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Stealth Wealth-What it is

Written by R. A. Stewart

“Some People look rich but are actually poor while others look poor, but are rich.”-Proverbs 13:7

Stealth Wealth is a term which I had come across for the first time recently. I had never even heard of it previously so did a bit of research into what it actually meant.

Stealth Wealth is when people who are rich are living low key lives that no one knows they are rich. They may drive a modest car and live in a modest house. These people are likely to have their money in the financial markets and other investments.

At the other extreme, there are people who display their possessions in a way which gives others the impression that they are doing well for themselves. They drive fancy cars, wear expensive clothes, and attend all of the right parties, but they have nothing to show for all of their labours. 

Those in the “Look rich” category often find that their wages are not enough to pay for their flashy lifestyle so they use their credit card. There is a cost to this and that is called interest.

The people who live in such a way as to give others the impression that they are not rich will invest their money in the share market and other income generating investments.

Notice something?

People in the first category are investing money in something which increases in value and this grows their wealth.

Those in the second category spend their money on stuff which loses value and so never get anywhere financially; they are spenders.

Years ago I was working in the hospitality industry and the head chef had bought a car for 20 grand so a colleague told me. I replied, “If that was me, I would have bought the cheapest car and invested the rest of the money.”

Possessions such as an auto-mobile often go beyond the stage when they are for going from A to B, but serve as status symbols to impress others.

People who display their wealth in order to impress others are insecure. The need to appear wealthy steals the joy from their experiences. 

There are lots of rich people but they got there by being a good steward of their resources. Those who are spenders are never satisfied with what they have so they spend more and more on luxuries in order to satisfy their lust for stuff. In order to build up your assets it is necessary to live within your means and invest your savings. 

If there are just two habits which will enable you to prosper it is the habit of saving and the habit of investing.

About this article

This article is of the opinion of the writer and may not be applicable to your personal circumstances, therefore discretion is advised. You may use this article as content for your website/blog or ebook.

Read my other articles on www.robertastewart.com

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Dividend Reinvestment Plan-what it is

Dividend Reinvestment Plan-what it is

Written by R. A. Stewart

Some companies give their investors the option of accepting a dividend or have the dividend paid out in shares. This is called a DIVIDEND REINVESTMENT PLAN (DRP or DRIP).

This can be cheaper than accepting the dividend and reinvesting the money elsewhere. This kind of arrangement makes it easier for an investor to grow their investment and saves money because investing your dividends elsewhere will attract fees for the new investment

A DRP at work

You have opted into a company’s DRP and it issues a dividend. What happens next?

Those who have opted into the companies DRP receive their dividends in the form of extra shares, while those investors who have not opted into the DRP receive their dividends in the form of cash.

The way a company calculates its share price will determine how many shares you will receive. Its method of calculation is sometimes called the “Strike Price”.

The shares are distributed within the company which means that you as the shareholder saves money on transaction fees. This process occurs each time the company declares a dividend. Sometimes the company will stop the Dividend Reinvestment Plan for one reason or another and when this happens, its shareholders will be informed of this,

Is Dividend Reinvestment Plan Right for you

Only you can answer this question, because it all depends on your personal circumstances and your goals. If you are using the income you receive from shares, in this case dividends to pay for some of your expenses, health insurance, for example, then you will want to receive the dividends into your bank account. If you are a long term investor and do not need your dividends then you may choose to opt in to the Dividend Reinvestment Plan. If you are unsure, then speak to a financial advisor.

The downfall of DRP is that it could reduce your diversification. Your strategy could be to spread your portfolio over a range of shares. Reinvesting your dividends in certain companies can mean your investment becomes unbalanced and weighted toward certain industries.

Always keep in mind that whenever there is the opportunity for a capital gain there is also the opportunity for a capital loss, therefore, it is best to invest according to your risk profile. 

About this article

The contents of this article are of the opinion of the writer and may not be applicable to your personal circumstances, therefore, discretion is advised. You may use this article as content for your  website/blog, or ebook.

Read my other articles on www.robertastewart.com

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Active Investor V Passive Investor 

Written by R. A. Stewart

What is the difference?

