Starting out small

[stenk]

Hi guys,

I would like to invest in Shares. Should I go through a managed fund or do this myself?

I'm not new to trading I have some experience in FOREX but not shares. I ultimately would like to do this myself but thought drip feeding a managed dividend fund just to get me started. At this stage I can only do $100 a week payments which at this I am quite comfortable with.

I was thinking smartshares.co.nz/ smartdividend fund.

Please guys let me know what you think. Am I going about this the right way?

Many thanks,

Sten

[dingoNZ]

Hi guys,

I would like to invest in Shares. Should I go through a managed fund or do this myself?

I'm not new to trading I have some experience in FOREX but not shares. I ultimately would like to do this myself but thought drip feeding a managed dividend fund just to get me started. At this stage I can only do $100 a week payments which at this I am quite comfortable with.

I was thinking smartshares.co.nz/ smartdividend fund.

Please guys let me know what you think. Am I going about this the right way?

Many thanks,

Sten

Brokerage fee's will kill your investment, say you were to invest $1000, the minimum fee is $30, you would simply need a 6% rise to be able to justify the buy and sale of the holding.

What I would do to get exposure to equities until you have enough to justifiably buy shares without having the brokerage erode saving is use Rabo direct. Rabo have a lot of asset managers/managed fund on there and you don't pay a stupidly high minimum fee for entry (often have deals for free entry). This way you also get a diversified investment across the asset class you pick (NZX, ASX, US etc).

Alternatively you could invest in the likes of Milford, Mint etc etc however they usually have a 'minimum investment' what Rabo does not.

Worth a read imo, https://www.rabodirect.co.nz/cash-funds/default.aspx

Just a thought~

[Harvey Specter]

Brokerage fee's will kill your investment, say you were to invest $1000, the minimum fee is $30, you would simply need a 6% rise to be able to justify the buy and sale of the holding.I think with Smartshares, even though listed, you can do monthly investment and face no entry costs. To sell you would still face the $30 minimum brokerage which wouldn't be to large a % after 1 year (52x $100 = $5k). Alternatively, open one of Heartland banks new high interest bank accounts to save money until you have enough to invest.

Disc: Happy Heartland investor ;)

Major question - when do you intend to use the funds you have saved (ie. car/house/travel purchase in next 1/2/3 years or retirement in 20+ years)

[stenk]

Disc: Happy Heartland investor ;)

Major question - when do you intend to use the funds you have saved (ie. car/house/travel purchase in next 1/2/3 years or retirement in 20+ years)

Not for at least 10 years and hopefully longer. I have Kiwi-saver 8% (from when it began) which is my retirement savings and doing quite well, but would like to have another portfolio that I have more control over. $100 a week is not going to hurt me at all so I thought I might as well drip feed an investment that offers more then a term deposit "high interest savings account"

Thanks for your reply!

[stenk]

Brokerage fee's will kill your investment, say you were to invest $1000, the minimum fee is $30, you would simply need a 6% rise to be able to justify the buy and sale of the holding.

What I would do to get exposure to equities until you have enough to justifiably buy shares without having the brokerage erode saving is use Rabo direct. Rabo have a lot of asset managers/managed fund on there and you don't pay a stupidly high minimum fee for entry (often have deals for free entry). This way you also get a diversified investment across the asset class you pick (NZX, ASX, US etc).

Alternatively you could invest in the likes of Milford, Mint etc etc however they usually have a 'minimum investment' what Rabo does not.

Worth a read imo, https://www.rabodirect.co.nz/cash-funds/default.aspx

Just a thought~

Thanks very much dingoNZ! Worth a read for sure.

[Harvey Specter]

Not for at least 10 years and hopefully longer. I have Kiwi-saver 8% (from when it began) which is my retirement savings and doing quite well, but would like to have another portfolio that I have more control over. $100 a week is not going to hurt me at all so I thought I might as well drip feed an investment that offers more then a term deposit "high interest savings account"Why 8% (unless your employer is matching) just contribute the minimum as this is locked away. Divert the rest into a portfolio you have control over, even if you just invest it in the non kiwisaver version of the kiwisaver fund you are in (or more likely, add it to the $100 pw you are planning to invest).

