Archive - Raiz Invest

October 2019
Market and Economic Update: US consumer sentiment at three-month high
Raiz market and economic update 16-10-19 From George Lucas, Raiz CEO  

Downbeat earnings outlook for US stocks

In the US, Q3 earnings season kick offs in earnest and stocks are bracing for a third straight quarter of falling earnings, which would make it the longest streak in more than three years. S&P 500 companies are expected to report around a 4.1 per cent fall in earnings per share, following a 0.4 per cent drop in the second quarter and a 0.3 per cent dip in Q1. It’s not uncommon for expectations going into earning seasons to be underestimated -- so it’s possible that the current 4.1 per cent expectation could be beaten. Drivers for the drop in profits include rising labour costs and input costs as well as the rising US dollar, which serves to cut earnings as 40 per cent of S&P 500 companies’ sales come from overseas. Energy and tech sectors are expected to be worst hit. Still, you wouldn’t know the dim outlook is around the corner from looking at the market right now. The S&P 500 stock index has remained near record highs since hitting an all-time high in July, supported by falling interest rates and hopes that peace could be brokered in the global trade war.  

US consumer sentiment at three-month high

On a more upbeat note, this week saw the University of Michigan measure of consumer confidence rebound, with the survey hitting a three-month high of 96.0 for October. This bodes well for consumption growth and indicates that US consumers are not stretched at the moment. On the political side, investors will be closely watching US impeachment proceedings, with polls showing support for impeaching US President Donald Trump rising above 50 per cent. The complaint against Trump centres on a phone call with Ukrainian counterpart Volodymyr Zelensky in which Trump is said to have asked for help investigating former Vice President Joe Biden. There’s also the ongoing US-China trade stoush. Current talks have resulted in a “mini deal”, with China agreeing not to manipulate its currency and to buy more US agricultural goods. In return, the US would delay additional tariffs and ease restrictions on Chinese firms. While this appears a positive step, previous impermanent truces suggest that this one too may be unlikely to last long.  

No breakthrough in Brexit

Across the Atlantic, the chances of UK Prime Minister Boris Johnson getting a Brexit deal before the EU summit on 17 October have risen. However, a “no-deal” Brexit at the end of October can’t be ruled out, but appears more unlikely given the “Benn Act” now legally obliges the Government to request a delay in such a scenario.  

Aus unemployment tipped to remain steady

In Australia, this week we have the monthly unemployment report which is expected to show that the jobless rate stayed at 5.3 per cent in September. Elsewhere, oil prices were on the rise again through the week following reports that an explosion set fire to an Iran-owned tanker near Saudi Arabia’s port city of Jeddah and caused an oil spill.    

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Important Note: The information on this website is provided for the use of licensed financial advisers only. The information is general advice and does not take into account any person's particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this website. Investors only: The information in this Document is confidential it must not be reproduced, distributed or disclosed to any other person unless it is part of their statement of advice. The information may be based on assumptions or market conditions and may change without notice. This may impact the accuracy of the information. In no circumstances is the information in this Document to be used by, or presented to, a person for the purposes of making a decision about a financial product or class of products. General advice warning: The information contained in this Document is general information only. It has been prepared without taking account any potential investors’ financial situation, objectives or needs and the appropriateness of this information needs to be considered in that context. No responsibility or liability is accepted by Instreet or any third party who has contributed to this Document for any of the information contained herein or for any action taken by you or any of your officers, employees, agents or associates.
Quiz Question of the Month

 

 

Raiz Rewards is real cash investments, not points.

Since inception, we have invested over $900,000 back into our customers’ Raiz Invest and Raiz Super accounts, with the average Raiz Reward of $5 invested back into a customer’s Raiz account per reward. With over 200 brands in Raiz Rewards, there’s a high chance we have the brands you already shop with online. If you have answered this question from our “Chance to WIN - Quiz of the Month” email, you are now in the running to WIN one of 5 x $50 bonuses invested into your Raiz account. If not, simply check for an email titled “Chance to WIN: $50 bonus”, answer this question within the email and you will automatically be in the draw for the month!  

What brands do we partner with?

We partner with many local and international brands across a variety of categories in our Raiz Rewards section. We currently have partners in fashion, food, travel, tech and more. We’re also constantly on-boarding new partners so be sure to check the app and any communications about new partners. This means more opportunities for more cashback into your Raiz account. Raiz Reward Partners Keep an eye out for our new Raiz Rewards interface with an improved experience, including a search bar and categories, rolling out soon! [caption id="attachment_5341" align="aligncenter" width="300"]The new Raiz Rewards interface The new Raiz Rewards interface[/caption]  

Start earning cashback through Raiz Rewards now in the Raiz mobile app or web app:

  [caption id="attachment_4791" align="aligncenter" width="351"]
Tap to open Raiz Rewards on Mobile[/caption]   [caption id="attachment_4796" align="aligncenter" width="351"] Click to go to Raiz Rewards on Desktop[/caption]  

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
 

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Important Information

The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product.

 

The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information.

 

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz.

Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.

 
Terms & Conditions for entering our Quiz of the Month competition
  1. An active Raiz Invest Account must be held (account balance greater than $5). Raiz account holders hold valid accounts as set out in the product disclosure statement found on the website: raizinvest.com.au
  2. To enter, you must click or tap through (via desktop or mobile) one of the answers from the “Chance to WIN $50 - Quiz of the Month” email to the Quiz of the Month Blog page. This will allow us to automatically put your email in the draw. You must be subscribed to emails to receive this.
  3. Entries open Thursday 17th October 2019 at 11am and entries close Thursday 31st October 2019 at 11.59pm. This may be changed at Raiz’s discretion.
  4. Raiz Invest will be giving away five $50.00 credit investments into five active Raiz Investment Accounts. These five investments will be selected at random. We note that no individual prize exceeds $250.00 and total value of prizes do not exceed $50,000.00.
  5. These five random Raiz Account holders will be notified by email when the credit investments will be deposited into their Raiz account within two weeks of competition end date.
  6. The permit number in the format NSW Permit No. LTPM/18/03853.
  7. This promotion is in no way sponsored, endorsed or administered by, or associated with any other third party.
  8. By entering this promotion, you agree that we may use entries for future marketing purposes in any media or branding.
  9. The competition is promoted by Raiz Invest Australia Limited, Level 11/2 Bulletin Place Sydney 2000 NSW, 1300 754 748. ABN 26 604 402 815, who is the Authorised Representative of AFSL 434776. The Raiz product is issued in Australia by Instreet Investment Limited (ACN 128 813 016 AFSL 434776) and promoted by Raiz Invest Australia Limited (ACN 604 402 815). A Product Disclosure Statement dated 1st July 2019 for this product is available on the Raiz website and App. A person should read and consider the Product Disclosure Statement in deciding whether or not to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement and include the risks that would ordinarily apply to investing.
NSW Permit No. LTPM/18/03853
Market and Economic Update: Global economies continued to slow
Raiz market and economic update 01/10/19 From George Lucas, Raiz CEO  

Stocks slump on Trump impeachment talk

This week saw US markets react badly after it became clear that Democrats would seek to impeach US President Donald Trump. Impeachment calls grew louder after Trump confirmed he held back aid to Ukraine but denied this was to provoke an investigation of former vice president Joe Biden. Trump’s woes were compounded by rumours that his administration may seek to ban Chinese companies listing on US stock exchanges -- further increasing tensions between the US and China. However, it’s our view that both history and the particulars of the current situation suggest that the issue will ultimately matter little for the stock market.  

UK Supreme Court: suspending parliament was unlawful

Across the Atlantic, the UK Supreme Court ruled that Prime Minister Boris Johnson's decision to suspend parliament was unlawful. Johnson, who has since faced calls to resign, said he "profoundly disagreed" with the ruling but would nonetheless respect it. The court ruling reduces the likelihood of a no-deal Brexit, but a lack of consensus in the UK Parliament on what happens next means that, unless a Brexit deal is struck, uncertainty will remain.  

Eurozone economy continues slowdown

Elsewhere in Europe, recent economic data shows that the eurozone economies continue to slow. In particular, the eurozone Composite Flash PMI fell to a 75-month low of 50.4 in September, consistent with GDP roughly flat-lining at the end of the quarter. A breakdown of the data shows that the contraction in Europe’s manufacturing sector deepened. Worryingly, there were also signs that the weakness in manufacturing is leaking into services.  

US Market Composite rises in September

US data releases were more upbeat. For instance, there was a small rebound in the Markit composite PMI in September, driven by improvements in both the manufacturing and services components. However, the uptick still leaves the index pointing to a slowdown in GDP growth. There was also a small rise in US personal spending in August, suggesting that third-quarter consumption growth was around 2.6 per cent annualised -- weaker than previously anticipated. Additionally, US core durable goods orders last month rebounded and beat expectations, but even so business equipment investment seems to have stagnated in Q3. The upshot is that US GDP growth is expected to have slowed to 1.5 per cent annualised in the third quarter.  

RBA tipped to slash rates

Locally, the Reserve Bank of Australia is expected to cut its policy rate to 0.75 per cent when it meets on Tuesday, following up its back-to-back rate cuts in June and July. Looking ahead, August retail sales should give a better indication of how households are using the windfall of the Morrison government’s recent tax cut, with a strong 0.5 per cent month-on-month pick-up expected.    

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Important Note: The information on this website is provided for the use of licensed financial advisers only. The information is general advice and does not take into account any person's particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this website. Investors only: The information in this Document is confidential it must not be reproduced, distributed or disclosed to any other person unless it is part of their statement of advice. The information may be based on assumptions or market conditions and may change without notice. This may impact the accuracy of the information. In no circumstances is the information in this Document to be used by, or presented to, a person for the purposes of making a decision about a financial product or class of products. General advice warning: The information contained in this Document is general information only. It has been prepared without taking account any potential investors’ financial situation, objectives or needs and the appropriateness of this information needs to be considered in that context. No responsibility or liability is accepted by Instreet or any third party who has contributed to this Document for any of the information contained herein or for any action taken by you or any of your officers, employees, agents or associates.
September 2019
Raiz Invest Super Portfolio Performance
  We are often asked from customers for more detail on our portfolio performance, however past performance is never a good predictor of future performance. In saying this, it’s still always pleasing to deliver positive returns above the relevant benchmark. Raiz Invest Super invests in the same smart six diversified portfolios.   [caption id="attachment_4916" align="aligncenter" width="800"] Raiz Portfolio Returns for FY 2018 - 2019[/caption]   [caption id="attachment_5283" align="aligncenter" width="400"]Open Raiz Super Open Raiz Super[/caption]  

What are the Raiz Super Fees?

Our ambition is to give you an easy and affordable way to invest and build wealth for your future. Raiz Invest Super fees place it in the bottom 25% or lowest quartile for accumulation superannuation funds on the market (based on a SuperRatings review of over 440 superannuation funds). Please refer to the product disclosure statement for more detail. It is also important to know that many super funds charge fixed costs. The more super funds you are a part of, the more you pay in fixed costs, regardless of the size of your balance in each fund. Put simply, by consolidating your super, you may only have to pay one set of fees. Raiz Super makes the consolidation process easy, and can be done in minutes from within the Raiz app.  

Do I have to select the same portfolio as my non-Super Raiz Invest?

No, you are able to select a different portfolio to your non-Super Raiz account. [caption id="attachment_5283" align="aligncenter" width="400"]Open Raiz Super Rollover to Raiz Invest Super[/caption]     Here are some resources to learn more about our portfolios and superannuation: Investing in Stocks with Dividends – Distribution for FY 2020 Raiz Invest Super: Bringing Superannuation to your mobile phone Why you don’t care about Future you  

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Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
Market and Economic Update: A possible volatile month for markets ahead
17-09-19 From George Lucas, Raiz CEO  

Global recession worries aren’t gone

This week, chatter about a potential global recession continued, despite the International Monetary Fund (IMF) saying that it is “far” from forecasting such an event, according to news agency Reuters. Indeed, although growth is slowing, economies are still expected to grow, just at a slow rate. Interestingly, the stock market has not really factored in a recession or growth slowdown into current prices.  That’s clear if we look so far at September, which has not been volatile and has in fact seen the market move up, including the S&P500 again approaching all-time highs.  

A possible volatile month for markets ahead

Still, although September can be volatile it is usually October where sharp market movement occur. Even so, there are signs to the contrary. For instance, the jobs market is strong globally and hence it is difficult to imagine a credit event that could cause a global financial crisis-style market event when employment is strong. Similarly, robust employment means people are paying taxes, which can only help governments meet their obligations and boost infrastructure spending. Companies, meanwhile, are still hiring, with the latest NAB business conditions survey in Australia showing that companies’ intention to hire have improved, despite overall business conditions falling 2.0 points to +1.0 in August. Secondly, investment committees around the world are having to make increasingly difficult decisions given the relative value of equities to cash and bonds and illiquid assets like property. Each investment committee will come to a different conclusion, but with cash rates expected to fall by two more cuts this year in the US, and many government bonds globally trading at negative rates it is a difficult decision where to allocate the cash once you sell out of equities.  It is possible for this reason that equities will remain at record levels.  

Trump open to temporary China trade deal

Turning to the US, this week saw the Trump administration announce it was considering a “temporary” trade deal with China. Markets have been fixated on the trade war for much of 2019 and rising hopes for a deal have boosted risk appetite and expectations for global growth. Rallies in the Euro and emerging market currencies show just how much the market is focused on the ongoing trade stoush. However, even if a temporary trade deal is stuck, there is no sign that the US and China are any closer to bridging their fundamental differences. Indeed, it is my view that the trade dispute could escalate further in the future. Given that, and with global growth likely to remain weak more generally, I still expect riskier assets to come under pressure soon – but I have been wrong so far.  

US consumer prices tick up in August

Still in the US, this week saw the core CPI inflation rate there rise 0.3 per cent to an 11-year high of 2.4 per cent in August. The US Federal Reserve has worried that inflation has been rising too slowly, citing this issue as one of the reasons it cut interest rates in July.  The August data is very unlikely to stop the Fed from cutting interest rates again next week. Meanwhile, US retail sales data showed that underlying sales growth is slowing but still growing, pointing to Q3 consumption growth still likely to be above 3 per cent annualised and overall GDP growth coming in at about 2 per cent annualised. There was also a small rebound in the University of Michigan consumer confidence index. It rose to 92 in September from 89.8 in August, providing further reassurance that a severe consumer-led downturn is unlikely.    

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Important Note: The information on this website is provided for the use of licensed financial advisers only. The information is general advice and does not take into account any person's particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this website. Investors only: The information in this Document is confidential it must not be reproduced, distributed or disclosed to any other person unless it is part of their statement of advice. The information may be based on assumptions or market conditions and may change without notice. This may impact the accuracy of the information. In no circumstances is the information in this Document to be used by, or presented to, a person for the purposes of making a decision about a financial product or class of products. General advice warning: The information contained in this Document is general information only. It has been prepared without taking account any potential investors’ financial situation, objectives or needs and the appropriateness of this information needs to be considered in that context. No responsibility or liability is accepted by Instreet or any third party who has contributed to this Document for any of the information contained herein or for any action taken by you or any of your officers, employees, agents or associates.
3 things to remember in a rocky economy
Photograph of river with rocky shore It’s been almost 30 years since the severe economic downturn that then Treasurer Paul Keating famously described as “the recession we had to have”. Fortunately, the early 1990s recession lasted only a couple of years (at its worst) and, since 1992, Australia has enjoyed uninterrupted economic growth. Even the global financial crisis couldn’t break Australia’s stride: though the dollar depreciated, equity prices fell, and unemployment rose slightly, we still managed to avoid a bona fide recession. However, recent economic headwinds have caused investors to sit up and take notice. The ‘R’ word has reappeared, with some economists wondering if, after 28 years, Australia’s luck might finally be about to run out. In that context, savers may be wondering what they can do to stay ahead of a possible downturn. Meantime, historically low interest rates from the Reserve Bank of Australia (RBA) means the hunt is also on for better returns. Finder research suggests that if both rate cuts have been passed on to deposit-holders, savers stand to lose $2.6 billion in interest. This produces a complex economic environment for investing. Here are three things to remember about building wealth in these multifaceted conditions.  

Inflation is catching up

In a low-rate world, leaving cash in bank accounts or uncompetitive term deposits could mean that after inflation and tax, your money could be going backwards.
RateCity shows interest rates for saving accounts as at 23 July 2019 after the Big 4 have passed on the RBA’s second cut:
Bank Product Base rate Max. rate
CBA Goalsaver 0.01% 1.15%*
West pac Life 0.60% 2.10%
NAB Reward Saver 0.11% 1.86%
ANZ Progress Saver 0.01% 1.95%
* For balances under $50K. CBA offers higher rates for higher balances. When you consider the impact of taxation on the gross interest earned on these accounts, many savers will be earning less than the rate of inflation (1.3%). To take an example, a person who is earning at the top tax rate (47%) and has $10,000 in an at-call account earning 2% p.a. interest will earn $106 after tax over a period of one year. Add in the effect of inflation (at 1.3%), and their $10,106 will be worth only $9,976 in real terms. Banks may be considered as safe as houses, but at least your house doesn't get smaller every year. If you’ve got cash in on-call accounts, consider why it’s there. Cash accounts are important for a rainy-day fund or for saving in the short term but may not generate wealth over the medium or long term. A failure to invest and instead leaving cash to languish in low-interest call or term deposits could, depending on your circumstances, be a guaranteed way to lose money in real terms. And, if further cuts to cash rates eventuate, this could get worse. Minutes from the RBA’s July meeting indicate that the door is still open for further cuts: “The Board would continue to monitor developments in the labour market closely and adjust monetary policy if needed to support sustainable growth in the economy and the achievement of the inflation target over time.” In a recent survey of RateSetter investors, 75% of respondents said that continued low bank interest rates contributed to their decision to invest their funds in RateSetter.  

Diversify, diversify, diversify

Is it possible to responsibly pursue better returns in a low-interest environment, with some critics speculating a possible recession? The key could be diversification. Build resilience into your portfolio by making sure it comprises a blend of shares, bonds, cash, property, and so on. Remember: the asset mix of your portfolio should be based on your risk tolerance, and not on whether markets rise or fall (which they will in a cyclical fashion anyway). A mix of defensive, fixed income and growth assets within a portfolio such us with Raiz and RateSetter, can help mitigate risk and expand the prospects of reliable earnings.  

Use fixed-income assets as a life-jacket

Government bonds were among the strongest performing assets during the last global recession, outperforming the ASX 200 despite seven months of negative returns. While rates of bond issuance decreased slightly, the more notable shift was towards shorter term bond terms. There’s a good reason for the popularity of bonds even during a recession. Along with other forms of fixed-income assets, like consumer credit (i.e. personal loans), they tend to demonstrate high resilience and consistent returns. So, including bonds and other fixed-income investments in your asset mix can provide stability through economic downturns.   Guest post contributed by RateSetter RateSetter is Australia’s largest peer-to-peer lender, that allows you to earn attractive returns by investing in a portfolio of consumer loans. To start investing with RateSetter you can register here. RateSetter are offering Raiz investors a $25 sign up bonus if you register before 30 September 2019.      

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
    Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
5 factors that influence the foreign exchange market
Globe on table representing global foreign exchange markets   Currency values are in constant flux, regularly going up and down in value. Five years ago, $1AUD was worth $0.90 USD. Today  it’s worth $0.68 USD. However, this isn’t entirely random and there are factors that affect its performance. In this post we examine five factors that influence currency value.  

1. Interest rates

Australia’s interest rates are set by the Reserve Bank of Australia (RBA). If interest rates are increased, holding that nation’s currency generates higher interest payments, creating more opportunities for profit growth. This draws in traders who try to buy it up, increasing the price of the currency. Conversely, if the rates are decreased, opportunities for profit decrease and the currency is considered less valuable, causing people to try sell it off. With falling demands, the currency’s price falls.  

2. Economic stability

A stable economy is perceived as low risk, attracting foreign investment. This demand increases the price of its currency. In contrast, a weaker economy leads to investors losing confidence and withdrawing their investments, leading to the currency dropping.  

3. Trade-Weighted Index

The trade-weighted effective exchange rate index (TWI), a common form of the effective exchange rate index, is a multilateral exchange rate index. It is compiled as a weighted average of exchange rates of home versus foreign currencies, with the weight for each foreign country equal to its share in trade. When exports outweigh imports, an economy is said to have a ‘trade surplus’, strengthening the stability of said economy. The currency value rises as foreign consumers buy the currency to purchase exported goods. On the other hand, when imports are greater than exports, an economy experiences a ‘trade deficit’. The country must sell its own currency to purchase the imported goods, leading to a reduction in currency value. The TWI is a way of measuring the above in one simple number.  

4. World events

Geo-political events, crisis, and impending election can all affect the strength of a currency based on how that affects the perception of a country’s stability. A positive event can attract foreign investors, with a rise in foreign capital increasing the value of the currency. A country in crisis can lead to a loss of confidence and depreciation of its currency value.  