I was watching a man from Fisher Funds explaining this to a breakfast TV presenter in New Zealand and this is how he explained it.

An active investor is one who picks and chooses stocks which he thinks will out perform the market. 

A passive investor invests in a range of companies; in other words diversifies in order to minimize risk.

He made the point that the tech sector is a growing industry which has taken a greater share of the market which means that diversification is less of a benefit if you want your portfolio in traditional stocks.

There are drawbacks to being an active investor, and they are as I see them:

  1. An active investor makes more transactions and because of this they pay more in transaction fees. That may be an obvious statement, but a factor which is overlooked.
  2. The active investor has to do their research, whereas the passive investor leaves that to their fund manager.
  3. Being an active investors requires constant monitoring of stocks and this all takes time out of your day. Not everyone has that kind of time available to do this.
  4. An active investor must use their own judgement as to what is the right time to sell and this is where some people trip up because emotion often gets in the way of a person’s better judgement. Some people panic when shares drop and sell at a lower price than what they paid for them or hang on to the share for too long in the hope that it will keep rising and the share price starts sliding.

A passive investor buys and holds on to a diversified portfolio, often in ETFs or index funds. These are also called Managed Funds.

These rely on long term growth and usually mirror the market depending on how well the fund is performing.

Passive investing is a lower risk approach to investing because funds are invested in a wide range of industries.

An investor can be both an active investor or a passive investor. He can have a diversified portfolio in his retirement fund which makes him a passive investor and at the same time invest in certain companies on an online investing platform such as Sharesies, Hatch, Robinhood, or Kernel Wealth.

But just because you are investing in individual companies on Sharesies, it does not necessarily mean that you are an active investor. You may have no intention of selling your shares in the foreseeable future so that will make you more of a passive investor than an active one.

About this article

The contents of this article are of the opinion of the writer and may not be applicable to your personal circumstances, therefore discretion is advised. You may use this article as content for your blog/website, or ebook. 

Read my other articles on www.robertastewart.com

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Build your Wealth with Diversification

The Art of Diversification

Written by R. A. Stewart

“Invest your money in many places because you never know what kind of bad luck you are going to have in this world.”-Ecclesiastes 11:1-2

Diversification means that you invest your money in several companies in order to manage your risk. We all know that from time to time a company will collapse, leaving those who invested in them out of pocket. We sometimes hear of cases where one or two investors had their entire life savings invested in such companies and got severely hurt by their loss.

The big mistake these people made was that they placed all of their eggs in one basket. They have only themselves to blame and no one else.

It is important to ask the question of “How will the loss of this money affect my lifestyle? And invest accordingly.

If you are investing for the long term, ten years+ for example then the share market drops should not worry you. These dips are only temporary and you should not view it as a loss but rather treat share market volatility as a fact of life and just get used to it.

Life has its own concerns without being overly concerned with how your portfolio is doing. If you have invested according to your risk profile then there is nothing to be concerned about.

No investment is entirely risk free but in order to increase your wealth then it is necessary to take risks but that does not mean gambling with your money which is speculating on a certain outcome. Investing means taking calculated and sensible risks. 

What is a sensible risk?

Investing in cryptocurrency for your retirement fund is not a sensible risk, it is a reckless one. However, investing in cryptocurrency as a side interest and with only discretionary spending money is fine as long as you understand the risks involved and the loss of your capital in this way is not going to affect your lifestyle.

The same can be said to investing in individual shares as an interest. I have a sharesies account where I drip feed money into individual shares in the share market. I choose one company to invest in per year and drip feed money into this company throughout the year. The share price will go up and down throughout the year and I will get shares at the lower price when they are down.

Investing your retirement fund in this way is considered to be “Placing all of your eggs in the one basket,” and is not recommended, but investing speculatively with your discretionary spending money can provide an added interest and an extra string to your financial bow.

About this article

The contents of this article are of the opinion of the writer and may not be applicable to your personal circumstances, therefore discretion is advised. You may use this article as content for your blog/website, or ebook. 

