Author Topic: Earning in Australia, retiring in NZ. Where to invest?  (Read 1162 times)

nora

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Earning in Australia, retiring in NZ. Where to invest?
« on: May 10, 2016, 05:28:26 AM »
We are working in Australia but plan to retire in New Zealand. I am uncertain whether to move our money to NZ and invest it there now as we earn it,  or invest it in Australia and move it to NZ later as we need it to live in our retirement in NZ. Any ideas how to decide?

hodor

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Re: Earning in Australia, retiring in NZ. Where to invest?
« Reply #1 on: May 11, 2016, 02:22:09 AM »
Depends on a few things, some of which require you to predict the future. i.e. what is the AUD and NZD going to do in the future, what are the two markets going to do?

If you are indexing keep in mind ETF fees are MUCH cheaper on the ASX than the NZX, also there is a wider range available on the ASX.

Other considerations are tax wise. I am unsure of NZ tax law and things like imputation credits and how they are treated for someone living and working in Australia. It might help if you share what country you are currently a citizen of if someone more knowledgeable comes along from a tax perspective.

Having a home country (in your case retirement destination) bias avoids some of the risks associated with currency loss.
Liquidating your portfolio in the future might incur a large capital gains event if you need to sell up and move cash to NZ.

How certain are you that you will retire in NZ? I would want to be 110% sure as lots can happen in the future.

https://www.ofx.com/ is a cheaper way to send money than bank transfer in my experience.