Investment Portfolio for Retirement

[Snow Leopard]

...Now if I was living back in Canada...

You should really go for it.

[SBQ]

We know.... OK ?.

The very good question was not asking for history...

Excuse my overstatement on FIF in my last post. There's good reason why people in NZ are obsessed with real estate and I can see why. It's because that asset class can be tax free.

Sorry for the repetition but I haven't found a direct answer so I question again, why is there a huge dividend focus by many financial advisors without the concern on "BOOK VALUE" ? It's a basic fundamental approach. You simply don't get a rise in share price if the company continues to pay dividends each year, which erodes the retained earnings on the balance sheet 'book value / share'. The logical choice is to have a tax free capital gain (by maintaining profits in the company which raises the book value per share) vs a tax triggered dividend payment. The obsession of dividend payment in NZ has shown listed companies to promote a 'dividend payment policy' while at the same time, the company borrows more $ for capital expansion, or even worse, issues more shares (a la The Warehouse style). So i'm not being a negative nanny, I just question why the obsessions of dividends on NZ share investments?

Perhaps i'm pointing out something too obvious in that NZ real estate is so much easier to retire on than any other asset class?

[ynot]

So you want me to make a prediction about the future?
OK. Here is my biased opinion which comes complete with a cast iron guarantee to be wrong by the time you read it.
The shorter the time frame the greater the volatility but assuming you go buy DIV at the next available opportunity:
You will get 5.5% gross or better annualised dividend over the next 10 years;
You will also have a 10% plus total capital gain in 10 years time.

But apparently the only certainities in life are death and taxes.

As you say only a prediction but a 10% capital gain in 10 years on DIV shares compared to the probable gain on a 500k rental property !

[kiora]

So you want me to make a prediction about the future?
OK. Here is my biased opinion which comes complete with a cast iron guarantee to be wrong by the time you read it.
The shorter the time frame the greater the volatility but assuming you go buy DIV at the next available opportunity:
You will get 5.5% gross or better annualised dividend over the next 10 years;
You will also have a 10% plus total capital gain over 10 years .

But apparently the only certainities in life are death and taxes.

Or if an investor is even luckier You will get 5.5% gross or better annualised dividend over the next 10 years;
You will also have a 10% annualized compounding capital gain in 10 years time.

[Beagle]

Have a look at the Fisher Funds group of companies, Marlin, Kingfish and Barramundi.
All pay out 2% per quarter as a PIE distribution which is not taxable in your hands.
Investing in a mix of these companies gives you a great spread of investment both within N.Z., Australia and with Marlin America and Asia.
More here - https://marlin.co.nz/ https://www.kingfish.co.nz/ and here https://barramundi.co.nz/
I have some of each which is a recent initiative for me as I believe they are an excellent option for generating retirement income.
Add in some of the other shares I mentioned when I started this thread for you and Bob's your uncle.

[ynot]

Or if an investor is even luckier You will get 5.5% gross or better annualised dividend over the next 10 years;
You will also have a 10% annualized compounding capital gain in 10 years time.

Based on the results posted by Snow Leopard over the last 3 year period the share price growth averaged around 4.6 % growth annually. Although like Snow points out this is market dependent looking forward. It could go nowhere over the next 10 years.

[Timesurfer]

The trouble with real estate is you have to deal with tenants. FIF/FDR is a breeze in comparison.

Not neccessarily. If you are doing residential realestate you can hire property managers.
If you are dealing in commercial realestate tenants are generally much less of a hassle.
If you buy into a commercial realestate syndicate it is generally a passive investment.

Of course, the more hands on you are the more return you can generally get, but just as with shares there are hands off investment methods for those just looking to enjoy retirement.
I

[ynot]

Had some great advice on this thread last year but had my reservations about diving in so have been on the sideline. Now or very soon I will be in. My circumstances have not changed, I'm looking for stable div income going forward. If anyone has other views on what was suggested last year please let me know.

[stoploss]

Had some great advice on this thread last year but had my reservations about diving in so have been on the sideline. Now or very soon I will be in. My circumstances have not changed, I'm looking for stable div income going forward. If anyone has other views on what was suggested last year please let me know.

IMO don't be in a rush to get in .... Just because AIR NZ was $ 2.90 a few weeks back and $ 1.80 today doesn't make it cheap .... same could be said for many shares . Best wait for the Bear to finish destroying the forest then when the green shoots appear maybe start having a nibble .

[Entrep]

Or you can DCA in like I am doing - I'm avoiding AIR like the plague right now though