5. Government debt

Government debt by itself not necessarily a negative. It can help improve local infrastructure and creative economic growth. However, when it is too high, it can lead to inflation and currency devaluation. When public debt is reduced, the economy becomes more stable and again attracts more investors, increasing the value of the currency. If public debt increases, the government may issue more currency, increasing the volume in circulation (known as quantitative easing). This dilutes the value of existing currency holdings, causing prices to drop.      

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
    Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
Quiz Question of the Month! (September 2019)
If you wait until age 40, how much will you have to deposit each month to reach the same amount?     Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
Terms & Conditions for entering our Quiz of the Month competition
  1. An active Raiz Invest Account must be held (account balance greater than $5). Raiz account holders hold valid accounts as set out in the product disclosure statement found on the website: raizinvest.com.au
  2. To enter, you must click or tap through (via desktop or mobile) one of the answers from the “Chance to WIN: $50 bonus” email to the Quiz of the Month Blog page. This will allow us to automatically put your email in the draw. You must be subscribed to emails to receive this.
  3. Entries open Thursday 5th September 2019 at 11am and entries close Monday 30th September 2019 at 11.59pm. This may be changed at Raiz’s discretion.
  4. Raiz Invest will be giving away five $50.00 credit investments into five active Raiz Investment Accounts. These five investments will be selected at random. We note that no individual prize exceeds $250.00 and total value of prizes do not exceed $50,000.00.
  5. These five random Raiz Account holders will be notified by email when the credit investments will be deposited into their Raiz account within two weeks of competition end date.
  6. The permit number in the format NSW Permit No. LTPM/18/03853.
  7. This promotion is in no way sponsored, endorsed or administered by, or associated with any other third party.
  8. By entering this promotion, you agree that we may use entries for future marketing purposes in any media or branding.
  9. The competition is promoted by Raiz Invest Australia Limited, Level 11/2 Bulletin Place Sydney 2000 NSW, 1300 754 748. ABN 26 604 402 815, who is the Authorised Representative of AFSL 434776. The Raiz product is issued in Australia by Instreet Investment Limited (ACN 128 813 016 AFSL 434776) and promoted by Raiz Invest Australia Limited (ACN 604 402 815). A Product Disclosure Statement dated 1st July 2019 for this product is available on the Raiz website and App. A person should read and consider the Product Disclosure Statement in deciding whether or not to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement and include the risks that would ordinarily apply to investing.
NSW Permit No. LTPM/18/03853
Market and Economic Update: Investors adjust to a slower global economy
03-09-19 From George Lucas, Raiz CEO  

Nervous truce in US, China trade war sees equity markets up

Firstly, looking at equities, the S&P500 closed last week back near the top of its recent range, with key resistance up near the 2,945 level and the index still within 5 per cent of its all-time high. This suggests that -- taking a step back from market volatility and US President Donald Trump’s recent trade war tweets -- that many investors are still not overly worried about the outlook. One possible explanation for the comparatively limited reaction in equity markets is that investors are still clinging to hopes that the trade war will blow over. However, this position doesn’t look particularly credible anymore given both China and the US have recently doubled down on their positions. An escalation in the trade stoush seems a much more likely outcome. The second theory is that there are continued hopes among investors that the global economy will be fine, despite the trade war. Admittedly, its direct effects on the rest of the world are likely to be relatively small, but its indirect impact via confidence and investment remains unclear. The problem with both these analyses is they miss the bigger picture in that the global economy has already lost momentum for reasons not directly related to US-China trade. Data out of Germany this week showing its economy contracting on weaker exports in Q2 is a stark reminder of this.  

Powell uses Jackson Hole to hint at Fed rate cut

Global growth will probably remain weak even with some further easing of monetary policy by the US Federal Reserve later this year. Indeed, Federal Reserve Chairman Jerome Powell’s much-anticipated speech at the Jackson Hole conference hinted that the Fed will cut interest rates at its September meeting, but did little to clarify intentions beyond that. As it stands, investors expect a further 100 basis points of cuts over the next 12 months, but those projections are almost certain to be revised down at the September meeting. It’s not only investors who have been disappointed by the Fed’s gradual approach, with President Trump repeatedly -- and increasingly stridently -- calling for much looser monetary policy. It’s likely that the Fed will cut twice more this year largely on fears financial conditions could tighten if it disappoints market expectations. In saying that, the Fed has never cut by more than 75 basis points in a year outside an actual recession and the US is not currently in a recession.  

Trump hints at support for more tax cuts

Trump -- because he is not getting his rate cuts -- is now said to be considering further tax cuts. But even if he keeps pushing for them, there’s good reason to think won’t happen. Remember, Democrats control the House of Representatives and won’t want to help Trump in an election year, while Republicans may also balk at increasing US fiscal debt that’s already near 5 per cent of GDP.  

Australian construction work slumps

At home, the slowdown in Australia's construction industries has ramped up, with new data showing a sharp decline in building work done in Q2. This suggests private investment fell further in the three months to June and lifts the downside risks to GDP growth. Still on the construction sector, it’s unlikely that rebounding machinery and equipment investment in Australia will be enough to offset the current slump in construction activity. However, Australian firms have revised up their forecasts for future capital expenditure, so the drag from falling investment may ease gradually over the coming quarters.      

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
    Important Note: The information on this website is provided for the use of licensed financial advisers only. The information is general advice and does not take into account any person's particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this website. Investors only: The information in this Document is confidential it must not be reproduced, distributed or disclosed to any other person unless it is part of their statement of advice. The information may be based on assumptions or market conditions and may change without notice. This may impact the accuracy of the information. In no circumstances is the information in this Document to be used by, or presented to, a person for the purposes of making a decision about a financial product or class of products. General advice warning: The information contained in this Document is general information only. It has been prepared without taking account any potential investors’ financial situation, objectives or needs and the appropriateness of this information needs to be considered in that context. No responsibility or liability is accepted by Instreet or any third party who has contributed to this Document for any of the information contained herein or for any action taken by you or any of your officers, employees, agents or associates.
August 2019
Easy ways to stay fit and save money at the same time
Bondi Beach Guest post written by Bondi Beauty   There are ways to still eat healthy and be fit, whilst saving money at the same time. There’s a stigma attached to the idea that when you are fit and healthy you need to spend a lot of money to stay that way. In-fact there are multiple ways to still save money without it effecting your healthy lifestyle.  

Start by reviewing your health-related expenses

Grab a notepad and pen and start writing out all your health-related expenses. This includes what you spend on gym memberships, fitness gear, health foods and even paid health apps you might be using; or haven’t used since you purchased. Now, go through each item you’ve written down and see where you are spending the most money.  

Ditch unused gym subscriptions and fitness apps

Do you have a monthly subscription to an app which you aren’t even using, whilst spending too much money on a gym membership that you only go to once a week? It might be time to find a gym with no contract commitments where you don’t have to pay monthly fees, and ditch the health and fitness app if you haven’t used it for more than a few months, or ever. There are loads of great options like Class Pass which has the option to trial for free for the first week and then select a plan for as little as $11.30 a week for six classes a month. No lock in contracts or membership joining fees and you have the flexibility to join any Class Pass registered fitness group, from Pilates, yoga to weights and even boxing. Not only will this save you money on gym memberships, it also offer a great variety of locations, classes and is an easy way to meet new people.   [caption id="attachment_5122" align="aligncenter" width="600"]gym A no lock-in contract gym membership could potentially save you money[/caption]  

Reduce how often you eat out

What about food? Are you eating out too much? Eating out is great, but when you calculate what you’ve spent over a week of purchasing lunch and dinner nearly every day, you’ll mostly likely find you have spent more than what a week-worth of groceries would cost. Reduce how many times a week you eat out and reserve it for special occasions only. There are loads of affordable ways to eat at home. Buy produce which is in season and limit the amount of meat you buy. Start experimenting in the kitchen and get cooking. If you cook extra, you can save the leftovers and use them for lunch meals to stop you buying out every day at work. Freezer options are a great alternative to those nights when you get home too late and don’t have time to cook. Instead of booking a table at your favourite restaurant, why not invite your friends over for a cook fest or potluck dinner. Share what yummy inspirational and healthy recipes you have found with your mates and cook up a feast. It’s cheaper and you control what you’re eating.  

Don't spend too much on activewear

According to sports psychologist Dr. Jonathan Fader, when you purchase new activewear, it inspires you to work out harder. But that doesn’t mean you need a new outfit every week. Activewear can be costly. All you need are a few key items and you can cleverly mix and match your outfits for every workout, and easily look like you have multiple outfits. If you have excess gym accessories and activewear outfits you don’t need anymore, or have hardly used, why not sell them on eBay for some extra cash. This is a great way to get a return on your health and fitness and have extra money on the side if you really want to treat yourself to brunch with your mates on the weekend.      

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Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
    Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
Why you should have an emergency fund
Emergency Helicoptor in Alpine Mountains You might just be the luckiest person on Earth if you go through life without ever running into a situation that requires immediate and unexpected access to money. In these events, it helps to have an emergency fund (a.k.a rainy day fund) to soften the financial impact in stressful periods. Unfortunately, 1 in 3 Australians admit their current spending is beyond their means and more than 50% of the population wouldn’t be able to cover the loss of income without turning to a credit card or loan. In the event of losing a job the imminent stress of rent, utility bills, food, and family related expenses can all come across as overwhelming burdens. Humorously referred to by some as a F**k Off Fund, it is generally recommended to have three to six months worth of expenses saved away in your emergency fund. This sounds difficult to achieve on top of general living expenses, but the good thing about an emergency fund is that you can take time to build it up.  

3 Tips for saving for an emergency fund:

 

Save in small steps

There’s an English proverb that says ‘beware the beginning’. Small steps don’t seem like much in the beginning but there’s no limit in the end! The key is saving regularly. $2-5 a day doesn’t seem like much, but add it up and you can see $730-$1825 stashed away in savings in 1 year.  

Automate your savings

Scheduling automated deposits into your savings account removes emotion and self-discipline from saving. Setting up an automatic transaction on the same day you get paid will whisk the money out of your spending account before you have the chance to spend it.  

Use a good old piggy bank

Why not have a bit of fun by conjuring up some childhood nostalgia and getting an actual piggy bank to put away loose change? You can even gamify the experience - say every time you’re late to an event put away $1 into your savings. Once you fill it up, you can pour it into your Emergency fund.      

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
  Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
Market and Economic Update: Markets jittery on global slowdown fears
Market Update 20-08-2019 From Raiz CEO, George Lucas  

Markets jittery on global slowdown fears

This week, gloom around the global economy deepened, with bond yields plunging and stock markets falling -- trends we’ve seen since late July. Indeed, in the US, shares slumped and investors fled to bonds with such intensity that short-term yields rose above longer-term ones, creating an inverted yield curve for the first time since the global financial crisis 10 years ago. Globally, bank equities, which make up large portions of indices such as the SP500 or the ASX200, have struggled more than most recently. We expect them to remain under pressure, especially in Europe. As mentioned previously, we do not expect this volatility to ease back for some time. What’s more, European bank equity valuations are now nearly as low as in the depths of the 2009 global financial crisis, the 2012 eurozone crisis, and the 2016 Italian banking woes and Brexit.  

‘Fundamental’ questions surround bank business models

In this context, there are fundamental questions about bank business models as a flat or negative yield curve makes it harder for banks to turn a profit. Banks make money by borrowing short term and lending long term and it is hard to pass on negative rates to retail depositors. Looking ahead, the picture doesn’t look overly positive. Interest rates are likely to remain very low in Europe for the foreseeable future and while the yield curve may re-steepen a bit in the coming years, the spread between shorter and longer rates will probably remain lower than in the past. The fate of the Japanese banking sector provides a neat comparison. After the country’s housing bubble burst in the early 1990s, Japanese banks lost most of their market value. But, unlike US banks after the 2008 crisis, in Japan they never really recovered. Instead, permanently low interest rates and a flat yield curve have translated into persistently weak profits.  

Does an inverted yield curve signal a US recession?

This week’s inversion of the yield curve set off alarm bells because, in the US since the 1960s, an inverted curve is often followed by a recession. However, one potential problem in using the slope of the yield curve to predict whether there will be a recession in the US is the “distorting” influence on bond yields of other factors besides investors’ expectations for monetary policy. Another complicating factor is that the last three US recessions of the past 30 years were preceded by an inversion of both the actual yield curve and the risk-neutral yield curve. In this cycle, only the actual yield curve has inverted while the risk-neutral yield curve remains positive. There’s also the US Federal Reserve’s own model to consider, which uses the slope of the actual yield curve to estimate the chance of the economy being in recession in 12 months’ time. Derived from 1959 to 2009 monthly data covering eight recessions, the model in July forecast a 31 per cent chance of the US being in recession in July 2020. This has probably risen now with the further recent steepening. It’s this increasing risk of recession, and therefore slowing global growth, that’s behind the recent sell-off in global markets, while the renewed US-China trade war is more a catalyst than the cause.  

No-deal Brexit risk lifts in UK

Turning to the UK, this week saw the risk of a no-deal Brexit increase, according to an assessment by the German government. It thinks there is a “high probability” of a no-deal Brexit on October 31, since UK Prime Minister Boris Johnson is unlikely to soften his hard stance on the Irish backstop. The appraisal, made in a German finance ministry document, underlines Berlin’s staunch opposition to any renegotiation of the Brexit withdrawal agreement as demanded by the new British PM.      

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Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
    Important Note: The information on this website is provided for the use of licensed financial advisers only. The information is general advice and does not take into account any person's particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this website. Investors only: The information in this Document is confidential it must not be reproduced, distributed or disclosed to any other person unless it is part of their statement of advice. The information may be based on assumptions or market conditions and may change without notice. This may impact the accuracy of the information. In no circumstances is the information in this Document to be used by, or presented to, a person for the purposes of making a decision about a financial product or class of products. General advice warning: The information contained in this Document is general information only. It has been prepared without taking account any potential investors’ financial situation, objectives or needs and the appropriateness of this information needs to be considered in that context. No responsibility or liability is accepted by Instreet or any third party who has contributed to this Document for any of the information contained herein or for any action taken by you or any of your officers, employees, agents or associates.
How Raiz uses Modern Portfolio Theory for diversification
Modern Portfolio Theory (MPT) is a useful theory that shows how investors can construct a portfolio of assets that maximises expected returns for any given level of risk. You’re probably familiar with the saying “don’t put all your eggs in one basket”, a short but effective analogy for explaining diversification. Spread the money in your portfolio across different investments, and it should reduce risk. MPT is useful in that it provides a theory to determine which combination of investments (assets) you should spread your money across, in order to achieve the lowest possible risk for your desired level of expected returns. Assets are not limited to one class of investments, such as shares in Australian companies, but include a range of assets such as bonds (government and corporate), domestic shares (Australian) and international shares (US, Europe, Asia etc). This allows for a more robust diversified portfolio. In its simplest form, MPT answers this question:  
I’m willing to take on this level of risk, what assets should I include in my portfolio to maximise my expected returns?
 

How does Modern Portfolio Theory work?

The first step is to calculate the expected returns and risk (measured as the variance of returns) of a combination of assets. Risk is often a historic measure not a forecast. Expected return however is often a forecast, so if this estimate is incorrect then so is the portfolio construction. When calculating variance, you also calculate the covariance (correlation) between assets.  If two assets share a strong positive correlation, it means that both assets tend to move up or down in value at the same time. The implication of this being that investing in two positively correlated assets would be riskier than investing in two non-correlated assets. Risk can be lowered in MPT portfolios by investing in non-correlated assets. This means assets that might be risky on their own, can actually lower the overall risk of the portfolio by introducing an investment that will rise when other investments fall. However, correlations also tend to be historic measurements, not forecasts, and are thus subject to possible change as the past is not necessarily a good prediction of the future. Being able to calculate a portfolios risk and expected return allows you to plot every possible combination of assets on a graph. The graph has portfolio risk on the X (horizontal) axis and expected return on the Y (vertical) axis. Using this plot, you can determine the most optimal portfolios for a given level of risk or expected return.   [caption id="attachment_4959" align="aligncenter" width="800"]Raiz Efficient Frontier Graph The yellow hyperbola is known as the
'Efficient Frontier'.[/caption]   For example, assume we are looking to construct a portfolio with a standard deviation in risk of 7%. Using the graph, we could see that Portfolio A has an expected return of 8% and a standard deviation of 7%, whilst Portfolio B has an expected return of 6% and a standard deviation of 7%. Investors would consider Portfolio A to be more ‘efficient’ because it has the same risk but higher expected return. Keep in mind that past performance is no indication of future performance, however it can be used to understand the best possible portfolio mix with the least amount of risk.  

How Raiz uses Modern Portfolio Theory

The Raiz Portfolios were put together with the help of the Nobel Prize winning economist and father of Modern Portfolio Theory, Dr. Harry Markowitz. Using MPT our portfolios are designed to give you the best possible returns for the least amount of risk. The risk, correlations and expected returns are all based on historic performance. We use a total of 9 different ETFs to construct our portfolios. In each portfolio these ETFs are allocated a certain percentage depending on the desired level of risk for that portfolio. For example, the more conservative portfolios have a larger percentage allocated towards government bonds, which are generally less risky than equities.   [caption id="attachment_4971" align="aligncenter" width="638"]Raiz Portfolio An example of a Raiz portfolio[/caption]   The benefit of micro-investing with Raiz, which allows fractional holdings in the ETFs, is that with a minimum investment of $5, this amount is allocated across all ETFs within your portfolio (Bonds, Australian shares, US shares, Asia shares, Europe shares etc). If you were to create one of our 7 ETF portfolios through a broker, you would be required to purchase all 7 ETFs separately, incurring possible trading/brokerage fee for each of these 7 trades. You would also need much more money to invest in the portfolio as brokers don’t allow fractional holdings to get the correct weights in the portfolios (i.e. you can only buy whole units of an ETF). An ETF can trade for more than $300, and if, for example, it only made up 10% of a portfolio, you would need to invest $3,000 into that portfolio to get the correct weighting. Automatic rebalancing is our method of maintaining your specific portfolio allocation. Market fluctuations may cause some of the securities in your portfolio to appreciate or depreciate in value. When this occurs, we use automatic rebalancing to bring your portfolio back to its specified allocation. This ensures that the securities in your investment account are proportioned correctly to match the allocations deemed most optimal according to MPT. If we’re getting technical, it also allows us to pick up the concave risk associated with the rebalance while also benefiting from the convex risk associated with index funds. That's a blog post for another day.      

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
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  Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
Terms & Conditions for completing our ‘Improving our Products’ online survey
  1. An active Raiz Invest Account must be held (account balance greater than $5). Raiz account holders hold valid accounts as set out in the product disclosure statement found on the website: raizinvest.com.au
  2. Entries open Thursday, 8th August 2019 at 5pm and entries close Friday, 23rd August 2019 at 11.59pm. This may be changed at Raiz’s discretion.
  3. To enter one must complete in full the survey and provide the email address on your Active Raiz Investment account at the end of the survey.
  4. To thank you for completing the Survey, Raiz Invest will be giving away ten $50.00 credit investments into their active Raiz Investment Account. These ten investments will be selected at random. We note that no individual prize exceeds $250.00 and total value of prizes do not exceed $50,000.00.
  5. These ten random Raiz Account holders will be notified by email when the credit investments will be deposited into their Raiz account within 2 weeks after entries close.
  6. The permit number in the format NSW Permit No. LTPM/18/03853.
  7. This promotion is in no way sponsored, endorsed or administered by, or associated with any other third party.
  8. By entering this promotion, you agree that we may use entries for future marketing purposes in any media or branding.
  9. The competition is promoted by Raiz Invest Australia Limited, Level 11/2 Bulletin Place Sydney 2000 NSW, 1300 754 748. ABN 26 604 402 815, who is the Authorised Representative of AFSL 434776. The Raiz product is issued in Australia by Instreet Investment Limited (ACN 128 813 016 AFSL 434776) and promoted by Raiz Invest Australia Limited (ACN 604 402 815). A Product Disclosure Statement dated 19th March 2019 for this product is available on the Raiz website and App. A person should read and consider the Product Disclosure Statement in deciding whether or not to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement and include the risks that would ordinarily apply to investing.
NSW Permit No. LTPM/18/03853
An insight into the recent market weakness - 06/08/2019
Stack of rocks on beach 06/08/2019 From George Lucas, Raiz CEO   I would like to be able to say that the trade war between China and the US will end soon. But I don’t think that will be the case. China is perfectly aware that an election is looming in the US in November 2020, and that a trade war might reduce President Donald Trump’s chances of being re-elected. What this means is that market volatility (large down and up moves) may be with us for some time, as the US election is 15 months away. The recent move by the Chinese in response to Trump’s comments, that he will add tariffs to another US$300 billion of worth of Chinese goods, was to cut US agricultural imports. Not bad news for our farmers but definitely not good for global markets. At the same time, the Chinese have let their currency, the renminbi, fall sharply against the US dollar. This may have more to do with market forces than China deliberately manipulating its currency. However, overnight the US Treasury has labelled China a “currency manipulator”, further escalating the trade war. This could lead to further sanctions against China from the US in the future. The harsh reality is that relations (at all levels) are not improving between China and the US, with the inevitable consequence of having a negative impact on markets as investors evaluate the effect the trade war is having on global growth, company profits and employment. While we cannot eliminate the uncertainty associated with markets, we can try to manage it. The Raiz philosophy of investing small amounts regularly, through our automatic savings features, such as round ups or recurring deposits, can help manage this uncertainty and is one of the keys to having a healthier return and account balance over the long run. Timing the market at the right time is difficult, even at the best of times. We understand it’s hard when it is your money being affected by market volatility and like you, we want markets to only move in one direction – upwards. But while that’s never the case, in the long term, equity markets do recover from events like these, and continue to rise.     Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
Market and Economic Update: Trump orders new China tariffs
05-08-19 George Lucas, Raiz CEO  

Pound sinks to 30-month low

This week, the pound continued its poor performance, sinking to a 30-month low below $US1.21/£, pressured by a stronger US dollar, concerns about a no-deal Brexit and the Bank of England cutting economic growth forecasts. Sterling is now close to the weakest it has ever been in nominal trade-weighted terms, witnessing an 8 per cent slide against the dollar since March 13, from above $US1.32/£. However, this slump masks the fact that sterling’s valuation still does not look particularly low on the usual fundamental measures, suggesting the currency could go even lower. For instance, let’s look at the size of sterling’s deviation from “purchasing power parity” levels. In simple terms, this is a measure of how far a currency is from the level that would eliminate differences between the price levels of two trading partners. On a purchasing power parity basis, sterling does appear undervalued against the dollar, but this has more to do with the greenback’s broad-based strength. In fact, on the same basis, the pound is fractionally stronger than its “fair value” relative to the euro. Similarly, the valuation of a country’s currency ought to be reflected in the size of its current account surplus or deficit, and the UK scores particularly poorly on this front. If anything, the size of the UK’s current account deficit suggests that sterling is still overvalued.  

