Beginner investor using Sharesies. seeking advice

[isaiahvega]

Hi, beginner investor seeking advice about using sharesies. I recently red "your money, your future" by Frances Cook and it got me focused to stop spending on unnecessary things and start thinking longer term.

Bullet points for context and questions at the end

- I own a home but am a long way off paying that one off

- I want to invest a set amount say $200 every fortnight and see where it can grow and to diversify away form all my eggs in the NZ housing basket.

- Im keen to focus on index funds as I want to just set it and then check in every couple of years or so. aka a very hands off approach

- I don't want to invest in NZ property related shares as the main point is to diversify away form the NZ housing market.

- I'm keen to have low management fees and so figured that Id use sharsies... set up a auto transfer each pay check and an auto invest. Its a $3/month fee to buy and sell.

- The three funds I want to invest in are in the screenshot.

- I see theres a fee (0.5%) to transfer funds to AUD.

- im only choosing AUD and NZD markets as I understand thats how you avoid large taxs after you build up a portfolio (which lets be honest is years away)

Questions: Are there any stratages or things I should know about starting off with this? any advice?

I'm sure there are probably posts here going into it so feel free to link any old ones that are applicable.

thanks in advance

**OP Edit - I dont think the screen shot worked so tried again.

https://preview.redd.it/4obliznjuhm...bp&s=f5aad24b5ce3663118b71641303c0382e6645dfa

 

[sonn]

@isaiahvega Putting a set amount into an index fund every fortnight is the right approach, and great to diversify away from a single asset that you currently have. Be sure that you don't stop putting money away when the market has a downturn, that's when you're getting a bargain.

Tax minimisation now is a fine approach, but my personal opinion is that the FIF tax (which I presume is what you're talking about) is pretty inconsequential anyway. But like you say, probably years before you need to worry about it.

Things you should know now? Avoid changing your mind about what you want to be invested in too often, that's when you end up paying loads in fees. When the market goes down, think of it as buying for a bargain price. The paper value is pretty irrelevant to you until you're getting ready to withdraw. If you withdraw when the market is down then you're locking in your losses.

 

[isaiahvega]

@sonn thank you. I really like what you said about "bargain price" ... good way to get through uncertain times.

 

[woventales]

@isaiahvega Why such a limited market? Why not a low fee growth fund?

 

[isaiahvega]

@woventales due to my very limited knowledge!

tell me more about a low fee growth fund?

 

[servant232]

@isaiahvega Check out this, plenty of simply options to get started with much lower fees https://moneykingnz.com/4-steps-to-create-an-incredibly-simple-long-term-investment-portfolio/

 

[woventales]

@isaiahvega Check out Simplicity.kiwi and sorted.org.nz

 

[resjudicata]

@woventales Such as?

 

[woventales]

@resjudicata Simplicity Growth or aggressive growth if you have a 10 year plus window...

 

[akkol]

@isaiahvega There isn't a screenshot attached but regardless there is an easier way https://moneykingnz.com/4-steps-to-create-an-incredibly-simple-long-term-investment-portfolio/
Only investing in Australia and NZ stocks is nowhere near diversified enough given it is a miniscule % of the world market. Your concern about tax seems overblown and will cost you more far in the long run if you're expecting great returns from solely Australia and NZ.

 

[isaiahvega]

@akkol Oh thanks, I edited the main post hopefully screenshot is attached now.

I wasn't clear I was meaning investing through ASX and NZX markets into over seas EFT's

 

[giacmosuaviet]

@isaiahvega Have a look at the Foundation Series funds on Investnow, they're structured as NZ PIE funds so you only pay 28% tax max, but they invest directly into Vanguard's global and US funds.

 

[phillipunion]

@isaiahvega Clarification - I may have read it wrong, but did you say you only want to invest in the Aus and NZ share market? If thats the case - the 3 funds in your screenshot are all global funds not Aus or NZ funds.

I'd suggest looking at the Kernel platform as another option. If you want no fuss, low fees, passive index investing. That's a good way to start.

Sharesies is good (I'm a Sharesies customer too) but despite all the hype, I find it harder to choose and track I'm index investments there. I mostly use Sharesies for investing directly in specific companies I like.

 

[wordcrafter]

@isaiahvega Whatever fund or stock you’re investing in, do a sanity check to understand it better before investing on it. I know it’s tough to do that analysis when you’re a beginner and that’s why I’ve created www.stockbruh.com that simplifies the analysis in plain English. And it’s a free site. Hope it’s useful.