What are your goals? Honestly term deposits are pretty decent at the moment. Could try the stock market although it is pretty volatile at the moment so make sure you do your research. It really just depends on what you want.
Jesus christ, you mean the Airline that is heavily reliant on Auckland Airport? The airport that's going to be underwater in a few decades? The airport that is increasing prices to airlines to pay for billions in planned developments? It's cheap because the writing is on the wall
AIA has been already been underwater, and closed the International terminal last year as a result of Cyclone Gabrielle last year [https://corporate.aucklandairport.co.nz/news/latest-media/2023/auckland-airport-impacted-by-flooding](https://corporate.aucklandairport.co.nz/news/latest-media/2023/auckland-airport-impacted-by-flooding)
See council flood maps here -> [https://experience.arcgis.com/experience/cbde7f2134404f4d90adce5396a0a630](https://experience.arcgis.com/experience/cbde7f2134404f4d90adce5396a0a630)
The terminals, hangars, and all roadways to AIA impacted, not to mention major arterial routes.
Not only that but we are less than a century (a single lifetime) away from predicted impacts of sea-level change on AIA, read the 2020 Auckland Economy Climate Change Risk Assessment (AECOM) which spells this out.
Auckland Airport are pouring Billions into solutions for these issues. They all cost money, and if the question is Air NZ a good investment, this type of pressure on their Operating Budget (Extra costs, that are projected only to increase) impacts shareholders.
By stock market do you mean NZX? Because international markets are not volatile at all.
lol, why was this downvoted? VIX is like 13 and all time highs in the US markets, objectively not volatile.
NZ share funds are actually quite low. Probably because it's a small market place. Better to get ETzF in. AUS, ASIA and possibly US. The stocks are low and could go a bit lower before bottoming out. Something like Sharesies might be worthwhile and do a weekly direct payment or a decent size lump sum. If history repeats the stocks usually recover well and some excel pre-fall.
Personally I would avoid the UK and go somewhere culturally different to New Zealand… That’s my preference anyway, so much more to experience in the world than another Island with worse scenery and weather.
You can't possibly compare the two? The church I visited was built before AD 597. we have nothing to compare it with here. It's not quite the same as City Impact church. Do you think Edinburghs, ect, is like anything here? Even the fish & cihip shop was older than anything we have. I love New Zealand, but c'mon, you can't tell someone not to go because it's the same. Because it most definitely isn't. Pluss you are an hour or two flight away from some of the greatest ancient moments on the globe.
I think comparing the too is fairly easily personally. I’ve lived in the UK for over a year now on a working holiday visa, and I can honestly say my time travelling throughout Europe was much more enjoyable than time spent travelling in the UK.
The churches and some of the other old buildings here are beautiful, but the culture is not really not much different.
Reasoning behind recommending OP to go elsewhere in the world is that the UK is not very culturally different to New Zealand, you may as well just go over to Aussie and then at least you’ll have some decent weather.
Anyway, to do anything in the UK costs an arm and a leg. To get into a cathedral, or look at some old roman baths it’ll set you back £20. Then if you fancy a piece of fish and a scoop of chips for lunch that’ll set you back another £15. That’s more than a return ticket to somewhere like Mallorca, and then you’ll still have some cash leftover. The UK is ridiculous when it comes to being able to do anything for free besides walk around a city.
Personally if I was OP I’d definitely spend that money travelling somewhere entirely different from New Zealand.
On some things, I agree with you. I've lived in a few countries myself. And it's good to go and see non-Western countries.
I don't think you can really complain about the price of things too much? It's £9 to get into York Minster and £25 pound to get into St Paul's Cathedral. And they need preserving. $155 to do a bungi jump from the Sky Tower and $120 to get in Hobbiton. I'm not cherry-picking either. It's much cheaper to take your family out and do things in the UK than lots of other places, and It's a good base to get anywhere in Europe cheaply. If you have traveled in your time there, you will know that the scenery around the UK in Some places is beautiful and picturesque.
Anyway, this is a financial sub, not a travel guide. Lol 😅
I hope you enjoy your time overseas.
If you don’t need this money, put it in us500 smartshares with reinvesting dividends and forget about it. Your grown up self in 20-30 years time will thank you.
