In the third part of our series on dividends, we compare the outcomes of cashing out dividends versus reinvesting them to understand the best approach for maximizing returns.

Dividends vs Portfolio Drawdown : Part 3

Dividend growth strategies have become increasingly popular among retail investors due to the appeal of passive income. But is this strategy great for building long term wealth?

Is Investing for Dividends Bad for Long Term Wealth? Part 2

Everyone loves a dividend. Getting paid simply by owning shares in a company feels good. But is it ultimately the best outcome for you or the company to do so?

Should Companies Pay High Dividends? Part 1

Interested in bond investments? Discover the risks and benefits to help you decide if you should invest in bonds.

Should You Invest In Bonds?

Whether you're new to investing or a seasoned pro, now you can build a portfolio of low-cost, well-diversified Kernel funds, easily.

How Can Kernel Funds Fit Together?

Two professionals doing work in the office

In recent years there has been an explosion in DIY investing, supported by the birth of user-friendly, low-cost, investment platforms.

DIY Investing vs Financial Advisors: When, Why, How?

image_tax_investments_tax_shouldn't_drive_investment_decisions

Often investors use tax savings to drive which investments (and therefore provider) they choose. But should they be?

Why Tax Shouldn’t Solely Drive Your Investment Decisions

Wondering where to start with engaging a financial adviser or looking to change things up? We explain where and how to start your search.

A Financial Adviser’s Worth: When and How to Work With One

Without an investment strategy, how do you know whether you'll meet your short, medium and long term goals?

How Do I Choose the Right Investment Strategy for Me?

Making changes to your investment portfolio should be driven by a change in circumstance or the economic landscape. Find out why.

When and How Should I Be Rebalancing My Investment Portfolio?

Find out what exactly sustainable funds entail and how they can fit into an investment portfolio in our blog.

Do ESG and Sustainable Funds Have a Place in an Investment Portfolio?

The challenge with new ideas is that estimating their chance of success and projecting their long term profitability is very challenging.

Has it Been a Wild Ride?

a calculator, paper clips, highlighter and paper on a desk

Tax can have a huge impact on your overall portfolio returns - in some cases by up to 2% p.a! We've got the details AND the tax calculator.

Investing in International Shares: Location or Tax?

Learn about growing and adjusting your investment portfolio to suit your long-term goals.

Building Your Investment Portfolio

Investing involves risk including the possible loss of principal and there is no assurance that the investment will provide positive performance over any period of time.

The information provided should not be relied upon as investment advice or recommendations and should not be considered specific legal, investment or tax advice.

Any information we provide is general only and current at the time of writing.

Kernel Wealth Limited (Kernel) is the issuer and manager of the Kernel Scheme. 

 for the Product Disclosure Statement. Past performance is not an indicator of future returns.

All returns are exclusive of tax. As PIE tax and withholding tax on interest earnt depend on personal factors, it would be confusing to include and unlikely to change the outcome. We have used the NZX50 gross index daily price series, where all dividends were reinvested on ex-date, exclusive of fees. Fees would have a negligible impact on the relative outcome of the different strategies.

Savings were made every Thursday for weeks in a row with investments made at market close. The 90 day bank bill rate was used for illustrative purposes, in reality cash savings account rates vary periodically. Past performance is no indicator of future performance for any investment. This article does not constitute financial advice, as your personal circumstances have not been taken into account.

 There are alternatives available for individual investors, including comparable value and de minimis exceptions but the hassle and associated cost likely outweighs the benefit achieved for most investors. Any NZ fund manager only has the FDR option. 28% is the PIR rate for those earning over $48,000, but if individually investing in companies the rate is up to 39%. Please note this is not tax advice as we are not a tax accounting firm and we don’t know your situation.

Whether you’re just getting started or a seasoned investor, here you can find everything you need to know about investing in the share markets.

Investing

Keen to save smarter for what matters today and tomorrow? Here you can learn the ins and outs of budgeting, saving and money management.

Saving

KiwiSaver can be a great tool to use on your road to a financially secure retirement. So, here is everything that you need to know to be able to get the most of your KiwiSaver.

KiwiSaver

Wondering how to decipher between the Kernel funds, or which might be most suitable for your goals? We explain it all in our blogs below. 

Choosing investments

Set your kids up for a financially secure future. Teach them the foundations of money and investing all while learning more yourself. 

Kids

An easily complicated topic, we simply explain how tax impacts your investments.

Building Your Investment Portfolio

Dividends vs Portfolio Drawdown : Part 3

Explore other topics

Keep up to date with Kernel

Time to give your money a new home?

Keep up to date with Kernel

About

Legal

Learn