Read my other articles on www.robertastewart.com

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The Benefits of the Wise Travel Card: A Smart Choice for Global Travellers

The Benefits of the Wise Travel Card: A Smart Choice for Global Travellers

In an increasingly globalized world, managing money while travelling can be a challenge. Traditional bank cards often come with hidden fees, poor exchange rates, and limited flexibility when used abroad. That’s where the Wise Travel Card—formerly known as the TransferWise card—steps in to offer a smarter, more cost-effective solution for international travellers. With over 16 million users worldwide, Wise is revolutionizing how people spend, send, and receive money across borders.

Here are the key benefits of the Wise Travel Card and why it could be an essential companion for your next trip.

1. Real Exchange Rates with No Hidden Markups

One of the standout features of the Wise Travel Card is its use of the real mid-market exchange rate—the same rate you see on Google. Most banks and currency exchange services offer a marked-up rate to increase their profits, which can cost you extra every time you spend. Wise, however, charges only a small, transparent fee and passes on the actual exchange rate, ensuring you get more value for your money.

Whether you’re buying tapas in Spain or souvenirs in Japan, you can be confident you’re getting the fairest deal.

2. Hold and Spend in Multiple Currencies

The Wise Travel Card supports over 40 currencies, allowing you to hold balances and spend in the local currency without conversion fees. You can convert money ahead of your trip when the rates are favourable and spend like a local once you arrive.

For instance, if you’re travelling to the United States, you can convert British pounds to U.S. dollars before your trip and lock in the best rate. When you use your Wise card in the U.S., it deducts directly from your dollar balance—no surprise fees.

JOIN WISE HERE

3. Low ATM Withdrawal Fees

Wise gives you free ATM withdrawals of up to £200 (or equivalent) per month. After that, there’s a small fee, but it’s often lower than what traditional banks charge for foreign withdrawals. This makes it easy to access local cash without paying a premium.

Plus, because Wise uses the Visa or Mastercard network, your card is accepted in millions of locations worldwide.

4. No Monthly Fees or Minimum Balances

Unlike many travel cards and bank-issued alternatives, the Wise card doesn’t come with monthly maintenance fees or minimum balance requirements. You only pay for what you use, and all fees are clearly outlined upfront.

This makes it ideal not just for frequent flyers but also for occasional travellers who want a flexible, low-cost option for spending abroad.

JOIN WISE HERE

5. Secure and Easy to Manage

The Wise app allows you to freeze or unfreeze your card, view your spending in real time, and instantly convert currencies at the tap of a button. You can also receive push notifications every time your card is used, giving you full control and security on the go.

Additionally, you can get local bank details in multiple countries (e.g., UK, US, Eurozone, Australia), making it easier to receive payments from clients or employers abroad.

6. Perfect for Digital Nomads and Freelancers

For those who live or work remotely across countries, the Wise Travel Card offers unparalleled flexibility. Freelancers can get paid in multiple currencies without having to open foreign bank accounts. Digital nomads can manage their income and expenses from anywhere in the world with minimal hassle.

Final Thoughts

Whether you’re a casual holidaymaker, a frequent business traveller, or a global freelancer, the Wise Travel Card is a powerful tool to help you save money, manage currencies, and stay in control of your finances abroad. Its transparent pricing, real exchange rates, and multi-currency capabilities make it one of the best travel cards on the market today.

Before your next trip, consider signing up for a Wise account and ordering your travel card—it could save you more than just money; it could save you from financial stress.

JOIN WISE HERE

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Mistakes People make with their Money

Mistakes with Money 

Written by R. A. Stewart

Poverty does not just happen, it is the result of poor choices. That is barring unforeseen life events which can happen. I understand that others are forced into poverty for one reason or another. This article is aimed at those who have the means to make the most of the money they earn but choose to squander it. Here are their main mistakes.

1 They make poor life choices

The difference between the rich and the poor is because their choices in life are different. There is a stark difference between what a rich person and a poor person does with their discretionary spending money. All of those satellite dishes on council estates tell a tale. A rich person will find ways to invest their discretionary dollar so that it multiplies while a poor person will spend all that they have and more when you consider the consumer debt that they take on. It is also a fact that the poor tend to have more children and having kids does not come cheap, so this further compounds their vulnerable financial position.