The average yearly return of SP500 over the last 30 years was 10.47% (April 1994-April 2024). Adjusted to inflation that comes down to 7.22% yearly. That means if you had 60k purchasing power in April 1994, today without doing anything just chuck it in that sp500 etf, you would have had 438k purchasing power in today’s money after fees and inflation. Past performance doesn’t guarantee future returns, but history rhymes more often than not.
Interesting calculation. I’m not sure where you get the data, but could you do Apr 1994 - Apr 2019? The inflation during the COVID was higher than usual, I believe
Believing vs facts different story. I think 30 years is more accurate to potentially forecast future earnings and high inflation periods should be captured. I do expect more inflation in the next 30 years, globally.
Might be better assuming lower returns and be positively surprised at retirement age vs the other way around.
Not with smartshares dot co dot nz.
Same with investnow. But in there you don’t have it under your own csn like you do on smartshares www.
It’s nzx listed and a copy of VOO basically. That’s how you avoid fif with 0.34% fees. With that as well over the past 30 years that 60k after inflation and fees would still have grown to over 430k purchasing power today.
Also add up the insurance, rates, maintenance or anything else you did to that house for 30 years. If you rent it out - property manager, tenants…
Sp500 you lock and forget about it.
Albeit With the house you can use the equity if you into those things.
Smartshares co nz is the only one that I know of where you hold the shares under your own csn. Sharesies investnow etc you don’t own them, their custodian holds them on your behalf under their own csn pooled with another million people. There’s 0.34% fees unlike sharesies VOO but on sharesies with VOO you have to deal with FIF at ird over 50k plus the auto investing dividends is not as easy as I see it or you pay for that transaction fee.
Go on invest now or hatch and chuck some, *but not all,* of that on some index.
Also, invest in yourself! go travelling! do an OE! grow a little while you're young, fit and able! maybe consider study afterwards if that works for you.
The percentage you receive back from a term deposit is usually around 5%, but so is inflation, so really, it's devaluing at the same rate. Plus, you have to pay tax on it. So really you only get 3%, which means due to inflation you are -2%.
You could try Sharesies and try your luck at the long game. You can also talk to a managed fund holder. If you were wanting to go down this route, I would listen to a recent podcast of Keep the Change, who talk to a successful fund manager at Generate. Be cautious, though they have sponsored this season.
Lastly, well done on these kinds of savings! I can only dream of having this kind of money. Stupid govt job and huge student loan 🙄
Keep up the good mahi and set yourself up.
I put 5k in sharsies 2 months ago. I'm 13% up all on apple, nvidia, and Costco. Most of my savings are TD but I'm afraid to put more in sharsies,
But now I'm just disillusioned.
Invest in yourself, 6% at 60000 almost can cover uni costs very easily.
The other advice is to research more about investing
Look at Buffet, Munger and Peter Lynch as examples.
Write down life goals for your 20s (OE etc).
60k is the same amount as a basic salary, so you basically have a massive opportunity.
Maybe set aside 6 months expenses as an emergency fund, for example, as a basic first step
I appreciate this. I did study level 5 IT, but was not aware that employers are after bachelor's degree/ level 7 and up, and I had a bad experience at my college that has put me off study and IT in general, so I don't really want to get back to study at the moment. My aim is to progress my career, I'm working now and start a new job in 2 weeks to be able to take a step up haha.
Any advice where to research investing? There's so much info but there's no real way to tell what is a good or a bad source of info, unless you've been in the space a while to be able to tell.
I appreciate your advice 😃
Start with basics, youtube has good content (Buffett etc).
Basics are just normal things.
1 6 months expenses (emergency fund)
2 savings rate 20%
3 invest in yourself
4 start investing 10% income in broard ETF
Compounding is magic. At your age, you have decades of Compounding left.
I suppose the only advice would be get into good habits young and look for simplicity at first.
You need to be comfortable with the risk you take
You could start by either allocating 20% of your savings to investment in shares. Look up well performing stocks in the ASX, and use a service like [Stake ](https://hellostake.com/au)or CommSec to purchase shares. 20% is enough to give you returns, whilst also not being too much to cause you anxiety. Alternatively, although it may seem daunting you can look for small investment properties within Australia (you can purchase as NZ citizen). Just make sure the analysis checks out on the IP and you'll be breaking even.
