Investing for the long term - a wise choice right now?

[ratkin]

Just re checked all my Australian holdings for FIF
and was suprised to see that MFF was exempt from FIF

It is a LIC (Listed investment company.)

What I cannot understand is why MFF is exempt yet WAM is not

https://brc1.ird.govt.nz/opa12/web-d...lobal%24global

[kiora]

https://www.stuff.co.nz/business/mon...verseas-shares

[ratkin]

https://www.stuff.co.nz/business/mon...verseas-shares

Was that article inspired by this thread, or was it just a coincidence.

[SBQ]

I think you’ll find Smartshares is much cheaper than any online broker if you buy directly. There’s a one-off $30 set up fee and after that you don’t pay any transaction fees to invest if you go through their monthly process (transfer your cash in by the 20th of the month and it goes into the market on the first trading day of the following month). And you can do this from $50 per month.

Can you do limit orders and GTC orders on Smartshares? I wouldn't be comfortable with the delayed arrangement where the orders go in on the 1st day of the month. If you sent funds on the 20th, this leaves an insider at Smartshares to speculate by taking a position to profit until the 1st trading day. I mean 10 days lead time is a long time for bad or good news to come out, knowing that clients are committed to the purchase of the ETF until the next month.

Yes seems sensible for the small investor, $50 minimum per month contributions. At the seminar I attended, the guest speaker was from a local brokerage firm looking for large clients (ie $500K minimum) to handle their portfolio / management. I have a problem with that because significant sums in the hands of other people can be a recipe for under-performance.

[mani99]

I think I've narrowed it down to:

Long term: AIA/POT
Medium/Short: SUM, ATM, SKO, EBO

I can feel the judging from the readers already.... :-)

[kiora]

From Ray Dalio
"Identify the paradigm you’re in, examine if and how it is unsustainable, and visualize how the paradigm shift will transpire when that which is unsustainable stops."
"Though not always perfectly aligned, paradigm shifts have coincidently tended to happen around decade shifts—e.g., the 1920s were “roaring,” the 1930s were in “depression,” the 1970s were inflationary, the 1980s were disinflationary, etc"
https://www.linkedin.com/pulse/parad...fts-ray-dalio/

Will flight shaming or C neutral NZ affect AIA?
Does SUM rely in part to the housing market?
etc

[Tronald Dump]

[QUOTE=SBQ;768004]Can you do limit orders and GTC orders on Smartshares? I wouldn't be comfortable with the delayed arrangement where the orders go in on the 1st day of the month. If you sent funds on the 20th, this leaves an insider at Smartshares to speculate by taking a position to profit until the 1st trading day. I mean 10 days lead time is a long time for bad or good news to come out, knowing that clients are committed to the purchase of the ETF until the next month.

Yes, you can buy Smartshares on the market through any NZ broker just like any other share, but of course you'll have to pay the broker commission. For investing small amounts it makes more sense to go direct to Smartshares or buy the ETFs through a platform like Sharesies or InvestNow, both of whom invest your funds on the day they are received. Smartshares doesn't 'speculate' with the money - it sits on deposit until it is invested. The reason they do it this way is so they can pool the trades from all direct investors and invest through a unit creation process rather than buying on-market, which is why there are no transaction costs.

[voltage]

Smartshares ETFs are still expensive with an MER around 0.5%. Simplicity has there own NZ50 Fund with an expense ratio of 0.1%. Also, many ETFs are available on the ASX with much lower expense ratios.

[couta1]

I think I've narrowed it down to:

Long term: AIA/POT
Medium/Short: SUM, ATM, SKO, EBO

I can feel the judging from the readers already.... :-)

I could narrow that group down even further for you.
Short/Medium/Long: ATM
Long: SUM

[Schrodinger]

Yes this is the reason I opted into a DRP on an overseas share I hold. I found the NZ bank charges on overseas small cheques too high. I guess one silver lining is that if we can't cash such cheques, we no longer have to declare them as income? Will Grant Robertson be pleased?



Personally I think NZ banks are making a big mistake trying to phase out the banking of overseas cheques. Or defacto doing so by making their bank charges so high that it becomes uneconomic to present them. They don't understand that the rest of the world is not as 'advanced' (sic) as New Zealand in doing electronic payments. As a result they will probably end up doing significant damage to our export sector, because they are so greedy with their bank charges.

SNOOPY

Hi Snoopy a significant part of the world has leapfrogged NZ payments system and now have real time instant bank transfers and transactions can be done with mobile numbers and text rather than b/a numbers. Australia now has a more advanced system than us.