$100,000 is a six-figure milestone that opens all investment options in New Zealand and where the decisions you make about fees, tax, and allocation have the largest absolute impact.
With $100,000: invest in NZ-domiciled PIE funds to avoid FIF tax complexity. Simplicity Growth Fund (0.10%) is the cheapest option for a broad global allocation. Consider a fee-only financial adviser — the fee is justified at this scale. Do not split into too many funds or platforms — simplicity wins. Invest in a lump sum or over 6 months, not 12+ months.
The FIF Decision Is Clear at $100,000
At $100,000, the case for NZ-domiciled PIE funds over direct US ETF purchases (VOO, SPY) is overwhelming:
| Strategy | Annual fee | FIF tax (33% marginal rate) | Total annual cost |
|---|---|---|---|
| NZ PIE fund (Simplicity 0.10%) | $100 | $0 | ~$100 |
| NZ PIE fund (InvestNow 0.20%) | $200 | $0 | ~$200 |
| Direct VOO via Hatch (0.03%) | $30 | $1,650 (5% × $100k × 33%) | ~$1,680 |
The 0.03% expense ratio of VOO appears cheap. But FIF tax makes the total cost ~16× more expensive than a NZ PIE fund. This is one of the most important NZ-specific investing insights for portfolios above $50,000.
→ See: FIF Tax NZ — Complete Guide
Recommended Allocation at $100,000
For long time horizon (10+ years, age under 55)
Option A — Single fund (simplest)
| Fund | Platform | Fee | Annual cost |
|---|---|---|---|
| Simplicity Growth Fund | Simplicity | 0.10% | $100/year |
Simplicity’s Growth Fund invests in global shares, bonds, and NZ shares in a single diversified fund. At 0.10%, it’s the cheapest diversified fund available in NZ.
Option B — Two funds (slightly more control)
| Allocation | Fund | Platform | Fee |
|---|---|---|---|
| $80,000 (80%) | Foundation Series International Shares | InvestNow | 0.20% |
| $20,000 (20%) | Foundation Series NZ Shares | InvestNow | 0.20% |
Blended: 0.20% = $200/year. More control over geographic split.
Option C — Kernel combination
| Allocation | Fund | Platform | Fee |
|---|---|---|---|
| $60,000 (60%) | Kernel Global 100 Fund (unhedged) | Kernel | 0.25% |
| $20,000 (20%) | Kernel Hedged Global 100 Fund | Kernel | 0.28% |
| $20,000 (20%) | Kernel S&P 500 Fund | Kernel | 0.25% |
Provides global exposure with partial currency hedge. Blended: ~0.26% = $260/year.
For medium time horizon (5–10 years) or moderate risk tolerance
Consider reducing growth exposure to 60–70%:
| Allocation | Asset class |
|---|---|
| 60–70% | Global / NZ shares (growth) |
| 20–25% | Bonds (defensive) |
| 10–15% | Conservative / balanced fund |
Most PIE fund providers (Simplicity, InvestNow, Kernel) offer balanced or conservative fund options.
Should You Use a Financial Adviser?
At $100,000, the fee for a single session with a fee-only financial adviser ($200–$500/hour) is absolutely justified. A good adviser can:
- Confirm appropriate asset allocation for your situation
- Review tax structure (PIR rate, trust structure, joint ownership)
- Integrate with your KiwiSaver, mortgage, and insurance picture
- Provide a written Investment Policy Statement (IPS)
Fee-only advisers charge by the hour and have no incentive to sell products. Search the Financial Advice Provider register (FMA) or ask for referrals. Avoid commission-based advisers for straightforward index fund investing.
Lump Sum or Spread Over Time?
Research favours lump sum at all amounts — but at $100,000, the emotional stakes are higher. Options:
- Invest all at once → mathematically optimal two-thirds of the time
- Invest $50k now, $50k over 6 months → reduces worst-case psychological outcome
- Invest over 12 months → usually too long; 12 months of partial investment significantly reduces compounding
For most investors at this amount, the 50% now / 50% over 6 months approach is a reasonable balance.
What $100,000 Grows To
| Return p.a. | 10 years | 20 years | 30 years |
|---|---|---|---|
| 5% | $162,889 | $265,330 | $432,194 |
| 8% | $215,892 | $466,096 | $1,006,266 |
| 10% | $259,374 | $672,750 | $1,744,940 |
Pre-tax, pre-fee, illustrative only.
Adding $1,000/month at 8% return after the initial $100,000: approximately $1.7 million after 20 years.
Annual Fee Impact on $100,000
| Fee | Annual cost | 20-year cost (money lost to fees) |
|---|---|---|
| 0.10% (Simplicity) | $100 | ~$4,800 |
| 0.20% (InvestNow) | $200 | ~$9,500 |
| 0.25% (Kernel) | $250 | ~$11,800 |
| 1.10% (active fund) | $1,100 | ~$49,000 |
| 1.50% (active fund) | $1,500 | ~$64,000 |
Assumes 8% gross return, compounding. Fee drag compounds over time.
The difference between a 0.10% fund and a 1.10% active fund is ~$44,000 in fees over 20 years on a $100,000 initial investment.
Tax Check at $100,000
PIR rate: Ensure this is set correctly. On $100,000 earning a 5% PIE return ($5,000), the tax difference between PIR 17.5% ($875) and PIR 28% ($1,400) is $525/year — check PIR Rate NZ.
FIF: Avoided entirely through NZ PIE funds — the key decision at this amount (as shown in the table above).
What to Avoid
- Splitting across 10+ funds “for diversification” — a global index fund is already diversified across 1,500+ companies
- Investing in direct property with $100,000 as a deposit — the leverage and illiquidity risks need careful consideration at this scale
- Keeping any amount above $50,000 in a savings account long-term — the real return after inflation is negative
- Making investment decisions based on recent news or market predictions