2 They do not save 

People in a poor financial state do not save money. They fritter away their money with no thought for the future. Their financial situation is made worse because of their poor lifestyle choices. They borrow for stuff which is not essential to everyday living and spend money on things of no lasting value and this leaves them with nothing to show for their labors.

3 They do not invest

Wealth does not increase when money is not invested. Instead it loses its value due to the effects of inflation. Investing gives you a financial education and this leads to better decision making when it comes to money matters. This in turn leads to better financial outcomes for the future.

4 They do not take risks with their money

Investing involves taking some risks with your money but this does not mean speculating which is really just  gambling on some favourable outcome going in your favour. It is having a strategy of investing which enables you to make the most of what you have

5 They do not get financially literate

Lack of financial literacy is the number one reason why so many people are broke. Lack of ambition to rise above mediocrity is the main reason and there is little hope for the individual who lacks the will to improve their financial situation. I know that you are not one of those people otherwise you would not be reading this.

6 They hang out with the wrong people

People who are financially illiterate tend to spend too much time with like-minded people; those who have the same money mindset. “You are the average of the five people you spend most of your time with”. If you intend to be financially successful then spend more time with financially successful people. Read their books and pick their brains. Ask yourself, “What have I got to lose?”

7 They have a poor attitude

An attitude is something which every one has control over. No one can force you to adopt a certain way of thinking, you choose it and your circumstances have nothing to do with it. Having a good attitude will take you further than a bad one so you had better take responsibility for your own thinking and adopt a good attitude to financial affairs. I have heard all kinds of excuses why people have not joined a retirement scheme or have saved money. The real reason why they come up with excuses is that these people are unwilling to give up whatever it is which they are frittering their money away on. 

If your financial affairs are in a poor state then it is likely that you will have to make some changes. A budget advisor may be needed, but not necessary for if you just paid a visit to your local library then you will find some good books on personal finance which will help you.

About this article

The contents of this article are of the opinion of the writer and may not be applicable to your personal circumstances, therefore discretion is advised. You may use this article as content for your blog/website or ebook.

Read my other articles on www.robertastewart.com

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The Benefits of Investing from a Young Age

The Benefits of Investing from a Young Age

Written by R. A. Stewart

To start your journey on to financial prosperity it is crucial that you start young if you want to get the full benefits of time. Here are three benefits of investing while you are young. This does not mean that investing when you are older will not have its own benefits. Investing money at any age will be beneficial and is better than having no savings whatsoever.

Here are the main benefits of investing from a young age.

  1. Time is your Friend

When you are young you are able to make time work for you. Money invested in the correct funds will multiply and increase its value. This is called compounding and it can really increase your wealth. Not only will your original investment keep producing a profit for you but the profits whether, that is from interest or dividends will be added to your original deposit and it too, will produce a profit for you.

  1. More Time to recover from financial setbacks

The markets can be volatile with shares going up and down like a yoyo, but with the benefit of time, young people have time on their side to ride out the storm. That does not mean that people who are just retired should not invest in the share market but rather they need to ask themselves this question, “How will the loss of this money affect my lifestyle?”.

It also does not mean that young people should invest all of their money in the share market. It all depends on what the money is going to be used for. If you need the money in the short term then you need to be a little bit more conservative with your investing.

The case I am making for the young ones to be a little more aggressive with their investing is that they may not be retiring for another forty years, therefore, taking advantage of capital gains which the share market offers can pay off.

3.It is better to make your mistakes early in life

People tend to make most of their mistakes early in life. That is no surprise since lack of experience often leads to errors of judgement, but as far as investing money goes, there are advantages in making your mistakes early in life. One is that you have fewer commitments, therefore, a mistake which can result in an investment going down the gurgler will not affect your lifestyle as much as it would for a person who has a family. Investing mistakes made early in life can be used to make better judgments in future. 

