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Liabilities: what they are

Liabilities: what they are

Written by R. A. Stewart

A liability is when you have a debt to pay. You are responsible for that debt until it is paid. The opposite of a liability is an asset. It is something which provides some kind of value to you.

An example of a liability is when you have borrowed money from a finance company to purchase a car. You pay a certain amount to the finance company each week or fortnightly. It is a liability because it takes money out of your pocket and reduces your wealth.

An example of an asset is an investment with a finance company which lends out money to car buyers. This is an asset because it puts money into your pocket and increases your wealth.

Borrowing money is not the only type of liability which can reduce your wealth.

Others can be, keeping pets, smoking, drug taking, drinking, hobbies, and so forth.

Have you ever heard of dog owners spending thousands of dollars on vet bills when for just $50 they could have had their pet pooch put down. I know of some people who have spent $1,000 on a vet bill for their cat. If that is not financial stupidity I don’t know what is.

Emotional spending is very costly in the long term.

Borrowing for something which does not give you anything in return is a drain on your future financial welfare. Paying for a holiday is a perfect example. This is something you can do without. If you don’t have the money you don’t go on holiday. It’s as simple as that.

Hobbies can be expensive; have you ever seen those news items on television where some collectors have spent thousands of dollars on their items. Whether it is a doll collector, model train collector, or whatever, these people spare no expense in getting their hands on the next item to add to their list.

Becoming an investor rather than a consumer will help you to be better off financially in the long run. By minimizing your consumer purchases and investing that money instead you will build up an investment portfolio, whether that be in the share market, property, and the like. Stuff doesn’t last long and it loses its value over time.

Investing in yourself will pay dividends in the long run if you apply what you have learned. It is just a matter of applying whatever is applicable to your own life. There is a lot of investment advice on the internet and in books but not everything you read will be applicable to your personal circumstances. Having the ability to discern which advice to follow takes experience.

What you spend your money on today will have an effect on your future lifestyle. It is all about making the right choices in life. Politicians talk a lot about achieving different outcomes for certain groups of people. Personally, I think that it is choices which people need to take responsibility for because the only reason why there are so many different outcomes is because people make different choices.

About this article

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

Www.robertastewart.com

 

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Dividend Yield and what it means

Dividend Yield and what it means

Written by R.. A. Stewart

A commonly used term in the share market is “dividend yield,” but what does this term actually mean? Some novice investors will be asking themselves but are too afraid to ask others for fear of revealing their ignorance.

The dividend yield is a stock’s annual dividend payments to shareholders as a percentage of the stock’s current price. This figure is often used as a guide to a stock’s future income based on what is paid for the stock.

An example would be, if a stock sells for $10 per share and the company’s annual dividend is 50 cents per share, the dividend yield is 50 cents per share. The dividend yield is 5%. The formula for working this out is annualized dividend divided by share price equals yield. In this case, 0.50 cents divided by $10 equals 5%.

A stock’s dividend can change over a period of time. It may be due to the natural volatility of the markets or changes in the yield by the issuing company. The yield is not fixed and can be changed.

The dividend yield shown on some websites may not be accurate because it has not been updated. One week can be a long time in the markets.

To calculate the annual dividend paid out by a particular company per year you need to multiply the amount of a single payment by the amount of payments.

Keep in mind that whatever yield a company pays out, it is not a guarantee that they will continue to pay out at the same rate in the future. The old adage “Past performance is no guarantee of the future” rings true.

It is important to note that a higher yield does not on its own make a great investment. If the company is struggling then there is a risk that they may not pay a dividend to its investors.

The capital gain of a stock is the other main factor in a stock’s performance. Investors who purchase a stock for the long term are often purchasing for capital gains and this has proved successful.

The high dividend yield may be high due to the falling stock price; otherwise known as a “Dividend trap”. There is a good chance that dividends will be cut in such circumstances.

One retired couple I know uses the dividend payouts to pay for their health insurance. If you are in this position then choosing stocks with a high dividend yield may be the way to go. It is important to diversify and choose a wide range of companies to invest in.

If you do not need the income from the dividends then reinvesting is a good option. It will help to increase the value of your portfolio.

About this article

The information in this article is based on the writer’s experience 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.

Www.robertastewart.com

 

Investing with Sharesies

Investing with Sharesies is an accessible and straightforward way to invest in the stock market, you can get started on your investment journey and start building your wealth. However, before making any investment decisions, it is essential to do your research and seek professional advice if necessary.