Trump orders new China tariffs

In the US, President Donald Trump caused a stir in markets by tweeting that a 10 per cent tariff will be imposed on the remaining $US300 billion of Chinese imports on September 1. In the wake of the tweet, US Treasury yields fell further -- dropping by around 15 basis points to under 1.90 per cent -- as global bond markets rallied on the renewal of the trade tensions and investors factored in more monetary easing by the US Federal Reserve. Markets are now fully pricing in a 25 basis-point cut to the federal funds rate in September, and around 85 basis points of easing in total by the end of 2020. This reflects concerns about the impact of the tariffs on the US and willingness of the Federal Open Market Committee (FOMC) to loosen policy based on global developments including the trade war.  

S&P 500 falters as trade tensions flare

The S&P 500 dropped by over 2 per cent following Trump’s tweet and -- unlike when the trade war flared up last summer -- it has not held up better than stock markets elsewhere. The drop in US equities this time was also more broad-based across sectors as the new tariffs are likely to have a greater impact on US households. Finally, the reaction in the currency market to the trade flare-up has been broadly in line with expectations. The US dollar has held firm against most developed market currencies despite the drop in US interest rate expectations. This has been due to a rise in safe haven demand, which has propped up the Japanese yen and Swiss franc too. We think that these three haven currencies will continue to do well as global growth falters this year.  

Eurozone struggles to emerge from slowdown

Turning to Europe, the slowdown in eurozone Gross Domestic Product (GDP) growth from 0.4 per cent quarter-on-quarter in Q1 to 0.2 per cent in Q2 was in line with the consensus forecast. Italy’s GDP flat-lined in Q2, while we think that Germany’s economic growth fell from 0.4 per cent in Q1 to about 0.1 per cent. Meanwhile, headline inflation in the eurozone fell from 1.3 per cent in June to 1.1 per cent in July, in large part due to a decline in the core rate. And while the euro-zone jobless rate edged down, we think slower wage and employment growth will keep a lid on inflation.  

Australia’s inflation gets boost from oil prices

In Australia, headline inflation picked-up in Q2 on the back of higher petrol prices, but underlying inflation remained subdued. Looking at southeast Asia, Indonesia’s Q2 GDP growth likely stayed at around 5 per cent as weak commodity prices and softer global trade continued to dent exports, according to a Reuters poll.      

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
    Important Note: The information on this website is provided for the use of licensed financial advisers only. The information is general advice and does not take into account any person's particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this website. Investors only: The information in this Document is confidential it must not be reproduced, distributed or disclosed to any other person unless it is part of their statement of advice. The information may be based on assumptions or market conditions and may change without notice. This may impact the accuracy of the information. In no circumstances is the information in this Document to be used by, or presented to, a person for the purposes of making a decision about a financial product or class of products. General advice warning: The information contained in this Document is general information only. It has been prepared without taking account any potential investors’ financial situation, objectives or needs and the appropriateness of this information needs to be considered in that context. No responsibility or liability is accepted by Instreet or any third party who has contributed to this Document for any of the information contained herein or for any action taken by you or any of your officers, employees, agents or associates.
Raiz Portfolio Performance 2018 – 2019 Financial Year
  We are often asked from customers for more detail on our portfolio performance, however past performance is never a good predictor of future performance. Regular disciplined savings can help improve your financial position in the long run, no matter what the short-term market performance is. The Raiz philosophy is about saving and investing small amounts regularly to build your savings - whether for a rainy-day fund, a short-term goal or building a start for your kids. In saying all this, it's still always pleasing to deliver positive returns above the relevant benchmark.   [caption id="attachment_4901" align="aligncenter" width="800"]Raiz Portfolio performance for FY 2019 Raiz Portfolio Returns for FY 2018 - 2019[/caption]   Our automatic savings features: Round-ups, Recurring investments and Savings goal, can assist you with investing small amounts regularly and manage market uncertainty. 80% of our Raiz community invest at least once a month. There's a saying “It’s not about timing the market, it’s about time in the market”   Here are some resources to learn more about our portfolios and the Raiz philosophy: Which Raiz portfolio could be right for me? Why Time in the Market Matters      

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Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
  Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
July 2019
Raiz Tax Statements now available for FY 2018/19
Man with pen and paper   You are now able to view and download your annual Raiz tax statement for FY 2018/19 on the desktop website. If you don't have a tax statement available, it means you don't need one.   How do I download my tax statement? To view on the desktop website: Go to Settings > Statements > Tax Reports or follow this link. We recommend using Google Chrome as other browsers may not be compatible. It is best to access your statement on the desktop website as mobile devices may not be able to download the PDF file of your statement.  

Need help with your tax return?

Raiz have collaborated with Nixer, an innovative and simple online tax agent to help Raiz users complete tax returns in hopefully less than 10 minutes. Nixer will give a $10 discount on your tax return ($87 down to $77) and invest $5 into your Raiz account when you lodge (you must sign up through Raiz Rewards).   [caption id="attachment_4791" align="aligncenter" width="350"] Open Raiz Rewards on mobile[/caption]   [caption id="attachment_4796" align="aligncenter" width="350"] Open Raiz Rewards on desktop[/caption]   To activate this discount, please use the promotion code RAIZ2019 If you have any problems with the statements, please do not hesitate to contact our Raiz Support Team on 1300 754 748 or email support@raizinvest.com.au    

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
  Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
The dangers of financial convenience
Man in car with navigation app on phone By William Jolly from Savings.com.au.   The smartphone and the internet are wonderful things, and new technologies can make it easier than ever to save. On the flip side, they can also make it much easier to spend, posing a threat to your savings. Here are four ways financial convenience could be hurting your finances.  

You can overpay for simple things

An obvious example of this is Uber and UberEats. Although they're great products and can be very useful when needed, overusing them can seriously drain your bank account. For example, you could pay upwards of $15-$20 to Uber from A to B instead of the $3-$6 it might cost you to catch public transport. Likewise, with UberEats - you might spend upwards of $20 or even $30 for a pizza, instead of driving or walking to the nearest pizza place and picking up your order for less than $15. Another example could be using Airtasker for tasks you could easily do yourself. According to Airtasker, people are often willing to pay between $70 and $140 for simple gardening or cleaning services, while some users have even listed tasks offering over $100 for people to buy cigarettes for them. Don't become dependent on share economy apps to get by - doing some things yourself might be harder but your wallet will thank you for it.  

You can pay for too many things

Credit and debit cards combined with online payments make it all-too easy to double up on the same kind of service. Take, for example, online streaming. You could buy subscriptions to:
  • Netflix
  • Stan
  • Foxtel Now
  • Amazon Prime
  • Youtube Red
  • Sports streaming like Kayo Sports and Optus Sport
In addition to all of these and many more, you'll also have the option of subscribing to Disney's Disney+ streaming service to be released later this year. And who are you to say no to the mouse? If you paid the minimum subscription fee for each of these, you'd be shelling out roughly $100 a month, more if you upgrade to a bigger plan or must pay things like set-up fees for Foxtel. So, ask yourself: do you watch $100 worth of content every single month? I'm sure some of you will answer yes, and that's fine, but this principle can also apply to things like meal deliveries, health and fitness services and more. Make sure you review your direct debits every few months and eliminate payments you aren't using.  

You can pay for things you don't need

The 'Afterpay effect' is very much a thing in Australia, with about 1.6 million people using buy now, pay later platforms. The ability to buy anything you want at the press of a button and worry about paying it back later is dangerous if not managed correctly. The same applies to online shopping in general - it's so much easier to waste money on unnecessary clothing and toys just because you can and it's right there on a screen in front of you. According to a recent study from ME Bank, unwanted online purchases cost the average Australian nearly $400 a year. So, think twice before clicking add to cart.  

What can you do?

Don't feel bad for one - it's easy to spend money nowadays and plenty of people do it. But it's also easy to use this technology to your advantage. Try any of the following methods to keep on top of your spending:
  • Go into your online banking portal, download your bank statements and track your overall wealth
  • Look for unnecessary direct debits and cancel them
  • Use budgeting and savings apps to track your spending
If you're still spending too much money, try withdrawing a daily or weekly cash limit from one of those ancient ATM things.      

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
  Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
Win one of ten $50 bonuses with Raiz Kids
  This month we're giving you the chance to win one of ten $50 bonuses invested into your Raiz account! Simply have ‘Raiz Kids’ enabled with at least one child before July 31st to be eligible for your chance to win. T&Cs here [caption id="attachment_4791" align="aligncenter" width="351"] Tap to open Raiz Kids on Mobile[/caption]   [caption id="attachment_4796" align="aligncenter" width="351"] Click to go to Raiz Kids on Desktop[/caption]   Not familiar with Raiz Kids? We've got you covered with some frequently asked questions below  

How does Raiz Kids work?

Raiz Kids uses your pre-existing Raiz account to automatically save for kids. In the Raiz Kids section of the app, you can select the portion of your balance that you want to go towards your Raiz Kids once they've turned 18. You can change the portion that goes to your Raiz Kids (via the Slider) at any time. Raiz Kids will then equally split that among the kids you have added. [caption id="attachment_4807" align="aligncenter" width="300"] Change the portion that goes to your Raiz Kids (via the Slider) at any time.[/caption] For example, if you have selected 50% of your total balance to go towards your Raiz Kids and your balance is $1000, then $500 of it will go towards your Raiz Kids goal. If you then put in a $10 recurring deposit, 50% of this ($5) will also go towards your Raiz Kids goal. This can be changed or removed at any time. Essentially, as your Raiz balance changes in value, your Raiz Kids balance will be adjusted to reflect the portion you have selected.  

What happens when they turn 18?

Once your Raiz Kids reach the age of 18, they are then able to open their own Raiz Account, with the option of having the funds transferred into their account. Otherwise, the funds will remain within your account until you request a transfer.  

Can I remove my Raiz Kids?

Yes, you are able to edit and remove your Raiz Kids at anytime. Then your balance will then recalculate equally across any remaining Raiz Kids.  

Can I still withdraw my balance if it is split into Raiz Kids?

Yes, the balance will withdraw equally among the partitioned amount. For example, if 15% of your total balance is split to go into Raiz Kids, and you wish to withdraw $100, then $15 of that will come from the Raiz Kids goals.  

When will I know if I've won?

The ten winners will be notified by email when the credit investments will be deposited into their Raiz account, by Friday, 16th August 2019.  

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
  Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
Terms & Conditions for entering our Raiz Kids competition
  1. An active Raiz Invest Account must be held (account balance greater than $5). Raiz account holders hold valid accounts as set out in the product disclosure statement found on the website: raizinvest.com.au
  2. To enter, you must have Raiz Kids enabled with at least one child before 31st July 2019.
  3. Entries open Thursday, 4th July 2019 at 11am and entries close Wednesday, 31st July 2019 at 11.59pm. This may be changed at Raiz’s discretion.
  4. Raiz Invest will be giving away ten $50.00 credit investments into ten active Raiz Investment Accounts. These ten investments will be selected at random. We note that no individual prize exceeds $250.00 and total value of prizes do not exceed $50,000.00.
  5. These ten random Raiz Account holders will be notified by email when the credit investments will be deposited into their Raiz account by Friday, 16th August 2019.
  6. The permit number in the format NSW Permit No. LTPM/18/03853.
  7. This promotion is in no way sponsored, endorsed or administered by, or associated with any other third party.
  8. By entering this promotion, you agree that we may use entries for future marketing purposes in any media or branding.
  9. The competition is promoted by Raiz Invest Australia Limited, Level 11/2 Bulletin Place Sydney 2000 NSW, 1300 754 748. ABN 26 604 402 815, who is the Authorised Representative of AFSL 434776. The Raiz product is issued in Australia by Instreet Investment Limited (ACN 128 813 016 AFSL 434776) and promoted by Raiz Invest Australia Limited (ACN 604 402 815). A Product Disclosure Statement dated 19th March 2019 for this product is available on the Raiz website and App. A person should read and consider the Product Disclosure Statement in deciding whether or not to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement and include the risks that would ordinarily apply to investing.
NSW Permit No. LTPM/18/03853  
Market and Economic Update: Bitcoin back on the rise

01/07/19 George Lucas, Raiz CEO  

Bitcoin back on the rise

This week showed Bitcoin was back, riding a new wave of optimism about the value and future of digital currencies. Bitcoin’s price has more than doubled in two months and finished the week around USD11,800 -- still some way off the highs of late 2017. Bitcoin bulls point to Facebook’s recent announcement that it will launch a new digital currency next year, JPMorgan recently creating its own “coin” for payments, and a sharp turn in US monetary policy, as drivers for the digital currency’s bounce-back. What’s more, a lot of demand is coming from Asia where Bitcoin represents a wave of hope in a deflationary monetary environment -- it’s become a safe haven of the digital space.  

S&P 500 has best first half in over 2 decades

Away from Bitcoin, Wall Street clinched its best first half of a year since 1997. The S&P500 has now advanced 17.3 per cent since the start of the year, which is the benchmark’s strongest first-half performance since 1997.  It rose 6.9 per cent in the month of June alone. The strong performance was supported by hopes for a positive outcome for China-US trade relations at the G20. With those predictions proved correct and a truce stuck by presidents Donald Trump and Xi Jinping we expect the rally in global equities to continue in the short term.  

Muted US inflation result

Market sentiment this week was also assisted by another soft US inflation reading. The US Federal Reserve’s preferred measure of inflation -- the core personal consumption expenditures index -- met expectations, rising 1.6 per cent from the prior year period. The market believes the lack of price pressure will make it easier for the Fed to cut interest rates later this year if signs of weak growth continue.  

RBA tipped to make another rate cut

I guess we should expect the Reserve Bank of Australia (RBA) to cut its policy rate to a fresh record low of 1.0 per cent on Tuesday, backing up last month's 25 basis point move. An interplay of factors are in the mix for the RBA. One of them is trade, with our expectation being that the trade surplus will have widened to a new record high in May. This will mean that the trade weighted index (TWI) of the AUD will remain strong. The AUD usually tracks the TWI and should be rallying based on the strength of the TWI over the last few months. The RBA is likely worried that the AUD will follow the TWI and begin to rally, which could strangle the Australian economy. In this context, the only tool they have is to lower interest rates sooner than later, especially now that US Fed has become dovish. So, the RBA can say whatever it wants about why it’s cutting rates, except that it’s doing it to keep the AUD weak. I believe the RBA doesn’t want the rally in the TWI, caused by the bounce in commodity prices, to flow through to the AUD. It’s quite simple really, especially as the reason the RBA has given so far don’t make sense -- we still have economic momentum and an economy creating jobs.      

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
    Important Note: The information on this website is provided for the use of licensed financial advisers only. The information is general advice and does not take into account any person's particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this website. Investors only: The information in this Document is confidential it must not be reproduced, distributed or disclosed to any other person unless it is part of their statement of advice. The information may be based on assumptions or market conditions and may change without notice. This may impact the accuracy of the information. In no circumstances is the information in this Document to be used by, or presented to, a person for the purposes of making a decision about a financial product or class of products. General advice warning: The information contained in this Document is general information only. It has been prepared without taking account any potential investors’ financial situation, objectives or needs and the appropriateness of this information needs to be considered in that context. No responsibility or liability is accepted by Instreet or any third party who has contributed to this Document for any of the information contained herein or for any action taken by you or any of your officers, employees, agents or associates.              
June 2019
Over $3,000,000 in dividends expected to be reinvested in July

hands taking slices of pizza

24/06/19  

July isn't just tax returns

We're rapidly approaching the start of a new financial year, and whilst EOFY sales and tax returns are top of mind, it's also a notable month for dividends being paid by ETFs From the second week of July, look to see your share of over $3,000,000 worth of dividends reinvested back into your Raiz Account. The exact dates they will paid out is yet to be confirmed, and will vary depending on which portfolio you are investing in. The emerald portfolio, for example, contains
unique socially responsible ETFs (named RARI and ETHI) that have different payment dates to ETFs found in other portfolios.  

What are Dividends?

As well as gains on market returns from investing, dividends (or distributions) is money paid by a company back to you, their shareholder, out of its profits. Your chosen Raiz investment portfolio comprises of nine different exchange traded funds (ETFs). ETFs are essentially just a combination of assets (such as stocks, cash or bonds), bundled together under one roof to form a single financial product that can be traded on the stock exchange. The underlying stocks of these ETFs, which make up the Raiz portfolios, pay dividends from time to time. The ETF provider's pays these dividends out monthly, quarterly or twice yearly. All dividends received by Raiz will be automatically re-invested back into your Raiz investment account, and your chosen portfolio.      

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
  Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
Superannuation End of Financial Year Tips
Women jogging with sunset in the background   Mark your calendar. The Australian Financial Year runs from July 1 to June 30. Most of us are guilty of ignoring our superannuation, but this year, why not include a super health check before June 30? Latest figures show duplicate account fees and insurance premiums have eaten into our savings by over $2 billion, lost superannuation amounts to $17.5 billion, and one third of us simply haven’t been paid what we are entitled to. Now is a good time to start planning for the next financial year. So, whether considering consolidating multiple accounts; claiming lost superannuation or checking you’re being paid employer contributions, take a moment to consider a few simple steps that can help set up your superannuation for the future.. Early action could make a real difference to the amount of your retirement savings.  

1. Consider consolidating multiple accounts to avoid duplicate fees and insurance premiums.

In 2018, the Productivity Commission identified 10 million unintended multiple superannuation accounts – that’s one-third of all super accounts.  

2. If you’ve ever changed jobs, check if any of the lost super held by the tax office is yours.

At 30 June 2018, there were a total of over 6.2 million lost ATO-held accounts, with a total value of $17.5 billion   [caption id="" align="aligncenter" width="300"] You can check for lost super with Raiz Super[/caption]  

3. Check you’re being paid the super you are entitled to.

Employers have three months to pay into an employee’s super account, so a wage slip may not reflect the actual payment. If your super doesn’t add up, let them know.  

4. Personal Contributions.

Your employer pays you 9.5% of your ordinary-time salary in super contributions. But the law allows you to boost your balance, to make additional personal contributions to your super which may be tax efficient. Please do check with your accountant or tax advisor.

Reward Contributions

If you have Raiz Invest Super you can direct your Raiz Rewards to your Super account with over 180 brand partners paying you forward when you shop online. This means your weekly shopping could be growing your retirement fund automatically.

Personal Contributions

Make one-off voluntary contributions at any time.

Recurring Personal Contributions

With Raiz you can also set up recurring voluntary contributions via the Raiz Super home screen – daily, weekly or monthly.  

