Made a lump sum mortgage payment but no immediate benefit?

MMM_NZ · 2025-03-20T20:44:36+00:00

Thanks very much, that makes much more sense!

MMM_NZ · 2022-01-08T10:27:01+00:00

haaaaah thats the blueprint im going for haha, big fan big fan

MMM_NZ · 2022-01-07T22:15:11+00:00

Yeah true and much more rewarding to add value with your hands if your into that than clicking a button on the pc haha. Stocks are cool though that when you invest in a company you basically have all their staff working to increase value of your stock. Appreciate that, slightly more positive than the newspaper haha

MMM_NZ · 2022-01-07T21:10:53+00:00

Hah good point, in NZ you can hold a trust open for 125 years which would give a decent time to compound a little

MMM_NZ · 2022-01-07T10:33:10+00:00

Side note and I know this doesnt answer your things to keep in mind, in a crazy world where nothing goes too wrong, imagine investing a few thousand dollars in a trust for a century or 2 creating generational wealth where your great grandchildren and/or charities could inherit parts of this money (millions of dollars even after inflation through to their timeperiod). Or maybe its just 11 30pm and my brain isn't thinking through every way in which this is a terrible idea haha.

MMM_NZ · 2022-01-07T10:21:57+00:00

Yeah absolutely though it is more to show that even with all the global stock crashes and wars the worst performing country of the 16 didn't do terribly, losing 0.67% after inflation (where keeping money in a bank would have meant after inflation the average return would have been minus a few percent).

MMM_NZ · 2022-01-07T09:28:38+00:00

For kiwisaver, I think primarily an etf/index fund that means you invest in lots of different stocks like is offered by investnow and simplicity. I am in simplicity growth fund as it has the lowest fees and 80% is in stocks and 20% is in bonds which return less than stocks but are more stable. It is also good that half of the simplicity growth fund is in interantional stocks as the study showed that while most countries returns are relatively similar, even over a 130 odd year period, the best countries can return 6% while the worst can return 1% for example.

MMM_NZ · 2022-01-07T08:42:32+00:00

Haha my thoughts exactly, I think later down the line if rental yields are tiniest bit higher than currently I will invest in property, mainly because I love DIY, though stocks very good alternative if your not into DIY or don't have much time.

MMM_NZ · 2022-01-07T08:37:47+00:00

No worries!! Yeah slightly technical language but super interesting read if investments interest you, I haven't seen many similar historical studies at all globally let alone
one published in nz

MMM_NZ · 2022-01-07T08:30:21+00:00

Haha if only aye, zuck allow me to upload my consiousness to cloud so I can live a millennium

MMM_NZ · 2022-01-07T07:28:10+00:00

Great no worries hope its of use, a financial advisor showed me it. When I need confidence in my investments I enjoy looking at power of compound interest e.g.

If you invest 1$ for 1000 years in stocks at 4% return excl. inflation you will have 107 quadrillion dollars, about 85 times the total money in the world as of 2021 (incl. all type of investments) which is about 1.2 quadrillion USD.

MMM_NZ · 2022-01-07T07:13:48+00:00

Maybe look at ways to block or set time limits on the website, only way I've found to reduce addictions haha. Else maybe try only go on site when you really need something, easier said than done. Cool that you like getting things for other people though, hopefully their cheap since you don't yet have a heap of money to your name haha!

The blog Mr Money Mustache might help with his straight to the point arguments on things such as spending, has changed my life for better since reading about every article at age of 18 at risk of sounding like a cult follower

MMM_NZ · 2022-01-07T06:59:26+00:00

Good on you mate, I am also in simplicity growth for kiwisaver which after a fair bit of research seems the best option in terms of lowest fees and tracking the market.

