Welcome to Passive Income NZ, my Journey to Financial Independence. Every month I share how I am tracking towards financial freedom by providing you with an update of where my portfolio is at and how far I am from financial freedom, and how my spending is tracking. My definition of financial freedom is not really the same as everyone definition. It’s not to stop working; …
When I started investing in 2013, I only knew one thing: I needed to start investing. I was still working out the details of how and what I would be investing in. I tend to learn best by just doing. So I jumped into investing with a small amount of money. The first investments I ever made were in four active managed fund using RaboDirect. …
When you join KiwiSaver, you are automatically assigned a default provider if you don’t select a fund. But you don’t need to stick with this same provider. You can change your provider at any time. The best thing to do is spend some time choosing the KiwiSaver scheme that is right for you- which in the long run, you will mean that you are better …
We all know about the importance of home, contents, and car insurance- but what other insurance should you consider? As I’ve been getting older- I’ve been looking into whether I need more insurance. Sometimes while walking to work, I can feel my hips hurting and wonder what I would do if I cannot work anymore- should I get insurance for that? I’ve now had a …
If you haven’t heard, Kernel has introduced two new funds. Both these new funds are thematic funds. Thematic funds are the opposite of diversified funds like Vanguard International Shares Select Exclusions Index Fund or AMP’s All Country Global Shares Index Fund. Both of which have thousands of companies in them both diversified in terms of country and industry. Thematic funds have a theme and are more …
You are a responsible parent; you want your children to have the best possible start in life. They should be eating well, doing well in school, and keeping up with their regular dental check-ups.You can also invest in their future. If you invest in your children’s future by setting up an investment account for them, you will also have the ability to provide for them …
Read MoreHow to Invest For Your Child’s Future in New Zealand
The idea behind becoming Financial Independence (FI), or financial independence retire early (FIRE), has always been simplified down to this. Work out how much you need, or want to spend in a year. Then multiply that by 25 to get the size of the diversified investment portfolio you need. In theory, this will allow you to use the 4% “safe withdrawal rate” to draw down …
Read MoreFinancial Independence, In Theory, is simple- Right?
2020 has come to an end. And what a year it has been. March tested our risk tolerance with a historic drop in world share markets of around 25%. Early in March, I had a look at past viral outbreaks and their effects on the share markets. There was a suggestion going around that pandemics and epidemics effects on the market are fast-moving and often …
At the beginning of each year, a lot of people make resolutions. You might think it’s silly, but there is some basis for it. Even though it is just the start of another year, the New Year is a way to trick our brains. It’s an anchor in time. Anchoring is a cognitive bias where you depend too heavily on an initial habit or behaviour, …
Read MoreSaving a Little Early is Better than Saving a Lot Later
I’ve recently had a few email questions regarding Smartshares and their unit price, so I thought I would try to answer them here so that you can also get your head around how the Smartshare funds work. Again, I am not an expert- I’ve tried to answer these questions both from what I know, doing research, and just reaching out to the providers themselves. Generally, …
Read MoreSmartshares Exchange Traded Funds: Understanding the Unit Price