 Join Sharesies here

Disclaimer: I may earn a small commission if you sign up with Sharesies.

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Share Market advice for beginners

Beginners Guide to the share market

Written by R. A. Stewart

You do not have to be rich to get involved in the share market these days with online share market platforms such as Sharesies and Hatch which provide a gateway to novice investors.

If you are from a country other than New Zealand or Australia then Robinhood from the States is a share market platform which you can use.

Here are my tips to follow if you are a complete beginner.

Tip 1: Shares go up and down

The value of your shares will fluctuate; that is the nature of the markets. It is important not to focus on your shares but rather on saving and letting the markets take care of itself because if you are strategic with your investments then falling markets will not scare you. 

Tip 2: Know why you are investing

Have a clear plan on what the money’s for. Is it for your retirement, a mortgage, a vehicle, or as a rainy day fund. 

Tip 3: Invest money you can afford to lose

Money which is invested in the share market should only be money which you can fully afford to lose because of the volatile nature of shares, however, you can choose a conservative funds when investing in managed funds. It all depends on your time frame. If the money is needed in the short term then investing in conservative funds will be your best option. 

Tip 4: Know your risk profile

Your risk profile is the level of risk you are prepared for or are willing to take. If you are young you are able to take more risks because you have more time to recover from financial setbacks.

Tip 5: Not a substitute for kiwisaver

Online investing  platforms such as Robinhood, Sharesies, Hatch and the like should not be a substitute for your retirement fund, in New Zealand that is called Kiwisaver)

Tip 5: Not a get rich scheme

Investing in the share market is a long term game; it is not a get rich quick scheme. Don’t be taken in by the stories of those who have made a share market killing because you never get to hear about the losses and it is likely that people who made that killing will spend years trying to make another killing and lose all their gains.

Tip 6: Patience is a virtue

It is time and not timing which is the key to making money in the share market. Patience investors are rewarded handsomely if they stay onboard rather than jump ship during stormy seas.

Tip 6: Do your homework

It is important to do your homework on the various companies you plan to invest in and not just invest haphazardly. The alternative is to invest in managed funds; the fund manager will choose the companies for you.

Tip 7: Take responsibility

Don’t blame anyone for your mistakes, take responsibility for them and learn from them; that way you will become a better investor.

Tip 8: Get right advice

Listen to the right people. Prior to the Global Financial Crisis, some financial experts were saying “The high interest rates do not reflect the higher risk investors of finance companies are taking on.”

Well guess what happened? A number of them folded.

About this article

The information in this article is of the writer’s own opinion and may not be applicable to your own personal circumstances therefore discretion is advised. You may use this article as content for your blog or website.

www.robertastewart.com

Start investing on a shoestring

Sharesies makes it possible for anyone to get into buying and selling shares. It is an online share market platform where you have the option of purchasing shares in individual companies or in various funds (managed/mutual funds). You can even start with $5. This is a no brainer because it gives investors young and not so young the chance to improve their financial literacy. There is certainly no substitute for experience when it comes to learning and this is applicable to everything else, not just investing.

Join sharesies here: https://sharesies.nz/r/377DFM

Disclaimer: I may receive a small sign up bonus if you join sharesies.

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Circuit break your bad spending habits

Circuit break your bad spending habits

Written by R. A. Stewart

Bad spending habits can quickly add up and cost you a small fortune over a period of time. Buying coffees downtown may cost you a fiver but if you are doing it daily then that is $25 per week which you could have used for some other purpose. 

A bad spending habit can be very hard to break so why not use a circuit breaker. That is, decide that you are not going to do this bad habit for 24 hours. See how you go.

Coffees

Have you ever thought about how much you are spending on coffees when you are downtown? Let’s think about it, $5 spent on a coffee + whatever you choose to eat with your coffee adds up to a small fortune. If you are spending $5 on a coffee and $4 on a couple of sandwiches then that is $45 per week. That is assuming you work Monday-Friday. Do the maths and your $45 per week adds up to over 2k per year. If you need to find an extra 2k per year to balance the budget or to go towards your other goals then this is a good starting point.

Eftpos card spending

Using the eftpos card is so convenient, so many of us do it without even thinking about how it is affecting our bank accounts. There is a cost to prolific eftpos use and that is high bank fees at the end of the money. Breaking out of the habit of using our cash instead of cards helps us to understand that it is real money we are spending. Putting a 24 hour halt to our eftpos card use will help us to break this costly habit. 