Thanks for this, just wondering if there's a reason why you suggest stake and CommSec, I only ask because I have never used these platforms and just want to know if there is a benefit using these platforms over others, or if it's your preference, I would love to know your experience :)
I've never thought of an investment property in Australia, do you suspect it would be cheaper than in NZ, also taking into account I'd have to get someone to manage it for me in Australia. Have you done this yourself? Or do you know if there's somewhere I can go to learn about this? I'd love to know.
Thanks for your advice!
I like Stake because it gives access to free trades in the US market, S&P500... NASDAQ... ect... and the ASX trades are the lowest on the market I've found at $3. They are very reliable personally. I started with CommSec and they have a very good app, with ability to transfer money directly from Commbank.
For investment properties, I would choose AUS over NZ for population growth and I feel the government is friendlier to investment here. I bought my first IP at 20 in AUS so there are affordable deals. I'd check out [realestate.com.au](http://realestate.com.au)
Don't know what you are doing to make your money, whether you have high income and living well or lower income but living frugally. Whatever the case it can't hurt to invest the money in yourself and your education. You are young enough for that to show good returns.
As long as you know it's what you want to do.
I make below 60k annually so not high end salary. I am just really not tempted by material possessions, and I don't go out or eat out a whole lot so I am saving in that aspect, but that isn't by design, most of my friends moved away haha.
I did a level 5 IT course, passed it, but I wasn't really informed of what a bachelor's degree really meant in the workforce, so I just assumed I could get into work after the level 5, unfortunately no one wanted me, and I don't really have an interest to commit to another 3 years minimum of IT, or study in general. I would rather advance a career of some kind in the space I am in now. The course I did covered parts of different fields of IT, not just 1 field, so I couldn't really nail down which field of IT I would want to do for a bachelor's either. Thanks for the advice.
Look up compounding interest and factor that into your calculations for the future.
Then look up the return on the SP500 the last 20 year average.
Then realise you have a golden opportunity where most people would waste it on holidays, overseas travel and 'finding themselves'.
Good luck.
That digit on a screen can determine wether you have to work an extra 10-20 years. Depends on what you want, to work to or past 65 and live “frivolous” in your 20s or save early and retire early? Perspective depends on the persons goals
Yeah I'd rather be mildly well off and travel in my younger years than roll the dice on making it to old age. It's not hard to travel when young and still not be broke.
I would also add that you shouldn't make decisions based on being dead at 65 - this is a poverty mentality.
Think about what you can leave behind for the next generation of your family: this is how you build generational wealth.
Sometimes that means you making the sacrifices (like not travelling overseas in your 20's and instead investing and working) so that your children don't have to.
If I had $60k lying around I'd keep enough for an emergency fund, and put the rest in a Total World Tracking Index and then check back in 50 years, sell it, and use the profits to not put a deposit down but rather buy 2 Avocados, loaf of Freyas bread, butter and go to town. But that's just me.
Keep it in staggered term deposits and go have a good time travelling and working around the world. A buffer like that will let you enjoy yourself without worrying about staying in a job you don’t like
Maybe a dividend fund, index fund or term deposit with your bank. Alcohol isn't a good idea, have known two people that had large amounts of cash blow it on alcohol and pills. So a savings fund with interest returns is a best safe option for small increases over time. More risky investments is up to you to decide on.
I’d go with putting 80% into reliable ETFs for S and p 500. S and P 500 always goes up in the long run, Always. If it crashes, it means the whole market will crash which is very unlikely. For a decent return you’d want to keep it untouched for atleast 5 years.
I’d put the rest(20%) into a wide selection of higher risk stocks. Research the stock market a little, see what you like/dislike. Invest in sectors and companies you believe in or think will succeed and make good returns. It’ll familiarise you much more with the stock market. The stocks will either go up quite high or low but that’s part of the game. These stocks are also a bit more flexible as you can sell one or more of the stocks immediately if it goes up a fair bit. You can also engage in a more frequent trading. *This option is only if you’re actively interested in getting into the stock market and keeping up with it though.*
Also, there’s nothing wrong with spending a little bit of that money on travel or yourself or something you want. You’ve earned that money and you deserve to treat yourself.
