My inbox is cluttered with hundreds of different threads of conversations, which in turn means I struggled to find a true focus for a blog post this week. But I often think I’m receiving and sending out some real wisdom, and it's a shame it never reaches a broader audience. So, today, I’ve scrolled back through my inbox from the last week or two and pulled out a few threads from some emails I’ve received.
In a recent blog post, I rebalanced our investment portfolio; this time, I’m rebalancing my life. I resigned from my PAYE job. I’m another step closer to early retirement, and I’m VERY excited about it! I always looked forward to working on Wednesday and Thursday each week, and deciding to leave a job I enjoy, plus giving up $20,000 a year, has been challenging.
This week, I wanted to show how our US 500 ETF investment is tracking, especially now that this is our only one. And explain how we will use it to provide income for retirement. I also have a quick update on our KiwiSaver. I mainly wanted to share this because investing in KiwiSaver and an Exchange Traded Fund (ETF) provides an alternative to investing in rental property, something we have never wanted to do. This blog explains how Jonny and I invest, that investing this way grows our wealth, and how we see our investments providing us with long-term, easily accessible income.
I’ve got a super short blog post for you this week where I am answering a question that is often asked: What is an imputation credit? If you are a share investor (including ETFs), you will pay tax at your personal tax rate on any dividend income that you receive. You must also be aware of any tax credits available to you due to your dividend income. These are called Imputation Credits, and you can use them to reduce the overall income tax you pay.
In August, I made a significant change to our investment mix. I sold all $103,000 of our Smartshares NZ Top 50 ETF (FNZ). This change ties in with all the other tweaks I’ve made over the years, where I have been progressively refining how we invest and setting ourselves up for future growth. Year after year, our mix changed as I learned and understood more, so this recent change is part of this evolution. If I were to use investment speak, I’d say I have ‘rebalanced my portfolio’.
My latest bright idea was for our whānau of three to spend the month of July earning more money while spending less of it. Call it a Financial Reset. Why? When the general societal vibe is that we are all in a rough state economically, it is easy for an individual to feel powerless. Although optimistic by nature, I’m not immune to this feeling of gloom. But instead of accepting that we are in a financial crisis, I’d prefer to take the bull by the horns and own our situation.
I'm hosting a giveaway to celebrate The Happy Saver’s 8th Anniversary. This isn't just any ordinary giveaway. With her creative flair, my daughter made a paper mache piggy bank way back in 2021. It’s taken three long years of her diligently filling it up, and now it’s time to break it open and see just how much she’s saved. To enter to win one of the prizes, take a wild guess at the total amount inside the piggy bank.
Finally, in early 2024, I’d had enough of my now-nowhere-near-good-enough accounting systems, so I switched to Hnry to run The Happy Saver accounts. To put it bluntly, I was gobsmacked at the ease of it all. I’m so pleased I’ve eliminated the complexity from my blog's ‘business’ side so I can get back to doing what I enjoy: helping people.
It’s standard for me to get at least one blunt email saying I’m wrong about a financial decision or purchase I’ve made on behalf of my whānau. Generally, the reasoning given will be based on one aspect, often a technical math issue, ignoring all the other points I mentioned. I used to panic that they might be right and that I might have this money stuff entirely and utterly wrong. But I no longer do. Instead, I take their comments with a grain of salt and consider that it’s probably them who are wrong. Although it takes time, often I’ll research their argument and find that they are.