Buying lunches

This is another area where you can save a bit of money. If you are into the habit of buying your own lunch instead of making it then why not decide that you will not buy your lunch for today. If you can put a circuit breaker on this habit then it may help you to form the habit of making your own lunch.

Credit card spending

If you have a credit card spending habit then the question has to be asked, “Are you living beyond your means?”. I know lots of people who have never owned a credit card yet are on benefits or low paid jobs. Lifestyles can be adjusted according to your level of income but the problem is when you have accumulated debts then all of a sudden have lost your job. If you have made a habit of using your credit card then make a habit of not using it for a day at a time then after a week or two it will become a habit and your finances will be in a better shape. Adopt the motto, “If I don’t have the money I don’t buy it!”.

Gambling

This habit can destroy a family’s financial future. Placing a 24 hour break on all gambling activities will help you to break the habit. Unfortunately, some people are addicted to some forms of gambling. If this is you then, it is time to seek help. 

Internet spending

This is another drain on your finances. Surfing the internet looking for stuff to buy can drain your bank balance. This is money which could have been put toward some investment. 

Alcohol, smoking, and making unnecessary trips in your car are other drains on your finances.

It is not how much money you make which will enable you to get rich, it is how much you save and invest. It is the old saying, “Different outcomes are due to different choices,” therefore if you want a different outcome in your life from what you are experiencing then make different choices.

About this article

The information in this article is of the writer’s own opinion and may not be applicable to your own personal circumstances therefore discretion is advised. You may use this article as content for your blog or website. 

Read my other articles on www.robertastewart.com

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5 Factors which determine your risk profile

Factors which determine your Risk Profile:

Written by R. A. Stewart

Your risk profile is the amount of risk you are advised to take with your investments. There are many factors which determine your risk profile with the main one being whether the money you are investing is needed in the short term, medium term, or long term. 

Short term is when you need the money within 12 months

Medium Term is when you need the money within 5 years

Long term is when you need the money in more than five years time

Here are the main factors in determining your risk factor:

Factor 1: Your age

Young people have one thing in their favour which the older ones don’t have and that is time. The young ones have more time to recover from financial setbacks such as a share market crash, a job loss, or whatever, therefore are about to invest in growth funds which can be volatile. Older people need to be a little more conservative. New Zealand financial advisor Frances Cook has a formula for working out what percentage of your portfolio should be in shares; it is this: subtract your age from 100. Even if you are in your twenties that does not mean you should be reckless with your money and invest into some kind of risky venture. 

Factor 2:Your health

Your health is a major factor in determining your risk factor. If you have a health condition which requires or may require expensive medical treatment in the future then investing in growth funds may not be your best option because you do not want to lose your money just when you need it. This does not mean that you should not invest anything in growth funds but just not most of it. It may be a good idea to set up a bank account for those medical bills.

Factor 3: Your Personal Circumstances

Your own personal circumstances need to be taken into account. If you are single with no commitments then you will be able to take more risks with your money than someone who is married with children.

Factor 4: Your Debts

Your debts are a big factor in what you should do with your money. There is no point in investing your money at 5% interest when you are paying 15% interest on your loans. People with debts have a responsibility to pay off their own debts and need to prioritise that before turning their attention to investing. 

Factor 5: Your Temperament

Your temperament is a factor. If you are going to lose sleep at the thought of losing your money; something which can happen if you are investing in the share market, then going for more conservative funds is better for you but when it comes to long term investing such as your retirement fund then investing too conservatively will mean that you will likely end up with a lot less money in the kitty when you retire.

About this article

This article is of the opinion of the writer and may not be applicable to your own personal circumstances, therefore discretion is advised.

You may use this article as content for your blog or ebook. Feel free to share this article with others.

www.robertastewart.com

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Book Review-Your Money, Your Future

Written by R. A. Stewart

There are a number of books on personal finance on the market and one of these is “Your Money, Your Future by New Zealand financial advisor Frances Cook. In this book Frances provides practical advice and tips on managing your finances and how to formulate a strategy for achieving financial independence. There is no size fits all when it comes to designing a life and Frances makes allowances for that. Here are some interesting points from the book which I want to share in this article.