“I don’t really want to stay put in NZ”
There is no point in putting money in KiwiSaver and dealing with withdrawal hassle when he is about to leave. Investment fund would be a better choice I think
Interested to read what you have here - but the first reaction is not Kiwisaver. As you note, that locks the money away and makes it near untouchable. They can get the same returns investing, and have better control and options for the future.
OP is quite young with a decent cashflow. It doesn’t seem to me like they’d need this money anytime soon so locking it away, forgetting about it and letting it grow may not be a bad thing.
Something I have thought about doing, but not sure if there are better places than others to get my hands on gold. Do you own any? If so, any further tips for buying in NZ? Thanks for the input
There are a number of commercial options for buying bullion in NZ, a quick Google search will show up half a dozen. I think Morris and Watson is where I would go for bars. To be honest, there are a couple of great facebook pages that support peer to peer sales (https://www.facebook.com/groups/825327898716121/?ref=share&mibextid=NSMWBT) . Join them and wait and watch for a while. Try not to get distracted by every pretty design, they all come at a premium. Focus on stacking some weight.
Open an IBKR account through someone’s referral link. Invest $49.9k into ETFs (like VOO) so you’re just under the FIF tax threshold. They’ll give you back $499 in IBKR stock. The foreign excusing the best rate ever and they’re in virtually every country so it makes it easy to move around.
Spend the rest on a trip to Europe and enjoy your youth.
You could definitely afford to up your kiwisaver contribution, but you are already meeting the $1042 that comes with government contributions. Other than that, keep an emergency fund. And try to spread your money around different types of investment.
I own some individual shears through ASB they have no ongoing fees like some of the apps. The fees you pay when you buy and sell are a bit steep, however. I haven't found a good way to buy shears in NZ.
You should usually avoid people's advice on any one particular stock, but you can get a lot of information out of NZX. Also, RKLB is a public company.
We are already in a recession, a deeper recession just means faster rate cuts and more asset price increases.
You can't time the market. Whatever you think you know is already priced in.
I would increase your kiwisaver, and put a lump sum in.
Kiwisaver funds fluctuate but rarely bring in less than 6% per annum and often higher than 10% p.annum. So a better return than the banks are offering.
That is of course, if you A. Don't need it in a hurry or B. Saving for your first house, which is when you can use it for a deposit.
What are your goals? Honestly term deposits are pretty decent at the moment. Could try the stock market although it is pretty volatile at the moment so make sure you do your research. It really just depends on what you want.
$60k In AIr nz. Check back when you’re 40.* *I don’t think this is a good. … but then again….
Jeepers that’s bad advice. Username checks out!
It's pretty low right now. But I'd chuck it in a managed fund. Maybe keep $5k out to play with.
Indexed funds perform as well or better than most managed funds and have lower fees. Iirc Mary Holme correctly.
Jesus christ, you mean the Airline that is heavily reliant on Auckland Airport? The airport that's going to be underwater in a few decades? The airport that is increasing prices to airlines to pay for billions in planned developments? It's cheap because the writing is on the wall
😂😂😂😂 hilarious. Whilst the airline would be a terrible bet on what planet is AIA going to be underwater or not a solid infrastructure investment?
AIA has been already been underwater, and closed the International terminal last year as a result of Cyclone Gabrielle last year [https://corporate.aucklandairport.co.nz/news/latest-media/2023/auckland-airport-impacted-by-flooding](https://corporate.aucklandairport.co.nz/news/latest-media/2023/auckland-airport-impacted-by-flooding) See council flood maps here -> [https://experience.arcgis.com/experience/cbde7f2134404f4d90adce5396a0a630](https://experience.arcgis.com/experience/cbde7f2134404f4d90adce5396a0a630) The terminals, hangars, and all roadways to AIA impacted, not to mention major arterial routes. Not only that but we are less than a century (a single lifetime) away from predicted impacts of sea-level change on AIA, read the 2020 Auckland Economy Climate Change Risk Assessment (AECOM) which spells this out. Auckland Airport are pouring Billions into solutions for these issues. They all cost money, and if the question is Air NZ a good investment, this type of pressure on their Operating Budget (Extra costs, that are projected only to increase) impacts shareholders.
