Financial Independence, In Theory, is simple- Right?

Financial Independence, In Theory, Is Simple- Right?

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 …

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End of Year wrap up 2020

End of year wrap up passive income nz

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 …

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Saving a Little Early is Better than Saving a Lot Later

Saving A Little Early Is Better Than Saving A Lot Later

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, …

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kōura Wealth KiwiSaver Review

Koura Wealth Review

Kiwisaver is Kiwisaver right- it’s simple. It doesn’t really matter which provider you are with right? Well that’s not really true. For the majority of Kiwis, KiwiSaver is going to be vital for our retirement! And getting your KiwiSaver right should be high on your agenda- as it will make a huge different for your retirement. And because Kiwisaver is so important to my retirement, …

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How Much Money Do You Have Left?

How Much Money Do You Have Left? The Money Game

I want you to do a quick exercise. I want you to work out how much money you have earnt for your entire life. Adding your income for the last year, back to what you earned when you were 14 years old. Add it all together. (You can log onto IRD to get a summary of earnings for the last few years.) Now, don’t count …

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Everyday Investment Advice: Is it Any Good?

Everyday Investment Advice: Is it Any Good? or is it bad to listen to common everyday investment advice

Sometimes it’s easier to identify bad advice than it is to identify good advice. I find this to be especially true when discussing investing in general- and even more so when talking about investing in shares or index funds. I thought I would discuss some of the advice I have come across over the years and share with you some of my opinions. Now- you …

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The Myth of Bad Spending

the myth of bad spending- how spending money isn't good or bad

When we talk about spending money it’s usually in absolutes. There’s good spending and bad spending. Spending money that you have budgeted for on healthy food is good and spending money on daily coffee is bad. Impulsive purchasing of consumer items and clothing is going to kill you in your sleep. That’s bad spending. But is it really this simple when we talk about spending? …

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Longheld Myths about the Share Market

Long Held beliefs about the sharemarket that are not true. Investing in New Zealand

Certain myths seem to persist over time. For instance- there’s the myth that there is a dark side to the moon. I blame Pink Floyd for this one! There is no dark side to the moon- it’s just the far side. Which has the same light and dark as the side we can see. The share market is like the dark side of the moon …

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Should You Pay Down the Mortgage Early or Invest Instead?

Pay-the-mortgage-or-invest

Whether you should pay down your mortgage faster, or invest instead, is one of the longest-running debates in personal finance. What should you do with any extra money that you might have- pay off your mortgage, or invest? There are certainly advantages and disadvantages to both sides. Sure, you can be completely analytical and run the numbers to get an estimate of which is better …

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Where Should You Invest Your Hard Earned Money?

Where Should You Invest Your Hard Earned Money? advice for New Zealanders, Kiwis, and people from NZ

One of the most asked questions, when it comes to investing, is generally along the vein of “I have X amount of dollars, where should I invest it”. And it’s a hard question to answer with just that much information. There are two other pieces of information that you need to know when deciding where to invest your money. One being, what is your investment …

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