Investment Portfolio for Retirement

[Bjauck]

Thanks so much for this feedback guys as I am stumped regards knowing what to do. At this point all I can conclude is knowledge is good. The more information I have available the better equiped I should be to make an informed decision.
As for our situation, we have always lived within our modest means so I see no major change there going forward. We would however like the 500k to enhance our modest lifestyle as we move forward.
Our health is good, I prefer to invest in good fitness and diet rather than health insurance.
Yes, once wife retires we will recieve $617 pw. For now im still working (modest income low stress employment ) but, only becuse I want to. If i wake up tomorrow and decide to persue other interests I will !
House is mortgage free.

The fact you were able to be a home owner (and then trade down to provide retirement capital) does show how NZ traditional home ownership has been the bedrock of NZ retirement planning.

As home ownership declines (and is not necessarily the best choice for all people anyway) and fewer families can afford to be owners, a retirement savings plan needs to be established which incurs the same level of tax obligations as home ownership for the same level of gains. KiwiSaver as a savings plan is just a very small step in that direction.

[Maverick]

Well , there will be no surprises from me. Put the lot in OCA.
"shock , horror!"I hear you all say what about diversification?
Forget diversification,It's only 500K , regular people will put all of that into one rental house (or 1.5 x rental houses) plus living in their own freehold house and have no issues. They'll even be happy to borrow some to do it.
Why OCA?
Beyond everything said on that thread (which implies good growth for ages), for the purpose of retirement its gives a fair dividend return and capital growth.
Wait, there's one more thing...here is the most important part...the share will also be inflation proof. For retirement funds that will be needed 30 years from now when plumbers cost $500/hr .Without keeping the 500k up with inflation, it will have eroded to almost worthlessness by the end.
I see the price of a village/house representing the amalgamated sum of labour costs of the era (land, plumbers, engineers etc all combined into one new house build cost) so in other words your OCA unit (continually maintained to new condition all paid by the residents) will keep up with whatever the costs of the future might be.
While HLG , AIR etc have good divis their assets don't` necessarily keep up with inflation for that plumbers bill 30 years from now (i.e HLG capital value growth is benign)
Can`t go wrong with OCA. At he very minimum if the share price doesn't go up one more cent above the rate of inflation from $1.08 the current dividend alone is adequate..but lets face it, its gonna go up sh*t loads as well.

Disc , retiring in 3 weeks.

[Beagle]

Well , there will be no surprises from me. Put the lot in OCA.
"shock , horror!"I hear you all say what about diversification?
Forget diversification,It's only 500K , people will put all of that into one rental house (or 1.5 x rental houses) plus living in their own freehold house and have no issues. They'll even be happy to borrow some to do it.
Why OCA?
Beyond everything said on that thread (which implies good growth for ages), for the purpose of retirement its gives a fair dividend return and capital growth.
Wait, there's one more thing...here is the most important part...the share will also be inflation proof. For retirement funds that will be needed 30 years from now when plumbers cost $500/hr .Without keeping the 500k up with inflation, it will erode to almost worthlessness by the end.
I see the price of a village/house representing the amalgamated sum of labour costs of the era (land, plumbers, engineers etc all combined into one new house build cost) so in other words your OCA unit (continually maintained to new condition all paid by the residents) will keep up with whatever the costs of the future might be.
While HLG , AIR etc have good divis their assets don't` necessarily keep up with inflation for that plumbers bill 30 years from now (i.e HLG capital value growth is benign)
Can`t go wrong with OCA. At he very minimum if the share price doesn't go up one more cent above the rate of inflation from $1.08 the current dividend alone is adequate..but lets face it its gonna go up sh*t loads as well.

Disc , retiring in 3 weeks.

LOL you can't have too many. I love your enthusiasm, I really do but ynot wants very conservative so I would think that MUST include some pretty good level of diversification.

[Maverick]

"Please suggest a portfolio predominantly based around conservative sustainable dividend income."
The portfolio is "conservative sustainable dividend income". The portfolio doesn't need altering . To demonstrate the corrosion of inflation , Ynot just needs to remember what plumbers cost him in 1990 ($25/hr, now $80 + gst)then work out perhaps his idea of "conservative" akin to putting $500k (in 15 different pots) under the mattress is a certain slow train wreck.
Then for stage 2, the fun part, he needs to guide Mrs Ynot into the idea. (she will never have a bar of it though) so instead ... just tell her she can buy new shoes every time the OCA div comes out.....twice a year forever! Welcome to the "Maverick school of charm"

Disc . Retiring in 2.9998 weeks.

[Beagle]

Hi minimoke, yes it will be when his wife hits 65.

[Arthur]

It looks like a very risky long term portfolio. They might live for another 40 years. Having it all invested in NZ is a risky strategy. What happens to expenses if the $NZ drops in half? You do not even have any exporters that would benefit from the fall. If China or USA sneeze, foot and mouth comes here, tourism drops,there is a big quake in Wellington or Rangi blows, fake milk and/or meat take off our economy would be very prone to tanking, taking the entire portfolio with it.The electricity companies are on super high PEs and paying high dividends by eating the future. Technological changes could threaten both the electricity companies and Z. Online shopping is already killing property companies overseas. Diversification isn't buying baked beans from three different companies

[Beagle]

Arthur - Why don't you post what you recommend then ?

[percy]

It looks like a very risky long term portfolio. They might live for another 40 years. Having it all invested in NZ is a risky strategy. What happens to expenses if the $NZ drops in half? You do not even have any exporters that would benefit from the fall. If China or USA sneeze, foot and mouth comes here, tourism drops,there is a big quake in Wellington or Rangi blows, fake milk and/or meat take off our economy would be very prone to tanking, taking the entire portfolio with it.The electricity companies are on super high PEs and paying high dividends by eating the future. Technological changes could threaten both the electricity companies and Z. Online shopping is already killing property companies overseas. Diversification isn't buying baked beans from three different companies

Investing in USA is dangerous should you die.A NZder trying to get shares out of probate is near impossible,and is the reason I sold US shares a number of years ago.
My largest undisclosed shareholding is an exporter.
I have already survived a few earthquakes,and more do not concern me.
Yes the electricity companies will go gang busters with electric cars..

[Arthur]

Investing in USA is dangerous should you die.A NZder trying to get shares out of probate is near impossible,and is the reason I sold US shares a number of years ago.
My largest undisclosed shareholding is an exporter.
I have already survived a few earthquakes,and more do not concern me.
Yes the electricity companies will go gang busters with electric cars..

Tesla's business model is solar, powerwall, car with no middleman. Not there yet obviously, but it does not take much of an oversupply of electricity and the power companies could be stranded assets. Not a basket I'd have all of my retirements eggs in. Personally I use a variety of fund managers for my overseas exposure. I have a few token ETFs, but have found my active managers worth the money. It would be worth talking with a few independent AFAs (authorised financial advisers) about their ideas.

[percy]

Tesla's business model is solar, powerwall, car with no middleman. Not there yet obviously, but it does not take much of an oversupply of electricity and the power companies could be stranded assets. Not a basket I'd have all of my retirements eggs in. Personally I use a variety of fund managers for my overseas exposure. I have a few token ETFs, but have found my active managers worth the money. It would be worth talking with a few independent AFAs (authorised financial advisers) about their ideas.

I have never used a fund manager.Never will.

ps.I am a very successful investor.