5. Check you are “super” protected.

Starting 1 July, the government’s ‘Protecting Your Superannuation’ laws will see automatic life insurance potentially being removed from members whose accounts have been inactive for 16 months or more. The aim of the super changes is to prevent costly fees, which bank up over time, eating up balances on inactive accounts. “The Protecting Your Super changes will help reduce account erosion through the additional fees and insurance that come along with unintended duplicate accounts. The attention is on the fact that the changes are coming on July 1, however more than half of Australians are unaware and an estimated 3 million people could be affected, which would lead to a loss of their insurance money. You can read more about the changes here.  

6. First-time buyers’ super.

The government allows first-home buyers to direct up to $30,000 in voluntary [above the 9.5 per cent employer payment] contributions to save up to $30,000 for a home deposit through super at the rate of $15,000 a year. So, if you are thinking of using this scheme, make sure you make a voluntary contribution to kick off the process this financial year.      

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
  Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
Pureprofile now available in Raiz Rewards
[caption id="attachment_4698" align="aligncenter" width="1200"]Pureprofile in the Raiz app Earn rewards by answering surveys through Pureprofile[/caption] Answer surveys = cash invested in you You can now choose to earn extra money with the data you want to share. We’ve partnered with Pureprofile so you can earn cash rewards by completing surveys within the Raiz app in your spare time! Go to the Raiz Rewards section in the app and tap on the ‘Pureprofile’ tile (It's right at the top of the list so it's easy to find). This is currently only available on the mobile app so please make sure you have the latest version of the Raiz App installed.   [caption id="attachment_4712" align="aligncenter" width="290"] Just tap on the Pureprofile tile, located on the top left of Raiz Rewards[/caption]   Once you have clicked through the Pureprofile tile, tap ‘Start Earning Now’. You’ll need to answer a few initial questions about yourself, then you’ll be taken to available surveys to answer. Once a survey is completed successfully, the reward will be invested into your Raiz account within 30 days. Reward amounts are stated before you complete the survey. Please note some surveys may be unpaid. Please refer to full Terms & Conditions here. We are always striving to bring you innovative ways to invest small amounts regularly!      

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
Terms & Conditions for completing our ‘Improving our Services’ online survey
  1. A Raiz Invest Account must have been held previously with an account balance greater than $5. Raiz account holders hold valid accounts as set out in the product disclosure statement found on the website: raizinvest.com.au
  2. Entries open Sunday, 16thJune 2019 at 1pm and entries close Sunday, 30th June 2019 at 11.59pm. This may be changed at Raiz’s discretion.
  3. To enter, one must complete in full the survey within the timeframe stated above and provide the email address on your Raiz Investment account at the end of the survey.
  4. To thank you for completing the Survey, Raiz Invest will be giving away ten $50.00 gift vouchers that winners can choose from Raiz Reward partners here.These ten winners will be selected at random. We note that no individual prize exceeds $250.00 and total value of prizes do not exceed $50,000.00.
  5. These ten random winners will be notified via email by Friday, 12th July 2019.
  6. The permit number in the format NSW Permit No. LTPM/18/03853.
  7. This promotion is in no way sponsored, endorsed or administered by, or associated with any other third party.
  8. By entering this promotion, you agree that we may use entries for future marketing purposes in any media or branding.
  9. The competition is promoted by Raiz Invest Australia Limited, Level 11/2 Bulletin Place Sydney 2000 NSW, 1300 754 748. ABN 26 604 402 815, who is the Authorised Representative of AFSL 434776. The Raiz product is issued in Australia by Instreet Investment Limited (ACN 128 813 016 AFSL 434776) and promoted by Raiz Invest Australia Limited (ACN 604 402 815). A Product Disclosure Statement dated 19th March 2019 for this product is available on the Raiz website and App. A person should read and consider the Product Disclosure Statement in deciding whether or not to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement and include the risks that would ordinarily apply to investing.
  NSW Permit No. LTPM/18/03853
How to: Invest in your kid's future
Kids with cape on   Kids can be impulsive, cry when they don’t get what they want, or be ecstatic seeing Santa’s presents under the tree. Parents have to convince a toddler why they aren’t allowed to get into the washing machine with their clothes, all the while thinking what’s to come next. After investing so much time into your kid's development, a sought-after milestone is to see them start their adult lives with sound financial literacy, coupled with some of their own money set aside – valuable tools that can help them lead happy and successful lives. Research published in 2018 by the Australian government found that the minimum cost of raising one child, for a low-income family, ranges from $140-170 per week, or $7280-8840 per year - and that’s the bare minimum. Moreover, a survey conducted by the ABC in 2018 found that over half of Aussies aged 18-29 have less than $5k in savings, whilst over a quarter have more than $5k in debt (excluding HELP/HECS debt). Whilst money won’t be the sole factor that affects your kid's future, equipping them with financial life skills and a little bit of extra cash can go a long way in adding a boost later in life. The earlier you start, the more time money has to grow and take advantage of compound returns. For example, with the power of compounding, if you were to invest $1,000 every year for 18 years, assuming average returns of 7% p.a.*, that investment could grow to be worth $34,000, off your $18,000 investment. That’s a total return of $16,000.**   [caption id="attachment_4648" align="aligncenter" width="640"]graph showing returns of investing $1000 per year for 18 years, with returns of 7% per annum When invested, your savings have the potential to significantly grow over 18 years.[/caption] How’s that for an 18th Birthday present?  

Where can I invest in my kid's future?

If you’re putting money aside for your kids, and want to see those savings grow over time, there are multiple places to consider investing your money.  

Savings Account

Savings accounts won’t earn you a lot of interest, with their primary benefit coming in the form of virtually no risk (the Australian Government guarantees deposits up to $250k in Authorised Deposit-taking Institutions). Our research found that 85% of Australians don’t know the interest rate on their average savings account, so be sure to be vigilant when comparing rates, as some accounts offer higher introductory rates before being reduced significantly. George Lucas, our CEO says: “Many Australians are completely unaware of the best options to protect and grow their income and think they’re getting 2-3 per cent on their savings accounts when, depending on the bank, it’s often less than 1 per cent.” "This is due to the way saving accounts are advertised with introductory offers. At this interest rate, if Australians are using their savings accounts to save money, with inflation, the opposite is happening and they’re actually going backwards.” This is an important consideration when saving for kids, as your kids will be likely living at a time with higher cost in living in the future e.g. housing & petrol, so the money you save for them might not be worth as much as it is today if you keep it only in a savings account. Other features to consider are minimum and maximum account balances, account-keeping fees if any, the conditions needed for any bonus interest, and whether a linked account is required.  

Investment bond

Investment bonds are like managed funds, combined with an insurance policy. Your money is pooled with money from other investors, with an investment manager making the day to day investment decisions. The main advantage of an investment bond is that they can be a tax effective way to invest for the long-term, provided certain conditions are met. The potential tax benefits and long-term nature of investment bonds means they can make for a nice way to invest for your kid's future as they can benefit from potentially a lower tax rate on earnings received after 10 years.  

Raiz Kids

Raiz Kids is a simple way to save and invest for your children and/or dependents who are under the age of 18. It essentially works the same as your normal Raiz account, which lets you invest small amounts regularly into one of six diversified portfolios that are invested across cash, bonds, domestic and international shares. By adding a partition to your Raiz account, it allows you to nominate a portion of your Raiz balance (or even all of it) to be transferred to your kid's when they turn 18. Nothing is set in stone, and you can adjust the Raiz Kids portion at any time. Once your children reach the age of 18, they are then able to open their own Raiz Account, with the option of having these funds transferred into their account. Since inception, the avg. Raiz investor has made 12.4% p.a.* as of Dec 2018 (return includes all fees but before the $1.25 monthly maintenance fee).  

Teach along the way

It’s also important that setting aside money for your kid's future is tied together with teachings in financial literacy. It would be a wasted opportunity to be setting them up with additional cash if they don’t know how to responsibly manage it. Basic financial literacy is an important skill set that your kids will take with them throughout their entire lives. Pocket money is one of the most popular ways to teach kids the value of money at a young age. Paying them in cash for completing helpful chores and jobs gives them a tangible experience with money, allowing them to see their piggy bank grow before their eyes. As they get older, help them open a savings account, and encourage them to set savings goals. Involve them in writing out shopping lists before visits to the supermarket by explaining what you need, the price of those things, and how much money you have to spend. Consider setting up a Raiz kids account, which can give them basic exposure to the market and compound interest. As they make their way through their teenage years, be sure to keep on building on what you have taught them.   *Past performance is not an indication and should not be relied on for future performance. **Return estimated for the sake of simplicity as past performance is no indication of future performance – see 
ASICS managed funds fee calculator to get an estimate on how fees and costs can affect your investment. Return estimate is net of MER. The value is a future value, not a present value.    

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Download it for free in the App store or the Webapp below:
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  Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
Joint venture agreement executed with key Malaysian institution
Malaysia city skyline   Raiz Invest  has taken a major step forward in its push into Southeast Asia with the signing of a joint venture agreement (JVA) with a subsidiary of a leading Malaysian investment institution. The JVA is with Jewel Digital Ventures Sdn Bhd (Jewel), a wholly-owned subsidiary of PNB Equity Resource Corporation Sdn Bhd (PERC), which, in turn, is wholly owned by Permodalan Nasional Berhad (PNB) (www.pnb.com.my). Jewel is the investment vehicle set up by PNB to spearhead its digital business strategy which aims to unlock digital value propositions for current and future customers of Amanah Saham Nasional Berhad (ASNB), PNB’s wholly owned unit trust management company. PNB is one of the largest fund management companies in Malaysia with assets under management of RM298.5 billion (A$103.9 billion) across 13.8 million accounts. Raiz Chairman Tony Fay, says: “Reaching agreement with PNB is an exciting development as we continue our push into Southeast Asia.” “By joining forces with a trusted and reputable group such as PNB, we are laying the foundations for sustainable growth in some of the fastest growing markets in the world where there is a genuine appetite for fintech products and services,” he said. The joint venture is a 70%/30% split between Raiz and Jewel respectively with Raiz primarily providing the technology while Jewel will provide the required capital once the condition precedents are met, including a granting of a licence in Malaysia. Raiz Malaysia will be a fully consolidated entity into Raiz Invest Limited. The JVA also outlines how Raiz and PNB will partner in other Southeast Asian countries. Tony Fay continued: “PNB and its strategic holdings have significant presence in Southeast Asia, which will only benefit Raiz’s efforts to enter these markets. With a population of 33 million people, Malaysia represents an excellent opportunity for our business.” “With the JVA executed, the next step is to submit a formal application to the regulator for the license. Discussions with the regulator are progressing, and at this stage, subject to regulatory approval, it is anticipated the platform will go live towards the end of CY19 or early in the New Year. The work done on the platform to support the Indonesian launch (anticipated 3Q CY 19) will facilitate an efficient roll out in Malaysia,” he said. Raiz’s growth strategy and vision includes expansion into Southeast Asia. In December 2018, Raiz secured approval for a licence to distribute mutual funds in Indonesia. The Indonesian business was launched in March 2019, with the App expected to be released in the September 2019 quarter.    

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Download it for free in the App store or the Webapp below:
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  Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
Improving Financial Literacy with Raiz Invest

A full bookshelf

George Lucas, Raiz CEO  

A defining aspect of the Raiz story

Enhancing financially literacy has always been integral to the Raiz Invest story. From the time we first hung out our shingle in March 2016 under the Acorns banner, we appreciated that the millennials signing up in their droves were often as thirsty for financial information as they were for the technology that allowed them to save and invest their small change. It seemed to me we had really hit a sweet spot. Financial advice was largely out of their financial reach (even more so post the Financial Services Royal Commission), as were fund managers. Bank interest rates were (and are) derisory, just like the customer service they offer. So, a micro-investing platform – mobile phone or web app – that not only allows millennials to save their loose change on a regular basis but to invest in a portfolio of funds was just what they wanted. But it wasn’t just the practical application of our technology, or the ease in which millennials could access it. No, it was they way we engaged with them, using social media to explain the roll-out of new services and products that meet their changing needs. And underpinning it has been an educational-centric focus from day 1 – and that will never change.  

Enhancing financial literacy in Indonesia

But if it’s been an exciting – and rewarding – journey in Australia, then Indonesia, where we have received a licence to distribute mutual funds, will be much more so, especially when it comes to spreading the financial literacy message. Like so many businesses looking to expand in the fourth most populous country in the world, we had no concept of the enormity of the opportunity – or the magnitude of the task. Now we appreciate both. The numbers tell it all. Currently there are about 100 million bank accounts in Indonesia, but the number of mutual fund investors is less than a million. The simplistic – and wrong – explanation for the disparity between these two numbers is that Indonesia is a poor country. It’s wrong because as the respected Boston Consulting Group points out, the emerging middle, middle and upper middle-class consumers in Indonesia are estimated to be 168 million by 2030 – and that’s out of a total population of 270 million.   [caption id="attachment_4628" align="aligncenter" width="500"]Crowded street in Jakarta, Indonesia The population of Indonesia is
over 269 million[/caption]   For Raiz, this is only half the story. Although this country missed the PC revolution, it is certainly embracing the smart phone. Research shows there are about 180 million users, and of this number at least 120 million are active on social media. It’s tailor made for us. We will use social media to enhance financial literacy. Instead of people having to learn about it (and that approach has struggled globally), with Raiz they get hands-on experience via a medium they understand. As in Australia, many young people who never thought they could save can now do so by automating the process. Once they start saving, they want to know how it’s invested. It’s a natural progression. Instead of seeing investment as the preserve of the rich, it becomes something they can relate to in their lives. In this way we are actively helping remove a barrier to wealth creation and will potentially improve the lives of many. Don’t get me wrong. We think Indonesia is an exciting business opportunity. But commercial goals and having a positive impact on young people’s savings and investing habits don’t have to be mutually exclusive. For once, that old cliché, a win-win situation, is valid.    

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Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
  Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
A guide to socially responsible investing
Canopy of a forest  

What is socially responsible investing?

Socially responsible investing can be thought of as a philosophy to investing, where the investor makes a conscious effort to invest in companies that align with their ethical ideology. A common example is not investing in companies that promote or produce products related to addictive substances (tobacco, gambling etc.). Positive and negative screening are two methods that can be used to determine which companies are suitably socially responsible to warrant your investment. Positive screening seeks to include companies with attributes that align with your social and ethical expectations, such as having a low carbon footprint or a gender diverse board. Negative screening seeks to exclude companies with attributes that contradict your moral expectations. These could be companies that have significant environmental impacts or poor working conditions. Essentially, positive screening gives preference to causes you are passionate about, whilst negative screening filters out companies with characteristics you morally oppose. Of course, both these methods can be used in combination when searching for companies that align with an investor’s ethics and values.  

Socially Responsible Investing can have a positive impact

An
analysis from MSCI found that the performance of two portfolios screened to overweight stocks with higher ratings in environmental, social and governance (ESG) characteristics outperformed the global benchmark over the last eight years. This is because many ESG stocks are technology companies such as Amazon, Google and Apple, and excludes many energy companies (such as oil companies which due to the price of oil have under-performed the market). In Australia, investors have been at the forefront of sustainable or responsible. It is estimated in Australia that responsible investment accounted for $866 billion in assets under management in 2018, up 37 per cent from $633 billion in 2016. With global socially responsible investments totalling US$30.7 trillion.  

Raiz democratises access to socially responsible investing

Traditionally, investing has often been perceived as a luxury reserved for those with enough knowledge and wealth, due to complicated and often jargonistic finance rhetoric, combined with minimum investment amounts ranging in the hundreds or even thousands of dollars. If you’re looking for exposure to socially responsible investing, the Raiz Emerald portfolio may be a great place to start. The Emerald portfolio is our ESG option that assists in matching investments with personal values. It provides investors exposure to large ESG Australian and Global companies, with top holdings primarily including technology and health companies.   [caption id="attachment_4614" align="aligncenter" width="500"]Pie chart of Raiz Emerald (socially responsible) portfolio allocations The Emerald Portfolio is our ESG option[/caption]   The ‘Russell Investments Australian Responsible Investment’ (RARI) ETF makes up the Australia Socially Responsible allocation of the portfolio. It uses a mixture of both positive and negative screening, weighted to track companies that demonstrate positive ESG characteristics, after first screening out companies that have significant involvement in a range of characteristics deemed inconsistent with widely recognised responsible investment considerations. As more people consider ESG companies to invest in, the view is that by investing in companies based on environmental and social considerations, it can be possible to hold investments that may not compromise on market risk or long-term performance.    

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
  Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
Terms & Conditions for completing our ‘Improving our Services’ online survey
  1. An active Raiz Invest Account must be held (account balance greater than $5). Raiz account holders hold valid accounts as set out in the product disclosure statement found on the website: raizinvest.com.au
  2. Entries open Sunday, 9th June 2019 at 2pm and entries close Sunday, 16th June 2019 at 11.59pm. This may be changed at Raiz’s discretion.
  3. To enter one must complete in full the survey within the timeframe stated above and provide the email address on your Active Raiz Investment account at the end of the survey.
  4. To thank you for completing the Survey, Raiz Invest will be giving away five $50.00 credit investments into their active Raiz Investment Account. These five investments will be selected at random. We note that no individual prize exceeds $250.00 and total value of prizes do not exceed $50,000.00.
  5. These five random Raiz Account holders will be notified by email when the credit investments will be deposited into their Raiz account by Friday, 28th June 2019.
  6. The permit number in the format NSW Permit No. LTPM/18/03853.
  7. This promotion is in no way sponsored, endorsed or administered by, or associated with any other third party.
  8. By entering this promotion, you agree that we may use entries for future marketing purposes in any media or branding.
  9. The competition is promoted by Raiz Invest Australia Limited, Level 11/2 Bulletin Place Sydney 2000 NSW, 1300 754 748. ABN 26 604 402 815, who is the Authorised Representative of AFSL 434776. The Raiz product is issued in Australia by Instreet Investment Limited (ACN 128 813 016 AFSL 434776) and promoted by Raiz Invest Australia Limited (ACN 604 402 815). A Product Disclosure Statement dated 19th March 2019 for this product is available on the Raiz website and App. A person should read and consider the Product Disclosure Statement in deciding whether or not to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement and include the risks that would ordinarily apply to investing.
NSW Permit No. LTPM/18/03853
Market and Economic Update: US faces multi-front tariff war
Raiz market and economic update 03/06/2019 From Raiz CEO, George Lucas  

Lacklustre performance in gold despite global jitters

First off, on the gold market. We’ve seen the performance of gold since the start of 2019 has been poor, despite expectations for looser US monetary policy and mounting US-China trade tensions. That’s somewhat unusual given gold is considered a safe-haven asset as it can be negatively correlated with traditional risky assets, such as equities. However, since the US-China trade war took a turn for the worse in early May, the price of gold has fallen. The drop is arguably more surprising given it’s happened against the backdrop of falling expectations for interest rates in the US.  

US stocks strong but bonds signal a warning

Another consideration is that the US government bond and stock markets are saying different things about the health of the economy, given that the S&P 500 is only 5 per cent or so off its peak. The US 10-year Treasury yield, meanwhile, has fallen below 2.25 per cent. Its 0.50 per cent drop since the start of March has been driven by a reassessment of the prospects for US Federal Reserve policy amid signs of economic weakness in the US and its trade spat with China. However, it is common for equity prices to remain high while Treasuries rally in anticipation of looser Fed policy, with investors  now anticipating the two rate cuts in the US. The stock market’s resilience doesn’t tend to last, though, when the expected reduction in interest rates is vindicated by a subsequent slowdown in economic growth.  

US faces multi-front tariff war

Turning to global trade tensions, US President Donald Trump now plans to slap new tariffs on Mexican imports, which would leave him fighting a multi-front campaign that threatens more instability for US manufacturers, US consumers and the global economy. On the Chinese side, China’s state planner authority said this week that it would “prioritise domestic demand” for rare earth elements (REEs), increasing speculation that China may retaliate against the US tariffs by limiting exports of REEs. If China follows through on this threat, offshore REE prices would probably jump as China accounts for over 90 per cent of global production. This would push up import costs for the US, which relies on REEs for both military and industrial uses. A large wedge between onshore and offshore REE prices would also help to discourage electronics manufacturers from shifting production out of China to other countries in response to US tariffs. Back to Mexico, President Trump’s surprise announcement was that he would impose 5 per cent tariffs on Mexican imports, with the possibility of raising them to 25 per cent if Mexico does not stop migrants from crossing into the US. Tariffs on US imports from Mexico will have significant implications for share prices of auto makers with large operations in Mexico. German, Italian and Japanese car makers are most exposed.  

