How so? If i am reading it right you pay $3 and can invest up to $500 out of your monthly pay pack, across multiple companies. How is that not market leading and great for small investors?
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Because the vast majority of small investors are not able to invest enough per month, to make the $3 cheaper than paying the 1.9% fee.
If I invest $100/month - the fee at 1.9% = $1.86.
If I invest $150/month - the fee at 1.9% = $2.85
If I invest $160/month - the fee at 1.9% =$3.04
So one needs to invest close to $160/month for the cheapest plan to be of any benefit. For those people, that monthly amount is all they can afford to invest, so the $500 cap is meaningless. What you need to understand is that many of these Sharesies investors are only able to invest very small amounts - $5-10 a week maybe. I am a bit better off than them and could probably bump my investment up to that $160 level, but not necessarily every month. People working shift work often have fluctuating fortnightly pay. Some pay periods my income is lower than other periods. Unless someone can guarantee they can invest that amount every month, the monthly plan is not ideal. There may be months where they can't invest anything but are still charged the $3 plan fee.
I get that for most of you here, these fees seem minuscule. I get that. But for those of us with minimal disposable income to invest, every dollar counts.
what if you are only investing $10 per week or $40 per month. I think that is the issue Justakiwi is trying to raise.
Or a casual $100 so now and then. Then it is not that great anymore.
But I do understand Sharesies as well. They are losing money hand over fist and probably grew too large too soon in boom times. Then we have a market decline, interest rates rising and people generally with less disposable income. That will have hurt them substantially with the additional workforce. Falling revenues and vastly increased costs do not help for a long term sustainable business.
I think we will need to realise that their pricing model was unsustainable and that continuing it as it was would have led to them not being around in a year or two.
What you are going to have to do JK, is the old school way that we all had to do it back in the day. Save our $ in cash or in the bank till we had a large enough amount to make a share investment worth while and then do the investment. Takes a bit of discipline but it is doable. Rather than purchasing small parcels of stock frequently, it means making larger purchases less frequently.
If I was investing under $20 per week I’d likely save up and make perhaps one or two purchases per year, or invest in a low cost fund, such as simplicity. Over time I’ve moved away from active stock picking and put more into passive funds as if we’re really honest with ourselves our individual stock picks often don’t create financial outcomes which are any better (and often worse) than a global equity tracker. Shareies is a great place to put perhaps 5-10% to ‘have fun’ and that way you leave the rest to actually reach your financial goals :)
Im starting to think the same. This bear market is crushing my confidence to pick stocks. Might just be easier to invest in some managed funds with a proven track record like BRM and IFT and then go S&P500 etf and a world fund etf. just be done with it.
Problem i have is not enough time to track every company i own while raising a family and working full time
Now that I have my portfolio where it is, in terms of holdings, that’s it for now. I am not adding any additional holdings at this point. Currently I am only adding to two of them. KFL takes care of itself with DRP and warrants issues (this year was an exception to the rule re warrants of course so I didn’t exercise). The other holdings I will add to as I can. There are times when I have additional capital to invest such as tax returns etc.
So no, I’m not making 52 investment decisions a year. I have a plan that I revise regularly, and simply follow that.
The plan could quite likely change over the next few months.