.

It’s genuinely somewhere in the middle. Maybe we never earn another dollar. Maybe in three years one of us picks up some part-time work. Maybe not. We just don’t know, and I don’t think we’re going to know for a while.

The bit I do feel confident about: we need enough in cash and bonds that we’re not forced to sell equities if the market craters the year after we quit. And we need enough in equities that we’re not sitting there in 15 years having been eaten alive by inflation, because realistically this money needs to last a long time.

What I keep getting stuck on is how you size that cash/bond buffer when your draw rate itself is this unknown variable. If we earn nothing, we’re pulling harder from the portfolio. If some income shows up, way less pressure.

Do you build the plan around the worst case and adjust down later, or start more moderate and tighten up if income doesn’t materialise? Or is there some other way people usually think about this?

Would genuinely appreciate hearing from anyone who’s been in a similar spot — quit early, uncertain about ever going back, and had to figure out how to structure a portfolio around that uncertainty.

Hi all me and my friend are currently first time founders both in our final year in engineering and are having extreme difficulties trying to find a “good” startup idea.

Basically background is me and my friend both wanted to create our own startup in NZ and have thought about creating solutions for agriculture to construction to manufacturing trying to just think of a decent idea for any and all kinds of industries. Our main targets are trying to resolve problems or find ways to fit AI in the NZ market but unsure how to go about things.

And our approach to finding ideas are mainly through emailing, asking Ai and phone calls but there hasn’t been much success. We try these approaches since we are I guess ignorant to what is really required out there in the market so we were willing to just reach out and see if there any needs people that are in certain industries may have.

We have tried cold emailing, and phone calls asking companies on their approach to AI but most companies don’t have problems that they could think on the spot about what to do or there is already a company in the space already.

If the issue is our outreach what suggestions do people have since our approach has been mainly asking if there were any bottlenecks in certain industries and then we would go in and do the service for free and then mould that into an idea.

Our other thoughts was to go onto YC and look for companies that have succeeded overseas and try put our own twist onto it and then pitch it here in NZ.

And like all the ideas we could “chatgpt” are either like too niche or are ideas in spaces that are already developed so it’s been hard to think of what to actually do.

Any suggestions people may have on how to move forward cause we really would love any suggestions or if people wanted a solution built we would love to hear from you and take in any advice or ideas or even join a team if people need engineers.

Lots of people here recommend using IBKR to invest with. One thing I just noticed was their footnote on their pricing page that states all fractional share orders will be charged the greater of 1% of the trade value *or* the regular commission.

This means if you set up auto invest or just submit orders using dollar amounts you're basically paying a 1% transaction fee.

I just logged into our account to verify this and sure enough if you submit any order using dollar amounts instead of shares the commission is definitely 1% of the trade value.

When a lot of people compare IBKR to Hatch or Sharsies I believe this is getting overlooked? This basically reduces the advantage of IBKR down to FX rates and access to non-US share markets?

Or am I totally cooked and missing what the fine print and trade portal is showing me?

https://preview.redd.it/gslteo1x1lbh1.png?width=2088&format=png&auto=webp&s=5ce4a23366f1c57d474696ee7a7fcbf018116efd

I’m thinking of moving my KiwiSaver from Milford to Kernel.

I know that with Kernel, I can choose more than two funds and allocate the percentage however I prefer. I was just wondering, once I’ve set it up, can I still make changes later — for example, remove or add funds and change the weighting?

I’m in my early 20s - NZ investor looking to invest consistently for the next 20–40 years.

Is IBKR worth switching to from Hatch, or is Hatch perfectly fine? I’d love to hear from people who’ve used both.

*Currently have $20,000NZD+ in my Hatch Account
I plan on Investing around $600-$1400NZD fortnightly, once my emergency fund is established properly.

Thanks in advance!

Bit of background: 26M, ~$77k gross, $20k savings, $32k investments, $38k KiwiSaver, no debt. I have about $1,300/month free to put toward savings or investing.

Option A: Buy first home with my mum, who’s in a similar financial position also her first home. She and my younger brother would live in it — I’d pay half the mortgage, she’d cover other running costs. We’re planning on a 50/50 ownership split even though our financial contributions aren’t equal (we’re both fine with this). After 3-4 years, one of us buys the other out.