Capex spend disappoints in Q1

Meanwhile back here, Australia’s private capex survey confirmed that firms are becoming less willing to invest, with private capital investment declining by 1.7 per cent quarter-on-quarter in Q1. Turning to interest rates, we expect that the Reserve Bank of Australia to cut rates by 0.25 per cent to 1.25 per cent on Tuesday.     Important Note: The information on this website is provided for the use of licensed financial advisers only. The information is general advice and does not take into account any person's particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this website. Investors only: The information in this Document is confidential it must not be reproduced, distributed or disclosed to any other person unless it is part of their statement of advice. The information may be based on assumptions or market conditions and may change without notice. This may impact the accuracy of the information. In no circumstances is the information in this Document to be used by, or presented to, a person for the purposes of making a decision about a financial product or class of products. General advice warning: The information contained in this Document is general information only. It has been prepared without taking account any potential investors’ financial situation, objectives or needs and the appropriateness of this information needs to be considered in that context. No responsibility or liability is accepted by Instreet or any third party who has contributed to this Document for any of the information contained herein or for any action taken by you or any of your officers, employees, agents or associates.
May 2019
5 financial goals to set in your 20s
Financial goals planning at a table Even though your finances might be the last thing on your mind in your 20s, having a few financial goals will help lay the foundation for financial security in your 30s. Of course, your goals will be different depending on your situation, however, these five can act as a place to start.  

1.  Know where your money is going

You’ve undoubtedly heard people harping on about making a budget. However,
sticking to a budget doesn’t work for everyone. Even so, knowing where your money is going is incredibly important. This will help you understand where you could be spending less money and even where you could be making more money. This could mean tracking your income and expenses in a spreadsheet or with an app, like Raiz. If you typically use a card to pay for things, these apps can sort your income and expenses into categories automatically. Ignoring your finances can land you in hot water, especially if you start accumulating credit card debt or “buy now pay later” debt such as with Afterpay.  

2.  Pay off high-interest debt

Many people have already dipped into high-interest debt, such as having a credit card or personal loan. However, these loans don’t have to be the end of the world. Paying off your debt goes hand in hand with knowing where your money is going. It’s important that you can meet minimum repayments every month, ideally going beyond this amount. Of course, you’ll also want to avoid getting into more debt.  

3.  Start investing your money

The thought of investing can be quite daunting, especially when you don’t know where to start. However, using a micro-investing platform such as Raiz makes it easy to invest in a diversified portfolio starting with $5. With Raiz, you don’t have to handpick stocks on your own. Plus, you can decide what level of risk you’re comfortable with. Over many years, you’ll see your money multiply with the power of compound interest and reinvested dividends. If home ownership or property investment is a priority for you, now may be the time to buy, especially with the Australian market cooling. To comfortably afford repayments on a house in Australia, you’ll need to be making a significant amount. For example, in NSW, your household income would need to be $124,000 a year in order to avoid mortgage stress. You might consider setting an income goal or aim to save for a deposit in your 20s.  

4.  Have an emergency fund

Even if you’re not financially independent as of yet, having an emergency fund is always an important safety net to have. Usually, a 3-month emergency fund is enough in the case that you lose your job or decide you need time off work. Once you know what your monthly expenses are, multiply that number by three and aim to have this amount saved.  

5.  Take control of your retirement fund

Retirement should be many decades away. However, where your superannuation ends up is important now. Different super funds come with different fees and different historical returns. With compound interest, even a small difference can make you thousands more in the long-term. After you choose a super fund that’s suitable for you, it’s important to make sure your superannuation is consolidated. Most people will have multiple jobs over their working life and sometimes this leads to having multiple super fund accounts that you’re paying fees for. Having all your money in one place will mean you’ll be making more with compound interest and only be paying one lot of fees.  

Final words

For many people in their 20s, this is where you’ll enter your journey into financial independence. This means you’ll be developing habits that you’ll likely take into the rest of your life. Therefore, it’s more important than ever to make sure you’re building strong habits and goals so that you don’t end up having to reverse bad money decisions in your 30s.   Guest author: James Pointon is a Commercial Manager at OpenAgent.com.au, an online agent comparison website helping Australians to sell, buy and own property.    

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
  Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
A story about women and money
Spice girls in a row Regardless of your financial income it is important to address two key factors as a woman living in a world adorned in dollar signs. Resilience and Wellbeing, the balance between the two provide a foundation for a strong financial relationship that is not only flexible in times of hardship but also allows us to enjoy the fruits of that which we have worked so hard to cultivate. Current statistics recognize that women’s savings are inadequately supporting the needs of older generations. An astonishing 34% of single 60+ year old women are currently living below the poverty line. The financial story of women is in desperate need of a rewrite and in a way, that challenges us in an exciting and engaging way. How do we turn this story of gloom into one of stability and positive growth? The words Resilience and Wellbeing echo again. Spending time in the trenches assessing the details when needed, taking authority over one’s own savings and spending with clear and honest understanding. Gone are the days of Prince charming and Fairy God mothers, we are moving into an era of #girlbosses where we are just as interested in the latest fashion trends as we are the intricacies of our own financial security. Resolve to find your own definition of financial stability. Not your best friends’ idea of stable and secure or the likes of business guru Jo Horgan- Mecca Brands. What are a list of your basic needs to be for filled to allow you to feel grounded and safe? Simple questions like this can and will encourage a new story to grow. With strength comes stability and with continued awareness we can move with confidence in a financial world. The goal is balance, present when times are tough and presence when we are glowing in the face of financial freedom.   Author: Jessie-Anne is a yin yoga/meditation teacher and writer based in Sydney, Australia.     

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Market and Economic Update: US-China trade war heats up
Raiz market and economic update 21/05/2019 From Raiz CEO, George Lucas  

AUD tumbles as US-China trade war heats up

This week saw the Australian dollar hit hard by increased risk aversion flowing from the re-escalation in US-China trade tensions. The AUD fell by more than 2 percent against the greenback following the flare up in the long-running trade spat between the two global superpowers. Meanwhile, the Japanese yen gained over 1 percent against the US dollar. A large fall in the AUD against the yen is generally synonymous with fading risk appetite, particularly in relation to China. Looking ahead, if the markets are right about policy rate changes in the US and Australia, interest rate differentials would support the AUD against the greenback. Investors are yet to discount three rate cuts expected in the US by end-2020. They have already priced in both rate cuts in Australia. What’s more, the AUD has this year not been boosted by a higher price of iron ore -- a key export that closed last week above $100 a tonne.  If the market prices this into the AUD, we could see a sharp turnaround in the local currency as the terms of trade improve for Australia.  

Australian unemployment lifts sharply

On the labour market, monthly jobs data showed the number of people employed in April rose 28,400. However, despite the lift in raw numbers, the unemployment rate climbed to an eight-month high of 5.2 percent due to a jump in the labour force participation rate. The rising unemployment rate may give the Reserve Bank of Australia an excuse to start cutting interest rates. That’s because while in the past a jobless rate of 5.2 percent would have signalled a strong employment market, I suspect the RBA will at the moment be focused more on the change in the rate, not the actual level.  

Malaysia’s economic growth slips in Q1

Turning to Asia, data out Thursday revealed Malaysia's economy slowed in the first quarter of 2019, with GDP figures showing growth fell from 4.7 percent year-on-year in Q4 to 4.5 percent in Q1. We think that the loss of momentum in Malaysia’s economy has further to run. Across in Indonesia, the Bank Indonesia (BI), as suspected, left its policy rate at 6.00 per cent. We expect the rate to remain on hold in 2019 provided the rupiah doesn’t slump against the US dollar.  

Renminbi slides on fresh US-China tensions

In China, the 2 percent fall in the renminbi against the US dollar since the latest flare-up in US-China trade tensions is significant given the relative stability that came before. The fall in the RMB does not appear to be a deliberate devaluation strategy to offset US tariffs. Indeed, if anything, Chinese policymakers are currently trying to limit the renminbi’s slide. On the latest evidence, Chinese policymakers still attach considerable importance to the financial stability point, despite the greater tariff threat. Since US President Donald Trump recently suggested more tariffs were imminent, the People's Bank of China’s daily fixings for the onshore RMB (CNY) have consistently been set stronger than the previous day’s close in the offshore rate (CNH). Meanwhile, the cost of short-term borrowing in the offshore renminbi market has jumped, which may be a sign that Chinese officials are trying to make it harder to short the currency. That all suggests that, for now, the RMB is a casualty in the trade war, not a weapon. If talks break down altogether, Chinese policy makers might step back and allow the market to drive the currency down further. But even then, they would probably still shy away from actively driving it lower.  

Iron ore tops US $100 for first time in years

In other developments, the price of iron ore rose above US$100 a tonne for the first time in five years on Friday. That was after Vale, the world’s biggest producer of the steelmaking ingredient, warned there was a risk of another dam failure at one of its mines. The price of iron ore has jumped more than 35 percent, or US$27 a tonne, since the Brazilian dam tragedy in January. Since then, Vale has been forced to shut down 93 million tonnes of iron ore production, which has tightened the market considerably. At that level, some of the world’s biggest mining companies, including BHP Group and Rio Tinto, will be generating huge free cash flow from their iron ore businesses as the price of Iron ore defies market commentator predictions.     Important Note: The information on this website is provided for the use of licensed financial advisers only. The information is general advice and does not take into account any person's particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this website. Investors only: The information in this Document is confidential it must not be reproduced, distributed or disclosed to any other person unless it is part of their statement of advice. The information may be based on assumptions or market conditions and may change without notice. This may impact the accuracy of the information. In no circumstances is the information in this Document to be used by, or presented to, a person for the purposes of making a decision about a financial product or class of products. General advice warning: The information contained in this Document is general information only. It has been prepared without taking account any potential investors’ financial situation, objectives or needs and the appropriateness of this information needs to be considered in that context. No responsibility or liability is accepted by Instreet or any third party who has contributed to this Document for any of the information contained herein or for any action taken by you or any of your officers, employees, agents or associates.
How to: build a positive relationship with your finances

Person building and balancing rocks

Building a positive relationship with your finances is a worthy investment that can both maintain and improve your financial well-being. These are our four tips to help build a positive relationship with your finances:  

Spend what is left after saving

“Do not save what is left after spending, but spend what is left after saving” – Warren Buffett.

When you get your pay check, many people make the mistake of spending first, and then saving what is left over. The problem with this is that it doesn't guarantee any savings; your savings become dependent on how much you spend each month (and often in a rather unplanned fashion). A better strategy is to pay yourself first by setting aside a fixed percentage of your income towards saving and investing, and then spending with what is left over. Automation is your friend here, which can whisk the money straight out of your spending account before you have a chance to spend it. Setting up a recurring deposit to your Raiz account is one way to do this.  

Monitor your cash flow

A fancy term for budgeting, managing your cash flow provides answers to how much you are spending, where you are spending, and if you’re on track to reach your financial goals. The
‘My Finance’ feature within the Raiz app is a good tool to start tracking your expenses. Once you know how much you are spending and where, you can begin to build a basic budget and cut down on unnecessary expenses to maximise your savings. See our post How to: budget in 2019.  

Build an emergency fund

An emergency fund, or savings safety net, is money set aside to help cover the costs of any urgent or unexpected expenses – something like your car braking down. Having an emergency fund provides you with peace of mind that you can deal with any bumps along the road. How much money should you put into your emergency fund? It really depends on your own financial situation. Reasons such as having low confidence in your job security or being in poor health can be factors to take into account when considering the size of your fund. Whatever your goal is, the trick to getting started is to start small and save regularly.  

Utilise the power of compound interest

The power of compound interest enables your money to grow at a faster rate as you accumulate interest on your interest. For example, a 10% return on 100 dollars nets you $10 in the first year, taking your balance to $110. In the second year, this same 10% return now pays you $11 in interest. Over the long-term this compounding effect can significantly boost your savings and investments. If you invest just $5 a day into an investment account like Raiz, assuming returns of 7% per annum, after 20 years your investment will have grown to be worth $74,817, with a return of $38,317*. The earlier you get started, the more time you have to take advantage of compounding.      

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
  Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance. *Return estimated for the sake of simplicity as past performance is no indication of future performance – see ASICS managed funds fee calculator to get an estimate on how fees and costs can affect your investment. Return estimate is net of MER. The value is a future value, not a present value.
Participation terms: Pureprofile promotion
  1. These Participation Terms apply to this Pureprofile Raiz Rewards Promotion along with the Raiz Invest Australia Limited Website Terms of Use (Agreement). These Participation Terms must be read alongside, and form part of the Agreement between you and Raiz Invest Australia Limited (ABN 26 604 402 815), and you must comply with both. Terms capitalised but not defined in these Promotion Terms have the meaning given in the Raiz Invest Australia Limited Website Terms of Use.
  2. The Pureprofile Raiz Rewards Promotion is being offered by the following Third Party Retailer PUREPROFILE AUSTRALIA PTY LIMITED ABN 99 093 819 713 (Third Party Supplier). Details of the Promotion are as follows:
    1. Promotion Term: This Raiz Rewards Promotion runs from 13/05/2019 until 31/12/2025. To be eligible to participate, you must complete a survey between 12:00AM AEST on the Start Date and 11.59PM AEST on the End Date of the Promotion Term. Your eligibility to participate will be determined by reviewing the survey completion (as notified to Raiz Invest). Note that there could be circumstances where the Promotion Term is shortened, extended or otherwise modified. Please see the Agreement for details.
    2. Customer Reward: The Third Party Retailer will contribute an amount of money for investment into your Raiz Invest Account if it is a specified paid survey. Please refer to each individual survey if there is an eligible reward and the amount.
    3. Eligibility:
      1. Reward will only be eligible by clicking on the "START EARNING NOW" link displayed with the Third Party Retailer's logo on the Raiz Rewards Page of the Raiz App; and
      2. then proceeding to complete a paid survey without clicking any other external links.
    4. Payment of Customer Reward:
      1. Whilst it is intended that Customer Rewards will be paid by the Third-Party Retailer to Raiz on your behalf within approximately 30 days from the date of completing a paid survey, delays may occur (eg public holidays, technical issues or other reasons).
      2. If reward has not been received within 30 days, users must email the customer support team at support@raizinvest.com.au Users must email through within 60 days from completion of survey in order for the reward to still be eligible.
Market and Economic Update: US creates 263,000 jobs in April

07/05/2019 From Raiz Ceo, George Lucas   

US creates 263,000 jobs in April

Last week saw the release of the latest US employment report, published on Friday. The report was strong, with non-farm payrolls increasing by 263,000 in April, above consensus expectations, while the unemployment rate fell to its lowest level in nearly 50 years. However, wage inflation was a bit weaker than expected, hours worked edged down, and the unemployment rate only decreased owing to a massive fall in the labour force. That’s probably why yields on Treasury bonds dropped and stock market rallied. Even so, the report still suggests that the underlying fundamentals of the US economy remain solid. Confirming the data, first-quarter gross domestic product expanded by 3.2 per cent, the US Bureau of Economic Analysis said in its initial read of the economy for Q1.  

US Federal Reserve hold interest rates steady

Still in the US, although there was no policy change after the latest Federal Open Market Committee (FOMC) meeting, investors appear to have been caught off guard initially by the reduction in the interest on excess reserves (IOER) rate and subsequently – and more importantly – by Fed Chair Jerome Powell downplaying recent weakness in inflation. The Fed might be reluctant to cut rates just because of the recent weakness in inflation, particularly given that labour costs could pick up. This is a similar issue that the RBA is facing here in Australia, which will be heightened if Labor wins at the upcoming federal election.  

China’s economy loses more momentum

In Asia, China’s onshore stock markets brushed off the pull-back in the country’s PMIs released last week, but the data ultimately supports a view of a slowing Chinese economy. Chinese equities have surged by more than 30 per cent between the turn of the year and mid-April, driven in part by optimism about earnings. According to Bloomberg, analysts anticipate a 25 per cent jump in corporate earnings in the Shanghai market in the next twelve months, which would require a very strong rebound in the economy. However, this is not supported by the recent PMI data and the Shanghai and Shenzhen markets have actually started to falter since 19 April. They are down by 6 per cent and 8 per cent, respectively, from their peaks, despite ticking up last Tuesday. What is also surprising is the lack of reaction to those drops elsewhere. The S&P 500 has risen to a record high, and European and Japanese indices have edged up. China is large enough that equities there rarely head in the opposite direction to those elsewhere for long. Foreign investors may initially ignore falls in China as signs of a “healthy” correction in a overbought market, but will probably eventually react.  

US-China trade talks set to resume

Looking ahead, trade negotiations with China are due to resume in Washington this week, with a deal said to be close. According to reports, key points that remain at issue include how to police any deal, and whether existing tariffs will be removed or stay in place.  However, a war of words between the US President and China have thrown some doubt over whether this meeting will now take place. This next round to negotiations follows talks last month in Beijing that US Treasury Secretary Steven Mnuchin labelled "productive".   Important Note: The information on this website is provided for the use of licensed financial advisers only. The information is general advice and does not take into account any person's particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this website. Investors only: The information in this Document is confidential it must not be reproduced, distributed or disclosed to any other person unless it is part of their statement of advice. The information may be based on assumptions or market conditions and may change without notice. This may impact the accuracy of the information. In no circumstances is the information in this Document to be used by, or presented to, a person for the purposes of making a decision about a financial product or class of products. General advice warning: The information contained in this Document is general information only. It has been prepared without taking account any potential investors’ financial situation, objectives or needs and the appropriateness of this information needs to be considered in that context. No responsibility or liability is accepted by Instreet or any third party who has contributed to this Document for any of the information contained herein or for any action taken by you or any of your officers, employees, agents or associates.  
Participation terms: Dan Murphy's in-store promotion
  1. These Participation Terms apply to this Dan Murphy's In-Store Raiz Rewards Promotion along with the Raiz Invest Australia Limited Website Terms of Use (Agreement). These Participation Terms must be read alongside, and form part of the Agreement between you and Raiz Invest Australia Limited (ABN 26 604 402 815), and you must comply with both. Terms capitalised but not defined in these Promotion Terms have the meaning given in the Raiz Invest Australia Limited Website Terms of Use.
  2. The Dan Murphy’s In-Store Raiz Rewards Promotion is being offered by the following Third Party Retailer WOOLWORTHS LTD 88 000 014 675 (Third Party Supplier). Details of the Promotion are as follows:
    1. Promotion Term: This Raiz Rewards Promotion runs from 01/05/2019 until 07/05/2019. To be eligible to participate, you must make an Eligible Purchase between 12:00AM AEST on the Start Date and 11.59PM AEST on the End Date of the Promotion Term. Your eligibility to participate will be determined by reviewing the date of the transaction, as it appears in your relevant card or account statement (as notified to Raiz Invest). The card you link must be one that is already linked as a Spending Account in the Raiz app. Note that there could be circumstances where the Promotion Term is shortened, extended or otherwise modified. Please see the Agreement for details.
    2. Customer Reward: The Third Party Retailer will contribute an amount of money for investment into your Raiz Invest Account equal to 2.8% of the purchase price of Eligible Products of min. $200 (inclusive of GST but not any delivery or Administration fees) or more when paid in full.
    3. Eligible Purchase:
      1. Eligible products: All products, excluding gift cards and tobacco purchased and paid for in full (not including any returned items or cancelled orders).
      2. Participating stores: Eligible Purchase can be made only by:
        1. clicking on the "LINK CARD HERE" link displayed with the Third Party Retailer's logo on the Raiz Rewards Page of the Raiz App and providing the last 4 digits of the card used; and
        2. then proceeding to make a purchase in a Dan Murphy's store.
      3. The purchase and purchase amount must be reported to Raiz by The Retailer.
      No other purchases from the Third Party Retailer or the linked site will be considered Eligible Purchases for the purposes of this Raiz Rewards Promotion.
    4. Payment of Customer Reward:
      1. Whilst it is intended that Customer Rewards will be paid by the Third-Party Retailer to Raiz on your behalf within approximately 30 days from the date the Eligible Purchase is processed, delays may occur (eg public holidays, technical issues or other reasons).
      2. The customer reward will not be calculated to include any delivery, handling or administration fees or charges that the Third Party Retailer includes on any Eligible Purchases.
      3. If reward has not been received within 30 days, users must email the customer support team at support@raizinvest.com.au with a copy of the receipt including the date, sale value, order ID and proof of card used (last 4 digits). Users must send this through within 60 days from date of purchase in order for the reward to still be eligible.
April 2019
How handstands can reduce financial stress
Yoga can reduce financial stress Financial stress is on the rise and has become an inescapable part of our modern society. So how do we tackle the burden of increasing costs and still find an emotional balance and savings for a secure future? I have witnessed a direct correlation between practicing Yoga and its ability to reduce the fears, attachments and avoidance that shadow our relationship with money. Yoga invites us to move and breath in a conscious way. Many may have been completely unaware of hamstring tension until they found themselves in a Downward Facing Dog. Our body and breath teach us to engage with things we find uncomfortable. With that awareness money can become a profound teacher. Taking a look at your credit card or bank statements, or thinking about your upcoming bills can reveal insightful patterns of spending that may also be exacerbating your financial woes. Facing an unexpected $400  bill can be difficult but if we are able to approach this area of tension as you would your tight hamstrings- breathe, observe, identify the issue and then support yourself accordingly you may find yourself a little less overwhelmed. Yoga encourages us to view stress as a challenge to be overcome instead of a drama that can crush us. So, the next time you find yourself in state of financial overwhelm take a mindful breath and give yourself an opportunity to engage in a healthy way to find balance.   Author: Jessie-Anne is a yin yoga/meditation teacher and writer based in Sydney, Australia.   

