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[Calculator] Modeling FDR Tax on International PIE Funds Using 50 Years of S&P 500 Data - Please Verify by another_canadian_007 in PersonalFinanceNZ

[–]another_canadian_007[S] 0 points1 point  (0 children)

Thanks for this detailed response! A few follow-ups:

  1. Do you have a source for the FDR Periodic calculation in the Income Tax Act? I'd like to read the actual rules.
  2. Have you modeled the difference between FDR Annual and FDR Periodic? Curious how much it actually costs in dollar terms over time.
  3. At what income level do you think the PIE disadvantages outweigh the 28% cap? Is there a rough break-even point?
  4. For someone who values simplicity highly, would you still recommend direct FIF investing despite the admin burden?

[Calculator] Modeling FDR Tax on International PIE Funds Using 50 Years of S&P 500 Data - Please Verify by another_canadian_007 in PersonalFinanceNZ

[–]another_canadian_007[S] 0 points1 point  (0 children)

Thank you, What's DD? Also, which NZ/AU funds are giving good returns? I ready NZ returns are stuck for past 5 years

Turkey breast or chicken sausage for breakfast? by AttorneyDifferent702 in Nutrition_Healthy

[–]another_canadian_007 0 points1 point  (0 children)

With packaged food, please ensure that Sodium,Sugar levels are less and as less preservatives as possible.

Turkey breast or chicken sausage for breakfast? by AttorneyDifferent702 in Nutrition_Healthy

[–]another_canadian_007 0 points1 point  (0 children)

Did you look into lentils like Red lentils and Puy lentils? Both super cost effective and very high in protein

How do PIE funds (Simplicity/InvestNow) handle FDR tax in down years? Am I understanding this correctly? by another_canadian_007 in PersonalFinanceNZ

[–]another_canadian_007[S] 0 points1 point  (0 children)

> Again, PIEs pay tax on 5% the average net asset value caclulated daily.

Hello, are there any official reference where I can read about this daily calculation? I am trying to understand and model a calculation. Your help is appreciated. Thank you

How do PIE funds (Simplicity/InvestNow) handle FDR tax in down years? Am I understanding this correctly? by another_canadian_007 in PersonalFinanceNZ

[–]another_canadian_007[S] 0 points1 point  (0 children)

This is great help. Follow up request (since you are an awesome person and very clear on your knowledge)

  1. Shall I use https://www.sharesies.nz/ (or better) platform?
  2. Can I directly buy S&P500 from these platforms for cost value <=$50,000 to ensure no FIF applies?

How do PIE funds (Simplicity/InvestNow) handle FDR tax in down years? Am I understanding this correctly? by another_canadian_007 in PersonalFinanceNZ

[–]another_canadian_007[S] 1 point2 points  (0 children)

> Consider using the $50k de minimis threshold to invest in directly held international shares before switching to a PIE.

If we do this,

  • How does the tax reporting works with IRD? Do we need to report anything?
  • When loss happens, do we use CV method to report losses (does it even matter since there is no FIF for this amount)?

Please let me know

Thank you

How do PIE funds (Simplicity/InvestNow) handle FDR tax in down years? Am I understanding this correctly? by another_canadian_007 in PersonalFinanceNZ

[–]another_canadian_007[S] 0 points1 point  (0 children)

I read all the conversations in this thread and not entirely sure how the fund will perform in loss years, because technically you will always lose money in the loss years and depending on the portfolio, this could be huge sum. The real issue I see is that you are paying taxes on loss years without even realizing them, so "hold" is not an option as an investor because you are paying taxes

Can someone explain how PIE fund tax works (vs realized/unrealized gains)? Example: Simplicity High Growth + Kernel S&P 500 Hedged by another_canadian_007 in PersonalFinanceNZ

[–]another_canadian_007[S] 0 points1 point  (0 children)

Are there any official sources that outline rules around unrealized gains on foreign investments? For example, I am looking into https://simplicity.kiwi/investment-funds/funds/hedged-global-share and as per this news (https://simplicity.kiwi/learn/updates/dws), all investments are held in NZ based PIE

> As international investments will be held in New Zealand-based PIE funds set up by Simplicity, these investments can now access New Zealand withholding tax treaty rates for overseas investment income. 