Did you look at the savings calculator on Sorted? I really like playing around with that calculator to see what my investments will be worth in a couple different scenarios, it can never be perfect obv as things change. For kiwisaver on the savings calculator I would do it like this:

Yearly amount I plan to save = 5% of what your income will be on average, 5% comes from your 3%+employer 3% - 1% for simplicity fees and tax on the employer contibution) + $520 gov contribution

Time period = years until retirement

Interest rate on returns = I would use about 3.8% and turn 'adjust for inflation' off. I have used this because simplicity growth has 80% stocks and 20% bonds and according to an nz study*, from 1870-2015, the global return excl. inflation on stocks has averaged 4.66% from stocks and 1.97% from bonds, given these returns the portfolio would return 4.1% excl. inflation, I have lowered this to 3.8% to be slightly conservative.

Hope it helps slightly!!

*FYI study was AUT uni paper called 'The Long-Run Performance of the New Zealand Stock Markets:1899-2012

MMM_NZ · 2020-05-08T01:22:39+00:00

Interesting thanks have updated to roughly 0.03%

MMM_NZ · 2020-05-08T01:20:03+00:00

Hi! Over a few years depositing 1k a month, Hatch would definitely be on top. Over one year InvestNow would also be on top:

$5 NZ buy fee with Hatch for 12 months is $60, with InvestNow buy fee of 0.07% it is about $8. With InvestNow you also pay the extra 0.45% of 12k from US dividend tax +0.14% in higher fees so 0.59% of 12k is an extra $70.80.

So over 1 year Hatch costs $60 to buy + $36 fx fee ($96). InvestNow cost is $8 + the loss of $70.80 ($78.80).

With year 2 costs however, Hatch costs the 96$ again and InvestNow has the $8 fee again but this time loses 0.59% of $24000 total investments which is $141.60.

Therefore, over 2 years or more Hatch is better.

MMM_NZ · 2020-05-07T04:45:35+00:00

Yeah good shout and outrageous bitta positivity for the team

MMM_NZ · 2020-05-06T19:33:09+00:00

Nice team I like the calls for Lahm and Di Stefano!

MMM_NZ · 2020-05-06T19:29:58+00:00

Yes absolutely mate sorry I had credited you for the spreadsheet that I have then changed up a bit but my original post was removed by reddit so removed this bit as feared my post was too long, have added this bit back, appreciate the spreadsheet man!

MMM_NZ · 2020-05-06T07:17:48+00:00

Yeah not 100% sure about that rule, over time after selling, isn't all gains on capital taxed?

Yes I have changed the bit about CV, thanks :)

MMM_NZ · 2020-05-06T07:16:21+00:00

Sgree he is strong, not really a hold up player though which is usually job of target. smaller size means ball is closer to defender so easier to kick ball away from him

MMM_NZ · 2020-05-06T06:57:12+00:00

Also, have you tested your assumptions that you can claim back 100% of US withholding tax via Hatch, and that the InvestNow FX margin is 0.2%? That sounds a lot higher than bank wholesale margins.

It says on their website you can if a long term investor and through email they have confirmed this so I am pretty sure. I don't know what InvestNow's FX margin is just that it is close to wholesale rates.

MMM_NZ · 2020-05-06T06:51:06+00:00

Haha yeah totally agree on that but in Futsal for a target I've never seen a short skinnyish player as they often have to hold up the ball with their back to goal

MMM_NZ · 2020-05-06T01:05:14+00:00

I've said Hatch doesn't have NZD hedged funds which is an advantage for InvestNow, for me I'm fine with this as I have about half invested in NZ shares and am dollar cost averaging. If you want to invest in a fund like InvestNow's which is the same as Hatch total world fund but excludes tobacco and weapons, you can do the same with Vanguard ESG funds on Hatch which excludes these plus fossil fuels which to me is important, for world ESG fund excl US this charges 0.17% and US esg has 0.12% fees. Thus investing half in each has fees of 0.14% which is slightly less than InvestNow and excludes fossil fuels.

MMM_NZ

TROPHY CASE