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
  Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
Five misconceptions about investing when you're young
Women sitting on steps with a laptopBy Alison Banney from Finder.com.au   Have you considered dabbling in the share market, but there are a few thoughts you can’t get out of your head telling you that you shouldn’t? Maybe you think you don’t have enough money, or perhaps you keep hearing that you’re too young to be investing in shares (shares are for old people, right?). Well, you’ll be glad to learn that most of these myths surrounding investing are just that – myths. Here are five common misconceptions that you shouldn’t let deter you from getting cracking in the share market.  

 1. “I don’t have enough money.”

A lot of people think you can only invest in the share market if you’re loaded. This is far from true, and you can actually start investing in the share market for as little as $5. Most online share trading brokers require you to invest at least $500 per trade on the Australian Securities Exchange (ASX), which compared to a property deposit, is a really low entry point. But if you use a
micro-investment app like Raiz, you can get started with even less.  

2. “It can wait until I’m older.”

The thing with investing in the share market is that it’s a long-term play. It’s not a way to get rich overnight. The longer you’re invested, the more opportunity you have for your portfolio to grow in value. A common expression in the industry is that it’s all about time in the market, not timing the market. So rather than waiting until you’re older and trying to pick a winning stock, it’s a much better strategy to start while you’re young, invest in a well-diversified portfolio and let the market do its thing.  

3. “I don’t know enough about the share market.”

The good news here is that you don’t need to know too much about the share market to start investing. You might have memories of your parents researching the performance of different stocks in the weekend newspaper and carefully handpicking which ones to invest in. But this isn’t the case anymore. Thanks to products called exchange traded funds (ETFs), you don’t have to worry about handpicking single stocks to buy. ETFs track the performance of a whole bunch of underlying shares, giving you the chance to access a large bundle of companies in one single investment that’s managed on your behalf.  

4. “It’s too risky for me while I’m young.”

It’s easy to understand why a lot of young people think share trading is too risky. You’re right, shares are a high-risk asset. But the funny thing is, share trading actually becomes more and more risky the older you get. When you’re young, you have your whole working life to ride out any volatility in the share market. So even if there’s a dip or a bigger correction in the market and your shares fall in value, you have plenty of time for them to build themselves back up again. However, if you’re older and closer to retirement, you need to be focused on protecting your nest egg. If you’re in your 60s and there’s a crash in the market, you might not have enough time left to build your portfolio back up again.  

5. “I should be saving for a house deposit instead”

There’s no reason you can’t invest in shares and save for a house deposit at the same time. You don’t need to put your entire life savings into the share market, but putting a percentage of your savings in shares while the rest stays tucked away in a high interest savings account could be a good strategy to build wealth. It’s also good to remember that shares are considered a liquid asset, meaning they can easily be sold if you want to cash out, and you won’t be stuck holding them while you wait for an interested buyer. So if you do want to sell you shares when you’re ready to buy a home, it’s simple and quick to do so.    

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
  Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
Too many Australians in the dark about personal finances
Today we released the results of our new research, which found that many Australian consumers are blissfully unaware of what interest rate they earn on their bank savings according. Our research found that 60 per cent of Aussies claim to have some level of knowledge when it comes to investing money, yet 85 per cent are unaware of the interest rate on their savings account. Additional findings show consumers are not clear about the safest investment options for their money. The survey of 1,000 Australians was commissioned to identify consumers basic understanding of savings and investment options also looked at how recent events such as the Royal Banking Commission and the declining property market were impacting their perceptions of where to invest. Australian's in the dark when it comes to personal finance

Cash is king, but a lot of us don’t know it

Our survey revealed that 53 per cent of Australians are unaware that cash is the safest place to invest money. Many believe property (22 per cent), fixed income (20 per cent) and investing in equities (10 per cent) are a more secure option for their savings. Many Australians are completely unaware of the best options to protect and grow their income and  think they’re getting 2-3 per cent on their savings accounts when, depending on the bank, it’s often less than 1 per cent. This is due to the way saving accounts are advertised with introductory offers.  At this interest rate, if Australians are using their savings accounts to save money, with inflation, the opposite is happening and they’re actually going backwards.. That’s why it’s important to ensure we’re educating consumers now on how to look after their money if they’re to become more financially stable in the future.   beliefs around most secure options for savings  

Women shying away from investment risk

Our research highlighted a sense of delusion when it comes to financial literacy, something which is even more recognisable amongst men. There’s no surprise then that the research found men have more diverse investment portfolios, with  38 per cent of men currently investing in the equity market, compared to  22 per cent of women. The research shows us that women tend to be more risk averse. This is not a surprise as it’s also something we see at Raiz. For example, in the Raiz app, we have six portfolios for users to select from when investing their money. More men opt for the aggressive portfolios than women, who tend to select the more conservative options. This is not evidence that men are more financially literate than women. If anything, it indicates that men are taking more investment risks they don’t fully understand.   Men consider themselves to be more savvy investors than women

Distrust with the big banks continues to grow

The fallout of the recent Royal Banking Commission has certainly had its impact on confidence levels. Almost half (47 per cent) say they are less inclined to invest their money with the Big Four following the Hayne report. For a while now, Australians have felt less inclined to invest with the big banks. There was an ethical line that many felt was crossed and now people are looking at alternative ways to invest their money. More than half of those who took part in the research said they will now look to diversify their investments. This is where we think platforms such as Raiz offer support, especially for those wanting to get practical hands-on learning too.     Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.  
Market and Economic Update: Australian retail sales soar

Market Update

09/04/2019 From Raiz Ceo, George Lucas   

US economy adds 196,000 jobs in March

Starting in the US, last week saw the release of the latest employment report that provided further evidence that trend employment growth is slowing there. Non-farm payrolls increased by 196,000 in March, slightly more than the consensus forecast, but employment growth remained on a downward trend, with the three-month average monthly gain dropping to a 15-month low. The annual growth rate of average hourly earnings fell back to 3.2 per cent, while the unemployment rate was unchanged. This was not unexpected due to the low unemployment rate indicating that US is pretty much at full employment. Markets would like to see a stabilisation of the average hourly earnings as it reduces the pressure of company margins and therefore profits.  

US Fed’s rate-raising days look over

Still in the US and market reaction suggests investors believe the US Federal Reserve ended its tightening cycle in December last year, and that the next move in rates will be down. That’s reflected in investors substantially revising down their interest rates expectations since the S&P 500 peaked late last year, with fewer than two 25bp rate cuts are currently discounted in the markets. While the S&P 500 is now back near its peak, economic activity remains subdued both in the US and abroad and this is bound to weigh on earnings of the S&P500 companies, and therefore market direction.  

US-China trade talks gain momentum

In Washington, trade talks between the US and China progressed well although details were sparse. Media reports suggested that the two sides have now agreed on specific timelines for implementing a deal, which Trump has hinted may be finalised in the coming weeks. A deal now appears mostly priced into the markets but the risk of disappointment is rising as US President Donald Trump and China’s Vice Premier Liu He prepare to meet this week. That meeting is apparently to get agreement on key outstanding issues and so risk is now on the downside, especially if a deal is delayed again or does not remove existing tariffs. Across in the UK, the Brexit saga continues and we will find out mid-week if the EU will agree to delay Brexit beyond 12th April and, if so, for how long.  

Australian retail sales soar

At home, the strong 0.8 per cent month-on-month rise in retail sales in February suggests that consumption growth may not have declined further in Q1. However, growth should remain subdued in the rest of 2019 owing to the ongoing housing downturn. We also got the release of trade data that showed record $4.801 billion trade surplus in February for Australia. The surplus was supported by reduced import values, rather than stronger exports. Meanwhile, the Reserve Bank of Australia sounded more cautious on Tuesday when it left its policy rate unchanged at 1.50 per cent, including a change in language on the falling house prices in established housing markets. House prices in Australia’s eight capital cities fell again in March and prices have now dropped by 8.9 per cent since their peak in July 2017, making the current downturn the longest on record.   Important Note: The information on this website is provided for the use of licensed financial advisers only. The information is general advice and does not take into account any person's particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this website. Investors only: The information in this Document is confidential it must not be reproduced, distributed or disclosed to any other person unless it is part of their statement of advice. The information may be based on assumptions or market conditions and may change without notice. This may impact the accuracy of the information. In no circumstances is the information in this Document to be used by, or presented to, a person for the purposes of making a decision about a financial product or class of products. General advice warning: The information contained in this Document is general information only. It has been prepared without taking account any potential investors’ financial situation, objectives or needs and the appropriateness of this information needs to be considered in that context. No responsibility or liability is accepted by Instreet or any third party who has contributed to this Document for any of the information contained herein or for any action taken by you or any of your officers, employees, agents or associates.  
New Features: Raiz Invest Super
We have improved Raiz Super with some new features to help you contribute more towards your future. What's new?

Personal Contributions

Make one-off voluntary contributions via the Super home screen at anytime.  

Recurring Personal Contributions

Set up recurring voluntary contributions via the Super home screen – daily, weekly or monthly. Voluntary contributions may be tax deductible – see our blog 'New rules for Super Contribution’  

Reward Contribution

Direct your Raiz Rewards to your Super account with over 180 brand partners paying you forward when you shop online. [caption id="attachment_4460" align="aligncenter" width="300"]Raiz Super Features Raiz Super Features[/caption]

Chance to WIN a $250 bonus

From now until the 30th April, every member of Raiz Invest Super will go in the draw to win one of ten $250 bonuses invested into their non-Super Raiz account. To be eligible, simply have an active Raiz Invest Super account (or a rollover request on its way) before 30th April 2019*. We appreciate your feedback on our product and features so please feel free to contact us via support@raizinvest.com.au or call 1300 754 748. Thanks for your loyal support, Your Raiz Team *T&Cs here   Important Information The information on this website is general advice only.  This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz.   Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
March 2019
Is every working Australian an investor?
Crowded street Most Australians find discussions about their Superannuation boring. Do you know how much is in your Super?  Don’t panic, 40% of Australians have no idea how much money they have invested in super. Interestingly, people who have Super, but aren’t investing in any other assets, tend not to think of themselves as investors. But if you have Super, then you’re investing. Most superannuation funds do not keep your money only in cash. Super is like a managed fund, or Raiz, where your money is pooled with other member’s money and invested on your behalf by professional investment managers. The main difference of course being that you can’t access this money until you retire. But if super has all the characteristics of an investment, then why don’t we engage with it as much as we do with other common investments, such as stocks, property etc? If you aren’t expecting to retire soon, it can be hard to comprehend the benefits of optimising your super, and perhaps even too dull to think about. Thinking about the ‘future you’ actually activates the same areas of the brain as when we think about other people. While you may know the benefits of helping “future you” now, you are unlikely to feel it. The mandatory nature of super can also stop us from thinking about super contributions as a conscious investment. Guarantee contribution’s that are payed directly by your employer mean you rarely must make an active decision. This contrasts with what we consider ‘normal’ investments, which are likely to involve more consideration and decision making. The fact is that super is likely to be one your biggest investments, so knowing where your money is and how much you are paying in fees is crucial in building a solid fund for your retirement. Due to the power of compounding, if you were paying an extra $150 in fixed costs and insurance due to having more than one superannuation account, for 25 years, at a return rate of 7%, that could be $9,487* you will lose in your retirement due to the extra set of fees.   [caption id="attachment_4430" align="aligncenter" width="640"]graph showing potential savings lost from paying extra fixed super fees Paying extra in fixed fees can cost you a significant amount in the long run.[/caption]   Raiz Super allows you to easily consolidate your super, with the process only taking as long as 5 minutes. When you sign up for Raiz Super, we will automatically search for any funds and unclaimed or lost super to your name, giving you the option to pick which ones you want to roll into Raiz Super. Paying attention to and treating your super as an important investment can save you a significant amount of money for the future.   * Return estimated for the sake of simplicity as past performance is no indication of future performance – see ASICS managed funds fee calculator to get an estimate on how fees and costs can affect your investment. Return estimate is net of MER. The value is a future value, not a present value.   Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.  
Terms & Conditions For Our Raiz Invest Super Competition – 27/03/2019
  1. You must have an active Raiz Invest Super account or a rollover request on its way before 30th April 2019. Raiz account holders must have an active valid account as set out in the product disclosure statements found on the website: https://raizinvest.com.au/super/.
  2. Entries open Thursday 27th March 2019 at 11am and closes Tuesday 30th April 2019 at midnight. You will automatically be in the draw if you have an active Raiz Invest Super account or a rollover request on its way before 30th April 2019.
  3. Raiz Invest will select ten winners with a $250.00 credit investment into their active Raiz Investment Account. These ten investments will be selected at Raiz’s discretion. We note that no individual prize exceeds $250.00 and total value of prizes do not exceed $50,000.00.
  4. These ten Raiz Account holders will be notified by email when the credit investment is deposited into their Raiz Investment account by Friday 17th May 2019.
  5. The permit number in the format NSW Permit No. LTPM/18/03853.
  6. This promotion is in no way sponsored, endorsed or administered by, or associated with any other third party.
  7. By entering this promotion, you agree that we may use entries for future marketing purposes in any media or branding.
  8. The competition is promoted by Raiz Invest Australia Limited, Level 11/2 Bulletin Place Sydney 2000 NSW, 1300 754 748. ABN 26 604 402 815, who is the Authorised Representative of AFSL 434776. The Raiz product is issued in Australia by Instreet Investment Limited (ACN 128 813 016 AFSL 434776) and promoted by Raiz Invest Australia Limited (ACN 604 402 815). A Product Disclosure Statement dated 19th March 2019 for this product is available on the Raiz website and App. A person should read and consider the Product Disclosure Statement in deciding whether or not to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement and include the risks that would ordinarily apply to investing.
NSW Permit No. LTPM/18/03853
Have a wandering eye and be a pest: top tips for saving on your home loan
Young man handling household expenses A home loan is one of the biggest expenses most Aussies have, with estimates that the average household spends more than a quarter of their budget on their mortgage. But the good news is big savings are possible by taking advantage of clever hacks most homeowners don’t know about. Here are four tips for saving on your home loan.  

Have a wandering eye

When it comes to home loan savings, monogamy rarely delivers the best deals. There are thousands of offers on the market, so when you have a home loan it’s important to regularly check whether there is a better option available. Uno Home Loans Broker Tian Liu says, “It may be tempting to put your feet up and relax after getting your loan, but getting the best deal over the life of the loan often requires refinancing multiple times. “It’s important to keep shopping around because the market changes regularly with rate rises, new competitors, and fluctuating property prices.” If you’re looking for an easy way to keep tabs on the market,
uno Home Loans has just launched a free monitoring service called loanScore which alerts you every month as to how your home loan stacks up compared to thousands of live deals. [caption id="attachment_4405" align="aligncenter" width="223"]Uno LoneScore Uno LoanScore[/caption]

Be a bit of a pest

Want a better deal but don’t want to go through the process of refinancing? After all, break-ups are hard. You can save on your loan with minimal hassle by asking your bank for a rate cut. A recent uno study* found that more than 80% of customers who asked their bank for a rate cut were successful. Talk about 10 minutes well spent. Popular negotiation techniques included threatening to leave your bank, leveraging an offer from a competitor, and having your broker speak to your bank for you.  

Timing is everything

Most homeowners don't realise that you can save on your home loan simply by changing your repayment date. Banks calculate the interest to your home loan daily, so you can cut your interest bill by paying off your loan weekly or fortnightly instead of monthly. And, if you want to make bigger repayments, take a lesson from the one in ten mortgage holders* who say it’s easier to make extra repayments (and reduce interest) by organising their direct debit for their mortgage right after they get paid.  

Look beyond the banks you know

When choosing a home loan, it can be easy to start the search with your current bank. But sticking to familiar options doesn’t always equal the best deal. A study conducted by uno Home Loans* revealed that Aussies who have a home loan with their childhood bank or parents bank actually pay 20 basis points more in interest than those who shop around. Smaller lenders you may not have even heard of such as credit unions or online lenders are worth taking a look at as they often offer sharp deals to win market share. Plus these lenders typically have lower overheads than big banks and can pass these savings onto you through lower rates and cheaper fees. Win-win! Try making these little changes to your home loan today to enjoy big savings in the future.   About the author Jessica Uhlmann is the Public Relations Manager at uno Home Loans Uno is an online mortgage broker which enables Australians to understand their loan, optimise, apply, and settle all in one place from a panel of 20+ lenders – including all four major banks. uno operates a ‘technology plus service’ model which combines a self-serve online mortgage platform with service from a team of brokers via phone, text, chat, video and email. Uno’s brokers provide advice and support in choosing a new loan and can help you optimise your loan with your current lender. Visit unohomeloans.com.au *Study of 1,500 mortgage holders conducted by CoreData on behalf of uno Home Loans   Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.  
Market and Economic Update - 11/03/2019

Market Update

From Raiz CEO, George Lucas   

GDP slowdown boosts chances of RBA rate cut

This week’s release of gross domestic product (GDP) data for Australia reinforces the view that the Reserve Bank (RBA) will hold or may even be forced to cut rates before too long. That’s because the GDP data, released on Wednesday, showed Australia’s economy grew at its slowest pace in two years in Q4. On an annual basis, GDP growth declined from 2.8 per cent year-on-year in Q3 to 2.3 per cent -- well below the RBA’s forecasts and consensus. What’s more, GDP growth may fall to 2.0 per cent in 2019, potentially prompting the RBA to cut rates twice in the next 12 months. This is now what many are expecting.  

Australian dollar under pressure

Following the release of the GDP data, the Australian dollar fell to a two-month low of US$0.70 and the 10-year Australian government bond yield fell to 2.10 per cent. Indeed, if it wasn’t for strength in commodity markets the Australian dollar may have depreciated more against the US dollar. That suggests that if we do see commodity prices turn lower, the Australian dollar will probably fall sharply against the US dollar this year. The link between the Australian dollar as a proxy for Chinese growth is also weighing on the local currency, especially while we are seeing a waning appetite for risk. Turning to stocks, we doubt that a weaker local currency will prevent equities in Australia from falling this year if, as we expect, the US stock market comes under pressure. In fact, we suspect that the ASX200 will do just as badly as the S&P 500. Currently, the ASX200 is being supported by stronger commodity prices and the upcoming dividend season for bank stocks. On the upside, a weaker AUD will be good for Australian Airbnb hosts during the Ashes.  

Economic jitters hit US

Overseas, the latest US employment report is further evidence that the US economy is starting to falter. And with growth elsewhere also likely to remain weak, I think that equities in the US will fall this year, dragging down most stock markets across the globe. According to the jobs report, non-farm payrolls increased by only 20,000 in February, well below consensus expectations of a 180,000 gain. But the report was not all bad news as the unemployment rate fell, and annual wage growth ticked up.  

ECB downgrades growth outlook

Several other developments this week suggest that investors may continue to be too optimistic, not just about the US, but about the rest of the world too. For instance, The European Central Bank (ECB) sharply lowered its growth forecasts and now expects growth of 1.1 per cent this year, down from its earlier forecast for 1.7 per cent. Purchasing Managers' Indexes (PMIs) also remain weak in many countries.  

Central banks to the rescue?

As a result, even before the disappointing payrolls arrived, the S&P 500 index had lost nearly 2 per cent since Friday last week, while the Japanese yen -- largely considered to be a safe-haven -- was up by nearly 1 per cent against the US dollar. Admittedly, policymakers have started to respond. As the US Federal Reserve (the Fed) did in late January, the ECB struck a more dovish tone at its meeting on Thursday, while Chinese authorities have announced more fiscal stimulus. Looking ahead, the Fed may cut rates three times by 75bp in total in the first half of 2020, but not even one 25bp cut is fully discounted in the markets next year. Optimism prevails. Despite such an outlook for monetary policy, I still think that in the short-term global growth will continue to weaken, putting pressure on corporate earnings and triggering a flight to safety. As such, most stock markets will drop soon, but I have been saying this for a while.    