Option B: Keep saving/investing solo until I can buy on my own.

I get the risks and trade-offs of both — just curious if anyone’s been in a similar situation and how it played out for you.

Hi

I am needing an advice regarding the following context below.

I am an NZ accountant now relocated in Australia.

I have a potential huge client base in NZ. Do I need to be a CA to establish an accounting business to accept these income. I wanted to do this as side hustle.

Disclaimer for client base: they were not from my previous firm I worked at.

Could you please qualify the steps needed to be taken so I comply with IRD.

Many thanks

Hi All,

Friend living overseas has received a 6 figure sum , he is a kiwi but doesn't live here

If he transfers to where he is - loses 50%

Needing a good company or person for him to speak with about getting a good return

Thanks in advance

So:

• Kiwibank increased their test rate to 6.95% effective 1 July
• BNZ increased their test rate to 7.1% effective 2 July

And ASB just announced they're decreasing theirs to 6.85% effective 6 July.

And we've seen 2 year rates come down to 4.99% across all the main banks now

All over the place at the moment... will be interesting to see what the RBNZ says on Wednesday in their next OCR announcement

Edit - I forgot to mention I am a qualified builder able to do maintanence and upgrades over time.

I have been pre-approved for a home loan based on 80k income and debt cleared. Im looking for housing around the 400k market which would be do-able with my income and there are good housing options where I live in that range. My loan would be dependent on a boarder. My question is

Do you think its wise to get on the property ladder, with money being tight and very little savings, if any, after purchase.

Or

Make the most of my low rent situation now and save hard for a while longer, so I could have 10-20k savings after purchase?

Im basically thinking save and invest in stocks, or, all in to a property

Thank you

Hi guys,

Hoping someone can provide some insights. I know there is a bunch of posts on this already but was looking for some clarity specific to my situation. I realise i am not as knowledagle on alot of this as the people here so please be kind!

I am 25M who started investing just before/durting COVID. my income has never been that consistent but i've managed to invest into a portfolio currently at around 26k. The bulk of my portfolio (at 35%) is Foundation series Total World (hedged) with another 25% being the Foundation series US500 (hedged). I also have around 11% into the Foundation series HIgh growth fund. The rest is a spattering of other ETFs (NZ top 50, OZ top 20 etc) i contributed to years ago - note the only funds i contribute to now are the three above.

My question is this: i mainly was contributing to the hedged total world fund as when i started out that was just the one i went for at the time. Now i understand a bit more about hedged vs unhedged i was planning on contributing to the unhedeged total world fund to try and work towards a 50/50 split, although this would take a long time at my current income level. I've been reading more about whether to go hedged or unhedged and it seems the consensus is that if the NZD is weak (below 0.60) to go hedged and otherwise go unhedged. As the NZD is at .57 currently, should i be going hedged right now vs aiming to go for a 50/50 split eventually? Or am i just over thinking it. For clarity, i am aiming for the portfolio to be used for retirement although i may take a small amount out sooner (as in 5ish years) to help with a house deposit although i understand this would a less than ideal scenario and i am not aiming for it.

I’d love to get some opinions from people with more investing experience than me.

My current plan is to invest for the long term by contributing 70% to VOO and 30% to QQQM every fortnight.

I understand there’s a lot of overlap between the two ETFs, and I’ve spent a fair bit of time researching that. My thinking is that, given my age and long investment horizon, I’m comfortable taking on a bit more concentration risk in exchange for potentially higher growth. At the same time, I don’t want to overcomplicate my portfolio with too many ETFs.

A bit about my situation:
22 years old
Just over NZ$20,000 currently invested
Current portfolio:
40% VOO
40% QQQM
20% other holdings (nothing I’m planning to continue buying)

I earn around NZ$1,300 a week.
I’m aiming to invest around NZ $800 per fortnight while continuing to build my emergency fund (currently aiming for NZ $10,000-$15,000). I expect to increase my contributions over time as my income grows.

I’ve also looked into ETFs like VXUS, VTI, SPMO, and a few others, but I keep coming back to the idea that simplicity is probably best for me.
If you were in my position:
Would you stick with 70/30 VOO + QQQM?
Would you add international exposure (e.g. VXUS), VTI, or something else?
Or would you just go 100% VOO and call it a day?

