Best option for exposure to global markets?

[GTM 3442]

Mornin' Arndale.

I've always found the New Zealand IRD website more circular than helpful, and just thank my lucky stars that I don't have to have anything to do with New Zealand's FIF tax regime. My tax situation is almost certainly different to yours, which means that it's almost impossible for me to contribute anything meaningful.

However, in a more general sense, I don't think that tax should be a major driver in investing. I think it's more important to set up a structure which suits you, and then start looking at tax.

For example, I invest out of Luxembourg, but I bank in Australia.

Have a look round the various expat forums for discussions about expat-oriented "offshore" financial services companies.

Good luck.

[zb3]

TD Direct in Luxembourg offer me access to a lot of things which are very useful, but charge me for these very useful things.

They offer me custody services. They offer me accounts in multiple currency. They offer me access to a wide range of Mutual Funds. They offer me access to a wide range of ETFs. They offer me access to direct investment in specific shares in a wide selection of markets. They are easy to pop money into.

Note that they do not pay interest on cash balances. Note that they charge for custody services. Note that they charge brokerage. Note that they make money on multi-currency transactions.

Primarily they offer me a "one-stop-shop" which allows me to keep all my non-NZ non-bank investing in one easily-accessible place. This is my main reason for using them. It has worked well for me for years now.

I will shut up now as I am starting to sound as if I am on the payroll.

But before I go - be very careful about all of this. Much of the work of investment is in administration , in compliance, and in taxation.

Before you start flinging money around the world, make sure that you know what you will be up for in the way of tax liabilities, where those liabilities will fall, how you will deal with them when they arrive, as well as the inevitable compliance and administrative overhead

Thanks for the reply GTM. I am looking at investing in UPRO and TQQQ ETFs through them. Just have a few questions for you.

- How does the tax work? Is the tax on dividends withheld at source like in NZ, or do they pay you out their imputation credit without withholding any RWT? Or what? Where is the best place to find out this sort of thing?

- What sort of statements do they send you?

- How difficult is it signing up as an NZ resident?

Any other info you could tell me about the process would be much appreciated.


Thanks for your help.

[GTM 3442]

Thanks for the reply GTM. I am looking at investing in UPRO and TQQQ ETFs through them. Just have a few questions for you.

- How does the tax work? Is the tax on dividends withheld at source like in NZ, or do they pay you out their imputation credit without withholding any RWT? Or what? Where is the best place to find out this sort of thing?

- What sort of statements do they send you?

- How difficult is it signing up as an NZ resident?

Any other info you could tell me about the process would be much appreciated.


Thanks for your help.

Mornin' zb3

Tax is either paid or not paid at source. This will vary according to where the investment vehicle is based. The best way to find out the details is to ask, either by email or by a telephone. You do get two consolidated tax statements each year. As a custodian, they simply pass on the details provided by the investment vehicle, and assume that you know what to do with those details.

It's an online system, so they don't send you any statements, but you can access them online, and print them if you feel the urge. Similarly with contract notes and other documentation.

I imagine that it would be as easy to sign up as a New Zealand resident as any other form of resident. I certainly had no issues or problems other than the fact that I have no residential address.

Note: It is almost certain that my residency and tax situation is different to yours. Thus my experience will be of limited value to you, and you should check it out for yourself