The Perfect Solution for Retirees
NEWTON ROSS has many retirees as clients. We provide regular distributions from their portfolios either fortnightly or monthly. Here’s why NZ DIMS provides an excellent solution for these clients:
We can set up a standing order with a payment made directly into your bank account in the amount and on the same date or dates of the month that you choose. We do not charge for this service. If you need a one off withdrawal from your portfolio, we can arrange for that as well.
NZ DIMS portfolios are tax efficient. Many people believe that if you are taking regular distributions from your portfolio, the best way to accomplish this is to own mostly income producing securities. This type of portfolio will typically result in lower returns and higher taxes. NZ DIMS uses a total return concept as opposed to an income producing portfolio to generate a solid return with lower tax consequences. Making the most of our favorable tax opportunities results in more money available to you.
NZ DIMS portfolios are conservative. We prefer to invest in high quality assets with the aim to avoid a permanent loss. We invest in shares that have good quality earnings and good management. We only invest in investment grade bonds and do not invest in high yield or “junk” bonds. In a low interest rate environment, many advisers have taken more risk by investing clients’ funds in higher yielding, lower quality dividend shares and bonds. We do not take these risks.
NZ DIMS designs its portfolios so that they have less volatility. As a retiree, you cannot afford a large loss in your portfolio. The biggest temptation for a client is to sell at the bottom in a bad market. We design our portfolios to have less volatility so that our clients will be more likely to stay invested through a poor market.