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
  Important Note: The information on this website is provided for the use of licensed financial advisers only. The information is general advice and does not take into account any person's particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this website. Investors only: The information in this Document is confidential it must not be reproduced, distributed or disclosed to any other person unless it is part of their statement of advice. The information may be based on assumptions or market conditions and may change without notice. This may impact the accuracy of the information. In no circumstances is the information in this Document to be used by, or presented to, a person for the purposes of making a decision about a financial product or class of products. General advice warning: The information contained in this Document is general information only. It has been prepared without taking account any potential investors’ financial situation, objectives or needs and the appropriateness of this information needs to be considered in that context. No responsibility or liability is accepted by Instreet or any third party who has contributed to this Document for any of the information contained herein or for any action taken by you or any of your officers, employees, agents or associates.
How to: Spend in line with your salary
Spend in line with your salary Everyone’s spending habits differ, just like everyone’s salary differs. Learning how to spend in line with your salary whilst battling a range of competing expenses and trying not to compromise on your savings can be a difficult skill to master. The first step to keeping your spending under control is knowing your own spending patterns. If you are a Raiz user and have linked a spending account, then you can use the My Finance feature of the Raiz app to see how much you are spending each month, and in what categories. The app will also provide you with spending alerts to your mobile phone. You can also ask our AI powered chatbot Ashlee questions such as “how much did I spend on food last month” (to access just go into your Facebook Messenger app and search for ‘Raiz Chatbot’). [caption id="attachment_4274" align="aligncenter" width="271"]How much spent on food Use Ashlee to help track your spending[/caption] Alternatively, you can add up your expenses manually by going through and analysing your bank statement from last month (remember to include any regular debt repayments). Once you know how much you are spending, you can then compare this amount to your after-tax income and adjust spend accordingly. Regardless if you’re spending above or below your income, we suggest a savings first mindset, that is, spend what is left after saving. Transferring savings straight out of your pay and into an account like Raiz, where it is hard to touch the money, can be a useful strategy to regulate your spending. The best method to calculate how much you should be spending and saving is to create a budget. There are several types of budgeting plans out there that you can choose from. A simple budgeting strategy is the 50/30/20 budget, where you allocate 50% of income towards needs, 30% towards wants, and 20% savings. Remember the KISS principle (keep it simple stupid). [caption id="attachment_4235" align="aligncenter" width="500"]The 50/30/20 Budget Rule The 50/30/20 Budgeting Rule[/caption] If you follow a budget like this the first thing you should do after being paid is to transfer the 20% into your special investing/savings account. We wrote about this budgeting method in our last ‘How to’ series entry, which you can read here. You will need to continue tracking your spending to make sure you’re on course and not spending too much to force a dip into your savings. Tracking also makes it easier to adjust your budget to fit changing circumstances.  

Impulse Purchases

One factor that can hinder your ability to follow a budget and keep your spending in line with your salary are impulse purchases. An Impulse purchase is characterised as any purchase that is unplanned or spontaneous. Have you ever found yourself waiting in line to pay at a supermarket, and at the last minute decide to buy a chocolate bar conveniently located next to the register? That’s a common impulse purchase, and although fairly innocuous in this example, if done repeatedly overtime, and for more expensive products, can eat into your finances. In general, people tend to overestimate their ability to control impulsive behaviour, a phenomenon known as restraint bias. This also applies to impulse purchases. Reading this now you might be thinking it wouldn’t be that hard to resist an impulse buy, but when exposed to stimulus in a shop, be it brick and mortar or online, your self-control probably isn’t as effective as you might think. Some strategies to help control impulse buying include:
  • Sticking to a shopping list. If it’s not on your predetermined list, don’t buy it!
  • Give yourself a ‘cooling off period’ before making any unplanned purchases by waiting a day before buying. This effectively lessens the spontaneous nature of impulse purchases by separating yourself from the initial urge.
  • Be mindful of your emotions and keep your budget in mind. Realise that what you are feeling could be an impulse, and critically challenge your thoughts on whether you need to buy it. Think to yourself “do I really need this” and “can my budget afford this purchase.”
  • Use our chatbot Ashlee and ask her if you can afford what you are about to buy.
 

Previous entries in our 'How to' series:

How to: Budget in 2019  

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]  
Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
Double Referrals in March!
Double referrals in March This month, we will be doing double referrals for all of March! For every active referral, that’s $5 for you and $5 for your mate.

How do I refer someone?

To get your referral code, tap on the button that reads 'Share the Raiz story', at the bottom of the menu screen within the Raiz app. From there you can share your code via Facebook and Twitter or copy and paste the link directly. When someone signs up using your code, you will both receive the $5 bonus after they make their first investment. [caption id="attachment_4339" align="aligncenter" width="277"] Just click this button (outlined in yellow) to get your referral code[/caption] There are no limits on how many people you can refer, so feel free to invite as many people as you’d like! Since launch, 28,600 Australians have signed up to Raiz through our referral rewards. Your reviews – good and bad have continued to help us improve the Raiz product and features. Thanks for your support.    

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
  Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
February 2019
Terms & Conditions For Entering Our Raiz Rewards Competition - 28/02/19
  1. An active Raiz Invest Account must be held (account balance greater than $5). Raiz account holders hold valid accounts as set out in the product disclosure statements found on the website: raizinvest.com.au.
  2. Entries open Thursday 28th February 2019 at 11am and entries close Sunday 31st March 2019 at midnight. To enter, one must shop through Raiz Rewards a minimum of three times during the competition period.
  3. Raiz Invest will select ten winners with a $50.00 credit investment in to their active Raiz Investment Account. These ten investments will be selected at Raiz’s discretion on Monday 1st April. We note that no individual prize exceeds $250 and total value of prizes do not exceed $50,000.
  4. These ten Raiz Account holders will be notified by email when the credit investment is deposited into their Raiz Investment account by Friday 5th April 2019.
  5. The permit number in the format NSW Permit No. LTPM/18/03853.
  6. This promotion is in no way sponsored, endorsed or administered by, or associated with any other third party.
  7. By entering this promotion, you agree that we may use entries for future marketing purposes in any media or branding.
  8. The competition is promoted by Raiz Invest Australia Limited, Level 11/2 Bulletin Place Sydney 2000 NSW, 1300 754 748. ABN 26 604 402 815, who is the Authorised Representative of AFSL 434776. The Raiz product is issued in Australia by Instreet Investment Limited (ACN 128 813 016 AFSL 434776) and promoted by Raiz Invest Australia Limited (ACN 604 402 815). A Product Disclosure Statement dated 10th April 2018 for this product is available on the Raiz website and App. A person should read and consider the Product Disclosure Statement in deciding whether or not to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement and include the risks that would ordinarily apply to investing.
NSW Permit No. LTPM/18/03853
Market and Economic Update - 26/02/2019
Market UpdateFrom Raiz CEO, George Lucas  

Global stocks defy weak economic data

This week saw stock markets generally power ahead and defy the recent slew of weak economic data. Even so, I am sticking to my view that they will eventually succumb in March and we will see another sell-off, which should be the capitulation. The US stock market rose at the end of last week despite news that domestic industrial production unexpectedly fell in January. It also hardly reacted to data released earlier in the week showing the largest monthly decline in US retail sales in a decade. In China and the euro-zone, equities took their lead from the US and are now up by about 10 per cent so far in 2019 in spite of a raft of poor economic data. One partial explanation pointed to for this resilience is renewed optimism of a US-China trade truce. However, given most of the economic slowdown has had little to do with the trade war, we doubt a permanent trade ceasefire would alter the outlook much. In my view, there is little governments can do to prevent further global weakness -- not a recession but a slowdown. Indeed, February’s composite PMI for the Eurozone provided some reassurance that the euro-zone economy is not on the brink of recession. The rise in the index left it consistent with quarterly GDP growth of about 0.2 per cent, the same as in Q3 and Q4 last year.  

Central banks rethink interest rates

Meanwhile, developments in Japan, Europe, US and Australia showed how widespread a shift to looser monetary policy is likely to be. Expectations by the markets that this shift will support growth is probably the main driver for the rally in markets since the start of 2019. In Australia, minutes of the RBA’s February policy meeting, released last Tuesday, confirmed the central bank’s change from a tightening bias to a neutral stance, especially amid continued weakness in wage growth and as employers like Raiz remain tight. By contrast, Chinese premier Li Keqiang said last week that China would not change its prudent monetary policy stance and reiterated that officials would not resort to “flood-like” stimulus -- so not all economies are lining up to loosen monetary policy further.  

US and China sketch trade deal

Still on China, there are rumours it is currently working with the US on “memorandums of understanding” on issues including IP rights protection and forced technology transfers, which could serve as the framework for a future trade deal.  However President Trump squashed these rumours and insist they will go straight to an agreement. While it is unlikely the US and China will be able to reach a full deal before the March 1 tariff deadline, US President Donald Trump has fortunately indicated he would be willing to delay the deadline if the talks, underway in Washington, were “going in the right direction”. Elsewhere in Asia, the Bank Indonesia left its policy rate unchanged last week. Given the improved performance of the rupiah and the less hawkish tone of the central bank’s press conference, the expectations of further rate hikes this year are diminishing.  

Trump and Kim Jong-un to meet in Vietnam

In addition to the China-US trade talks, all eyes this week will be on President Trump’s planned meeting with North Korea’s Kim Jong-un in Hanoi on Wednesday and Thursday. Although little progress is likely to be made on the issue of denuclearisation, there is hope there could be some moves towards a peace deal between the two countries.  

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
  Important Note: The information on this website is provided for the use of licensed financial advisers only. The information is general advice and does not take into account any person's particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this website. Investors only: The information in this Document is confidential it must not be reproduced, distributed or disclosed to any other person unless it is part of their statement of advice. The information may be based on assumptions or market conditions and may change without notice. This may impact the accuracy of the information. In no circumstances is the information in this Document to be used by, or presented to, a person for the purposes of making a decision about a financial product or class of products. General advice warning: The information contained in this Document is general information only. It has been prepared without taking account any potential investors’ financial situation, objectives or needs and the appropriateness of this information needs to be considered in that context. No responsibility or liability is accepted by Instreet or any third party who has contributed to this Document for any of the information contained herein or for any action taken by you or any of your officers, employees, agents or associates.      
4 Smart ways people are using Ashlee, the Raiz Chatbot
Raiz Chatbot Ashlee More and more Raiz users have been actively engaging with our Chatbot, Ashlee, in order to take control of and improve their financial situation. Because Ashlee is a personalised experience you can chat to her in a natural way – well nearly natural. Ashlee – the intelligent chatbot is available through Facebook Messenger (search “Raiz Chatbot”), and can answer general questions about the market, specific questions related to your account, any support questions you have, your spending habits, and Raiz features, all without having to log into the app. For a list of questions, check out ‘Ask Ashlee – Raiz Intelligent Chatbot Questions. Here are 4 smart ways that others are currently using Ashlee:  
  1. Track your Raiz balance.

Ashlee has got you all sorted if you ever find yourself wanting to know your balance, but don’t want to login to the app. This provides an easy way to see if your investment has landed in your account, if your withdrawal has processed successfully, or to keep track of you balance. [caption id="attachment_4267" align="aligncenter" width="277"]whats my balance  [/caption]  
  1. Check your account performance.

You can ask Ashlee for accounts returns for the last day, month, or year. Some users prefer this way now as they can keep track of their past performance through the message history. [caption id="attachment_4290" align="aligncenter" width="272"]  [/caption]  
  1. Learn about your spending habits.

Ashlee can offer tips and insights into your spending patterns based off your historic purchases and income. She can tell you how much you’re currently spending, and even project future cashflow to help you understand if you could save more or afford to eat out that night. Some examples how users have done this include:
  • Checking your spending habits to see if how much you saved last month.
[caption id="attachment_4273" align="aligncenter" width="268"]  [/caption]
  • Find out how many days it will take before you save a specified amount of money.
[caption id="attachment_4275" align="aligncenter" width="269"]How long until you save $5000  [/caption]
  • Track individual categories to see where you spend your money. The categories we can track are shopping, food and dining, taxi/ride sharing, health and fitness, entertainment, insurance and many more.
[caption id="attachment_4274" align="aligncenter" width="271"]How much spent on food  [/caption]  
  1. Get answers to support questions about Raiz features

Ashlee can answer questions regarding Raiz features products and functions, making for a quick way to find answers to general customer support queries. General customer support questions can range from learning more about specific features to word terms such as statements and dividends. Ashlee’s purpose here isn’t to replace standard customer support channels, but rather add an extra layer on top, and allow users to quickly find answers to minor questions outside of traditional business hours.
[caption id="attachment_4288" align="aligncenter" width="272"]  [/caption]   To use, just go into your Facebook Messenger app and search for ‘Raiz Chatbot’. Please note, you will need a Facebook Messenger account to access the Chatbot. [caption id="attachment_4282" align="aligncenter" width="350"] Ashlee can be accessed through Facebook Messenger[/caption]    

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]  
Important Information The information on this website and through the Chatbot is general advice only. This means it does not consider any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
Terms & Conditions For Entering Our Raiz Invest Super Facebook Competition – 21/02/19
  1. An active Raiz Invest Account must be held (account balance greater than $5). Raiz account holders hold valid accounts as set out in the product disclosure statements found on the website: raizinvest.com.au.
  2. Entries open Thursday 21st February 2019 at 4PM and entries close Friday 1st March 2019 at 5PM. To enter, one must comment on the Facebook post within the time frame stated above.
  3. Raiz Invest will select five winners with a $100.00 credit investment in to their active Raiz Investment Account. These five investments will be selected at Raiz’s discretion. We note that no individual prize exceeds $250 and total value of prizes do not exceed $50,000.
  4. These five Raiz Account holders will be requested to message us their email and will be notified by email when the credit investment is deposited into their Raiz Investment account by Friday 15th March 2019.
  5. The permit number in the format NSW Permit No. LTPM/18/03853.
  6. This promotion is in no way sponsored, endorsed or administered by, or associated with any other third party.
  7. By entering this promotion, you agree that we may contact entrants or use entries for future marketing purposes in any media or branding.
  8. The competition is promoted by Raiz Invest Australia Limited, Level 11/2 Bulletin Place Sydney 2000 NSW, 1300 754 748. ABN 26 604 402 815, who is the Authorised Representative of AFSL 434776. The Raiz product is issued in Australia by Instreet Investment Limited (ACN 128 813 016 AFSL 434776) and promoted by Raiz Invest Australia Limited (ACN 604 402 815). A Product Disclosure Statement dated 10th April 2018 for this product is available on the Raiz website and App. A person should read and consider the Product Disclosure Statement in deciding whether or not to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement and include the risks that would ordinarily apply to investing.
NSW Permit No. LTPM/18/03853
Market and Economic Update - 11/02/2019
Market Update From Raiz CEO, George Lucas.  

Central bankers pull back on rate rise plans

Monetary policy was a focus last week, with central bankers in Australia, India and the UK preparing to join a broader retreat from plans to hike interest rates. Even the US Federal Reserve (the Fed) is readying to slow down rate hikes, despite the US economy remaining robust. There is a realisation that maybe policymakers became overly bullish last year and the Fed in particular overreached by signalling four rates rises for 2018, despite a fragile global economy. We’re now seeing a new-found caution providing “air cover” for other central banks to mark down their rate expectations. The fourth quarter last year was the turning point. This was when markets began to wake up to a host of political hazards and deteriorating trade relations between the US and China. When markets fall they tighten financial conditions, similar to interest rate hikes, and this has given room for the central bankers to take their foot of the pedals.  

US economy sturdy despite shaky global picture

The US economy continues performance robustly, with the 304,000 jobs created in January beating Wall Street expectations and significantly more than the 170,000 economists were expecting. Wage growth, meanwhile, is running comfortably above inflation. However corporate giants in the S&P 500 index, which generate over a third of their earnings overseas, are sounding the alarm this reporting season about faltering overseas demand in global markets not only China.  

Eurozone raises global growth fears

Some of the biggest questions hang over Europe. The European Commission (EC) last week slashed its growth forecast for this year to 1.3 per cent from 1.9 per cent, marking down outlooks for major economies including Germany and particularly Italy. We do need to keep in mind that the EC is not forecasting recessions just a slowing in growth momentum. That means that Europe is still growing, just more slowly, but the situation could get worse if a solution to Brexit is not found soon.  

RBA walks back growth outlook

A global slowdown will have an impact on Australia and the shift by the Reserve Bank of Australia (RBA) last week to a more cautious outlook was driven by concerns that steep falls in house prices and the slowdown in China could choke off domestic growth. The same could happen in the US, with a slowdown in growth in China, India and Europe feeding through to the US economy. We are not surprised that analysts are now forecasting negative year-on-year growth in S&P 500 earnings per share (EPS) for the quarter we are in. But we expect the growth rate will rebound later in 2019 as the effect of tax cuts last year washes out of the market. Currently the year-on-year growth rate of S&P 500 EPS is still healthy growing around 15 per cent based on current companies that have reported.  

Continued US labour market strength

One indicator that a sustained downturn in the stock market is far from imminent is the prevailing strength of the US labour market as firms continue to hire at a blistering pace. During the past six months, nonfarm payroll employment in the US has grown by an average of more than 230,000 per month and the six-month moving average has remained above 200,000 since last March. Such strength in the US labour market has rarely been accompanied by an enduring sell-off in the stock market.    

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
  Important Note: The information on this website is provided for the use of licensed financial advisers only. The information is general advice and does not take into account any person's particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this website. Investors only: The information in this Document is confidential it must not be reproduced, distributed or disclosed to any other person unless it is part of their statement of advice. The information may be based on assumptions or market conditions and may change without notice. This may impact the accuracy of the information. In no circumstances is the information in this Document to be used by, or presented to, a person for the purposes of making a decision about a financial product or class of products. General advice warning: The information contained in this Document is general information only. It has been prepared without taking account any potential investors’ financial situation, objectives or needs and the appropriateness of this information needs to be considered in that context. No responsibility or liability is accepted by Instreet or any third party who has contributed to this Document for any of the information contained herein or for any action taken by you or any of your officers, employees, agents or associates.    
How to: Budget in 2019
budget for the new year Budgeting is often pushed as an essential ingredient needed to take control of your personal finance. Whilst the concept of a budget is straight forward, it is common for people to struggle with its execution. This is especially pertinent in today’s day and age, given changing economic conditions. One of the most popular budgeting methods often talked about is the 50/30/20 budget. This budget stipulates that you should divide your after-tax income so that:
  • 50% is allocated towards your needs, such as fixed living expenses, bills and essentials (rent, groceries, utilities etc.).
  • 30% is allocated towards your wants – everything you spend money on that is non-essential. This includes things like eating out, going to movies, and streaming subscriptions - anything that you spend money on to make life more enjoyable and entertaining.
  • 20% is allocated towards savings and investments. This can also include making debt repayments and other financial goals.
It is important to note that these percentages are not necessarily fixed. The needs and wants percentages are the maximum amounts you should spend for those categories, leaving the 20% allocation for savings as a minimum requirement. [caption id="attachment_4235" align="aligncenter" width="550"]The 50/30/20 Budget Rule The 50/30/20 Budgeting Rule[/caption] Over the last decade, the cost of housing/rent and utilities such as electricity have risen substantially. From September 2017 to September 2018, the Australian consumer price index (CPI), which measures the price levels of a common basket of consumer goods and services,
rose by 1.9%, with the wage price index (WPI) only growing by 2.2%. Wage growth is only just keeping ahead of increased costs of living. This is also just an average, so for some parts of the population, the cost of living would have risen faster than their wage growth. What this means is that sticking to budgets can become harder if wants and needs begin to take up larger proportions of your income. What if your needs start to take up more than 50% of your income? If that’s the case, then you may need to scrutinise your expenses and look at where you can save money. This could be hunting around for a cheaper phone plan or limiting usages of utilities like electricity and water to reduce bills. If you can’t keep needs below 50%, there’s no need to panic. All budgets will be slightly different depending on the person, and the exact percentage breakdown can be altered to make it more optimised for you. Perhaps you could cut back wants to 25% and increase needs to 55%. The bottom line is to manage your money by tracking your expenses, staying on top of and disciplined with your spending, and resolving to save/invest as much as you can afford (but remembering to leave yourself a little bit to spend on the nice things and enjoy life!). The mathematics behind compound interest shows how powerful saving and investing can be. If you were to invest $10,000 into an index fund every year, for 30 years, assuming average returns of 7% p.a. that investment will have grown to be worth $944,607. That’s a total return of $644,607. Check out ASICS MoneySmart compound interest calculator see how much money you could have after saving different regular amounts. [caption id="attachment_4218" align="alignnone" width="900"]Compound Returns Graph *Most managed funds will charge fees for their service, but for the sake of simplicity this graph does not include nor reflect their affect on returns - see ASICS managed funds fee calculator to get an estimate on how fees and costs can affect your investment.[/caption]   Apps like Raiz can be useful tools for helping to keep track of your spending and save money at the same time. ‘My Finance’ is a free feature within the app that provides you with personalised insights and notifications on how you are spending. It does this by tracking your purchases and breaking them down into categories (e.g. food and dining, bills & utilities etc.), allowing you to see how much you spend on a month to month basis.      

