Are You Stuck with Investing Ideas?

Are You Stuck with Investing Ideas?

As you get stuck into investing, I thought I would share a few stories from other investors around the globe who are on the same journey as you!

In today’s article, we shall feature new investors from New Zealand’s investing platform called Sharesies.

Sharesis is regulated by the Financial Markets Authority (FMA), and by the New Zealand Stock Exchange (NZX)—they’re authorised by the NZX as a Trading and Advising Participant, Clearing and Settlement Participant, and Depository Participant. They must comply with financial services laws and the rules set by the NZX. They are regularly audited to make sure they are meeting their obligations.

Sharesies published a story of two young investors who live in Lower Hutt. They started their investing journey in October 2017.

Aden and Thomas

“We’ve managed to go from about $5,000 in total money between us, to a house deposit in just 2 years. We wouldn’t have been able to do it without Sharesies.”

Aden looked at the funds on Sharesies, Googled what an ETF was, and did a bit of research. The money was going out of his account and he had no clue if he was ever going to get it back. Thomas said he started with a pretty equal spread of investments based on the idea that your risk profile should match your age. He dropped his whole savings into the NZ Bond Fund, which gave him a higher return than the banks, had a lower risk profile than other funds, and didn’t lock him into fixed notice periods for withdrawal.

Like Aden, he probably would’ve invested less conservatively to start, but it paid off when they needed to withdraw the money for their house deposit. They’re now starting from scratch for longer-term goals, so he is likely to invest in more high-risk funds as he has time to wait out any fluctuations.

How did investing help them achieve their goals?

Thomas stated they’re now homeowners amassed 8% worth of returns in 2 years before they withdrew everything for their house deposit. To build up to a house deposit, they set up small automatic payments into Sharesies each week. In more recent months, he was putting about a third of his pay in every week, though a larger portion was going into bonds and lower risk investments since they knew they would be needing it soon. Thomas thought that investing also helped his savings discipline hugely.

The entire half of their house deposit came from investments in Sharesies and Kiwisaver, and they smashed that out in a little over two years. They managed to go from about $5,000 in total money between themselves to a house deposit in just 2 years. They wouldn’t have been able to do it without Sharesies. Since finishing his internship, he had a good savings habit, but Sharesies has been a really big part of keeping it going week in and week out.

Now that they’ve bought a house, and next on their list is fixing the house! After that, who knows? they’d like to look into building up their investments to the point of getting a decent side income or stream of dividends.


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