I’m not looking for financial advice to blindly follow—I’m just interested in hearing different perspectives and whether there are any blind spots in my thinking.

Thanks in advance!

Hi all, me and my partner (approx 30 years old) purchased an 800k two bedroom townhouse two years ago.

At that time, our household income was $140k and we pulled together the minimum house deposit of 160k together, and had very little left over afterwards.

2 years later, we absolutely love living in our townhouse and do not see ourselves needing to move until we have kids. However, we are now in a very fortunate position as we have since inherited 200k and our household income is now approx 220k. Our house has probably decreased in value slightly, but not by a lot (similar houses in my area are selling for about 785-790k).

Our current strategy is to pay down the mortgage as much as the bank will let us, and the excess is being invested.

From a lifestyle perspective, we love townhouse living. However, when we decide to have kids I assume we will want to get a bigger place once we are thinking about having a second.

From a financial perspective, I have wondered whether we are better off staying where we are and aggressively paying down the mortgage and investing, or whether it would be best for us to sell once we hit 3 years (no bank penalties) since we can afford the upgrade? I am conscious that there will be a slight loss on the townhouse (which I am fine with mentally) and the real estate agent fees (more of a punishing thought).

I am really enjoying the financial freedom we have now, and having excess funds to better our financial position. I have just wondered whether it would be more financially worthwhile to put those funds into our next house now, rather than later. I wish we all had a crystal ball!

Thanks everyone!

Hi everyone, I’m filing my tax return and have a quick question.

We sold our apartment in February, so I’ll include the rental income up until the sale date. We’re past the bright-line period and we didn’t make a profit on the sale after agent fees.

My understanding is that there’s nothing else to report in the tax return for the sale itself. Do we need to notify IRD separately that the property has been sold?

Thanks!

Hi I am planning to import a car from Japan and was wondering if anyone has experienced self importing it from Japan through Auction house or Japan Importers?

I am planning to buy a Toyota Vellfire around 2021 model and basis on my search may be I will save $6-$10K by following this process.

I just want to make sure this is safe and legit and if any help or guidance that would be helpful. And is it actually you save money or you end up wasting your time or end up around same price?

Thank you

ive got a service based business where i can make a good hourly rate lets say $50-75 and have been able to book and grow my business pretty well.

i want to grow as a business owner and invest my money elsewhere such as property, im also a full time student. My question is:

should i sell it and how much would it be?

should i hold it and expand it once i get a corperate job that corrolates to my degree.

Im just a little like eh am i thinking outside the box w this "little" side hustle but if this can allow me to help w a home deposit or something ofc im keen

Feeling really stuck about what to do.

I (37F) bought a townhouse with my partner (36M) of seven years. We've been living there together with a flatmate since we bought it three years ago.

Long story short, I need to leave the relationship. The problem is that the house's value (based on the council RV) has dropped by around $200k since we bought it.

I've thought of a few options:

• One of us stays in the house and pays the other rent.
• We both move out and rent the whole house (I'm hoping the rent should at least cover the interest on the mortgage).
• We sell, take a significant loss, and move on.

Has anyone been through something similar, or have any advice on what the best option might be? It's a typical townhouse so I'm not expecting value to increase any time soon.

Hey all, i'm thinking of travelling to Africa next year with my sister and need to save up some cash. What are people using that has high yield savings account apart from the bank? Has anyone tried Wedge savings? I've only heard of Sharesies PIE save or Kernel PIE save which has similar rates.

I've got accounts across a few NZ banks (partly because I'm interested in comparing how they work), and one thing I've noticed is that I still seem to spend a fair bit of time moving money between my own accounts.

Things like:

Splitting salary across accounts
Making sure enough is sitting in the transaction account before bills come out
Moving excess cash into savings or an offset account
Pulling money back if I've moved too much
Checking I'll have enough in a few days' time

I genuinely don't know if I'm missing a product or bank feature here.

How do people manage this today?

Is it mostly automatic payments?
Multiple accounts or buckets?
Budgeting apps?
Something I'm unaware of?

And if there isn't a good solution, what's the biggest annoyance with how you currently manage money between your own accounts?

If so, what would be the implication of selling the entire portion to buy in again?