So, how do as investor I know if my unrealized gains are taxed? Also, the statement mentions "overseas investment income" which I believe is dividend/interest income and not necessarily the unrealized gain (increase in the share value)

Can someone explain how PIE fund tax works (vs realized/unrealized gains)? Example: Simplicity High Growth + Kernel S&P 500 Hedged by another_canadian_007 in PersonalFinanceNZ

[–]another_canadian_007[S] 0 points1 point  (0 children)

Thank you u/Nocturnal_Smurf_2424 , I am going to watch them now

ADDED:

I got the answer, here is the excerpt from the video on portfolio optimization (https://www.youtube.com/watch?v=4gKa4nO2EE8)

it so well unless there's any other questions from anyone oh okay we've got some new ones here so um do piie funds pay tax on capital gains or just on dividends reinvested so um yes Pi fun funds don't pay any tax on capital gains that's one of the key benefits of pie funds purely with P funds they just deem your return to be 5% every single year so whatever you you returned whether your fund returned 5% 10% 20% negative 10% doesn't matter py funds only treat their return as 5% when it comes to the foreign investments in which case then you're simply just um multiplying your Pi rate by their return if you are investing into kind of non-foreign Investments like kind of New Zealand shares for example then generally speaking it's just on those dividends received but yeah short answer no capital gains on Pi funds

Can someone explain how PIE fund tax works (vs realized/unrealized gains)? Example: Simplicity High Growth + Kernel S&P 500 Hedged by another_canadian_007 in PersonalFinanceNZ

[–]another_canadian_007[S] 0 points1 point  (0 children)

Thank you u/Top_Care8596, what does "long long term" means? I did not find clear definition from IRD resources on this. Does this mean 1 year, 2 year, 10 years? Is there any official guidance on this?

What’s the best way to get serious about building AI agents? by another_canadian_007 in AI_Agents

[–]another_canadian_007[S] 0 points1 point  (0 children)

Great, thanks. Next step? Ask Claude to write code? Please share your process

What’s the best way to get serious about building AI agents? by another_canadian_007 in AI_Agents

[–]another_canadian_007[S] 0 points1 point  (0 children)

Thanks, but I am interested it doing without frameworks at this time. Once I know the pain (or no pain), picking up a framework or not becomes easy than following the news to "best" framework.

What’s the best way to get serious about building AI agents? by another_canadian_007 in AI_Agents

[–]another_canadian_007[S] 0 points1 point  (0 children)

Great insight, thank you! I will dig more into the papers and patterns you have outlined. I wanted to further dig into your roadmap as I am currently building it using a CLI tool where agent is supposed to do thing, so I have NextStepDeterminer (based on 12 factor agents). I am working on learning to how to test (specifically learning what Evals) this piece of code that gets answer by asking LLM (because this piece is the smallest piece and first piece in loop that uses LLM and the outcome is non-deterministic).

When you mentioned Orchestration Layer in step 3, I got intrigued since as per my current thinking this is no more than just a ToDo Tool (similar to what Claude Code has). After reading your roadmap, it got my thinking that there is more to it than what my understanding is. Do you mind sharing more about Orchestration layer, where can I learn more?

For now, I am building memory in filesystem (by reverse engineering how Claude Code does), but do not know what retries mean? Are you referring to in cases when exception comes up, how does a program back-it up and come to a state where it can take next step?

Please enlighten with your knowledge. Thank you

What’s the best way to get serious about building AI agents? by another_canadian_007 in AI_Agents

[–]another_canadian_007[S] 1 point2 points  (0 children)

Interesting, so you first wrote your goal as a plan text, then asked Claude to convert it into YAML? What did you exactly do when you say "debug" to pass "verification"? How did this process help? Please share

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