sharetrader
Page 2 of 6 FirstFirst 123456 LastLast
Results 11 to 20 of 59
  1. #11
    Guru justakiwi's Avatar
    Join Date
    Aug 2016
    Location
    Canterbury
    Posts
    2,569

    Default

    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. 😄

  2. #12
    Dilettante
    Join Date
    Mar 2010
    Location
    Down & out
    Posts
    5,407

    Default

    Hi justakiwi. Some good comments on here and I mostly agree with what Peat said in post #8 (wouldn't consider feel good "socially responsible" investment funds in your situation though) and stick to dribbling into the USF through passively managed Sharesies.
    The USF includes the 500 largest companies on the NYSE and many of those rely on sales from around the globe and thereby give you access to foreign exchange hedging in dozens of currencies and access to dozens of economies.

    I can't see why you would want to diversify any more than that with your relatively small amounts.

    But good luck whatever you do and I repeat what 777 said above, you most certainly have not made a fool of yourself with your questions and obvious enthusiasm.

  3. #13
    Guru justakiwi's Avatar
    Join Date
    Aug 2016
    Location
    Canterbury
    Posts
    2,569

    Default

    For anyone who is remotely interested I thought I would share an update with you. I started this thread back in June of last year. I had just joined up to Sharesies and was getting started with $10 a week into USF. I think from memory I held about $1000 KFL shares (externally, which I had bought back in 2016).
    I commented above that my aim was to have about $10,000 invested by the time I turned 65. That seemed like a huge amount and “doable” given my limited income on part time work.

    18 months later, having just turned 60, my portfolio is now sitting at $10,071.10. My total return for the period 25/5/19 to today, is 39.20%. Return for the last 12 months is 34.92%.

    I know there will be some here who will have a quiet little snigger when they read this, but today I am celebrating and feeling proud of what I’ve achieved. It is possible to be a late starter to investing. It is possible to be a very small investor but still make it work, and it most definitely is worth doing even if you only have $10 a week to get started with.

    Thank you to those of you who have helped me learn, encouraged and supported me, and put up with my constant PMs and questions. Your wisdom (talking to you Percy ) and guidance is pretty much what got me to my goal five years early!

    I think a wine is in order

    ~ Carren

    P.S Funny that my original plan (above) was to invest in ETFs only. As it turns out USF is still the only one I have. The other 5 are companies.
    Last edited by justakiwi; 10-11-2020 at 05:39 PM.

  4. #14
    Legend peat's Avatar
    Join Date
    Aug 2004
    Location
    Whanganui, New Zealand.
    Posts
    6,435

    Default

    congrats JAK

    You've taken risk and it has been rewarded.

    like all of us a lot of it has been luck though, you do need to accept that. We all should.

    But fortune favours the brave , as my old man would say as he bid 10 No Trumps in a game of 500.
    For clarity, nothing I say is advice....

  5. #15
    Guru justakiwi's Avatar
    Join Date
    Aug 2016
    Location
    Canterbury
    Posts
    2,569

    Default

    I fully appreciate that investing involves risk and a certain amount of luck. I am under no illusions that my progress so far will continue, or that my returns won’t suddenly show a negative figure at some point in the future. I am celebrating the fact that I have been proactive for the past 18 months, and have done what little I could, given my income, to create at least a little bit of “extra” financial security, for the long term into retirement. If it all turns to custard so be it. Today however, I am happy to have met my goal early. I will set a new one now.

    I had forgotten how good Stone’s Green Ginger wine is!



    Quote Originally Posted by peat View Post
    congrats JAK

    You've taken risk and it has been rewarded.

    like all of us a lot of it has been luck though, you do need to accept that. We all should.

    But fortune favours the brave , as my old man would say as he bid 10 No Trumps in a game of 500.

  6. #16
    Membaa
    Join Date
    Nov 2004
    Location
    Paradise
    Posts
    5,292

    Default

    @justakiwi you're adorable and an inspiration, it doesn't matter the absolute value, it's the determination to do well. I have learnt as much from you as you might have from others, about mindset for investing. For what it's worth I don't think luck comes into it very often, sometimes maybe, but solid research and active management are critical skills for investing.

    And congratulations on achieving your goals so quickly, if you extrapolate that 5 year goal in 18 months to what you can achieve actually in five years ... well, what else can I say except all the best.

  7. #17
    Member
    Join Date
    Apr 2020
    Location
    New Zealand
    Posts
    155

    Default

    What a lovely heart warming update to your original post, thank you for sharing it!

  8. #18
    Guru justakiwi's Avatar
    Join Date
    Aug 2016
    Location
    Canterbury
    Posts
    2,569

    Default

    Thank you both so much for the really cool, and positive comments. You’re the best

    Quote Originally Posted by Baa_Baa View Post
    @justakiwi you're adorable and an inspiration, it doesn't matter the absolute value, it's the determination to do well. I have learnt as much from you as you might have from others, about mindset for investing. For what it's worth I don't think luck comes into it very often, sometimes maybe, but solid research and active management are critical skills for investing.

    And congratulations on achieving your goals so quickly, if you extrapolate that 5 year goal in 18 months to what you can achieve actually in five years ... well, what else can I say except all the best.

    Quote Originally Posted by Norwest View Post
    What a lovely heart warming update to your original post, thank you for sharing it!

  9. #19
    Guru
    Join Date
    Apr 2003
    Location
    Wellington, New Zealand
    Posts
    4,876

    Default

    Quote Originally Posted by justakiwi View Post
    For anyone who is remotely interested I thought I would share an update with you. I started this thread back in June of last year. I had just joined up to Sharesies and was getting started with $10 a week into USF. I think from memory I held about $1000 KFL shares (externally, which I had bought back in 2016).
    I commented above that my aim was to have about $10,000 invested by the time I turned 65. That seemed like a huge amount and “doable” given my limited income on part time work.

    18 months later, having just turned 60, my portfolio is now sitting at $10,071.10. My total return for the period 25/5/19 to today, is 39.20%. Return for the last 12 months is 34.92%.

    I know there will be some here who will have a quiet little snigger when they read this, but today I am celebrating and feeling proud of what I’ve achieved. It is possible to be a late starter to investing. It is possible to be a very small investor but still make it work, and it most definitely is worth doing even if you only have $10 a week to get started with.

    Thank you to those of you who have helped me learn, encouraged and supported me, and put up with my constant PMs and questions. Your wisdom (talking to you Percy ) and guidance is pretty much what got me to my goal five years early!

    I think a wine is in order

    ~ Carren

    P.S Funny that my original plan (above) was to invest in ETFs only. As it turns out USF is still the only one I have. The other 5 are companies.
    Well done good on you. And no not a snigger at all. You have done very well and have also taken the time to educate yourself in these matters. Enjoy that wine.

  10. #20
    Veteran novice
    Join Date
    Jun 2007
    Location
    , , .
    Posts
    7,289

    Default

    Well done, indeed! Now set a target for the next x years and keep that enquiring mind doing its good work!

    Cheers, m.

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •