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Thread: sharesies.nz

  1. #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.

  2. #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 02:54 PM.

  3. #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.

  4. #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.

  5. #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.

  6. #26
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    Sharesies released a beta of their share trading functionality yesterday and i wrote a review here https://moneykingnz.com/buying-share...irect-broking/

    I'll personally be sticking with Direct Broking. I like having the shares in my own name so i can participate in DRPs, and i hold long term so wanna avoid the account fee that Sharesies charges

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    As I said elsewhere Sharesies is not really designed for investors with large amounts of money to invest. It was set up to provide an avenue for small investors to get investing now, with small, regular investments, at no/very little cost. It is the best thing since sliced bread for me right now. Yes, there are some additions that could be made such as DRP, but I believe those things will come down the track. The individual companies trading is seamless and simple. I put an order in around 9.30 am and it processed and confirmed by lunchtime. From what I remember bulk orders are put through several times a day - not just once. I’m too tired to go check that so don’t take my word for it.

    It is is an ideal platform for beginners to get started.

    Quote Originally Posted by Kelvin View Post
    Sharesies released a beta of their share trading functionality yesterday and i wrote a review here https://moneykingnz.com/buying-share...irect-broking/

    I'll personally be sticking with Direct Broking. I like having the shares in my own name so i can participate in DRPs, and i hold long term so wanna avoid the account fee that Sharesies charges

  8. #28
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    They are not charging what brokers do. 0.5% for orders up to $3000 plus an additional 0.1 % for orders over $3000. For small investors this is much cheaper than going through a broker. Sharesies is not designed for the rest of you.

    Quote Originally Posted by blackcap View Post
    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.

  9. #29
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    I see my initial synopsis was wrong and that sharesies are a NZX participant. Their brokerage is a lot cheaper than ASB or DB and once they allow limit orders I can see them decimating the likes of DB and ASB. I am placing a $1,000 this morning. It is going to cost $30 via DB or via Sharesies I pay $5.

    I know where I am going, I am buying this one at market.

  10. #30
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    Quote Originally Posted by blackcap View Post
    I see my initial synopsis was wrong and that sharesies are a NZX participant. Their brokerage is a lot cheaper than ASB or DB and once they allow limit orders I can see them decimating the likes of DB and ASB. I am placing a $1,000 this morning. It is going to cost $30 via DB or via Sharesies I pay $5.

    I know where I am going, I am buying this one at market.
    Sharesies no good for trading though unless they can offer live depth charts.

  11. #31
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    Quote Originally Posted by couta1 View Post
    Sharesies no good for trading though unless they can offer live depth charts.
    or investing, if you wish to own the investment (have it in your name)
    For clarity, nothing I say is advice....

  12. #32
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    Quote Originally Posted by couta1 View Post
    Sharesies no good for trading though unless they can offer live depth charts.
    Agreed, and no good if you want to vote at AGM's and other events at this stage. But once they allow limit orders it may be a game changer.

  13. #33
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    That bothered me a bit when I first signed up but after reading all the fine print and talking to Sharesies staff, I lam not concerned about that anymore. The shares are mine and processes and protections are in place to ensure that. I am very happy with Sharesies. Cannot fault their customer service and they passion they have for what they have set up. It is a breath of fresh air to find a company that is putting the needs and wants of customers first. They have vision and are constantly seeking feedback on what additional features we would like to see, so I expect we will have options like limit orders, paper/printable contract notes, auto orders for companies, ability to buy warrants and much more, in the not too distant future.

    Quote Originally Posted by peat View Post
    or investing, if you wish to own the investment (have it in your name)
    Last edited by justakiwi; 08-10-2019 at 10:46 AM.

  14. #34
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    Quote Originally Posted by justakiwi View Post
    That bothered me a bit when I first signed up but after reading all the fine print and talking to Sharesies staff, I lam not concerned about that anymore. The shares are mine and processes and protections are in place to ensure that. I am very happy with Sharesies. Cannot fault their customer service and they passion they have for what they have set up. It is a breath of fresh air to find a company that is putting the needs and wants of customers first. They have vision and are constantly seeking feedback on what additional features we would like to see, so I expect we will have options like limit orders, paper/printable contract notes, auto orders for companies, ability to buy warrants and much more, in the not too distant future.
    That’s what I thought with Halifax to. That the shares were held custodially for me.
    Turns out somehow this is not correct.

