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Originally Posted by Kelvin
Not an uncommon feeling to feel nervous about P2P. I put the minimum $500 in (that I could afford to lose) to test it out when I first started. The return you get does compensate for the risk though, and getting monthly payments is nice.
Is 2 years the minimum term available? I see with Squirrel you can sell your investment if you have a financial emergency or whatever, but wondering how hard it would be to get someone to buy it given that they may be able to get a higher interest rate than what you're trying to sell.
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The bellow link is an NZ author's perspective on risk and investments.
FYI she's dead against investing in individual shares.. But it may help you work through your asset allocation queries.
http://www.rbnz.govt.nz/-/media/Rese...-investors.pdf
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Originally Posted by huxley
I like the bit "Fortune favors the brave" & Risk vs return & add fear & greed.Best to learn from experience?
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Member
Originally Posted by justakiwi
Is 2 years the minimum term available? I see with Squirrel you can sell your investment if you have a financial emergency or whatever, but wondering how hard it would be to get someone to buy it given that they may be able to get a higher interest rate than what you're trying to sell.
Yes, that's the minimum term. I wouldn't invest in P2P if there was a chance you needed the funds before the term ended, but the secondary market is still really nice to have. As long as you invest in small amounts and at a decent rate, I think it will be fairly easy to sell your investment - right now there are over $100,000 of investor funds bidding for 5 year loans, but a $15,000 loan at 8% untouched on the secondary market
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If you want diversification with low amounts of money, hard to go past the Smartshare EFT. You can do a regular monthly deposit without facing brokerage. Since its an EFT, you wont beat the market, but your returns should roughly be the market return which will hopefully be more than the bank over the long term. As your fund builds up, you could sell some and invest in companies that you think will beat the index. That is pretty much want active funds do. Their funds look kind of like the index but are overweight in companies they think are good and underweight in companies they think are bad (I know this is a gross oversimplification).
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Originally Posted by Harvey Specter
If you want diversification with low amounts of money, hard to go past the Smartshare EFT. You can do a regular monthly deposit without facing brokerage. Since its an EFT, you wont beat the market, but your returns should roughly be the market return which will hopefully be more than the bank over the long term. As your fund builds up, you could sell some and invest in companies that you think will beat the index. That is pretty much want active funds do. Their funds look kind of like the index but are overweight in companies they think are good and underweight in companies they think are bad (I know this is a gross oversimplification).
yeah, I keep coming back to ETF as possibly my "next step" best option for now. I have looked at all the funds they have available and my problem is now, knowing which one to choose (should I go down that path). Given that my little Kingfish holding is NZ shares, I'm thinking I should go with something international with Smartshares. I honestly have no real clue which funds I should consider, or which one to go with. I know this isn't a place to get advice on what to do, but could you offer some guidance around how I should make that decision?
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Not wanting to step in to a private conversation but since this is directed towards a more philosophical question..as to how any of us make decisions. Sort of depends on what you feel most at home with. Some analyse things out to ne "n" th degree while others just go with the gut. However rather than treating this exercise as being a terminal, never to be recovered from position, one option is to do the buffet and try a little of this and a little of that and give it some time to digest. Even though you are 'older" than some, you still have plenty of time left. Its impractical and too daunting to try and make the "right" decisions right at the beginning of a journey..more important to just get started and trust that you can feel you way along gradually.
Originally Posted by justakiwi
yeah, I keep coming back to ETF as possibly my "next step" best option for now. I have looked at all the funds they have available and my problem is now, knowing which one to choose (should I go down that path). Given that my little Kingfish holding is NZ shares, I'm thinking I should go with something international with Smartshares. I honestly have no real clue which funds I should consider, or which one to go with. I know this isn't a place to get advice on what to do, but could you offer some guidance around how I should make that decision?
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Originally Posted by BIRMANBOY
Even though you are 'older" than some, you still have plenty of time left. Its impractical and too daunting to try and make the "right" decisions right at the beginning of a journey..more important to just get started and trust that you can feel you way along gradually.
Thank you for this. I guess right now, because I'm on my own (divorced and no significant other) I don't have anyone to bounce ideas off so you guys are the best alternative I've found so far.
I know I'm posting a lot and possibly running the risk of being labelled as somebody who "wants us to make decisions for her" - but aside from reading and researching online, these forums are the next best way for me to learn and get some general guidance. Plus right now as a newbie, I feel safer in this forum than venturing into the others - they are a bit scary
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Absolutely FINE...you do what works for you and I'm sure there is no such thing as posting TOO much. Some posters are into the tens of thousands ..it all comes down to what you feel ok with so post away do it at your own pace and in your own time.
Originally Posted by justakiwi
Thank you for this. I guess right now, because I'm on my own (divorced and no significant other) I don't have anyone to bounce ideas off so you guys are the best alternative I've found so far.
I know I'm posting a lot and possibly running the risk of being labelled as somebody who "wants us to make decisions for her" - but aside from reading and researching online, these forums are the next best way for me to learn and get some general guidance. Plus right now as a newbie, I feel safer in this forum than venturing into the others - they are a bit scary
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Originally Posted by justakiwi
yeah, I keep coming back to ETF as possibly my "next step" best option for now. I have looked at all the funds they have available and my problem is now, knowing which one to choose (should I go down that path). Given that my little Kingfish holding is NZ shares, I'm thinking I should go with something international with Smartshares. I honestly have no real clue which funds I should consider, or which one to go with. I know this isn't a place to get advice on what to do, but could you offer some guidance around how I should make that decision?
giving specific advice is hard as it is very unlike to be the best advice (only possible with hindsight). For just plain diversification, I would normally say start with FNZ. No international but fine for a starting point. However you already have Kingfisher covering the NZ market (on an active basis) so you might want to go for OZY. That adds in Forex risk but does give you exposure to other things such as banks and resources. I think the new international ones (like the S&P500 one) are expensive for what they are but would give you diversification in the US market. Or since you want diversification, why not a regular $50 (or whatever the minimum/what you can afford) into each of OZY and the S&P500 one.
That might mean each one grows slowly as what i would aim for is to get one to grow to say $10k, then sell down $5-8K worth to put into a stock you think will beat the market. You will keep contributing to the EFT and that will build up again at which point you do it again. After a while, you will have an EFT and a handful of shares you have researched and think will do well.
That is kind of how I started (no EFT at the time so did managed funds) and now just have a diversified portfolio of 15+ NZ shares (and Kiwisaver for international).
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