Quote Originally Posted by SBQ View Post
At times I can be very blunt.
Yes, you can be 😉

What I was saying is when you go down this path of investing for retirement, there is simply no substitute for how many years you stay invested. Certainly 6 years is a very short time frame, and perhaps a risky one if you intend to sell up at age 65. Equally important is estate planning. What do you intend to do if you leave the 2nd nest egg invested after 65? This is why I mentioned about generations as most people who have next of kin or usually plan their retirement portfolio for the benefit not just for themselves at elderly age but for also the next of kin family.
As I have already explained, I have no intention of selling up at 65. It will be a back up fund, used only for emergencies and possibly for a domestic holiday at some point.

In in terms of my estate when I die, it will be close to a non-issue. My KS “might” be worth a maximum of $30,000 when I hit 65 (possibly less if we experience a crash before then). This new investment will be worth bugger all. Definitely less than $10,000. That’s it. I have no assets other than my caravan, which is currently worth probably no more than $20,000. By the time I’m 65 it will be worth less. So, when I die, once my funeral is paid for, my 4 kids will be lucky to see $10,000 each. I am not one of those people who lives and works to leave my kids an inheritance. If there is something there for them when I kark it, sweet, but I’m not holding my breath and neither are they. We are talking minuscule amounts of money here. Which is exactly why I sometimes start second guess myself and thinking “why am I bothering even considering investing when I have so little money?” But I’m a bit pig headed and I like a challenge so I’m going to give it a whirl anyway.

I'm sorry I have no experience about Sharesies (or on similar part, Kiwi Saver funds). That's because I already know for the vast majority of investors, such actively managed funds just simply won't work for them. Warren Buffet has proved this time and time again that investors (particularly the small guy) loses far more $ in administration and mgt fees than what they actually get back in compounded returns in their portfolio. I recall reading an article a year or so ago about all the different Kiwi Saver funds failing to meet their mark but were great at marketing their aggressive / moderate / etc funds that a person can invest in. By making the investors choose which area to put their savings in, the investment industry gets off the hook because there is no accountability when the person is presented 3 different risk levels of investment. It's a laugh because they're trying to match the individual's risk tolerance vs their time frame vs the overall return when the sad reality is, everyone wants a bigger portfolio at the end, and when the fund managers do a poor job of delivering that to their investors, they say well it's the individual's fault for not choosing the 'right' mix in their 'balanced' portfolio.
My KS is actively managed and I am currently considering switching providers but not rushing into making that decision right now.

My Sharesies investments will all be ETFs which I’m choosing myself, rather than going with one of their “pre-built” orders, so will be a passive investment as I have no intention of buying/selling to try to beat the market.

If I was in your position and dealing with very small sums, I would look at investing directly to US equities. Particularly in quality, well established companies like those on the S&P500. Since you would be well under the $50K threshold, you would be exempted of FIF / FDR etc. and this is a big deal. Because unlike Kiwi Saver, your portfolio holding the shares directly would attract no taxation at all.
I get this but if I were to do it this way I would have to save up larger amounts of money before purchasing shares, and would also be paying brokerage. Sharesies gave me the opportunity to get started with $50 and to set up regular orders with no buy fees. That is a huge advantage to someone in my position. Tax is never going to be a big issue for obvious reasons and I can claim imputation credits on my PIE income. So unless I win LOTTO, or a handsome Sugar Daddy comes knocking on my door, it is currently the most efficient and cheapest way for me to invest. 😄