  15. #35
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    From Sharesies website:

    How we protect your money and investments
    Our top priority is to keep your money and investments secure.


    We keep detailed records of all money in your Wallet and investments in your account.We use Sharesies Nominee Limited to hold your money and investments on bare trust for you. Sharesies Nominee is separate from the daily business operations of Sharesies Limited. This means your money is held separately to the money Sharesies Limited uses to pay staff, and buy office stuff, like stationery and coffee.Sharesies Nominee will never use money or investments held for you for the benefit of itself, us, or any other person.We get audited each year to ensure we are meeting our legal obligations for our custody service.”
    Quote Originally Posted by RTM View Post
    That’s what I thought with Halifax to. That the shares were held custodially for me.
    Turns out somehow this is not correct.

  16. #36
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    Just purchased 411.157 shares in PGW at $2.42. A $1,000 order and the "brokerage or commission" was only $5.

  17. #37
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    Link to full explanation of custodial service:

    https://www.sharesies.nz/ourblog/201...todial-service

  18. #38
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    yeh I get that it is 'safe' , and I have an account with Sharesies with about 4% of my portfolio, mostly in funds
    but as per RTM's experience
    for me it is a very important factor to have control over your stuff (or at least the bulk of it).
    Complications over ownership are where a lot of issues seem to occur.

    Quote Originally Posted by justakiwi View Post
    From Sharesies website:

    How we protect your money and investments
    Our top priority is to keep your money and investments secure.


    We keep detailed records of all money in your Wallet and investments in your account.We use Sharesies Nominee Limited to hold your money and investments on bare trust for you. Sharesies Nominee is separate from the daily business operations of Sharesies Limited. This means your money is held separately to the money Sharesies Limited uses to pay staff, and buy office stuff, like stationery and coffee.Sharesies Nominee will never use money or investments held for you for the benefit of itself, us, or any other person.We get audited each year to ensure we are meeting our legal obligations for our custody service.”
    For clarity, nothing I say is advice....

  19. #39
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    Things are always improving with Sharesies. We now have contract notes for every purchase, which we didn’t have when I signed up. Down the track I hope these will be able to be printed off for anyone who likes to keep a “paper trail” of investments.

    I haven’t sold any investments and don’t intend to anytime in the near future, so I can’t comment on the efficiency of the selling process or whether anyone has experienced any issues, but if the selling process works as well as the buying process does, I don’t envisage any major issues. It seems that Sharesies have covered all bases with their custodial service so for now at least, I trust them and their processes. I am a beginner though, so there is always a chance I’ve “missed” something. Time will tell.

    Quote Originally Posted by peat View Post
    yeh I get that it is 'safe' , and I have an account with Sharesies with about 4% of my portfolio, mostly in funds
    but as per RTM's experience
    for me it is a very important factor to have control over your stuff (or at least the bulk of it).
    Complications over ownership are where a lot of issues seem to occur.

  20. #40
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    Quote Originally Posted by justakiwi View Post
    Things are always improving with Sharesies. We now have contract notes for every purchase, which we didn’t have when I signed up. Down the track I hope these will be able to be printed off for anyone who likes to keep a “paper trail” of investments.

    I haven’t sold any investments and don’t intend to anytime in the near future, so I can’t comment on the efficiency of the selling process or whether anyone has experienced any issues, but if the selling process works as well as the buying process does, I don’t envisage any major issues. It seems that Sharesies have covered all bases with their custodial service so for now at least, I trust them and their processes. I am a beginner though, so there is always a chance I’ve “missed” something. Time will tell.
    I am pretty comfortable too. I guess the only worry is say that Sharesies goes under, and the liquidator takes the assets that are in the custodial service...

    Otherwise it should be foolproof.

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