What If You Were The Worst Investor Ever

If you where the worst investor of all time would you still make money- and if you used the cost average technique would you make more money

I like index funds. And the more I analyse historical data, the more I like them.   Currently, I have poured over the data from the NZX-50 from the last 69 years. That includes that data for when it was the NZX-40.   This got me thinking, what if you were the worst investor ever?   So let’s have a look. Let’s imagine that you were the worst investor ever. …

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Astonishingly Easy Approach to Achieve 100% ROI

What if I told you there was an easy way of achieving a 100% return on investment

If you are a kiwi you have the option of making a 115.5% annual return on investment. That is more than the highest ever annual return of the NZX 50. So how can you get that return- more on that later. First, let’s talk about the retirement age. Retirement age Here in NZ, the government says the retirement age is 65. It does not mean that you can retire at …

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Does Investing Make You Anxious

What is the true risk of investing in an index fund? Specifically, investing in the NZX-50? www.passiveincomenz.com

I think index funds are the number one investment vehicle you can use to gain your financial independence. They provide you with diversification and low fees. They are passive and the whole process can be automated. That is why I recommend you to also invest in Index Funds.  But aren’t they risky? You probably have the same idea as everyone else who is starting out investing. “Can lose all your …

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Learn How To Investing In The Share Market With Index funds


It’s a common thought that investing in the share market is reserved for rich people, who spend their weekend on yachts and drive nice cars. A lot of people think it is out of reach, and often too daunting to us regular car driving people. But, there is a way to invest in the share market that is available to most people, and it’s not as daunting as you might …

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4 Steps to Early Retirement Through Passive Income

the 4 steps to early retirement through passive income

The thought of early retirement for many people is an un-achievable construct. But if you are a millennial you have time on your side. See, early retirement isn’t hard in a certain sense. It isn’t like learning quantum mechanics, and trust me quantum mechanics is hard. I did several quantum mechanic papers at university, and I am still don’t fully grasp all the concepts. Early retirement is only hard as …

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The Most Important Thing You Will Ever Learn: Part Two

the most important concept you will ever learn

Now earlier I wrote a post about the most important thing that you will ever learn. If you didn’t read it, I would recommend that you go back and read it. It will make this post make more sense. To really hit home the power of exponential growth let’s look at a simple example.  Think of a game of chess. The game of chess was said to have been invented …

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The 3 Things You Have to Invest

You only have 3 things that you can invest with, Time, Money, and Skills

So you want to create a passive income stream, like me. Firstly, you need to set some goals. Think about what you what to achieve. For example, how much you want to earn from a passive income stream. Start small, and build it up once you achieve it. Keep increasing your goal and eventually, you will on your way to replacing your salary with passive income. Let’s say you want …

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FIRE: Financial Independence Retire Early

FIRE: The idea of Financial Independence to be able to Retire early

The internet has been awash with the philosophy of FIRE. “Financially independent, Retire Early”. It’s an admirable goal. The main goal is to save the vast majority of your income while downsizing your lifestyle. Once you have hoarded a large enough stockpile of cash and developed a money tree, you can effectively live without any financial worries again.

And the catch?

The catch is, you have to maintain the same lifestyle when you retire as you had while building up your cash stockpile. This can be hard for a lot of people. Once you retire you will find yourself with a lot of extra time on your hands. And we all know that can lead to spending more money.

So the rules of FIRE

Downsize your living expenses massively!

Save a much as your income  as you can and invest into a money tree

Once you have saved 25 times your yearly expenses you can retire!

So for example, if you want to live on 30000 per year- you need to create a money tree of $750k. This allows for drawing down of 4% per year from your money tree. Where you have invested your money does matter here.

For instance, you can’t rely on term deposits or saving rates at banks, because they are lower than 4% per year. You want to get an average save rate of 4% + inflation, and maybe a few more per cent, this allows your money tree to keep growing.  So aim for something like 7 to 8%. Not too hard considering in the last few years, the NZ stock market has been doing 20%.

So how long will it take?

Let’s say you work your little arse off and earn 60k after taxes (~77k per year gross).  You’re a good saver, and manage to save and invest 30k per year, earning around 7-8% average. Everything going smoothly, you will have your money tree in 15 years.


That is crazy. After 15 years you don’t need to work ever again. I know it sounds like a lot of time, but the average working life is much greater and is probably going to be up in the 50-year mark.

Many hard-core FIRE people try to save much more than 50% of their income. They aim for extreme frugality and try to save around 75-80%. This slashes the time required to build your money tree. Down to only 10 years for the above example.

My Goals

I like the idea of FIRE, however, it is a bit radical for me. And besides, I don’t think I am that disciplined to save 50% of my income. There is also the fact that I have to pay a mortgage which makes it even harder to save a large amount. My aims are to save 30% of my income and to build up a money tree.

My idea of retirement is also slightly different. I don’t want to stop work altogether, as I get a great sense of achievement from it. Rather I want to use the money tree to subsidise my life, allowing me to reduce my working hours and pursue other hobbies.

So how am I doing?


I have been reading about this stuff for years, and over those years I have been saving only around 10%. But that is what I hope this blog will help me out with. It will provide me with more accountability and hopefully get my savings rate up to 30%.

Anyway, Let me know what you think about FIRE… And if you think you could be disciplined enough to live by its rules

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Hello Internet- How are you?

Welcome to Passive Income New Zealand- a journey to financial freedom and early retirement

Welcome to ….. A blog about my journey to Financial Independence and Early Retirement (FIRE)…and other things.

I’m not looking for likes or follows. I just want a place I can write down my thoughts and try to organise my life, to rant about things, and research new ideas about money. A way in which I can try to make my relationship with the internet a little less one-sided.

A place that will keep me honest about my goal of building passive income. It will remind me to stop spending on thriftless things, like big screen tv and playing house. (playing house is a term I use to describe people who desire to have the house in magazines, with all the expensive decor and artwork) Somewhere I can track my progress and hopefully grow my passive income.

So to start off…

I’m a millennial scientist, a self-directed investor, financial freedom enthusiast, and perpetual learner. I am on a disciplined journey to try to save as large a proportion of my income as I can, invest it wisely, and hopefully retire early.

It is here where I want to define what I mean by early. I don’t mean stop work altogether. I mean more about having the choice to stop if I so choose to. Say if my work is no longer bringing me the satisfaction or sense of achievement that I desire. I can simply stop doing it and look for another vocation without all the financial stress associated with being jobless.

After graduating from university, and buying a house, I’m wondering what is next. What do I want to do with my life?

Until this stage of my life, the aims have been relatively clear. Finish high school with good grades so you can get into a good university. Done. Finish university so you can get into a rewarding career. Done. Pay off the student debt. Done. Find a girl, buy a house, and settle down. Done.

Now what?

That is where this blog comes in. I’m going to be using it as a way of making sense of the world. To try to figure out what my goals in life are. To try to stop keeping up with the Jones and become financially free. And ultimately to have an engineered lifestyle, free of financial worries.