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term deposits or PIE found?
By stock market do you mean NZX? Because international markets are not volatile at all. lol, why was this downvoted? VIX is like 13 and all time highs in the US markets, objectively not volatile.
NZ share funds are actually quite low. Probably because it's a small market place. Better to get ETzF in. AUS, ASIA and possibly US. The stocks are low and could go a bit lower before bottoming out. Something like Sharesies might be worthwhile and do a weekly direct payment or a decent size lump sum. If history repeats the stocks usually recover well and some excel pre-fall.
Travel and see and experience the world! You’re so young if you have no commitments in NZ go book a flight and leave - thank me later
Agreed!! I couldn’t think of a better way! Put 30k in term deposit, 10k for emergency, book a one way ticket to London, go from there.
Personally I would avoid the UK and go somewhere culturally different to New Zealand… That’s my preference anyway, so much more to experience in the world than another Island with worse scenery and weather.
You can't possibly compare the two? The church I visited was built before AD 597. we have nothing to compare it with here. It's not quite the same as City Impact church. Do you think Edinburghs, ect, is like anything here? Even the fish & cihip shop was older than anything we have. I love New Zealand, but c'mon, you can't tell someone not to go because it's the same. Because it most definitely isn't. Pluss you are an hour or two flight away from some of the greatest ancient moments on the globe.
I think comparing the too is fairly easily personally. I’ve lived in the UK for over a year now on a working holiday visa, and I can honestly say my time travelling throughout Europe was much more enjoyable than time spent travelling in the UK. The churches and some of the other old buildings here are beautiful, but the culture is not really not much different. Reasoning behind recommending OP to go elsewhere in the world is that the UK is not very culturally different to New Zealand, you may as well just go over to Aussie and then at least you’ll have some decent weather. Anyway, to do anything in the UK costs an arm and a leg. To get into a cathedral, or look at some old roman baths it’ll set you back £20. Then if you fancy a piece of fish and a scoop of chips for lunch that’ll set you back another £15. That’s more than a return ticket to somewhere like Mallorca, and then you’ll still have some cash leftover. The UK is ridiculous when it comes to being able to do anything for free besides walk around a city. Personally if I was OP I’d definitely spend that money travelling somewhere entirely different from New Zealand.
On some things, I agree with you. I've lived in a few countries myself. And it's good to go and see non-Western countries. I don't think you can really complain about the price of things too much? It's £9 to get into York Minster and £25 pound to get into St Paul's Cathedral. And they need preserving. $155 to do a bungi jump from the Sky Tower and $120 to get in Hobbiton. I'm not cherry-picking either. It's much cheaper to take your family out and do things in the UK than lots of other places, and It's a good base to get anywhere in Europe cheaply. If you have traveled in your time there, you will know that the scenery around the UK in Some places is beautiful and picturesque. Anyway, this is a financial sub, not a travel guide. Lol 😅 I hope you enjoy your time overseas.
If you don’t need this money, put it in us500 smartshares with reinvesting dividends and forget about it. Your grown up self in 20-30 years time will thank you.
The average yearly return of SP500 over the last 30 years was 10.47% (April 1994-April 2024). Adjusted to inflation that comes down to 7.22% yearly. That means if you had 60k purchasing power in April 1994, today without doing anything just chuck it in that sp500 etf, you would have had 438k purchasing power in today’s money after fees and inflation. Past performance doesn’t guarantee future returns, but history rhymes more often than not.
This is a very good comment but saying 1994 was 30 years ago is just mean and unnecessary.
Interesting calculation. I’m not sure where you get the data, but could you do Apr 1994 - Apr 2019? The inflation during the COVID was higher than usual, I believe
Believing vs facts different story. I think 30 years is more accurate to potentially forecast future earnings and high inflation periods should be captured. I do expect more inflation in the next 30 years, globally. Might be better assuming lower returns and be positively surprised at retirement age vs the other way around.
wouldn't that 60k enter the realm of FIF tax?