  1. To calculate what percentage of your money should be invested in shares, deduct your age from 100. For example; if your age is 65 then 35% of your money should be in shares. I think that the majority of investors probably have a higher percentage of their money in shares than this formula suggests. It is really a case of your timeline as far as when you are going to use the money.
  2. Putting your money into a savings account may feel safe to some people but over a period of time that money is losing it’s value because of inflation. Your money has to outpace inflation and it won’t do that in a savings account. Only your emergency cash fund should be kept in a savings account and money used for utilities and everyday living costs.
  3. The rule of 72 explains how quickly you can double your money. It goes like this; simply divide 72 by the average rate of return on any investment. If the average return is 7% then it will take you 10 years to double your money (72 divide by 7).

This is the magic of compounding interest. This is all assuming that you do not take your profits but rather allow them to be added to the principal so that you are earning interest on interest.

  1. You cannot beat the market so buy the whole thing! Frances talks about diversification here and explains how this approach beats trying to time the market every time. There is a saying, “Its time and not timing which is the key to making money on the share market.”
  2. Retire to something not from something. Frances points out that life needs to have a purpose otherwise it will be meaningless. You have to have an end goal in sight for when you finish work. Your retirement plan does not have to involve spending, it could be spending more time with the family or gardening.

You may be able to find the book, “Your Money, Your Future” by Frances Cook on Ebay or Amazon if you live outside of New Zealand. In New Zealand, the Trademe auction site may have copies.

I have read a lot of books on investing and this one is one of the best. It contains several gems of advice relating to personal finance. Whatever your personal circumstances are, you will find this book helpful in pointing you in the right direction.

www.robertastewart.com

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5 Ways to Diversify your investments

5 Ways to Diversify your investments

To have a diverse portfolio means to have your money in several places so that if one company or industry is in trouble then income from your other investments should at least minimise the shock.

There are 5 ways to diversify your portfolio. 

Number 1: Invest in several industries

Investing in different kinds of industries protects you from a downturn in one. With the online share market platforms I am with I have investments in a building company, an energy company, a farming retailer, phone company, and a New Zealand milk supplier. This diversification technique minimizes risks and gives me plenty of interest too.

Number 2: Invest in several funds

If you invest in managed funds and that includes everyone who is in Kiwisaver then you will be in various types of funds; growth, balanced, or conservative. The best strategy is to invest in the fund which is right for you and that depends on how soon you need the money. Long term, medium term, and short term money should be in growth, balanced, and conservative funds respectively but it all depends on your risk profile.

Number 3: Invest in different platforms

Most of us have heard of the online investing platforms such as Sharesies, Hatch, Investnow, Kernel Wealth, and Robinhood. Investing in several different platforms will help cushion you against the shock of having one of them fail, and certainly, there is no guarantee that this will not happen. I advise not investing all of your life savings into one online platform.

Number 4: Invest in different asset classes

Investing in different types of asset classes will enable you to withstand a downturn in one class of asset. Investing in fixed term interest, the share market, gold, and property are all different types of assets. It all depends on what the right kind of assets are right for your kind of personal circumstances. 

Number 5:Invest in different companies

This is very important. It is unlikely that all of the companies will fail even though the industry is going through a bad patch. This rule is just as applicable to investing in finance companies for a fixed term return as it is for shares. 

Benefits of Diversification

The number one benefit of diversification is it reduces your portfolio risk. If you placed all of your eggs in the one basket then you could lose it all if that one company went under and it did happen to some investors during the 2008 Global Financial Crisis (GFC) and 1987 Sharemarket crash (Black Monday).

It can be enjoyable for investors to own a little bit of a number of countries. Micro investment platforms such as Sharesies, Hatch, and Robinhood make this affordable for Mum and Dad investors.

Downsides of Diversification

Diversification can be time consuming but then everything worth doing is worth doing well. Investing in managed funds or mutual funds as they are called in the US is an option for busy people. More transaction fees and commissions is another downside to diversification and that could reduce your short term gain.

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.

 

Sharesies is an accessible and straightforward way to invest in the stock market. You can get started on your investment journey and start building your wealth. However, before making any investment decisions, it is essential to do your research and seek professional advice if necessary.

 Join Sharesies here

Disclaimer: I may receive a small commission if you sign up with Sharesies.

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Your Investing Risk Profile is an Important Factor

Working out your risk profile

Investing money has its risks, more so if you are prepared to go for growth type of investments but you may not have the stomach to take on risky investments.

It all depends on your investment time frame which basically means how long it will be before you need the money.

The longer your time frame the more risk you are able to take with your money.

