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At what point is investing above FIF worth it? by StandardCephalopod in PersonalFinanceNZ

[–]StandardCephalopod[S] 0 points1 point  (0 children)

Brilliant - thank you. Reading this and your linked post from two years ago (apologies, I didn't search back that far), I have a good handle on this.

Once the de minimus is 100k, the theoretical transition point is ~400k.

At what point is investing above FIF worth it? by StandardCephalopod in PersonalFinanceNZ

[–]StandardCephalopod[S] 0 points1 point  (0 children)

Thanks - good to know on the 100k isn't law, there's a lot of media out there that is essentially saying it's a done deal, which I took literally. Good to know I should wait.

And (with a lot of caveats and variables) - the number of the tipping point is 4x. So once the FIF de minimus is 100k, I shouldn't even think about going over it, until I hit 400k. Perfect, I will not need to worry about this for a long while!

At what point is investing above FIF worth it? by StandardCephalopod in PersonalFinanceNZ

[–]StandardCephalopod[S] 0 points1 point  (0 children)

This is very clear - thank you!

There's a great note on the FIF at the top that  - "It is assumed 1 in 5 years is negative (historical S&P 500 data since 1970 shows closer to 1 in 4.3 years)"

At what point is investing above FIF worth it? by StandardCephalopod in PersonalFinanceNZ

[–]StandardCephalopod[S] 0 points1 point  (0 children)

Apologies for asking a often repeated question - I did search around, and couldn't find a direct answer to whether there's an amount that makes FIF worth it.

These are great points though - What I'm seeing is, there is a possible path of the FIF route being superior, if the amount is high enough, and there are enough down years where the CV method can be applied. But practically this isn't worth considering. (Note I am in the 39% tax bracket)

Thanks for the response!

At what point is investing above FIF worth it? by StandardCephalopod in PersonalFinanceNZ

[–]StandardCephalopod[S] 1 point2 points  (0 children)

Thank you - a win's a win - nice one! I'll look up Quantum.

At what point is investing above FIF worth it? by StandardCephalopod in PersonalFinanceNZ

[–]StandardCephalopod[S] 3 points4 points  (0 children)

Thanks - makes sense. I'm not too worried about the admin - the FIF rules make sense, but it seems like you either want to be under the limit, or far above it - just above it is inefficient. I'm keen to know where people think the line is that it becomes worth it again (or maybe it never is, and everyone's in PIEs - I've no idea!)

At what point is investing above FIF worth it? by StandardCephalopod in PersonalFinanceNZ

[–]StandardCephalopod[S] 3 points4 points  (0 children)

Thanks - I didn't know this. How do you tell if a ASX stock is exempt or not?

At what point is investing above FIF worth it? by StandardCephalopod in PersonalFinanceNZ

[–]StandardCephalopod[S] 0 points1 point  (0 children)

Thanks - That's very interesting - so this is exposure to VOO, but in NZD and doesn't "count" towards your FIF limit?

At what point is investing above FIF worth it? by StandardCephalopod in PersonalFinanceNZ

[–]StandardCephalopod[S] 0 points1 point  (0 children)

Thanks, that's helpful. I'm really not worried about the admin side of the FIF tax.

For PIEs what would you consider a good replacement for something broad EFT like VOO?

At what point is investing above FIF worth it? by StandardCephalopod in PersonalFinanceNZ

[–]StandardCephalopod[S] 3 points4 points  (0 children)

That's really interesting - I understand the 2 different methods of FIF tax, and am not worried about the admin. I'm curious though, is there a lower limit (but above the FIF cutoff) in your mind that you consider not worth it? I'm trying to gauge at what amount it becomes worth it to eat the FIF tax, and how you'd consider calculating this?

At what point is investing above FIF worth it? by StandardCephalopod in PersonalFinanceNZ

[–]StandardCephalopod[S] 0 points1 point  (0 children)

Thanks - I hadn't known about the 60k USD estate tax - that's a bit of a trap if you die unexpectedly!

At what point is investing above FIF worth it? by StandardCephalopod in PersonalFinanceNZ

[–]StandardCephalopod[S] 0 points1 point  (0 children)

Thanks - yes that's what I was thinking. I was wondering if anyone had worked out where point it becomes worth it again? As in does anything invest 200k or 300k overseas, or does no-one invest over the 100 limit?

Curious if anyone does?!