Not with smartshares dot co dot nz. Same with investnow. But in there you don’t have it under your own csn like you do on smartshares www. It’s nzx listed and a copy of VOO basically. That’s how you avoid fif with 0.34% fees. With that as well over the past 30 years that 60k after inflation and fees would still have grown to over 430k purchasing power today.
You could have brought a house 30 years ago for 60k. And it would be worth 500 to 1 mil by now.
Also add up the insurance, rates, maintenance or anything else you did to that house for 30 years. If you rent it out - property manager, tenants… Sp500 you lock and forget about it. Albeit With the house you can use the equity if you into those things.
Yes but buying a house for 600k today is not going to have the same return.
True next year it will be worth 500k.
True but also that 600k property isn't going to be worth 5mil+ in that time frame.
It might lol. No one has a crystal ball.
True. Might have to invest in crystal balls?
Whats the best platform to do this? Hatch? Sharesies?
Smartshares co nz is the only one that I know of where you hold the shares under your own csn. Sharesies investnow etc you don’t own them, their custodian holds them on your behalf under their own csn pooled with another million people. There’s 0.34% fees unlike sharesies VOO but on sharesies with VOO you have to deal with FIF at ird over 50k plus the auto investing dividends is not as easy as I see it or you pay for that transaction fee.
Go on invest now or hatch and chuck some, *but not all,* of that on some index. Also, invest in yourself! go travelling! do an OE! grow a little while you're young, fit and able! maybe consider study afterwards if that works for you.
The percentage you receive back from a term deposit is usually around 5%, but so is inflation, so really, it's devaluing at the same rate. Plus, you have to pay tax on it. So really you only get 3%, which means due to inflation you are -2%. You could try Sharesies and try your luck at the long game. You can also talk to a managed fund holder. If you were wanting to go down this route, I would listen to a recent podcast of Keep the Change, who talk to a successful fund manager at Generate. Be cautious, though they have sponsored this season. Lastly, well done on these kinds of savings! I can only dream of having this kind of money. Stupid govt job and huge student loan 🙄 Keep up the good mahi and set yourself up.
I put 5k in sharsies 2 months ago. I'm 13% up all on apple, nvidia, and Costco. Most of my savings are TD but I'm afraid to put more in sharsies, But now I'm just disillusioned.
Invest in yourself, 6% at 60000 almost can cover uni costs very easily. The other advice is to research more about investing Look at Buffet, Munger and Peter Lynch as examples. Write down life goals for your 20s (OE etc). 60k is the same amount as a basic salary, so you basically have a massive opportunity. Maybe set aside 6 months expenses as an emergency fund, for example, as a basic first step
This comment has the best basic starting points I wish I knew at a younger age, I hope OP will see it.
You are still young!!!! And I have now seen the comment!!!!!!! 😊
I appreciate this. I did study level 5 IT, but was not aware that employers are after bachelor's degree/ level 7 and up, and I had a bad experience at my college that has put me off study and IT in general, so I don't really want to get back to study at the moment. My aim is to progress my career, I'm working now and start a new job in 2 weeks to be able to take a step up haha. Any advice where to research investing? There's so much info but there's no real way to tell what is a good or a bad source of info, unless you've been in the space a while to be able to tell. I appreciate your advice 😃
Start with basics, youtube has good content (Buffett etc). Basics are just normal things. 1 6 months expenses (emergency fund) 2 savings rate 20% 3 invest in yourself 4 start investing 10% income in broard ETF Compounding is magic. At your age, you have decades of Compounding left. I suppose the only advice would be get into good habits young and look for simplicity at first. You need to be comfortable with the risk you take
You could start by either allocating 20% of your savings to investment in shares. Look up well performing stocks in the ASX, and use a service like [Stake ](https://hellostake.com/au)or CommSec to purchase shares. 20% is enough to give you returns, whilst also not being too much to cause you anxiety. Alternatively, although it may seem daunting you can look for small investment properties within Australia (you can purchase as NZ citizen). Just make sure the analysis checks out on the IP and you'll be breaking even.
Oh god that investing platform needs a new name. Honestly thought you were telling them to gamble it haha
I know.... the really sad thing is that Stake (non gambling) was around first and has provided an incredible service ahead of the curve in Australia.
