Investment Portfolio for Retirement

[SBQ]

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

I've looked into the FIF / FDR and it gets really complicated if you hold mixed assets in the portfolio. Such as some Australian shares are exempted from FIF. There's currency exchange rate to factor. To add more complexities, how about 'quick sales' for buying and or selling more than once in the same year? Above all, it's part of the tax compliance for filing.

https://www.ird.govt.nz/toii/fif/cal...-choosing.html

Look at page 19 here for quick sale calculations:
https://www.ird.govt.nz/resources/5/...2f11/ir461.pdf

and check out the flow chart on page 6:

vs: the guy that owns the house can easily pay a property manager. That's what i've seen most have done to muscle out the undesirable tenants. This would suit easily for any pensioner or retired person that seeks to enjoy vacations abroad, etc. without the hassles. I've also met many seniors that insist on living in their home and renting out a room as "home stays" which again, the income is tax free.

Now if I was living back in Canada, then the situation for pensioners is entirely different. They have CGT and complex tax code for owning rental properties or renting a portion of your principal residence home out (ie that % of the house rented is a "change of use" and will have CGT on that % value of the whole home). So in that sense, most seniors have their savings invested in equities or in lower risk bonds. But NZ's sharemarket isn't like that - it's a hell of a lot more riskier than your S&P500 mix.

Don't take my word for it. Countless of elderly people have told me the past where so and so have lost so much $ in past NZ stock market crashes or some finance company or corporate has fleeced shareholders. Even bond investments such as "Hanover Finance" were effective at vaporising the mom & pop savings they had when they thought 9% pa was a far better rate than what the banks were offering around 7-8% at the time.