DIY investing is easier than ever, with ETFs and online platforms giving many New Zealanders confidence to manage their own portfolios. Returns can look strong, and progress can feel real, but this episode asks a critical question: Are you actually building wealth once tax is taken into account?
Rory and Tim explore the gap between gross returns and what you keep after tax. They unpack bracket creep, overseas investment tax rules, and why multiple income sources can lead to unexpected outcomes. The discussion highlights why coordination matters, why splitting advice can create blind spots, and how focusing on after tax outcomes helps investors make more intentional long-term decisions.
(00:00:18) Welcome to Advisor Talk: DIY investing rise and the question of actual returns vs perceived success
(00:01:57) Why DIY investing has become popular with New Zealanders over the past decade
(00:02:53) Gross returns vs net returns: What investors naturally focus on and barbecue bragging rights
(00:03:20) Behavioural finance and herding mentality around investment trends
(00:04:04) Tax bracket creep explained: Why it catches people by surprise at tax time
(00:05:04) Cash flow issues from unexpected tax bills and the role of financial advisors
(00:06:04) FIF rules (Foreign Investment Fund): Common misconceptions about overseas investment taxation
(00:07:14) Problems with splitting money across multiple advisors: Tax and advice perspective issues
(00:08:41) Key mindset shift: Working with independent financial advisors for real after-tax wealth
(00:08:54) Russell Investments survey: 4.7% value of financial advice over market returns
(00:09:57) Big takeaway: DIY investing isn't the problem, but the rules have changed
(00:10:47) Final advice: Reach out to independent financial advisors acting as fiduciaries
(00:11:01) Closing: Podcast wrap-up and disclaimer information
The Adviser Talk is available on all major streaming platforms, including Spotify and Apple Music.