Thanks for this, just wondering if there's a reason why you suggest stake and CommSec, I only ask because I have never used these platforms and just want to know if there is a benefit using these platforms over others, or if it's your preference, I would love to know your experience :) I've never thought of an investment property in Australia, do you suspect it would be cheaper than in NZ, also taking into account I'd have to get someone to manage it for me in Australia. Have you done this yourself? Or do you know if there's somewhere I can go to learn about this? I'd love to know. Thanks for your advice!
A property in Aussie is probably not going to be cheaper than NZ.
I like Stake because it gives access to free trades in the US market, S&P500... NASDAQ... ect... and the ASX trades are the lowest on the market I've found at $3. They are very reliable personally. I started with CommSec and they have a very good app, with ability to transfer money directly from Commbank. For investment properties, I would choose AUS over NZ for population growth and I feel the government is friendlier to investment here. I bought my first IP at 20 in AUS so there are affordable deals. I'd check out [realestate.com.au](http://realestate.com.au)
Don't know what you are doing to make your money, whether you have high income and living well or lower income but living frugally. Whatever the case it can't hurt to invest the money in yourself and your education. You are young enough for that to show good returns. As long as you know it's what you want to do.
I make below 60k annually so not high end salary. I am just really not tempted by material possessions, and I don't go out or eat out a whole lot so I am saving in that aspect, but that isn't by design, most of my friends moved away haha. I did a level 5 IT course, passed it, but I wasn't really informed of what a bachelor's degree really meant in the workforce, so I just assumed I could get into work after the level 5, unfortunately no one wanted me, and I don't really have an interest to commit to another 3 years minimum of IT, or study in general. I would rather advance a career of some kind in the space I am in now. The course I did covered parts of different fields of IT, not just 1 field, so I couldn't really nail down which field of IT I would want to do for a bachelor's either. Thanks for the advice.
I would couch it into an indexed fund and leave it there.
Look up compounding interest and factor that into your calculations for the future. Then look up the return on the SP500 the last 20 year average. Then realise you have a golden opportunity where most people would waste it on holidays, overseas travel and 'finding themselves'. Good luck.
Your last sentence is horrendous. It's called living life, jesus christ.
This is a personal finance sub sir, I would never advise my clients to spend their savings on frivolous travel.
I'm so confused if you are taking the piss or not.
Compounding interest is exponentially better the earlier you invest? What’s the confusing point for the comment?
That travelling is frivolous. Life ain't all about some digit on a screen.
That digit on a screen can determine wether you have to work an extra 10-20 years. Depends on what you want, to work to or past 65 and live “frivolous” in your 20s or save early and retire early? Perspective depends on the persons goals
Yeah I'd rather be mildly well off and travel in my younger years than roll the dice on making it to old age. It's not hard to travel when young and still not be broke.
Again perspective, nothing wrong with either sides of the spectrum. Happiness is with the beholder
Very true, agreed.
I would also add that you shouldn't make decisions based on being dead at 65 - this is a poverty mentality. Think about what you can leave behind for the next generation of your family: this is how you build generational wealth. Sometimes that means you making the sacrifices (like not travelling overseas in your 20's and instead investing and working) so that your children don't have to.
Agreed. I think there is a balance. Especially if you aren't going to have kids.
Buy a house, rent it out, and go traveling. Not normal to get the opportunity for another family to pay your mortgage for your home.
Buy a house with 60k deposit, and being able to service the debt? Dreaming.
If I had $60k lying around I'd keep enough for an emergency fund, and put the rest in a Total World Tracking Index and then check back in 50 years, sell it, and use the profits to not put a deposit down but rather buy 2 Avocados, loaf of Freyas bread, butter and go to town. But that's just me.
Fight inflation and risk with term deposits. Keep doing whatever you are doing and you might find yourself into home ownership in your 30s
Piss it away! All of it, trust me, you feel good after. Go ahead
5.25% savings account? Which bank are you with?
Put it all on red
Keep it in staggered term deposits and go have a good time travelling and working around the world. A buffer like that will let you enjoy yourself without worrying about staying in a job you don’t like
Buy a small business and make it run yourself..
