Sharesies-set up and Daily useage

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eracode

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#2700882 2-May-2021 21:55

mattwnz:
eracode:

Quite recently Sharesies dropped its subscription fee - with effect from about now. It was payable monthly or annually in advance. Those who had paid annually got a pro rata refund.

But with those changes they added transaction fees for NZ ETFs when buying and selling, when this was previously free

That’s right - they now charge the same transaction fee for investing in NZ ETFs as they do for investing in NZ companies, bringing them into line with how it works for US ETFs

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mattwnz

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#2700893 2-May-2021 23:24

But there are no transaction fees when using Invest Now to buy NZ ETFs. You only pay the management fees. If buying a lot of ETFs over time, those fees can add up, and you pay then twice, once when buying, and then when you sell them. This video discuses it well. https://youtu.be/0wPW5OOsCrc

BlinkyBill

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#2700916 3-May-2021 08:37

Matt - I’m not sure what you are referencing here, but InvestNow does on-charge the buy/sell spread fee. InvestNow does not charge any management fee, the Fund Manager charges the management fee.

decibel

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#2701055 3-May-2021 11:07

Handle9:
decibel:

I don't know, you guys - you all sound a little too enthusiastic to me.

I remember all the "share clubs" we had at work in the 1980s; way before the on-line forums we have here. Lots of people would gather around someones desk at lunchtime and pore over the morning paper's shares page. And we all know how that turned out.

I hope you are all contributing enough to a Kiwisaver fund (not the "default" fund) in order to get the maximum contribution from your employer.

Good luck .

What do you think your kiwisaver investments are placed in? A significant amount is placed in shares as over the medium term they are highly productive assets. There is volatility and investors should be prepared for large short term drops. These are always balanced by short term gains during economic cycles.

Personally I don't invest in individual shares, only very low fee index funds from the likes of vanguard or ishares. For me diversification, minimal fees and long term growth is The goal. 30% of my portfolio is in bonds which also spreads the risk.

80s share clubs were basically going to the casino and betting on red for short term gain. It's a very different approach.

I do know what my kiwisaver(s) money is invested in; the point I am making is that I am relying on people more knowledgeable than me to make long term investments.

The worry here is that some people may not be so cautious as you and me.

mattwnz

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#2701067 3-May-2021 11:23

BlinkyBill:

Matt - I’m not sure what you are referencing here, but InvestNow does on-charge the buy/sell spread fee. InvestNow does not charge any management fee, the Fund Manager charges the management fee.

https://investnow.co.nz/faq-items/what-are-the-fees-and-costs/

Would you not have the buy and sell spread with sharesies too, but in addition to their new transaction fees? The investnow site doesn't refer to the buy sell spread as a fee.. Yes the management fees are charged by the fund manager but that same fee applies under both sharesies and investnow . The transaction fees are however new on sharesies as of a few days ago and are in addition to the management fees that are charged

mattwnz

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#2701211 3-May-2021 14:12

decibel:

I do know what my kiwisaver(s) money is invested in; the point I am making is that I am relying on people more knowledgeable than me to make long term investments.

The worry here is that some people may not be so cautious as you and me.

You can essentially do the same thing in addition to kiwisaver, by investing in funds and ETFs etc via fund managers. The benefit of doing it yourself, such as ETFs is the money isn't locked in till your retirement age, or until you buy a first home to live in etc. Kiwisaver has been good, but some people may want to use their savings to start a business etc and benefit from that money earlier.

BlinkyBill

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#2701217 3-May-2021 14:35

mattwnz:

BlinkyBill:

Matt - I’m not sure what you are referencing here, but InvestNow does on-charge the buy/sell spread fee. InvestNow does not charge any management fee, the Fund Manager charges the management fee.

https://investnow.co.nz/faq-items/what-are-the-fees-and-costs/

Would you not have the buy and sell spread with sharesies too, but in addition to their new transaction fees? The investnow site doesn't refer to the buy sell spread as a fee.. Yes the management fees are charged by the fund manager but that same fee applies under both sharesies and investnow . The transaction fees are however new on sharesies as of a few days ago and are in addition to the management fees that are charged

thats right, I just wasn’t quite sure what you were getting at.

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#2701256 3-May-2021 15:59

decibel:

I do know what my kiwisaver(s) money is invested in; the point I am making is that I am relying on people more knowledgeable than me to make long term investments.

The worry here is that some people may not be so cautious as you and me.

That's absolutely fine by me. "Most people" ae financially illiterate. If this makes them pay a bit more attention then they have a chance of actually building some form of wealth.

You can definitely lose significant amounts money by not being sensible with your investments but you might learn something as well. You can't save people from themselves.

mattwnz

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#2701259 3-May-2021 16:06

Handle9:

decibel:

I do know what my kiwisaver(s) money is invested in; the point I am making is that I am relying on people more knowledgeable than me to make long term investments.

The worry here is that some people may not be so cautious as you and me.

That's absolutely fine by me. "Most people" ae financially illiterate. If this makes them pay a bit more attention then they have a chance of actually building some form of wealth.

You can definitely lose significant amounts money by not being sensible with your investments but you might learn something as well. You can't save people from themselves.

Trusting the system is also what led to people losing lots of money during the last GFC, including ponzi schemes and led to increased regulation of the industry. IMO people should always do their own research, even if using professionals. Peoples savings often represents years of peoples lives.

Handle9

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#2701321 3-May-2021 17:12

mattwnz:

Trusting the system is also what led to people losing lots of money during the last GFC, including ponzi schemes and led to increased regulation of the industry. IMO people should always do their own research, even if using professionals. Peoples savings often represents years of peoples lives.

Nope. Greed and believing that you can get return without risk is what lost people a lot of money. It's the same as whinging about interest rates in savings accounts at the moment. Savings interest rates are proportional to lending rates.

Of course you should do your own research. If you don't you are stupid.

ANglEAUT

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#2736423 29-Jun-2021 18:21

eracode:

ANglEAUT:

Would really be interested in the outcome of your complaint. If they are understating the real return, I'd be keen to find out what my current 26% return is supposed to be.

Given their methodology, they may be overstating some people's returns as well.

They have tried to brush-off my complaint. What’s worse is that they say that under their terms and conditions: "We are not responsible for any reliance placed on returns, calculations, performance information or pre-made Orders shown through our service."

I’m sure they have taken legal advice on that but I do not believe that they should be able to effectively contract-out of their statutory obligations as a Financial Services Provider. Apart from that, what may be legally correct is not necessarily morally or ethically correct.

I have told them that I will wait for a reasonable period of time, to see if they come up with more accurate return calculations, before elevating this further.

@eracode - Received this today. Let's see if this is to your satisfaction

Check out our blog for the full rundown. Here are the main changes:

we’ll be separating your Wallet balance from your Portfolio value
your recent investing activity will be summarised in your Portfolio
you’ll find new breakdowns for the amount you’ve put into an investment and its total return
an investment’s simple return and total return will include gains and losses from selling shares
dividends will no longer be taken away from the amount you’ve put into an investment, and will now be included in the total return breakdown.

Please keep this GZ community vibrant by contributing in a constructive & respectful manner.

eracode

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#2736432 29-Jun-2021 18:58

Thanks @ANglEAUT - Yes I saw that come in this afternoon too and was pleased to see it. Still the proof is in the eating - but I’m hopeful and positive.

Sometimes I just sit and think. Other times I just sit.

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