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RichLife last won the day on September 13 2018

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About RichLife

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  1. RichLife

    Simplicity drop investment fund to $5k

    Just need to correct my OP: When I say 'mgmt fee' I actually mean the fixed membership fee ($30/year for simplicity kiwisaver funds).
  2. RichLife

    Simplicity drop investment fund to $5k

    You can just transfer to superlife via AP, no direct debit authority needed (IIRC). I tried superlife too and would probably be using it if I wasn't using investnow. What do you mean by not being able to see your totals daily?
  3. https://simplicity.kiwi/simplicity-news/simplicity-drops-membership-fee-for-kids-accounts-in-celebration-of-second-birthday/ They announced this alongside removing kiwisaver mgmt fee for childrens accounts. Obviously it's not as accessible as sharesies/investnow/superlife/etc but they mainly invest in vanguard funds and charge low fees. A good set and forget option.
  4. Also just announced 2 days ago, Simplicity is waiving management fee for kids kiwisaver accounts: https://simplicity.kiwi/simplicity-news/simplicity-drops-membership-fee-for-kids-accounts-in-celebration-of-second-birthday/ They charged 30/year before this (the same mgmt fee for all their KS accounts). Plus they are the only non-profit provider who regularly donate part of their management fee to charity. Just sayin' 8-)
  5. Yes to the first part. The second part is harder and requires lots of reading. My process was to read nz and overseas finance blogs like the happy saver, smart and lazy, mr money moustache, the deep dish, etc. I settled on this: For the first few years while I don't have much cash (still at uni): Buy units in NZX top 50 and Vanguard International Shares Select Exclusions (unhedged) through the platform Investnow. I chose Investnow because I can do as little as 50 per month into those funds, and they charge no fees (other than what everyone pays to invest in the ETFs). Good alternatives would be Superlife or Smartshares, but they both charge some fees. Whatever you do, set up a regular automatic contribution so you can set and forget. Make it easy.
  6. I guess it all comes down to timeframe too. If you're going to keep your money in ETFs for 20+ years then short term ups and downs don't really matter (even rather large crashes). If you're close to retirement then you'd probably want most of your money in lower risk investment like bonds or term deposits anyway. A good strategy seems to be to transition your money out of the higher-risk higher-growth classes like ETFs into lower risk products as you age. For example, at some point you'd want to have roughly half and half. I don't know much about what a good asset allocation looks like for each age group, but if you spoke to an AFA you could probably work out a plan for when good times are to rejig your allocation as you get older.
  7. RichLife


    Why would you not combine multiple high-interest loans into one single lower-interest loan?
  8. First thing I would say is: speak to an AFA because you can lay out your entire situation and get proper advice. Some people would use a home loan to pay off personal debt if their personal debt is high interest, and I don't see that as a bad option. I do see working 80 hours a week as a bad option though, because its not worth making extra money if you take on stress, health issues, depression etc. If your decision to buy a home is influenced by the idea of paying off personal debt then you definitely need to talk to an AFA. Do not take on such a huge piece of debt lightly, or for the wrong reasons.
  9. RichLife

    $20,000 in debt.

    I think the advice you provided in another thread is pretty good: And you repeated it again in another thread: :-) I'm curious why you are asking the question if you already know what to do? With 90k per year you could easily crush the debt quick and focus on pouring money into investing or savings.
  10. RichLife

    Debt repayment vs kiwisaver

    I would say contribute the minimum amount to your kiwisaver to get the member tax credit (~$25/week). Then pour the rest into paying off interest-bearing debt as fast as you can.
  11. Hi Dave, ETF's generate returns in two ways: 1. Capital gains: The value of your units (hopefully) increases over time. 2. Dividends: Generally paid quarterly or bi-annually for ETFs (most investment platforms allow you to check a box to reinvest these). The buy and hold approach is certainly key with ETFs - the point of passive investing is that you don't shift money around, just let it tick over. Short term volatility is normal, but I would wager in the long term your ETFs have a good chance of outperforming your managed funds. Which platform are you using to invest? If your platform doesn't provide very clear performance metrics you could add your holdings to Sharesight to help you track exactly what your returns are (broken down as capital gains and dividends).
  12. RichLife

    KiwiSaver is getting even better

    Use the sorted fund finder: https://fundfinder.sorted.org.nz/find-the-right-type-of-fund-for-you/ Essentially, the best fund type depends on how long you will have the money invested and your appetite for risk. For most people, the higher risk growth funds will generally pay off in the med-long term (but remember to expect some short term volatility).
  13. RichLife

    KiwiSaver is getting even better

    Now we just need the default scheme to be balanced instead of conservative (and some other good points raised here: https://www.stuff.co.nz/business/money/105514546/Protest-over-the-1-billion-cost-of-KiwiSaver-default-funds) Would be interesting if kiwisaver providers who have lower fees get a larger piece of the new-member sign up's too. Personally I'm feeling good about Simplicity - market returns, low fees, donating to charity. Doesn't get much better than that.
  14. Yes definitely clear any interest-bearing debt + get an emergency fund before investing. Depending on the ETF, dividends are usually paid quarterly, semi-annually or annually. So if you take the NZ Top 50 fund as an example, you will get a dividend paid in June and again in December. You decide what happens to the dividend, as in whether it is paid out into a nominated account or reinveested into the ETF. On platforms like Investnow this is as simple as ticking a box saying "reinvest my dividends" or if you leave it blank it goes into your nominated account. Reinvesting is highly recommended to get a compound effect happening. Edit: To clarify my other post above: The minimums I refer to (e.g $50 for Investnow) mean the minimum per fund per transaction. So because InvestNow offer weekly, fortnightly, monthly, quarterly or six-monthly plans you would need to be investing at least $50 per fund for one of these frequencies on an ongoing basis. So if you wanted to invest into 3 funds each month you would need to invest minimum $150 each month. Or you can make a one off investment into any fund of at least $250.
  15. RichLife

    How I found $4,000 in cost-savings

    Great tips - For power it's worth checking out Electric Kiwi. Their rates are super cheap plus you get an hour of off-peak power free each day. Also with broadband, Skinny does really cheap Wireless broadband ($49/month for 120GB). Cleaning products - some can just be replaced with white vinegar or bleach. Also try white vinegar as a cheap fabric softener/deodoriser. Works great for smelly gym clothes. It's always worth reviewing subscription based services and other direct debits - they come out of your account silently every week or month so sometimes we can forget about them.