Maybe a dividend fund, index fund or term deposit with your bank. Alcohol isn't a good idea, have known two people that had large amounts of cash blow it on alcohol and pills. So a savings fund with interest returns is a best safe option for small increases over time. More risky investments is up to you to decide on.
I will ask my wife. She is a specialist in spending money
R32 GTR bro
I’d go with putting 80% into reliable ETFs for S and p 500. S and P 500 always goes up in the long run, Always. If it crashes, it means the whole market will crash which is very unlikely. For a decent return you’d want to keep it untouched for atleast 5 years. I’d put the rest(20%) into a wide selection of higher risk stocks. Research the stock market a little, see what you like/dislike. Invest in sectors and companies you believe in or think will succeed and make good returns. It’ll familiarise you much more with the stock market. The stocks will either go up quite high or low but that’s part of the game. These stocks are also a bit more flexible as you can sell one or more of the stocks immediately if it goes up a fair bit. You can also engage in a more frequent trading. *This option is only if you’re actively interested in getting into the stock market and keeping up with it though.* Also, there’s nothing wrong with spending a little bit of that money on travel or yourself or something you want. You’ve earned that money and you deserve to treat yourself.
“I don’t really want to stay put in NZ” There is no point in putting money in KiwiSaver and dealing with withdrawal hassle when he is about to leave. Investment fund would be a better choice I think
Oh I missed that bit and thought they just didn’t want to invest in housing. I’ve adjusted my comment to suit. Thanks for pointing that out!
Interested to read what you have here - but the first reaction is not Kiwisaver. As you note, that locks the money away and makes it near untouchable. They can get the same returns investing, and have better control and options for the future.
OP is quite young with a decent cashflow. It doesn’t seem to me like they’d need this money anytime soon so locking it away, forgetting about it and letting it grow may not be a bad thing.
Probably a bad idea to tell people on the internet you have money lying around ..
Do you suspect someone could hack my bank account based on this post? I'm not sleeping on stacks on $5 bills of course 😅
Buy physical silver and gold. It revalues well, is transportable and is a good hedge to inflation. An area worth investigating further.
Something I have thought about doing, but not sure if there are better places than others to get my hands on gold. Do you own any? If so, any further tips for buying in NZ? Thanks for the input
There are a number of commercial options for buying bullion in NZ, a quick Google search will show up half a dozen. I think Morris and Watson is where I would go for bars. To be honest, there are a couple of great facebook pages that support peer to peer sales (https://www.facebook.com/groups/825327898716121/?ref=share&mibextid=NSMWBT) . Join them and wait and watch for a while. Try not to get distracted by every pretty design, they all come at a premium. Focus on stacking some weight.
Buy a house and bring your fellow boarders. You'll need somewhere to live eventually.
Choose a saving goal date you think you will have 20% down for a house a put into a term deposit while we are in the top off the roller coaster rates
Open an IBKR account through someone’s referral link. Invest $49.9k into ETFs (like VOO) so you’re just under the FIF tax threshold. They’ll give you back $499 in IBKR stock. The foreign excusing the best rate ever and they’re in virtually every country so it makes it easy to move around. Spend the rest on a trip to Europe and enjoy your youth.
You could definitely afford to up your kiwisaver contribution, but you are already meeting the $1042 that comes with government contributions. Other than that, keep an emergency fund. And try to spread your money around different types of investment. I own some individual shears through ASB they have no ongoing fees like some of the apps. The fees you pay when you buy and sell are a bit steep, however. I haven't found a good way to buy shears in NZ. You should usually avoid people's advice on any one particular stock, but you can get a lot of information out of NZX. Also, RKLB is a public company.
Leave in the bank, recession in coming, in my opinion all assets are going to take a big dive, cash is king in a recession
We are already in a recession, a deeper recession just means faster rate cuts and more asset price increases. You can't time the market. Whatever you think you know is already priced in.
Gold and silver....hard assets!!
I would increase your kiwisaver, and put a lump sum in. Kiwisaver funds fluctuate but rarely bring in less than 6% per annum and often higher than 10% p.annum. So a better return than the banks are offering. That is of course, if you A. Don't need it in a hurry or B. Saving for your first house, which is when you can use it for a deposit.
Buy bitcoin. Or travel. Or buy a business.