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Seems to be a bit of a contradiction between those two paragraphs!
Clarify from what angle? Both cases are mutually exclusive as they're different markets. An example, the 2008 GFC had a major impact on the US market while having minimal effect on the NZ's real estate market.
Investment in NZ is concentrated in real estate (because of the lack of capital gain tax or simply, those that hold long enough can sell without paying any tax on the gain). You simply can't do that in the US as everything has capital gains tax regardless how long you hold it.
If you read carefully, i'm not making any predictions. When the NZD went weak this past year, who questioned it? No one mentioned the billions of $ that left NZ over the foreign trust crack down by IRD (perhaps it wasn't newsworthy or news-friendly).
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Originally Posted by epower
Look up FIF rules for investing into ASX listed index funds. If you own over $50k, tax can get complicated.
I've found it best to just stick to index funds through NZ companies, Superlife, Smartshares, Investnow, Sharsies & Simplicity are all good options. Plus no brokerage if you go through this route.
Welcome to the forum MuffinPop. I would agree with epower if you want to invest fairly small and regular amounts for the long term. I'd simply be putting it into Smartshares USF (US 500 fund) or something similar. Cheap and worry free. We are in strange times right now so I have myself started putting a small amount every month into the USF with a long term horizon in mind. DYOR.
Last edited by iceman; 27-02-2019 at 06:59 PM.
Reason: Addition
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Originally Posted by iceman
Welcome to the forum MuffinPop. I would agree with epower if you want to invest fairly small and regular amounts for the long term. I'd simply be putting it into Smartshares USF (US 500 fund) or something similar. Cheap and worry free. We are in strange times right now so I have myself started putting a small amount every month into the USF with a long term horizon in mind. DYOR.
With the news of CGT looming about, it wouldn't matter where you put your $ in NZX or ASX, they're all going to be subjected to CGT. The days that certain 'potentially tax free' asset groups like real estate are numbered.
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Sign up to Superlife and invest directly. Low fees and you can withdraw/change ETF's in 2 days or less with no fees. I suggest avoiding the NZX/ASX.
https://thesmartandlazy.com/2017/05/...n-new-zealand/
https://www.superlife.co.nz/investme...funds-and-fees
Smartshares is also an option.. and has a different fee structure.
1. If you intend to withdraw/change your mind often = Superlife (virtually zero fees apart from slightly higher fund fee)
2. No changes to investment = Smartshares (slightly lower fund fees and high switching costs)
https://investnow.co.nz/thesmartandl...g-new-zealand/
The following fees also apply:
SuperLife Invest
- Administration fee - $12 a year (regardless of the number of investment options you invest in, or the number of times you change investment options).
- Paper statements fee - $18 a year (you will only be charged this fee if you choose to receive statements and other SuperLife communications in paper form).
Last edited by Schrodinger; 06-03-2019 at 11:02 AM.
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