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  1. #16
    Member sonny n share's Avatar
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    Thanks
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    Coming to NZ too !

    https://stakeshop.freshdesk.com/supp...o-new-zealand-

  2. #17
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    I see that Sharesies is looking at kids accounts and you can invest as little as $5. This would be great for my daughter, as I want her to buy into several index funds, but at $50 a month, her pocket money wouldn't allow it. I have emailed investnow and asked when they will have kids accounts and if they would consider lowering the $50 even it if was for under 18 year old. Be interesting to see what they come back with.

  3. #18
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    Quote Originally Posted by Pipi View Post
    I see that Sharesies is looking at kids accounts and you can invest as little as $5. This would be great for my daughter, as I want her to buy into several index funds, but at $50 a month, her pocket money wouldn't allow it. I have emailed investnow and asked when they will have kids accounts and if they would consider lowering the $50 even it if was for under 18 year old. Be interesting to see what they come back with.
    Why not just set up with Sharesies? I see they have changed their fee structure too, so its no the $30 per annum up front. Its monthly now and goes on the balance you have invested. The less invested, the less you pay so it may be worth considering them.

  4. #19
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    Quote Originally Posted by blackcap View Post
    Why not just set up with Sharesies? I see they have changed their fee structure too, so its no the $30 per annum up front. Its monthly now and goes on the balance you have invested. The less invested, the less you pay so it may be worth considering them.
    Yes will look into it. Investnow got back to me super quick. They do have kids accounts, and you can invest monthly, bimonthly or half yearly, so that won't strain the pocket money to much.
    Funny though, she was sprung at school doing something super naughty so among other punishments she has to do her chores for 1 month without pocket money. That will hurt the bank account.

  5. #20
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    So sharesies kids accounts are up and running now. I'm a bit confused, sos if anyone could advise that would be great.

    They have a few investments that are recommended for kids because of the tax advantage being PIR and the tax rate can be 10.5%, but they are managed funds and most of them don't pay dividends, so you are relying on growth. Where if you invest in an index fund they pay a flat rate of 28%. Which from my understanding is you can apply for tax credits, which goes against their tax account and offsets income once they start earning, which for my daughter is a way off, she is only 12.
    I personally prefer index funds myself, but are the recommended ones a better option for my daughter?
    Also they say for dividends that: "Any distributions paid by the companies are retained by this fund". What does that mean, if there are any dividends paid who gets them. I can understand a business retaining earning so they can grow the business, but a fund is different surely?

  6. #21
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    I imagine it works similar to kiwisaver etc, where any income generated from the units held are used to buy more units. Think of it as an enforced DRP.

  7. #22
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    Quote Originally Posted by Pipi View Post
    So sharesies kids accounts are up and running now. I'm a bit confused, sos if anyone could advise that would be great.

    They have a few investments that are recommended for kids because of the tax advantage being PIR and the tax rate can be 10.5%, but they are managed funds and most of them don't pay dividends, so you are relying on growth. Where if you invest in an index fund they pay a flat rate of 28%. Which from my understanding is you can apply for tax credits, which goes against their tax account and offsets income once they start earning, which for my daughter is a way off, she is only 12.
    I personally prefer index funds myself, but are the recommended ones a better option for my daughter?
    Also they say for dividends that: "Any distributions paid by the companies are retained by this fund". What does that mean, if there are any dividends paid who gets them. I can understand a business retaining earning so they can grow the business, but a fund is different surely?
    As unhuman says any dividend and interest income would probably be reinvested. Not sure the distinction you are making regarding a managed fund and an index fund and the 28% flat rate. Leaving the whole dividend/growth question as I would assume most investment funds would have a mix of both and that mix of dividend/capital gain(growth) would differ depending on their investment strategy.

    Just considering Portfolio Investment Entities (PIE) and individual Prescribed Investor Rates (PIR), my understanding is that if you are investing in a PIE you make a declaration regarding your PIR which can be 10.5%, 17.5% or 28% depending on your income level.
    Generally PIE income is excluded income so you do not include it in your income tax return. The tax is paid by the PIE fund. If you use a PIR rate that is too high IRD keeps the overpaid tax, if you use a PIR rate that is too low you are supposed to include the PIE income in your income tax return and pay the shortfall. Pretty rude. As long as your kids total income is less than $14,000 10.5% would be correct in any PIE fund. I would not use the 28% rate as my understanding is you are not supposed to be able to claim back the overpayment of tax.
    Last edited by Aaron; 18-09-2018 at 03:54 PM.

  8. #23
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    Quote Originally Posted by Aaron View Post
    As unhuman says any dividend and interest income would probably be reinvested. Not sure the distinction you are making regarding a managed fund and an index fund and the 28% flat rate. Leaving the whole dividend/growth question as I would assume most investment funds would have a mix of both and that mix of dividend/capital gain(growth) would differ depending on their investment strategy.

    Just considering Portfolio Investment Entities (PIE) and individual Prescribed Investor Rates (PIR), my understanding is that if you are investing in a PIE you make a declaration regarding your PIR which can be 10.5%, 17.5% or 28% depending on your income level.
    Generally PIE income is excluded income so you do not include it in your income tax return. The tax is paid by the PIE fund. If you use a PIR rate that is too high IRD keeps the overpaid tax, if you use a PIR rate that is too low you are supposed to include the PIE income in your income tax return and pay the shortfall. Pretty rude. As long as your kids total income is less than $14,000 10.5% would be correct in any PIE fund. I would not use the 28% rate as my understanding is you are not supposed to be able to claim back the overpayment of tax.
    Thanks for your reply Aaron. The distinctions I was making is that on sharesies the managed funds are PIR so yes I have her at 10.5%, where as if I buy her an index fund they charge 28%, so from a tax perspective the managed funds are the way to go.

    Got an email back and the dividends by some of them are keep, not reinvested as such in that you don't get more units, but the unit price increases. So it should increase at each dividend payment.

  9. #24
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    http://investmentnews.co.nz/investme...eline-for-nzx/

    Sharesies working with NZX to introduce direct share investing. Will be interesting to see the pricing model for this in Sharesies. A break away from their target market of set & forget investors. Single stock investing involves a bit more research.

  10. #25
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    Quote Originally Posted by johndoe123 View Post
    http://investmentnews.co.nz/investme...eline-for-nzx/

    Sharesies working with NZX to introduce direct share investing. Will be interesting to see the pricing model for this in Sharesies. A break away from their target market of set & forget investors. Single stock investing involves a bit more research.
    It will be nigh on impossible to trade shares via sharesies is my initial thought. If they are not a broker they will have to deal through one. So they will still only put the orders through once per day (or maybe some increased frequency) but it will be bulk orders and not your order when you place it at your limit. Then they will just have to charge what the current brokers do to remain competitive. But for buy/hold pundits this will be great.

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