Heard it from recent RBNZ live conference from the Governor

Keen to understand what are the options that's alternative to property investment that's contributes to NZ economy

Hi, I am planning for retirement (hopefully!) and I wondered if someone can clarify the following around calculating the correct PIR rate for PIEs:

Situation:

1. I am looking at investing in a PIE Fund like InvestNow Foundation Series US 500 to access Vanguard S&P 500 - so FIF tax will apply at my PIE PIR rate
2. I plan to stop working and living off the drawdown from these shares - i.e. selling a small % each year (i.e. the 4% Rule or similar)
3. I'm an NZ Tax Resident
4. Currently on PIR of 28%

Question:

1. When choosing my PIR (28%, 17.5%, 10.5%) when I have stopped working and have no "income" as such in NZ, do I need to take into account my FIF unrealised gains even though they have not generated income as such
2. What about if I sell shares - again this is not "income" but a capital gain/loss
3. I understand that for the first two years, my PIR will relate to my earnings when I was in employment, but post this I am interested in whether I can apply the 10.5%?

I'm just trying to understand how interest tax deduction works with shares

Say I'm trying to achieve a leveraged portfolio of x1.25. I have $200k in IBKR and I can burrow a further $50k on margin at 6 percent interest. Interest = $3k a year. come tax time how much can I write off? If I'm paying $3.5k in FIF can I reduce it to just $500? Or do I have all this completely wrong?

At the moment a very small percentage of my portfolio is in leveraged ETF's but I dislike the volatility decay. If I could deduct my margin interest that could be much more efficient

Hi There,

We have saved some money this is the pay down our mortgage when the fixed term ends

Currently our fixed term ends in July next year we were very frugal and have saved nearly 5 grand.

Instead of the money sitting our account for 8 months we thought of depositing it in a fixed term, is there another option, something on Sharsies for 6 months? Any suggestions would be appreciated

https://www.squirrel.co.nz/save-and-invest?gad_source=1&gbraid=0AAAAAD5jGzBq1Zq22_zfGucy4tgQqqxlI&gclid=CjwKCAiAjKu6BhAMEiwAx4UsAvkwoeX1s_voy2lNyUMZkp5_LBdyKsBjpqR6CTf2lTaLzYlGa9YjnhoCIhMQAvD_BwE

Keen to hear if anyone has any insight here - the seemingly obvious choice is just to pick the level of risk profile and pick the provider with the highest (all in) return over a decent period?

But past performance isn't a predictor of future results as I've found out

My all, I stopped work in early 2023 (not retired) and I’m a bit confused as to why my income tax return for 23-24 is saying I owe tax on my PIE income (kiwisaver). I declared my PIR at the 10.5% rate with my kiwisaver provider but myIR still says that my PIR is 28% for the year ending 31 March 2024 even though I earned next to nothing that year. Or does it work it out on the lowest rate of the preceding two years to that tax year?

If not, can I call IRD to switch to the lower rate so I don’t owe so much income tax?

Thanks in advance!

Hi everyone need some advice I've around $130k surplus money . Which includes me and my wife's money we looked into all possible options and we are not feeling comfortable in investing stocks or the peer to peer lending companies like squirrel . We are planning to buy a 2 bed room apartment in the CBD and rent it out which gives us 450-500$ per week before tax is it a good option for us ?

Keen to buy a house which is all good, but the builders report that the agent got mentioned that the owners put in external wall insulation when they regibbed the walls but didn't get building consent for this.

We are making an offer at the moment conditional on our own builders report, so this issue will also be mentioned.

With unconsented works, we can't get insurance. Without insurance, our bank won't give us the mortgage, so our finance condition would also fail.

Can we ask the owners to sort this out? Its friggen annoying that they just didn't get the consent.

Hi all. I was just wondering if there is any budget app to overview our way of spending money that sync with Amex credit card.

Thanks

I currently have conditional preapproval from the bank for a mortgage with them needing to see the Sales and Purchase agreement and evidence of insurance in order to go unconditional. Does this process of going unconditional usually take longer than the process to be preapproved? The preapproval process itself seems to be taking quite a long time at the moment (about 3 weeks) but I'm not sure if the final unconditional approval will take just as long or can it be done pretty fast?

Hi there I’ve just been charged 500 bucks by sky sports now for another year but I had sky installed at home this week.i didn’t cancel the subscription because I naively thought sky would figure it out and tbh I forgot.

Sky sport now is refusing to refund me claiming terms and conditions

My sky subscription started on the 28/11 Sky sport subscription yesterday 30/11

I realise I’m at fault here but to me it seems a bit unreasonable to pay for the same service from the same company twice?

Any help will be immensely appreciated

I'm new to kiwisaver, started around December last year at 3% with Superlife. When I was setting it up I chose "high risk" and I'm not sure if that's how it works but my amount on IRD is a third of what Superlife reports. Is that normal?

Thank you.

I have owned some Crypto for a few years now. Looks like cycle is incoming, things going up.

Had a quick look on Crypto . coms website, the website is quite confusing.

From what I gather, you stake a certain amount of CRO and that qualifies for there type of reward card. How are the fees? Is it worth it from your experience?

