No. Far more than 100%. Provided the additional funds are long term and locked in.
100% is a joke. Normal people are 800% invested when young.
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"Nonetheless, the RBNZ will be wary of the risk that labour costs and core inflation do not cool as quickly as it is comfortable with. 5.50% looks to be the OCR peak this cycle, but we note that the RBNZ will be vigilant to signs of inflation settling above the top of the 1-3% target band. We do not expect an OCR cut until 2025, with monetary settings to remain tighter than neutral levels until at least mid-2026."
ASB commentary after today's data ....covering both sides ...but insisting 5.5% is the top ...Rate cuts only in 2025 can change to 3rd qtr 2024 maybe
https://www.stuff.co.nz/business/mon...rest-rate-peak
Lots of talk about rates going on ...as that decides many markets direction not just stocks ...Property many are already calling has bottomed ...then why not stocks ?? Normally stocks bottom before property !!!
Mate I have been in that situation in 2010 ...locked major funds in 7.25% term funds for 5 years and regretted it ...My KFL returns were much superior to my 7.25% term fund returns in the next 5 years ...so I will not advise anyone to lock in funds in term funds even if they go to 7.25% ...for 10% term funds rates I think most NZ will have to be bankrupt first or homeless which ever u prefer
PS : BTW even conservative banks are stress testing new borrowers at peak rate of 9% mortgage ...for 10% deposit rates ...mortgage needs be at least 12% !!!!
If u invest in safe FNZ / NZG which follow index and its returns then why it doesn't matter mate ?? ...
eg if u had invested in KFL for income to live and FPH / MFT for growth then u wud have lived well as well grown even better then index returns mentioned above
PS : Kiora did that very successfully ...He had IFT and FPH and doing very well even now !!
if you invest in a index your betting it goes up over time. time is the important bit because if it takes 20yrs to go up 10% say your wasted 20yrs of gaining loot for retirement. remember index's go sideways most of time.
your right about kfl if it has returned you a real return of 7 odd % per yr then that is a real return which when compounded over the 20yrs is much better for your retirement.
when you entered both of these investments matter cause if you invest in index at wrong time that make it even harder to get your 10% in 20 yrs
if you invested in kfl a yr agao you have lost capital but still get your return each yr but the punch line is if you havnt got time on your side and have to sell kfl your capital losses wipe out your div return.
so that why i say real return each yr matters as to meet your goals not investment based on uncertainties
I did say timing it matters if u dont have much time on your side ...like I invested in KFL in 2010 and FPH same time ...one for income and other for growth ...both did very well ....recently I switched from FPH to MFT for the growth part ...while keeping KFL part .
I cud have invested only in KFL and kept 80% in DRP and 20% in dividends for income ...even that wud had done very well though not as good as FPH/ MFT
Otherwise all in FNZ wud have given 400% returns overall over 12 years period ...as FNZ also pays reasonable dividend while keeping risk very low
So many stay invested strategies can work ...surely when u get in matters if u just want returns in 10 years ...but if u have 20-30 years perspective then it matters much less
PS : Thats why I wanted some Gurus to advise or at least encourage people like me to invest long term in the current environment rather then just keep on scaring them to keep looking for cheaper and lower prices and finally they loose an opportunity ...with full caveat that no one can time prefect bottom but general bottomish time can be sensed ...like I sense current atmosphere is like 2010 type
i think you have plan which is important bit you dont need anyone to advise you if good time or not just stick to your plan as it looks like it working for you. people just got to remember its actual returns banked each yr that count and time.
anyway gooto go for the day , working on chatgpt code for my guru trading system.