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Current Plan

Last reviewed: May 2026

This is our canonical, living strategy document. It summarises what we're doing right now — not what was discussed in any particular session.

FIRE Status

  • Liquid net worth: 5.5M NZD (excludes unvested RSUs)
  • Annual spend target: 200K NZD
  • Safe withdrawal rate: 4% → supports 220K/yr
  • Status: ✅ Financially independent today

Targets

Retirement
$200K/yr at 4%
$5.5M / $5M
University (×2)
2032–2038
Funded
First Homes (×2)
2041–2045
Funded
Legacy (×2)
2050–2053 · if >$15M
$5.5M / $15.2M
Grand Target
$5.5M / $15.2M

Drawdown Timeline (no further work, 9% growth, 200K/yr spend)

Year Projected NW Event Drawdown
2026 5.5M Stop working
2032 7.6M Henry uni starts -100K
2035 9.1M Pippa uni starts -100K
2041 12.8M Henry first home -1M
2045 16.2M Pippa first home -1M
2050 19.7M Henry legacy -4M (if >15M)
2053 20.8M Pippa legacy -4M (if >15M)

See Monte Carlo for stress-tested scenarios.

Current Allocation Strategy

Kernel (target — pending execution)

Fund Target % Current % Status
World ex-US 37% 20% 🔴 Under
S&P 500 (Unhedged) 21% 5% 🔴 Under
Emerging Markets 16% 22% 🔴 Over
Global 100 11% 7% 🟡 Under
Global Infrastructure 10% 24% 🔴 Over
Dividend Aristocrats 5% 18% 🔴 Over
Cash Plus 0% 5% 🔴 Sell all

KiwiSaver — Jonathan & Julia (target — pending execution)

Fund Target % Current % Status
World ex-US (Unhedged) 40% 0% 🔴 Under
S&P 500 (Unhedged) 30% 0% 🔴 Under
Emerging Markets 20% 0% 🔴 Under
Global 100 10% 64% 🔴 Over
S&P 500 (NZD Hedged) 0% 18% 🔴 Sell all
High Growth 0% 18% 🔴 Sell all

Rationale: Locked until 65 (23+ years). Maximise growth — no defensive funds. All unhedged — hedging costs 1-2% pa, which compounds massively over 23 years. NZD expected flat-to-weaker. Eliminates Mag 7 concentration (Global 100 down from 64% to 10%).

InvestNow (hold — do not rebalance)

Fund Allocation Note
Foundation Series US 500 100% ($726K) Hold. Buy/sell spreads make rebalancing expensive. Platform diversification.

Rebalance pending — see Action Items. Kernel cash flow: sell from most-overweight fund when tax payments due.

Key Policies

  • Tax structure: 100% PIE (28% tax rate, no provisional tax once MSFT sold)
  • MSFT shares: Sell all vested, resume sell-on-vest, sell ESPP on purchase
  • Legacy gifts: Conditional on portfolio > 15M at time of gift
  • Rebalance cadence: Reviewed monthly, executed when drift > 5%
  • Unvested RSUs: Not counted as net worth (contingent on employment)
  • KiwiSaver: Rebalance freely (no spread, no tax). Reduce Global 100 concentration.
  • InvestNow: Hold only — buy/sell spreads make rebalancing expensive. Do not trade.
  • Holistic view: Allocation targets consider Kernel + KiwiSaver + InvestNow together

Pending Actions

See Action Items for the full list.

Decision History

Date Decision Rationale Source
May 2026 Stay 100% PIE 1.4% vs 1.95% tax; eliminates provisional tax Analysis
May 2026 Sell all MSFT Reduce single-stock concentration Analysis
May 2026 Rebalance Kernel Over-allocated to Infrastructure/EM; shift to World ex-US + S&P 500 Proposal
May 2026 Rebalance KiwiSaver All unhedged: 40% World ex-US, 30% S&P 500, 20% EM, 10% Global 100 Holistic review
May 2026 InvestNow hold-only Buy/sell spreads make rebalancing expensive; treat as permanent US allocation Holistic review
May 2026 Holistic allocation Consider all platforms (Kernel + KiwiSaver + InvestNow) together for targets Holistic review
May 2026 Eliminate Cash Plus Sell from overweight fund when tax due; no drag
May 2026 Legacy gifts conditional Monte Carlo shows 22% ruin if unconditional Monte Carlo
May 2026 200K/yr retirement spend Julia's preference for flexibility

This page is updated each session. For the full rationale behind any decision, see the relevant session's Plans & Proposals.