Investing early in life will enhance your financial literacy and will your whole life ahead of you, there are opportunities to grow your wealth so grab it with both arms.

  1. More disposable income

As a young one you are likely to have more disposable income than someone who is older and with more commitments. If you are sensible, then investing your money will help grow your wealth. You are also likely to be in a position to take more risks with how you are investing your money, but that does not necessarily mean speculating on something which is a bit dodgy, but rather, taking some calculated risks.

  1. Habits formed early will make and break you

Developing habits which add value to your life and others will make and break you. One of these habits is the habit of saving and investing. These days it is easy to start a financial portfolio with so many investing apps available. It is just a matter of choosing one which is the right fit for your investing objectives. It is also important to set goals which align with your values and not be influenced by what your colleagues at work or your family say. It is your life and you are the one who has to live with your decisions so use the brain which God gave you and you will be better off in the long run. By all means, take note of financial advice as you will find in the business section of the newspapers but learn to develop the ability to discern whether advice is good or bad. Associate with people who have common sense. As the proverb says, “He who walks with wise men shall become wise, but a companion of fools will be destroyed.”

About this article

The contents of this article are of the opinion of the writer and may not be applicable to your personal circumstances, therefore discretion is advised. You may use this article as content for your website/blog, or ebook.

Read my other articles on www.robertastewart.com

 

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How to Start a Sharemarket portfolio from Scratch…

How to Start a Share market portfolio from Scratch…

Even if you have never invested a dollar

Written by R. A. Stewart

You are a beginner to investing and want to know how to get involved in the share market and don’t have much money to invest.

My advice is firstly to ensure you have set up a pension scheme with your employer. This will help make money retirement easier as far as finances goes. Anything else you invest should be treated as strings to your financial bow.

Here is my advice to investing novices. 

There are two ways for you to drip-feed your money into the share market. They are:

  1. To join a managed fund type of investment. This is a fund where your money is combined with the money of other investors. The fund manager invests in the share market on your behalf. This minimizes risk because funds invested in this way are spread across different asset classes, something which is unobtainable for most investors unless you are already financially well off.
  2. To sign up with an online investing site where you are able to drip-feed money into the share market. Do your research into the various platforms. Popular ones are robinhood in the USA and sharesies in Australasia. 

Two pieces of advice which financial experts will tell you is “Do your research and diversify.”

It helps if you are familiar with the industries and companies you are investing with. I use the online platform “Sharesies” which is based in New Zealand. My strategy is to choose one company per year and drip-feed money throughout the year into this one company. I chose New Zealand based companies, all of them household names. I have already decided the following year’s company to invest in by Christmas.

I have invested in a range of companies such as Genesis Energy, Spark, Fontierra, Fletcher Building, PGG Wrightsons, and Contact Energy. All are well known brands.

It is important not to get too greedy. The internet is full of stories of people who got rich investing in this or that and made a killing. This has to be treated like a grain of salt because for everyone like that, there are countless others who tried the same thing and failed.

Greed often gets the better of people and the one who made the killing will often end up giving it all back.

The share market rewards consistency and persistence. Make sure you are in the right fund for your risk profile and your goals. If you are drip-feeding money into the share market like I am doing then it shouldn’t matter how the markets are performing. Just keep investing and let time be your friend. After all, investing with an online app is just another string to my financial bow.

You should invest in the share market with money that you cannot afford to lose is a piece of advice I have heard time and again. The main question before you invest in something is, “How will the loss of this money affect my lifestyle?” 

I would not recommend that you invest in growth funds if you need the money within a year or two because the markets may drop just as you are about to withdraw the money.

It is important to be sensible and strategic with your investing and just as important to keep a cool head otherwise you may end up with burnt fingers.

About this article

The opinions expressed in this article are of the opinion of the writer and may not be applicable to your personal circumstances, therefore, discretion is advised. You may use this article as content for your blog/website, or ebook.