There are factors which determine your time frame and they are:

Your Age

Obviously if you are 65 then you are not going to set a 30 year savings goal, if you are in your 20s you can take more risks but that does not mean you should be reckless and just invest all your money in Bitcoin in an attempt to get rich quick.

Your health

Your savings goals

The key strategy whatever your risk profile is diversification.

That is to spread your portfolio over a wide range of industries. This is possible for the ordinary man and woman in the street who are able to invest in managed funds where your investment is combined with those of others. It is then up to the fund manager to handle all of the investments. This is exactly how kiwisaver operates.

Each fund will give you an option of investing in Conservative, Balanced, or Growth funds and your decision of which fund to leave your money in will be determined on whether you can stomach heavy losses should the share market go belly up. If the thought of losing your money will cause you sleepless nights then you should go for balanced funds. Conservative funds will not grow your money at the same rate as balanced or growth funds will and once the fund manager withdraws their fees it may feel as though your money is not growing at all.  As far as Kiwisaver is concerned, the government will contribute 50% of what you put in to a maximum of $520 every year so at least this would make it worthwhile for you to at least contribute $1,040 a year to get the $520. This will seem like obtaining 50% interest on your  $1,040 for that year.

It all adds up and no one is going to reach the retirement age of 65 and regret that they contributed to their Kiwisaver.

Your risk profile is not the only determining factor in deciding which fund to choose. If you are saving for a deposit on a home then you are not going to want to risk losing your money in the share market which will happen if you had all of your money in Growth funds only for the markets to tumble.

Investing in growth funds for long term growth and taking needless risks are not the same thing.  If you invest in something dodgy without knowing anything about what you are investing in then you are asking for trouble.

Your age is another factor to consider. When you are young, it is advisable to go for growth funds because you have more time to recover from a financial setback such as a market crash, whereas someone nearing retirement would have their retirement plans affected should this occur.

It is your money however and your own responsibility to decide where you are going to invest so learn all you can about the various types of investments and in time you increase your financial literacy.

It is sensible to diversify and invest in a range of industries. Placing all of your eggs in one basket  is not sensible. There are stories of those who did just that and lost during the Global Financial Crisis as several finance companies fell.

The information given here is my own opinion and not given as financial advice. It is best to seek professional financial advice if you are unsure.

Note: Kiwisaver is New Zealand’s retirement savings scheme and this information may not be applicable in your own country. 

www.robertastewart.com

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3 Ways to lose during a Share Market Slump

It is easy to be very confident about your investments when all is going well and your investments are rising in value but it is when the market has taken a dive when your real character is revealed.

Investing needs to be done with the right mindset otherwise allowing your emotions to take over your decision making can turn out to be very costly in the long term.

The newspapers may say, “Investors have lost millions,” but the reality is they have lost nothing, well not unless they have sold their shares during a market slump.

If you have an investment strategy then the possibility of a downward trend should have been taken into account so a market downward trend will not be of a concern.

There are three ways which you can lose during a share market slide; here are are:

  1. Sell your shares

Selling your shares during a market slide is a guarantee that you will lose; more so if you bought your shares during the peak. The share market will have it’s ups and downs and is a long term game. If you are saving money for the short to medium term then investing in growth funds may not be the right place to have your money. On the flip side of that is a rising market can help you reach your savings goals faster. It is the catch 22 situation in that if there is an opportunity for a capital gain there is an opportunity for a capital loss.

  1. Change funds

Changing from growth funds to balanced or conservative during a market downturn is a way of guaranteeing a loss. In other words you are selling shares at a lower price than you bought them for. It is the issue of allowing your emotions to rule your better judgement. 

  1. Stop Contributions to your retirement fund

This is a sure way to lose during a market slump because you are missing out on bargains in the share market. You may not lose your money by not investing during a market slump but you are losing in other ways because if you decide to just leave your money in a low interest savings account the value of your savings is being eroded by inflation.

Talk about a sure fire loser!

The share market rewards consistency and that means making contributions through good times and bad. During times when the share market is during a bear market phase you will get shares at below their market value while during a bull market cycle you will get a lot of shares at above their market value. All of this will average out over a period of time and the longer you are involved in the share market and participating the more chance you give the law of averages to work in your favour.

About this article

You may use this article as content for your ebook, website, or blog. Feel free to share it with others.

Start investing on a shoestring

Sharesies makes it possible for anyone to get into buying and selling shares. It is an online share market platform where you have the option of purchasing shares in individual companies or in various funds (managed/mutual funds). You can even start with $5. This is a no brainer because it gives investors young and not so young the chance to improve their financial literacy. There is certainly no substitute for experience when it comes to learning and this is applicable to everything else, not just investing.

