Smartshares - you have 100k

[GTM 3442]

But then subject to FDR on overseas investments. Plus costs involved with investing overseas (overseas bank/broker or custodian needed?)

Different circumstances, Harvey, different circumstances.

[smpl]

I don't want to bring up the passive vs active debate. The task is to divide the 100k amongst the available smartshares. So far peat gets the brownie points

Why if you want international share exposure don't you want foreign currency exposure? (Smartshares is hedged back to NZD)

Splitting up amongst trackers is messy. Check out ACWI (or ACWV even better for min volatility strategy). Vanguard cheap but aren't the best for an international mix.

Agree that timing IS everything. Terrible time to buy stocks (and bond, and property), over 20+ years you will see such better returns. Don't throw away your money under the false (& lazy) pretense that set and forget will pay off, be patient.

[heisenberg]

Why if you want international share exposure don't you want foreign currency exposure? (Smartshares is hedged back to NZD)

I don't have a problem with hedging when it comes to mutual funds as these are generally purchased for long term gains - the risk minimisation is readily accepted.

[ratkin]

Agree that timing IS everything. Terrible time to buy stocks (and bond, and property), over 20+ years you will see such better returns. Don't throw away your money under the false (& lazy) pretense that set and forget will pay off, be patient.

The point of these funds is to put money in over time, not as a one off payment. The reality is none of us really know if it is a terrible time to buy stocks or not. Historically when the most people have thought it a bad time to buy stocks has often turned out to be a good time.

[GTM 3442]

The point of these funds is to put money in over time, not as a one off payment. The reality is none of us really know if it is a terrible time to buy stocks or not. Historically when the most people have thought it a bad time to buy stocks has often turned out to be a good time.

I tend to use these types of funds ( the underlying "base" funds, not the ticket-clipped New Zealand versions) as part of my asset allocation process.

I haven't a show of picking a dozen winners in the USA, so I simply buy the S&P500 via Vanguard.

[heisenberg]

I haven't a show of picking a dozen winners in the USA, so I simply buy the S&P500 via Vanguard.

Out of interest, do you also employ similar tactics for gaining exposure to Europe and Asia, or just stick to the US?

[Harvey Specter]

A Q&A by Mary Holme which covers index funds. Says the NZ ones are good but once you have more than $100k, probably worth doing it direct with the overseas versions. SO this thread really is on the cusp (per mary).

If the question was where to put $10k, for the admin costs, the NZ versions would be a 'good' deal.

[GTM 3442]

Out of interest, do you also employ similar tactics for gaining exposure to Europe and Asia, or just stick to the US?

Yep.

A series of ETFs covering various geographies and industries.

But also with an eye to currency - it wouldn't be too clever to have it all in Swiss Francs, or all in US dollars.

[GTM 3442]

A Q&A by Mary Holme which covers index funds. Says the NZ ones are good but once you have more than $100k, probably worth doing it direct with the overseas versions. SO this thread really is on the cusp (per mary).

If the question was where to put $10k, for the admin costs, the NZ versions would be a 'good' deal.

Ms Holm's article also provided a fascinating glimpse of the ticket-clipping at which the New Zealand financial services industry is so adept.

[smpl]

The point of these funds is to put money in over time, not as a one off payment. The reality is none of us really know if it is a terrible time to buy stocks or not. Historically when the most people have thought
it a bad time to buy stocks has often turned out to be a good time.

You're wrong. The limited upside in equities (and bonds, and property) is far outweighed by the upside in commodities and inflation.

"000 dollars in each, then set up automatic payments to add 200 dollars to each at the end of every month. Think there around Twenty of them so after a year"

Even in your strategy, you are effectively buying equities at all time highs in a one off payment.