Investment advice

[PTWhatAGreatForum]

I am in my mid-30's, married, and pretty stable life wise.

I have been thinking lately about investment prospects over the next 20 years, in part because I doubt there will be any pension when I am 65. I am not too keen on property but I know there are people here who may have useful stuff to impart on the wider picture.

One of the options I am considering is forrestry or farming syndicates.

Thanks :-)

[PC]

Problem with syndicates is you have no control.
Plus you will pay a lot of fees.
This is the same problem you have with share investing via unit trusts.
For example - most kiwi savers schemes take 12% of returns in fees: https://public.tableau.com/profile/f...Tracker/Story1


Direct property investment gives you opportunity to buy well, leverage & renovate.
Also can apply sweat equity - i.e. spend your weekends/evenings renovating.
Can't do that with the other options.

[Sportsvee]

If you want easy, look at Smartshares.
ETFs for shares that you do direct credits to and grow at your own pace.

Once the carnage of the honeymoon is cleared that will be my next step. But main focus is still property with next asset in November/December.

[BlueSky]

Once the carnage of the honeymoon is cleared that will be my next step. But main focus is still property with next asset in November/December.

carnage of the honeymoon

?

With regards to shares and property I am of the same thoughts - more pain to come and later in the year will be some good ones

[BigWal_v2]

If you want easy, look at Smartshares.
ETFs for shares that you do direct credits to and grow at your own pace.

Once the carnage of the honeymoon is cleared that will be my next step. But main focus is still property with next asset in November/December.

If you're going down the route of an Exchange Traded Fund - ETF - (which I wholeheartedly recommend, as long as your investment horizon is over 10 years or so) you're better off looking at Simplicity. They use Vanguard for their offshore investments (the people who started the ETF business around 30 years ago).

Their fees are .31% of the fund balance, which is quite a bit less than SmartShares. (Good luck finding current fee information on SmartShares on their website - I found it a while ago, but, surprise, it's not that easy to find, and I couldn't do so today.)

And tracker funds beat managed funds hand over fist in the longer term.

Let's take Harvard for an example. Lots of money, and 'smart' people running a managed fund, right? So Google "Harvard investment losses"

[Sportsvee]

Agreed. "Managed" funds are crap and only good for lining the managers pockets with fees. Wouldn't consider university a good investment either for someone (good doc about it, can't remember the name).

Main reason I said Smartshares was to keep it simple, and (use to be) reasonabe fees. Simplicity has quite a range now and could overwelm a little. Can't remember if they also have a setup fee or not? Also some Vanguard dividends seemed way down on what they pay at the source (typo? Changed now?).

But definitely worth a look.

[PTWhatAGreatForum]

Thanks for the responses so far.

I do not want to invest in managed funds for the following reasons-
1. I have seen enough cases where they are basiclly a wealth transfer from the suckers, opps I mean investors, to those running the scam, opps, I mean scheme.
2. I want to know where my funds are being invested and to what ends.

In any case, I need to feel personally comfortable. I am not out to make a profit at any cost.

Primary industries are personally attractive to me. They provide employment and contribute to the country economically.

[Natetrade]

Problem with syndicates is you have no control.
Plus you will pay a lot of fees.
This is the same problem you have with share investing via unit trusts.
For example - most kiwi savers schemes take 12% of returns in fees: https://public.tableau.com/profile/f...Tracker/Story1


Direct property investment gives you opportunity to buy well, leverage & renovate.
Also can apply sweat equity - i.e. spend your weekends/evenings renovating.
Can't do that with the other options.

That's it in a nutshell!! - buy under market value, use leverage and renovate/add value. All of that makes residential investment better than investing in shares or other managed funds/syndicates. Good advice PC!!!

[ScottSI]

So you have CASH??

Can't borrow against syndicate units generally. Syndicate units generally start at 50k investment and are 7 to 8 % return + capital growth. Wholesale / eligible investor ones generally start at 250k. Look at Augusta (current offer Airways 7%), Oyster, Silverfin, Maat (current offering in Tauranga 7.8%), myfarm are a few.

Farm syndicates are on offer through my myfarm (Fielding based). Think running at 4 to 6% range at the moment.

Not sure who are doing forestry but friends who have direct ownership have returned around 2% pa out of their forests so pretty low returns.

Pencarrow (private equity firm) are opening up fund 5 currently, you could drop 200 or 300k in that and hope it does well (last was 20+% pa think but don't have the data on me currently) so might double/triple investment over 3 to 5 years.

[ybbest]

Stable is a relative concept ,I am in similar position I was in my late-20's, married, and pretty stable life wise. And suddently my wife and I could not work for 2 months. We are from stable to broke in no time. Property investment now gives the security even we can not work for 1 Year we will still be OK.

[ripeka]

Not sure who are doing forestry but friends who have direct ownership have returned around 2% pa out of their forests so pretty low returns.

We directly own forestry which we planted and have looked after and watched grow for 23 years. The gross value has grown as predicted. What has taken us by surprise is the massive increase in harvesting and transport costs. Anyway, two cyclones in two months has now seen the end of that forest. With wind insurance only covering 50% of the value (and that's the maximum you can ever get), let's just say that if we were getting 2% return, we would be happy, lol. It's so bad that we are actually laughing about it. Risks with forestry: wind destroying wealth in a heartbeat, lots of macro factors which are outside of our control (export log price, what the forestry industry is doing in NZ eg compliance), and these factors have the big potential for negative impact, disease (not sure whether myrtle rust will affect forestry) etc. Our land won't be replanted once it's cleared......

[Wayne]

We directly own forestry which we planted and have looked after and watched grow for 23 years. The gross value has grown as predicted. What has taken us by surprise is the massive increase in harvesting and transport costs. Anyway, two cyclones in two months has now seen the end of that forest. With wind insurance only covering 50% of the value (and that's the maximum you can ever get), let's just say that if we were getting 2% return, we would be happy, lol. It's so bad that we are actually laughing about it. Risks with forestry: wind destroying wealth in a heartbeat, lots of macro factors which are outside of our control (export log price, what the forestry industry is doing in NZ eg compliance), and these factors have the big potential for negative impact, disease (not sure whether myrtle rust will affect forestry) etc. Our land won't be replanted once it's cleared......

Don't you just pick the wood up now - the wind did the harvesting?