Author Topic: Freaking out in NZ! Super Newbie Investment Help please!  (Read 877 times)

PlasticKiwi

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Freaking out in NZ! Super Newbie Investment Help please!
« on: July 28, 2016, 09:11:10 PM »
Hello all, this is my first post so please be gentle.

We're in NZ and *accidentally* just FIRE-d - Husband got fed up and walked out with no plans to re-employ himself. Yes I freaked out for 3 days but 3 weeks later we'll manage somehow (move to Westport and grow moss?).

Financial situ:
Annual expenses are $40k (has to include rent/accomodation). I feel we're about $200k short of being ready.
We've just been paid out from the Quakes and had been saving 70% of net income so currently have $350k in a 6 month term (can pull out easy) and $290k in a 2% online call - Drawing that down to pay the rent and bills. ($250 in checking!) We also still have our munted house in Chch which will shortly be "between tenants" but would realistically now net $15k pa not including maintenance but after management/tax. It's an (economic) rebuild so I'm worried about the building WoF that is on it's way - although WE know it is structurally sound proving that will be costly. We're thinking of selling it right now, for around $280k. Its Mortgage free - obvs no other debt! We're also about to buy (privately) next door in Chch for $200k - it's a "repair" so less risk (although same condition as ours), rental income almost the same, thus releasing an additional $80k - (but we're not on contract yet so nothing's in stone).

We've been living/renting in the Windy City for the last year but will escape to the Mainland after Christmas (Yay!).

The "problem":
We've seen FA's & their managed funds. Easy option but 0.75% fees + $500 start up.

I'm pretty sure we'll put *an amount* in NZX Dividend Index (Smartshares DIV is the only way right? You can't go direct onto the NZX?) so some income will come from that.

I've got my knickers in a complete twist trying to figure out Vanguard via Smartshares vs SuperLife vs ASB/ANZ vs ASX* vs US broker direct. Trying to work out the fees + FIFS tax situation is head spinning. I'm 2 weeks into research (including here and Sharetrader - we use FLIP; no emails provided so can't join) and coming to the conclusion that if we buy & hold US direct is the better although WAY more complicated option (I have a SS number although I was never a resident). And we would also have to employ an International Tax Specialist like DeLoitte - $500 for a basic sit down!

(*we're not NZ Citizens so I don't know how/if that affects our access to ASX)

As we have a lump sum and no more income, the benefits of drip feeding (Smartshares) do not really apply - however - as we now need money to live-on; is it better to keep it local so we can have easy access to the dividends? FA's just saying we need Cash & Bonds as we need income - but I'm thinking more like $40k (=1 years expenses) in Term deposit/the bank with the rest 70% Vanguard Index, 20% DIV & 10% some form of Bond fund.

Basically it's been 3 weeks since payout/accidental (non-)FI and I'm beginning to panic about not having taken any action...help?!

Any and all comments much appreciated!