[stenk]

Why 8% (unless your employer is matching) just contribute the minimum as this is locked away. Divert the rest into a portfolio you have control over, even if you just invest it in the non kiwisaver version of the kiwisaver fund you are in (or more likely, add it to the $100 pw you are planning to invest).

Not missing the 8% but might change that now to divert into a new portfolio. It is nice to see my KS balance though! Again thanks for your comments Harvey Specter.

[percy]

Controlling your own dynasty and having financial independence is a fantastic position to aim for.
Start now.
Spend five months saving $2,000.In that 5 months research the sharemarket, and look for a share you want to own for the next ten years,or to hold for ever.Buy it,
Then, while saving up you next $2,000 spend more time researching,looking for the next share you want to buy.
Keep repeating the process.

[Snow Leopard]

Controlling your own dynasty and having financial independence is a fantastic position to aim for.
Start now.
Spend five months saving $2,000.In that 5 months research the sharemarket, and look for a share you want to own for the next ten years,or to hold for ever.Buy it,
Then, while saving up you next $2,000 spend more time researching,looking for the next share you want to buy.
Keep repeating the process.

When I started (with nothing in the bank) my initial plan was that each time I had $3000 (I deemed 1% brokerage the maximum I was willing to pay) I would buy a NZX share with good fundamentals until I had 5 different shares:
One went reasonably ballistic, one crashed and I lost 50% and the other three went up some.

I then upped by minimum buy size, diversified more and started buying on the ASX.

I have always worked to a plan, which I regularly review and update and many years later I can say I am "well positioned" :blush: for the future.

Best Wishes
Paper Tiger

[axe]

Controlling your own dynasty and having financial independence is a fantastic position to aim for.
Start now.
Spend five months saving $2,000.In that 5 months research the sharemarket, and look for a share you want to own for the next ten years,or to hold for ever.Buy it,
Then, while saving up you next $2,000 spend more time researching,looking for the next share you want to buy.
Keep repeating the process.

This has been the strategy I have employed over the last two years. It has worked ok for me. I had a targetted return in mind and have achieved this. Bear in mind I have been investing (buy and hold) and not trading. I have only sold twice over the two years.

[stenk]

Controlling your own dynasty and having financial independence is a fantastic position to aim for.
Start now.
Spend five months saving $2,000.In that 5 months research the sharemarket, and look for a share you want to own for the next ten years,or to hold for ever.Buy it,
Then, while saving up you next $2,000 spend more time researching,looking for the next share you want to buy.
Keep repeating the process.

This sounds like a good plan.

[RGR367]

Controlling your own dynasty and having financial independence is a fantastic position to aim for.
Start now.
Spend five months saving $2,000.In that 5 months research the sharemarket, and look for a share you want to own for the next ten years,or to hold for ever.Buy it,
Then, while saving up you next $2,000 spend more time researching,looking for the next share you want to buy.
Keep repeating the process.

And if I may add too, once you have enough good dividend paying stocks, leverage them by making use of "margin lending". GL.

[Snow Leopard]

This has been the strategy I have employed over the last two years. It has worked ok for me. I had a targetted return in mind and have achieved this. Bear in mind I have been investing (buy and hold) and not trading. I have only sold twice over the two years.

So how did you decide upon the target and do you set another more aggressive one having hit the bulleye?


Best Wishes
Paper Tiger

[Snow Leopard]

And if I may add too, once you have enough good dividend paying stocks, leverage them by making use of "margin lending". GL.

I disagree with that simple statement.

You should understand what margin lending involves, the pluses and minuses, and consider whether it is something you wish to incorporate in your plan.

Best Wishes
Paper Tiger

[RGR367]

I disagree with that simple statement.

You should understand what margin lending involves, the pluses and minuses, and consider whether it is something you wish to incorporate in your plan.

Best Wishes
Paper Tiger

Of course he should understand what margin lending is all about. I'm just adding on Percy's plan. In a sort of way I did what Percy said on my early years of investing. But that time will come when saving would be hard and too slow to build your share portfolio. And I've been using margin lending eversince. If others make use of their 1st rental property as a collateral for the next one, why not use your shares to accumulate further shares? Of course, you should be winning on your shares' selections in order not to turn the negative aspect of margin lending too :)

[stenk]

Safe trading/investing. WD :)

Many thanks Wallace!