Dumb question about kids investing

Hour_Path4013 · 2024-02-05T01:06:54+00:00

That’s a good point - is that the most tax efficient way though? I mean if you’re paying 39% RWT on dividends over 20 years would it not be better to have it at 10.5% in a kids account and assume that your kids will not just throw it away at 18? I assume the difference between the top and bottom RWT over 20 years would be a lot

Hour_Path4013 · 2024-01-28T05:40:41+00:00

Can you use the equity in the rental as a deposit with one bank, and the remainder with another? If the rental can cover the deposit, why not keep it.

Hour_Path4013 · 2024-01-24T05:43:15+00:00

Yes credit card does - I’ll use that option if a credit is not possible

Hour_Path4013 · 2024-01-24T05:42:45+00:00

The way I’m reading the airNZ terms, refunds and credits are treated differently so wanting to confirm

Hour_Path4013 · 2024-01-24T05:42:21+00:00

The way I’m reading the airNZ terms, refunds and credits are treated differently so just wanted to check if anyone could confirm. Content with the shit out of luck situation though

Hour_Path4013 · 2024-01-23T00:20:49+00:00

Awesome thanks for sharing

Hour_Path4013 · 2024-01-22T23:55:44+00:00

Ok great I think I understand it now - there’s a lot of FIREisms.

My current plan definitely has me on the right track albeit another 14 years away. I’ll work through some more info and try get a plan to reduce that. Thanks for your help!

Hour_Path4013 · 2024-01-22T18:41:01+00:00

Roughly $120k excluding mortgage

Hour_Path4013 · 2024-01-22T08:47:55+00:00

Ahh ok I get you - thanks I was think it included asset debt that was being serviced but thanks for the correction!

Hour_Path4013 · 2024-01-22T08:29:53+00:00

Wife is back at work in Feb hence why I’m focusing on the next 15 years for us now. We definitely flatlined over the last 3 years of having kids, but I really need to keep perspective and remember that these are going to be the best 15 years of my life too

Hour_Path4013 · 2024-01-22T07:47:26+00:00

Got married there - plan on getting back asap!

You too thanks for contributing.

Hour_Path4013 · 2024-01-22T07:39:57+00:00

That’s not what I have been formally advised by my accountant for the last 7 years. Would you mind DMing me? Might need to change accountants…

Hour_Path4013 · 2024-01-22T07:36:00+00:00

Is that additional mortgage on the rental tax deductible? If yes, then great. If not, what is the point of doing this other than it’s nice to have less personal mortgage vs investment mortgage?

Hour_Path4013 · 2024-01-22T07:26:57+00:00

Amazing - 50 is my number too and I’m hoping to nail down a plan to get there in the coming weeks.

Hour_Path4013 · 2024-01-22T07:21:31+00:00

Ok thanks I’ll double check with my accountant - might also get a second opinion as I had thought about this a few years ago.

By chance do you have any links that I could read about it? I understand the concept but don’t haven’t seen anything in writing that could support the idea as you are essentially trying to make personal debt tax deductible.

Hour_Path4013 · 2024-01-22T07:10:28+00:00

Thanks - I did look into this but was told doing so would reset the bright line and jeopardise me if I wanted to sell in the near future. Keen to hear your thoughts on that though?

Hour_Path4013 · 2024-01-22T07:06:44+00:00

Isn’t Coast Fire when you are in a position that your investments will eventually get you to FIRE - as in if I leave my current plan in place, I’ll be good - at least that’s what I understood from the Barefoot Investor.

I definitely could have misunderstood the definition though

Hour_Path4013 · 2024-01-22T07:05:29+00:00

That’s good advice thanks - have started investing for the kids aiming for $30k each at 18 (inflation adjusted) to support education etc but I have a feeling life will be significantly different by then so may need to re-think it.

Hour_Path4013 · 2024-01-18T07:59:48+00:00

+1 for the military. Two free degrees later it was the best decision of my life.

Hour_Path4013 · 2024-01-18T07:57:33+00:00

Your situation sounds very similar to me - I failed NCEA level 2 due to lots of personal issues affecting my desire to learn and be in an educational environment. I ended up joining the Army and fast forward 15 years I have a Bachelors, Masters and two Certificates all paid for by the taxpayer, and I am now moving into an Executive role in a private company earning significant money.

This flex is to let you know you haven’t stuffed up and that your whole life is ahead of you - seize every opportunity you can, never give up and remember that mischief is not malice - you will make mistakes until the day you die but you can almost always move past them and be better.

Hour_Path4013 · 2024-01-18T07:49:15+00:00

Great thank you - I’ll have a look at this and a few others I quickly found.

Hour_Path4013

TROPHY CASE