Read my other articles on www.robertastewart.com

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The Prodigal Son and its Money lessons

The Prodigal Son and its Money lessons

Written by R. A. Stewart

The parable of the prodigal son may have been first told over two thousand years ago but its lessons are timeless and are worth noting. In this parable a young man asks his father for his inheritance while his father was still alive. The Father then divides his estate between his two sons, and then the younger son,the one who asked for his inheritance gathers all of his things and goes to a faraway land where he fritters away his inheritance on loose living.

During this time the younger son had more money than he ever had in his life but was not responsible or mature enough to handle all of that money. In fact he was just a baby with too much money.

As so happens when young people get a lot of money, he became arrogant and displayed his wealth with his generosity. 

He had lots of friends when he had all of this money but they were not true friends as we will discover later on in this story.

We sometimes hear stories of people who won the lottery, then were broke a few years down the track. It is important for people to learn how to handle their money from a young age. This is called, “Financial literacy.”

Learning to be an investor is part of being financially literate. Some people are good at saving but they save to spend, not to invest.

Back to the prodigal son.

When one is living beyond their means the result is debt and with interest repayments on top of that financial disaster looms. The prodigal son, the younger of his father’s two sons, spent all that he was given and had nothing coming in so that it was only a matter of time before he was left with nothing.

The parable puts it this way, “There was a famine in the land”

This means that he was living in poverty. The money was all gone so what did he do?

He got himself a job working among the pigs. He wished he could eat what the pigs ate but no one gave him anything.

Strange; he had lots of friends when he had lots of money but as soon as he needed help, no one would help him. 

You will only find out who your real friends are once you hit rock bottom.

Next thing, something happened inside the mind of this lad because he came to his senses. In other words, The Penny Dropped.

He figured out in his own mind that if he returned home then he would be better off than his current circumstances. 

The main lesson from this story is that despite all of the stuff offered by the world system, it only leads to emptiness. There are things which he will never get back and that is time that he never spent with his family. His behaviour was a stain on his reputation. There are some things which money cannot buy; a good reputation and time with his family. It is all very well, going out and exploring new opportunities and working hard to make a life, but these things need to be kept in its proper perspective.

www.robertastewart.com

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How to set Money Priorities (And stick to them

Written by R. A. Stewart

Being strategic with your money will enable you to make the most of what you have and that means managing your money well; it also means prioritizing what you are going to do with your money.

Having clearly defined goals will enable you to do this but it takes a fair bit of discipline to stick to your plan.

If you are saving for a car then it means giving up stuff which does not add any value to your life. There are worse ways in which you can spend your discretionary dollar than on a vehicle. If you spend it on clubbing every weekend, then you will not have anything to show for the money you have frittered away. At least buying a car will add to your lifestyle.

Keeping pets can be very expensive and can cramp your lifestyle. The cost is not the only issue you have to deal with; if you are away on holiday then there is the issue of who is going to look after your cat or dog.

Then there are vet bills. Some folks are so attached to their cat or dog that they are prepared to spend $1,000 or more on vet bills. This is utter madness and can undermine a person’s financial well-being.

The questions which need to be asked are:

Is this purchase really necessary?

Will this purchase help me to achieve my financial goals?

Is this the best use of my money?

It is worth pointing out that there are some factors which affect your priorities. Some of them are your age, family responsibilities, your health, and your goals.

If you are aged in your sixties, then you are not going to have goals with a thirty-year timeline.

Another thing which should be mentioned is that whatever you are saving for should not be at the expense of your retirement fund. If you get into the habit of putting off retirement contributions after you have saved for whatever it is you are saving for then it will cost you when that time comes and it will surely do. 

Investing helps build your financial literacy. If you are not getting involved in the share market, then you are not gaining investing experience which will help you make better decisions in the future. It is better to make mistakes when you are young and with no commitments because your lifestyle will not be impacted. Not so when you are older when you may have your own family or other commitments.

We all have a choice of how to use our discretionary spending money and by setting goals on where your money is going you will have something to show for your money. It is all matter of prioritising you’re spending.

About this article

The opinions expressed in this article are of the opinion of the writer and may not be applicable to your personal circumstances, therefore discretion is advised. You may use this article as content for your blog, website, or ebook. 

Read my other articles at www.robertastewart.com