Explain what to invest in like I’m a 5 year old

[sendmelord]

Wanting to start investing around $100 a week for my kids. What’s the best app to use, Sharesies or Investnow?
What is the easiest set and forget shares to put into

 

[melvin190909]

@sendmelord Regrets on using Sharesies purely because of their fees. I started as a 5 yo too haha. I would definitely run with investnow

 

[sendmelord]

@melvin190909 How much does it cost in fees. If I did $100 a week how much would they take away

 

[buyayeng]

@sendmelord InvestNow costs nothing per se, you only pay the funds' fees (which you would pay anyway). They take a cut from the managers' fees for distribution services.

 

[lex123]

@sendmelord you should really look at there website. You won't ever learn if your spoonfed. I dont mean this in a bad way, but a big part of investing is knowing & understanding.

If you really can't figure that out, then spend some time.

Also this question has been asked no less then 20x in the last month.

@sifiso - we really need to put together a sticky for investing.

 

[erik2000]

@lex123 I don't think its a bad idea to be spoonfed at the start when you know nothing about investing.

 

[runge12]

@erik2000 Agree. I get the sentiment but it’s actually quite overwhelming if you aren’t mathematically inclined and have limited understanding of this space. It’s easy to just give up/put it off.

I’m really grateful for the spoon feeding I got from this sub at the start. A sticky would be great too

 

[kimmy87]

@runge12 You just described me.

 

[jangnguyen]

@erik2000 As long as it's a balanced diet. Or at least 3 different feeders..

 

[jesusislord7]

@erik2000 Yes but the fee structure is mentioned on the respective website. You are literally asking someone to find something so easy for you which makes you come across as lazy.

 

[erik2000]

@jesusislord7 Asking someone with experience on investing to give you a run down about the ins and outs of investing before you go down the rabbit hole of researching and gaining personal knowledge is far from lazy. You are actually being proactive by asking advice from someone with experience.

 

[garryowen]

@sendmelord I use sharesies and IBKR, sharesies is good for learning and up to 20k invested. Get the $3 monthly plan and you can invest up to $500 invested and $1000 auto invested options so that's cheap. Money transfers is fast too as it doesn't happen like that in real life

 

[frankmu]

@sendmelord This is the best read https://moneykingnz.com/how-to-invest-for-kids-in-new-zealand/#:~:text=Equity%20funds%20are%20the%20way,your%20child's%20tax%20rate%20is.

 

[sandra142]

@frankmu

https://moneykingnz.com/how-to-invest-for-kids-in-new-zealand/#:~:text=Equity%20funds%20are%20the%20way,your%20child's%20tax%20rate%20is

Really good link

I am very partial to

https://investnow.co.nz/fund-manager/investnow-foundation-series/

using Foundation Series US 500 Fund

 

[inae]

@sendmelord Kernel - high growth fund

 

[lenj]

@sendmelord Simplicity high growth

 

[gdssldier]

@lenj Second this!

 

[tiffanym]

@sendmelord kernel is a good option

 

[oscarwip]

@sendmelord Just a thought which might be silly but here goes anyway.

If you are in KiwiSaver, start by having a closer look at that and what the fund managers are doing there. You may even use KiwiSaver as the investment vehicle for your kids and branch out later on.

The bigger fund managers have a philosophy and a plan and they know how to spread the money across types of investments etc.

If they offer seminars, go along and ask questions like why did you do this or that.

Start with some fundamentals like how much risk they are taking and how they decide when something is too risky to buy.

Read books by Warren Buffett who keeps it very simple and lives by a few 'codes'. Then pick your platform.

Set up some basic rules you want to follow and if you really don't want to be hands-on with the choosing, pick some good managed funds instead.

 

[reka]

@sendmelord No one can suggest the exact set and forget shares because it'd be financial advice, but since it's reddit...

Personally, I like that investnow doesn't charge any transaction fees so it doesn't matter if I invest $100 or $1k, but their options are more limited and the app is clunky. I just chuck it into a Vanguard International Shares Select Exclusions Index Fund (Unhedged), because of the 0.07% buy/sell spread (cost to buy/sell).

I suggest always asking yourself "what does the person sharing this getting from promoting this?". I like Moneyhub as they don't have a vested interest in you picking a certain company/app to use - it's the same as how using a paid financial advisor is better than a free one that clips a bit from your investments - here's a great guide on investing for kids:

https://www.moneyhub.co.nz/investing-for-kids.html