long term investment portfolio

[voltage]

Friends want advice on a retirement portfolio, age 50 with 100000 with more funds becoming available in the future. My idea is direct investment and see if they like it, bulk in NZ only blue chip shares MFT, RYM, AIA, POT, FBU plus 1 property trust, from ASX, BHP and a bank. Should one go further and add Templeton emerging and a Global investment trust? advice appreciated.

[percy]

Friends want advice on a retirement portfolio, age 50 with 100000 with more funds becoming available in the future. My idea is direct investment and see if they like it, bulk in NZ only blue chip shares MFT, RYM, AIA, POT, FBU plus 1 property trust, from ASX, BHP and a bank. Should one go further and add Templeton emerging and a Global investment trust? advice appreciated.

I would consider VHP Vital Healthcare Property Trust,This would give them exposure to australian commercial property,while enjoying NZ dividends.
The other NZ companies are excellent.I would consider adding EBO rather than Templeton or Global.Again australian growth with NZ dividend.
The NZ tax paid dividends make NZ companies much more attractive than Aussie,because we do not enjoy franking benifits.Big difference in 5% tax paid divie than a 3%gross dividend that you have to pay NZ tax on.

[voltage]

Thanks Percy good advice. EBO was next on my list a great performer over the last 10 years. I was thinking about diversification to aussie and global. My own portfolio has a large global focus but I have had a hefty tax bill from this and with the volatility in exchange rates has knocked performance for some time. You just need to look at WINZ. Should aussie direct stocks be there? Also what is forgotten it the higher dividends paid on NZ stock. With imputation credits it is hard to beat.

[percy]

Thanks Percy good advice. EBO was next on my list a great performer over the last 10 years. I was thinking about diversification to aussie and global. My own portfolio has a large global focus but I have had a hefty tax bill from this and with the volatility in exchange rates has knocked performance for some time. You just need to look at WINZ. Should aussie direct stocks be there? Also what is forgotten it the higher dividends paid on NZ stock. With imputation credits it is hard to beat.

I went to a broker's presentation with a hot shot aussie analysis,a few years ago.This Aussie company is great,etc,etc,paying fully imputated divie returning a nett 3% yield. Did not mention a NZ company.So at the end I asked him why I should buy an Aussie company,as I was a NZder and the 3%nett would become 3% gross.Would I not be better to buy NZ shares where I could get over 5% tax paid.Well you can imagine what a sour note the presentation ended on.Fast talking Aussie went very quiet.Great fun.He had a plane to catch.!!! lol. EBO's growth will be in aussie.

[voltage]

thanks sauce, the exchange rate is certainly pounding my overseas investments, another reason to keep income funds in nz

[voltage]

sorry percy acknowledged the wrong person

[percy]

sorry percy acknowledged the wrong person

I am honoured.

[shasta]

Friends want advice on a retirement portfolio, age 50 with 100000 with more funds becoming available in the future. My idea is direct investment and see if they like it, bulk in NZ only blue chip shares MFT, RYM, AIA, POT, FBU plus 1 property trust, from ASX, BHP and a bank. Should one go further and add Templeton emerging and a Global investment trust? advice appreciated.

One company i like on the NZX (& theres not many) is IFT, maybe look at half in shares & half in IFT Bonds?

[modandm]

SKC and WHS are kiwi blue chips investors like you describe should hold. No insult to RYM EBO etc, but they are more risky with lower dividends than these two companies.

[ENP]

SKC and WHS are kiwi blue chips investors like you describe should hold. No insult to RYM EBO etc, but they are more risky with lower dividends than these two companies.

WHS vs RYM is no comparison.

RYM is a fantastic business with increasing earnings, development and a staggering return on it's retained equity. The reason it pays lower dividends is because it uses it's retained funds to create a 20-30% return in it's own business.

The Warehouse has had decreasing sales, profits, earnings and returns on it's retained equity, thus is pays out dividends because it can't make any better use of the funds.

So before you say a business is more or less risky because of the dividends it pays, please look into the balance sheet and income statement.