Join sharesies here: https://sharesies.nz/r/377DFM

 

Note: This article is of the opinion of the writer and may not be applicable to your personal

www.robertastewart.com

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Sharesies vs. Hatch: Which Investment Platform is Right for You

Introduction

Investing in the stock market has become more accessible than ever, thanks to the proliferation of online investment platforms. Two popular options in New Zealand are Sharesies and Hatch. These platforms offer different features and cater to various investment preferences, making it essential to understand the differences between them to determine which one is the right fit for your financial goals. In this article, we’ll compare Sharesies and Hatch, exploring their key features and what sets them apart.

Sharesies: Making Investing More Accessible

Sharesies, launched in 2017, has rapidly gained popularity in New Zealand for its user-friendly interface and mission to democratize investing. The platform allows users to buy and sell fractional shares, making it ideal for those who want to start investing with a limited budget. Here are some key features of Sharesies:

  • Affordability: One of Sharesies’ standout features is its ability to buy fractional shares, meaning you can invest in high-priced stocks without needing to purchase a full share. This opens up investment opportunities for individuals with modest budgets.
  • Diverse Investment Options: Sharesies offers a wide range of investment options, including New Zealand and international shares, exchange-traded funds (ETFs), managed funds, and more. This diversity allows you to build a well-rounded portfolio to meet your investment objectives.
  • User-Friendly Interface: The platform is designed with the user in mind, making it straightforward for beginners to start investing. It provides educational resources and tools to help users understand the world of investing.
  • Transparency: Sharesies is transparent about its fees, making it easy for investors to understand the costs involved in their investments. The platform charges an annual subscription fee, which can be advantageous for active investors with a larger portfolio.
  • Community and Social Element: Sharesies fosters a sense of community through its forums and discussion boards, where users can engage with other investors, share their insights, and learn from one another.
  •  Join Sharesies here

Hatch: Access to International Markets

Hatch, on the other hand, is designed to provide New Zealanders with access to international investment opportunities. It offers a gateway to the US and Australian stock markets, allowing users to invest in companies listed on these exchanges. Here are some key features of Hatch:

  • Access to International Markets: Hatch enables New Zealand investors to purchase shares in companies listed on the US and Australian stock exchanges, such as Apple, Amazon, and Tesla. This access to global markets provides diversification opportunities beyond the local market.
  • Direct Ownership of Shares: Hatch allows users to directly own shares in the companies they invest in. This means you have more control over your investments and can receive dividends if the company pays them.
  • Wide Range of Investments: In addition to individual stocks, Hatch offers access to ETFs and index funds, providing a broad range of investment options to suit various strategies and risk appetites.
  • No Subscription Fee: Unlike Sharesies, Hatch does not charge an annual subscription fee. Instead, it operates on a transaction-based fee structure, where you pay a fee when you buy or sell shares.
  • Educational Resources: Hatch offers educational resources and insights to help users make informed investment decisions, particularly in the context of international markets.
  • https://app.hatchinvest.nz/share/rtb24muk

Which One Should You Choose?

The choice between Sharesies and Hatch ultimately depends on your investment goals, preferences, and level of experience. Here are some considerations to help you decide:

Choose Sharesies If:

  • You are a beginner investor or have limited funds to start with.
  • You prefer to invest in New Zealand shares and ETFs.
  • You appreciate a user-friendly platform and a sense of community among fellow investors.
  • You want transparency in fees and are comfortable with the annual subscription model.

Choose Hatch If:

  • You want to access international markets and invest in US and Australian stocks.
  • You have a specific interest in owning shares in individual international companies.
  • You are comfortable with a transaction-based fee structure and don’t want to pay an annual subscription fee.
  • You are looking for diversified investment opportunities beyond New Zealand.

Conclusion

Sharesies and Hatch offer unique investment opportunities, catering to different preferences and financial goals. Sharesies is well-suited for those looking to invest in New Zealand and start with a limited budget, while Hatch provides access to global markets and individual international stocks. Carefully assess your investment objectives, risk tolerance, and budget to determine which platform aligns with your needs. Both platforms have their strengths, and the choice between them should be based on what suits your individual circumstances and investment strategy.

Disclaimer: I may receive a small commission if you sign up with Sharesies or Hatch.

www.robertastewart.com