Thanks

I am going to be a first home buyer (in the near future hopefully). I've always been fascinated about people buying multiple investment properties (some even owning upto 4 or 5 houses). Blunt question - how are they able to afford it? Are they all born rich or do they have a strategy they follow? I'm sure vast majority of em started from nothing to buying their first home and then being able to invest into multiple properties. Any insights would be appreciated.

I’m an NZ citizen who’s been working in the UAE and am needing to transfer some money from here to my ANZ account. Platforms like Wise here don’t work for letting me directly convert my AED into NZD so it’s looking like I might have to do a wire transfer. My question is would I have to pay tax in NZ as soon as this money hits my bank account? And are there any alternative ways I might be able to do this

I’ve got a pre-purchase building inspection as a condition for the house purchase. The report highlights a few minor issues that need a tradie to fix. What’s the next step?

• Should I send the report to my lawyer to arrange repairs before settlement?
• Does the seller need to see the report?
• Is this pretty standard and nothing to stress about?

Ive been trying my darndest setting it up but it just wouldnt transfer it over to my watch. Saw an article they starting to accept wechat and all kinds of other payments.

This is actually making me want to switch banks

Hey all, so we have a wedding coming up and they are doing cash instead of gifts. We are friends with both bride and groom but not super close. Like hang our a couple of times a year.

Does anyone know what is a suitable amount for a couple to give? I had a look online and some of the amounts were really small, like $50p/p, which wouldn't even cover the cost of the meal these days.

If anyone had a guide or ball park that would be super helpful.

Kia Ora,

I am graduating at the end of this year as a healthcare professional. I am debating if I need income/recovery/trauma insurances.

For context I am in my mid 20s, I don't have a mortgage or dependents. As my career progresses it will become more specialised, I feel like income insurance will be more relevant then as opposed to now when I am just beginning my career. I am considering MAS insurance as that seems to be the one that majority of health professionals use, I also like their values/collective structure. The cost of the insurance is around $200 a month atm. Which I dont think is too bad in the grand scheme of things. however, I also have the mindset this could be 200 that I could invest or save instead.

I have looked at other threads on here, and it appears most people take out insurances once they have a mortgage/dependents.

What was your reasoning for or against having income insurance? Any advice is greatly appreciated. I would also love to hear from fellow health professional too!

Hey team. Im a 21 year old struggling with saving. I make good money for someone my age (or higher depending on field) around 73k NZ per year. My rent is only $350 a week, around $90 on gas, $100 on food, $22 on gym and 150 on misc. take home after tax and kiwi is $1051 - total necessary expenses is $712 per week but on average I only save like $50-100 per week. I feel like im doing something wrong? I’ve started tracking my net wealth (KiwiSaver, savings, investments) and until this week I was net + but not by much. Any saving tips?

My partner and I separating, very amicably, I'm going to buy her out of the house we co-own and she'll be able to buy her own place. This will probably take a few months with lawyers and paperwork stuff. Mortgage on the place we co-own is due for re-fixing and wondering if I lock it in for, say, 1 year, and then we get everything sorted and her name removed after 4 months, will the bank require the loan to be refinanced and charge a break fee? The loan is currently in both of our names. I'm assuming they'll need to reassess my repayment ability but if they're happy with that, is it possible to just continue the loan on the term that it's locked in for? Thanks.

Recently sold my house and plan to move to Australia. I have around $200k in cash to invest but am unsure whether to invest in New Zealand options like Simplicity or Kernel's Global 100 to avoid FIF tax, or if it would be better to invest through an Australian broker.

Just won 10k. Thinking I should just dump it in Voo and pretend it never happened.. any other suggestions?

Cheers

https://www.honda.co.nz/car-finance-offers/

I know someone who purchased a house using their KiwiSaver and spent many months renovating it. It’s now a rental property that they have never personally lived in. Is there any way that this is legal?

I’d love to be able to do a similar thing but everything I find on the internet tells me this is straight up fraud??

Looking for recommendations for a start up business accountant. Any advice on what to look for in a good accountant would be also be greatly appreciated.

I'm currently using SBA (Rolly CHCH) which have been okay for rental property accounts but now I'm starting my own business I find their service... lacking.

I've asked for advice on the phone and they always says they'll send me info through on an email but don't end up doing it. I've also had to follow up on things they'll say they will action multiple times before it gets completed.

I have signed up to a Xero subscription through SBA and paid for a year (straight to SBA, not to Xero direct). Not sure if this will be an issue if I do change. I don't really want to have to pay for another year subscription with another accountant if I can help it.

I'm wanting someone who can give advice as well as do accounts, I hear people saying that their accountant recommended them this and that, however my accountant hasn't recommended me anything!

I am a bit of a novice at this, learning as I go. I want to make sure I'm doing everything correctly as I've heard most small businesses fail within the second year due to tax obligations. I'm not earning a heap of money currently, but definitely looking for an accountant who can give me advice on whether I should transfer my car to the business, if I should be using a percentage of our home power bill as a business expense etc.

Do accountants usually give advice? Am I being too picky? I don't really know what to expect here, but hoping for some recommendations and definitely keen to hear whether this is just normal service or if I need to look elsewhere. If you're currently using a great accountant I would love to hear about them too!

Talk OCR and why the Reserve Bank has changed its forecasts and the Official Cash Rate so much since August.