Hatch $3 fee for usd stock (VT) vs kernel 0.25 fee for S&P stock move funds or not? kiwi saver help

[cited]

Hey!

So currently i put 500 USD a month into vanguard VT stock on hatch every month $3 fee no other fees which is great currently hold 14k.

I recently became a resident so now i can put into kiwi saver. Im going to pick kernel because they have better funds in my opinion (more aggressive). unsure which fund yet most like high growth.

I know once you invest over 25k the fees are even better so my question is.. am I better off investing my hatch money into kernel where i will soon get a better fee over all on my investing strategy this would be separate from the kiwi saver because i do not want that money trapped until i am 65.

is the $3 fee on hatch hindering my performance? i know its not to high but i love the Vanguard VT stock its diversified and easy!

i would like to use the money to build a house in a few years but the likely hood of me getting the money is low because i live in area where the median house price is so high. (they need to address this)

Im happy to put the minimum in for the free dosh and a extra nest egg for old age and use it as a aggressive investing for a few decades.

I will invest 3/4% into kiwi saver

 

[lostsoul777]

@cited I think you may be confusing yourself with Kernel's old pricing. Now once you are over $25k invested you need to pay a $5 monthly 'platform' fee. So in theory it gets worse once you have a balance north of $25k.

 

[cited]

@lostsoul777 well it seems you are right ! danm

 

[cited]

Should i leave my investment i hatch? and just continuo investing in the smartshares twf ?

or am i better of selling at a profit of $500 ish and re buying at investnow and go set up my set and forget again?

I think i am still going to go with kernel for kiwi saver for now because they have some good funds i can use with my kiwi saver and the fees are low. i wont hit 25k for sometime...i can re think transferring if they fee doesn't make sense in the future.

 

[in_jesus_i_trust]

@cited If you're just investing in VT, I'd recommend investing in Smartshares TWF. Fees are higher at 0.4% vs 0.07%, but you get some tax relief being a PIE fund (if you're >30% tax rate) and you don't get stung with the 0.6% fx fees you're currently getting.

I wouldn't recommend investing in Kiwisaver unless you are getting employer match (which doesn't come out of your total salary) since as you say it's locked up until retired.

You can also invest in VT via your Kiwisaver using the InvestNow "Foundation Series Total World Fund" (fees of 0.07% edited correct fees).

i would like to use the money to build a house in a few years

Stocks have a recommended investment horizon of 10+ years to account for dips so would not recommend growth ETF's if you would like to use the money in a shorter timeframe.

 

[garrettholliman2001]

@in_jesus_i_trust

If you're just investing in VT, I'd recommend investing in Smartshares TWF

What about Foundation Series Total World Fund, also just invests in VT, multi rated PIE, 0.07% fee, plus %0.5 buy/sell

 

[cited]

@garrettholliman2001 where is the 0.7% fee i only see 0.4% on investnow?

 

[garrettholliman2001]

@cited https://investnow.co.nz/fund-foundation-series/

0.07% not 0.7% for the Foundation Series Total World Fund

 

[cited]

@garrettholliman2001 i see i see!! thanks so..smartshares TWF 0.40%

Foundation TWF 0.44% total fees

is this correct they both follow the same Vt index? sorry these different fees confuse me! i appreciate your help!!

 

[garrettholliman2001]

@cited The management fee is 0.07% and the buy/sell fee 0.5% you cant just add those and compare to TWF's 0.4% management fee. The Foundation fund will be a lot cheaper in the long run due to the lower management fee,

 

[olympica]

@in_jesus_i_trust Foundation series total world fund is 0.07% fees, with a 0.5% transaction fee, however you can't invest in it in their KiwiSaver scheme (yet?). Definitely a very good option for investing in VT, especially in smaller amounts, given its a fairly low fee and a PIE fund.

 

[in_jesus_i_trust]

@olympica You're right sorry, had the total world fund and growth funds mixed up in terms of fees.

 

[cited]

@olympica i will use my kiwi saver for higher risk investment. i will look into the twf now!

 

[cited]

@olympica i see the twf has a 0.4% fee on invest now but i do not see the other fee you are on about? invest now does not charge transaction fees?

 

[olympica]

@cited It's the foundation series TWF fund, not the Smartshares TWF that I'm referring to. https://investnow.co.nz/fund-foundation-series/

They both track the same index so you might as well go with the lower cost one.

 

[cited]

@olympica True! I think I will sell my hatch by shares and re buy on invest now with the foundation series TWF. The low free is pretty good aye

 

[cited]

@in_jesus_i_trust hey!

in essence im paying 1% fee anyway due to the fx fee on top. so i would be better of in that respect anyway and i would get tax relief too! double bonus

My employer will be matching what i put in also yes.