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]  
Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
Raiz named finalists in four categories of the 2019 Fintech Business Awards
Today we are excited to be named finalists in four categories of the 2019 Fintech Business Awards! The Fintech Business Awards, one of the leading awards programs in the Australian financial technology sector, celebrates the leading individuals and organisations who demonstrate outstanding innovation and entrepreneurship. The awards that we have been shortlisted for are:
  • Investment Innovator of the Year
  • Investment Platform Innovator of the Year
  • Personal Finance Innovator of the Year
  • Fintech Thought Leader of the Year (George Lucas, Raiz CEO)
The winners will be announced at an awards ceremony on the 28th of March, so stay tuned to see if we take home any silverware! We want to thank everyone in the Raiz community for your support, for bringing us up with your friends and family, for sharing your stories and for thinking of us when others ask for recommendations. Without your support, Raiz and these nominations would not be possible! Fintech Business Awards Finalist Seals Read more:
 

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
    Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
January 2019
Market and Economic Update - 27/01/19
Market Update Market update from Raiz CEO, George Lucas

Global growth concerns continue

After a fine start to the year, equity prices came under a bit of pressure early last week due to concerns about the health of the global economy and I suspect that there is more stock market weakness to come this quarter. The signals last week included official GDP data from China showing that its economy slowed in the last quarter of 2018 and the International Monetary Fund (IMF) revising down its projections for GDP growth this year and next in advanced and emerging economies. The reason for the IMF’s downgrade was risks associated with trade tensions, the unwinding of fiscal stimulus in the US, downward GDP growth revisions for the euro-area. On the plus side, reports that the Federal Reserve was considering an early end to its balance sheet reduction programme helped US and European stocks end the week higher.  

Market looks ahead to US-China trade talks

At the same time as some softness in equities, the US dollar, the Japanese yen – viewed by investors as “safe” assets – strengthened a bit while 10-year government bond yields generally fell, particularly US Treasury yields. The market also digested a mixed batch of quarterly US stock earnings. All eyes are now on
this week’s US-China trade talks in Washington and whether US Trade Representative Robert Lighthizer and US Treasury Secretary Steve Mnuchin can strike deal with the Chinese delegation led by Vice-Premier Liu He. [caption id="attachment_4079" align="aligncenter" width="600"]US President Donald Trump and Chinese Vice Premier Liu He The US will negotiate with a Chinese delegation led by Vice-Premier Liu He (right).[/caption]  

Draghi: Eurozone faces economic downturn

Turning to Europe, the president of the European Central Bank (ECB), Mario Draghi, warned that weaker growth in the global economy would continue to be felt in Europe, fuelling talk of a possible shift in policy guidance. President Draghi’s comments came after the ECB left its key policy settings unchanged and indicated it is unlikely to raise them until summer, acknowledging the economy still needs monetary stimulus. The ECB’s language was a significant shift away from the previous “broadly balanced” view of the outlook for the European economy, citing the persistence of risk factors, including trade tensions between China and the US, Brexit and a slowdown in China. What’s more, while Draghi said there was no need to ease monetary policy, for now, I think the market suspects that the ECB will change the forward guidance on interest rates and unveil new targeted longer-term refinancing operations (TLTROs), before long. The outlook for the euro-zone economy has deteriorated sharply in recent months and as a result I think that the ECB will leave rates on hold this year and next.  

China’s economy cools in Q4

Looking more closely at breakdown of China’s Q4 GDP data, it points toward softer service sector activity on the back of slower property sales and weaker consumer spending. It’s likely that services growth will come under further pressure this year, as the labour market continues to weaken and households become even more cautious. Meanwhile, in Australia, the decline in the unemployment rate to 5 per cent in December shows that the housing downturn hasn’t had much of an impact on the labour market yet.    

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
  Important Note: The information on this website is provided for the use of licensed financial advisers only. The information is general advice and does not take into account any person's particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this website. Investors only: The information in this Document is confidential it must not be reproduced, distributed or disclosed to any other person unless it is part of their statement of advice. The information may be based on assumptions or market conditions and may change without notice. This may impact the accuracy of the information. In no circumstances is the information in this Document to be used by, or presented to, a person for the purposes of making a decision about a financial product or class of products. General advice warning: The information contained in this Document is general information only. It has been prepared without taking account any potential investors’ financial situation, objectives or needs and the appropriateness of this information needs to be considered in that context. No responsibility or liability is accepted by Instreet or any third party who has contributed to this Document for any of the information contained herein or for any action taken by you or any of your officers, employees, agents or associates.
Which Raiz portfolio could be right for me?
  Raiz Investment Portfolio   To meet your goals via investing and saving through Raiz, the first step is choosing the right portfolio that suits your objective and time horizon for achieving this goal.  

How to choose a portfolio?

For a savings goal that is short term (less than three years), a conservative portfolio option is probably the best choice to achieve your goal. A conservative portfolio option will be less influenced by equity market fluctuations. You wouldn’t want to be close to reaching your goal and then find a sudden downturn in the stock market may result in missing your target goal. Because it is a short-term goal, you may not have enough time in the market for the stock market to recover, which they usually do in the long-term. Having a short-term goal while being in an aggressive portfolio option means stock market declines can have a larger emotional impact on you, as market uncertainty increases the chance that you will not reach your goal in the chosen time frame. With a conservative portfolio, you are more likely to remain disciplined to your short-term savings and investing goal in a market decline. On the other hand, if your savings goal is greater than 5 years, then you may experience all types of market conditions. An aggressive option may suit you if time is on your side since markets do tend to go up in the long-term. In the short-term you may have set backs in your portfolio value, but in the long-term you should earn more than you could earn in a bank account. However, you must also balance this against your ability to remain disciplined to your saving and investing approach (known as your
risk appetite). If you feel emotional just from reading about a market fall of 20%, then a more conservative portfolio option, like the moderate portfolio option, may be your best bet. The key to long term investing is discipline. For Raiz this means investing small amounts regularly to avoid timing the market. Long-term strategies utilise the advantages of time in the market – that is, the longer you are in the market, the more likely you are to see a healthier return.  

The wrap up

We all experience the emotional highs and lows that come with investing. However, by maintaining a disciplined and automated approach by using Raiz and choosing the right portfolio, you can reduce short-term stress and take advantage of dollar cost averaging and compound returns over time. In the end, it is your choice. We cannot recommend a portfolio choice for you. Raiz is not a get rich quick scheme - it is about developing a habit of regular saving and investing to meet your savings goal. Remember: “The best time to plant a tree was 20 years ago. The second-best time is now.”    

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
  Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
Market and Economic Update - 14/01/2019

Market Update Market update from Raiz CEO, George Lucas

US-China trade deal hopes lift global stocks

This week saw equity prices recover across the board. In local currency terms, MSCI’s USA Index rose by roughly 5 per cent, its World ex USA Index ticked up by 3 per cent, and its Emerging Markets Index lifted by 2 per cent. This is a big change from the prior three months when the indices fell by about 16 per cent, 13 per cent and 8 per cent, respectively. The recovery in stock markets was partly driven by the latest round of US-China trade talks and growing optimism there would be a deal struck. Expectations were low coming into the talks in Beijing, so the prospect of a deal buoyed sentiment. Equity prices could get a further boost if there is some positive announcement in the coming days.  

‘Small’ bounce likely if trade deal struck

However, any such US-China deal would probably only give markets a small and temporary lift due to the limited influence on the markets of the trade war. While it is often used in the media to justify big moves in equity prices, its role has often been exaggerated in my view. For example, when equity prices in emerging economies began to under-perform those in the US in June last year, this was widely attributed to US President Donald Trump’s decision to slap tariffs on Chinese imports. But the under-performance coincided with weaker economic data from China, which probably played as big a role in dragging down markets.  

Why it’s starting to feel like 2016 again

In a similar vein, the latest recovery in markets probably has more to do with other developments like last Friday’s stronger-than-expected US jobs report and dovish comments from US Federal Reserve Chair Jerome Powell that investors read as signalling the Fed’s three-year tightening cycle is drawing to a close. Meanwhile, in China there was a further cut in the required reserve ratio and the announcement of more fiscal stimulus. Some are drawing comparisons with the start of 2016, when stimulus in China and expectations that the Fed would delay further tightening helped fuel a recovery in stock markets around the world. But I am not sure this is the correct way to view it. While there are some clear similarities with the first few months of 2016 I am not anticipating another rebound like the one that ran from early 2016 to 2018 and currently the backdrop globally is not conducive for strong stock market performance.  

Key Brexit vote looms in UK

Turning to the UK, recent Brexit developments have created more uncertainty around whether Prime Minister Theresa May’s controversial deal will be ratified. British lawmakers are set to vote on May's much-maligned Brexit deal on Tuesday but I think whatever the outcome now markets will take it in their stride. Given the wildly different possible Brexit outcomes, it’s best to focus on three scenarios: Brexit with May’s deal, probability has fallen to 25 per cent; Brexit with no deal, probability has risen to 25 per cent; and some form of “fudge and delay” involving an extension of Article 50, to probability of 50 per cent.    

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
    Important Note: The information on this website is provided for the use of licensed financial advisers only. The information is general advice and does not take into account any person's particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this website. Investors only: The information in this Document is confidential it must not be reproduced, distributed or disclosed to any other person unless it is part of their statement of advice. The information may be based on assumptions or market conditions and may change without notice. This may impact the accuracy of the information. In no circumstances is the information in this Document to be used by, or presented to, a person for the purposes of making a decision about a financial product or class of products. General advice warning: The information contained in this Document is general information only. It has been prepared without taking account any potential investors’ financial situation, objectives or needs and the appropriateness of this information needs to be considered in that context. No responsibility or liability is accepted by Instreet or any third party who has contributed to this Document for any of the information contained herein or for any action taken by you or any of your officers, employees, agents or associates.  
Consolidate Your Super This New Year
It’s the start of the new year and the time is ripe for making New Year’s resolutions. Consolidating your super makes for an easy and effective resolution to potentially save you extra money. It is important to know that many super funds charge fixed costs. The more super funds you are a part of (you may not know you have more than one), the more you pay in fixed costs, regardless of the size of your balance in each fund. For example, fees of $100 p.a. on a balance of $1000, with an annual return of 7%, would result in a net decrease of $30 to your balance after one year. Put simply, by consolidating your super, you may only have to pay one set of fees. It is also important to check for lost/unclaimed super, which may in some cases be held by the Australian Taxation Office (ATO). If you’ve ever changed jobs, it’s possible that you have unclaimed super you don’t know about. This isn’t all that uncommon, with to date $17.5 billion dollars in unclaimed super being held by the ATO.  

How do you find and consolidate your Super?

Consolidating your super is a relatively simple process. Before online superannuation products came out, it could take hours to sort this all out, and cost you thousands of dollars if you asked a financial planner for help.  However, today it can be done in a few minutes. This can potentially save you a significant amount for tomorrow for only a few minutes today.
Raiz Super makes the consolidation process easy, and can be done in minutes from within the Raiz app. When you sign up for Raiz Super, we will automatically search for any funds and unclaimed or lost super to your name, giving you the option to pick which ones you want to roll into Raiz Super.  If you find the funds but choose not to roll into Raiz Super then you occur no fees and you have not opened a Raiz Super account. You will not incur a fee or open your Raiz Super account until your first contribution, so you can utilise this search function for free. Below is a quick video demonstrating how you can use Raiz Super to simply and easily look for lost super and consolidate on your mobile phone. [embed]https://d2mhoisd9uf1g8.cloudfront.net/Raiz%20Super%20Walkthrough_blog.mp4[/embed]  

How much do you need for retirement?

It’s easy to say why super is important - in order to grow your nest egg, but how much super is enough to live a comfortable retirement? According ASIC’s MoneySmart, in order to support a ‘comfortable’ lifestyle in retirement, it’ll cost singles $42,764 per year, or couples $60,264 per year. MoneySmart also has a superannuation calculator on their website, that calculates how much super you will have when you retire based off your age, employer contributions, and voluntary contributions. This is useful for tracking how your super is performing and planning how much you need to contribute to hit your retirement goals. Consolidating your super is a simple and easy way to start working towards hitting your target for a comfortable lifestyle, well worth the few minutes it will take to search via the Raiz app - and we think it would also make for a nice and easy New Year’s resolution! 😊    

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]  
Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
December 2018
Market and Economic Update - 17/12/2018
Market Update

Market update from George Lucas, CEO Raiz Invest.

 

Weak Chinese data for November

The week began on a positive note. In particular, US–China trade tensions eased with China allowing US Soya Beans in again and reducing the tariff on US cars to 15 percent even though Huawei’s CFO, Meng Wanzhou, was facing extradition to the US. But then China reported its activity and spending data, which confirmed a dismal November. Growth in investment, industrial value-added and retail sales all slowed last month, with the latter now at a 15-year low. This adds to the evidence that China’s economy is under significant pressure, not from the trade war, but primarily for domestic reasons. On top of that, Chinese lending data showed the People’s Bank of China’s preferred measure of credit growth at its lowest since 2005, indicating that the central bank’s efforts to turnaround the Chinese economy with looser monetary conditions are not working yet.  

Ugly Purchaser Management Index fans euro-zone growth fears

In Europe, there was also the release of weaker-than-expected data. The closely-watched flash Purchaser Management Index (PMI) slumped to 51.3, its weakest since November 2014 (but still signalling growth), and the market began to concern itself that global growth is now slowing. The gloomy PMI was largely driven by a sharp drop in France’s data, perhaps suggesting that the yellow vests protests had a serious economic effect. However, even if France’s index rebounds with the protests now over, the euro-zone economy has clearly shifted down a gear and looks set for more moderate growth next year. [caption id="attachment_3977" align="aligncenter" width="640"]Yellow Vest Protest in France Gloomy PMI suggests yellow vest protest had a serious economic impact.[/caption]  

Blowout month for US retail sales

Across in the US, where all the uncertainty began, the news was more upbeat on the economy. The highlight was a 0.9 per cent surge in underlying retail sales for November, suggesting that real consumption growth has remained strong in Q4. There was also a solid gain in monthly industrial production, which rose 0.6 per cent due to better utilities and mining output. However, manufacturing output was flat in November. Meanwhile, Johnson and Johnson shares plunged more than 10 per cent after
reports the company knew for years that its baby powder contained asbestos, including in Australia. The US pharmaceutical and cosmetics giant strenuously rejected the claims.   Read our previous blog, 6 Ways to Save More For Christmas   

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
  Important Note: The information on this website is provided for the use of licensed financial advisers only. The information is general advice and does not take into account any person's particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this website. Investors only: The information in this Document is confidential it must not be reproduced, distributed or disclosed to any other person unless it is part of their statement of advice. The information may be based on assumptions or market conditions and may change without notice. This may impact the accuracy of the information. In no circumstances is the information in this Document to be used by, or presented to, a person for the purposes of making a decision about a financial product or class of products. General advice warning: The information contained in this Document is general information only. It has been prepared without taking account any potential investors’ financial situation, objectives or needs and the appropriateness of this information needs to be considered in that context. No responsibility or liability is accepted by Instreet or any third party who has contributed to this Document for any of the information contained herein or for any action taken by you or any of your officers, employees, agents or associates.
How Raiz Works
Raiz is a micro-investing app that works by allowing you to start investing with as little as $5. Users can invest into their Raiz account through round ups, recurring investments, and lump sum deposits. Money in your Raiz Investment Account is invested into a mix of exchange traded funds (ETFs) in accordance with one of six different Portfolios selected by you. Raiz provides Australians access to start early, invest often and reach their financial goals.   [embed]https://d2mhoisd9uf1g8.cloudfront.net/HowItWorks_rainz_music_FINAL.mp4[/embed]  

With Raiz, saving and investing is easier than ever before.

First, connect a bank account to your Raiz account. This is where all deposits and withdrawals to and from your Raiz account will come and go. Next, you'll need to choose a Raiz investment portfolio. The portfolio's are 'Conservative', 'Moderately Conservative', 'Moderate', 'Moderately Aggressive', 'Aggressive' and 'Emerald'. The offering of portfolio's are designed to suit the differing investment goals of investors, in terms of acceptable level of risk and planned time in the market (see our PDS for more info). For example, an aggressive portfolio may suit you if you want higher returns in the longer term, but will accept a high risk of losing capital over the medium term. Read more: Which Raiz portfolio could be right for me?   [caption id="attachment_4678" align="aligncenter" width="900"]Raiz moderately aggressive Investment Portfolio An example of the Moderately Aggressive Portfolio.[/caption]   Then, set up your spending accounts in Round-Ups. Raiz can track credit cards, debit cards and other bank accounts and will round up every purchase to the nearest dollar and keep track of this amount. When your round-ups hit your round-up threshold, we'll withdraw it from your bank account and invest it for you. Your new shares will then appear in your Raiz account, where you can watch them potentially grow over time. [caption id="attachment_5297" align="aligncenter" width="300"]Raiz roundups on phone screen Round-Ups can help you save in the background of life[/caption] You can also set up a Recurring Investment plan or Savings Goal to help your account grow even faster. If you have spare cash you can always invest into your Raiz Account at anytime using a Lump Sum investment. Feel confident in saving more and investing with Raiz.    

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
    Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
6 Ways to Save More For Christmas
With the festive season beginning, you might be stressing more about the potential hit your bank account is going to take, rather than looking forward to celebrating and spending time with friends and family. Don’t worry, because here are 6 tips that can help you save more for Christmas and secure confidence in your personal finance. 🎁 💳  

1. Create a budget

One of the easiest and most effective strategies to manage your spending over Christmas is to create a budget beforehand. Pre-planning a budget, and following it, will prevent you from spending more on presents, food and drinks than you can afford. It is a common trap that many of us fall into when we forget to track how much we are spending, only to then realise all those costs stacked up more than anticipated. The ‘
My Finance’ tool in the Raiz app can be helpful in planning a budget. You could take your average monthly spending, and then decide how much more you can afford to spend in a month on top of that for your holiday shopping. Or, you could see how much you can cut back on other non-essential purchases to keep your spending similar for December.  

2. Stick to a list

By making and sticking to a list, you avoid buying more presents than you really need to (how many socks does Dave really need?). This list would tie into a budget, making sure that you spend the correct amount of money on the correct number of presents. Keeping a list of what you have gotten for whom and what you still need to buy eliminates mistakes of overbuying, and any awkward social situations where you forget someone’s present. Receiving a present from someone, and then remembering you’ve forgotten to get them something in return is a cringe worthy moment no one wants to experience. [caption id="attachment_3946" align="aligncenter" width="640"]Christmas List Stick to a list over Christmas[/caption]  

3. Take Advantage of Raiz Rewards

Take advantage of over 150 online retailers through Raiz Rewards. Why not get a gift back from our partners from your gifting shopping? Shop through Raiz Rewards and get a cash reward invested back into your Raiz account. This is on top of any sales and deals leading up to Christmas, so browsing these sites to find the best price, and using available discount codes, can save you a decent sum of money. Please also check the T&Cs within the app. Most sites will offer free shipping once you meet a certain expenditure threshold, e.g. free shipping for purchases over $70. So, if you can coordinate your shopping to meet this threshold, you’ll save a nice little sum of money, rather than paying shipping for every individual present. Say, for example, shipping is $10, and you purchase 5 gifts from the same site, but separately, that’s $50 you could have saved by buying at the same time and meeting the free shipping threshold. Staying on the topic of shipping, getting organised with your shopping is also important. If you order something say, 3 days before Christmas, you run that risk that it won’t arrive in time for Christmas eve/day. Alternatively, you might have to cough up a few extra dollars for express shipping. [caption id="attachment_3948" align="aligncenter" width="400"]Raiz Rewards Raiz Rewards as it looks on the app[/caption]  

4. Jump on post-Christmas Day sales

The day after Christmas, retailers no longer want to stock Christmas decorations and wrapping paper, since there is no longer a demand for them (more often these days the sales are starting earlier each year). Therefore, the prices get significantly reduced in order to offload stock. This is a great opportunity for you to stock up these items for next year’s Christmas and save a bunch of money the following Christmas. If you’re super prepared you could even buy presents for next year with all the Boxing Day sales around.  

5. Share the cost of Christmas meals

If you’re hosting a Christmas lunch, dinner etc. this year, instead of buying and preparing all the food, ask friends and family to help contribute. For example, you could cook the main Christmas staples, and ask others to bring the salads, desserts etc. This is a simple strategy that can save not only money, but also the time and stress that comes with the burden of preparing a Christmas meal by yourself. [caption id="attachment_3945" align="aligncenter" width="640"]Christmas meal Share the costs of Christmas meals[/caption]  

6. Organise a Secret Santa

Organising a Secret Santa can be a great way to cut down on the cost of presents, whilst also getting everyone involved. The benefits of a Secret Santa are two-fold. Firstly, setting a budget for the presents removes the ambiguity of how much you should spend. The obvious second benefit is everyone only having to buy one present. One of the best elements of Secret Santa’s is that you can adjust the budget and tone of the gifts to suit different groups. A less formal group of friends, for example, might assign a $10 budget and buy each other trivial presents, whereas a family could establish a larger budget with more sincere gifts.      

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
  Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.  
What Is a Custodian and What Do They Mean for Raiz Users?
Locks on chain Don't have the Raiz App? Download here You just deposited $10 into your Raiz account, the funds leave your bank to be used to buy Exchange Traded Fund (ETF) units, and your Raiz balance increases. But where, exactly, are these ETF units held for you? They are not held by Raiz, but are held by an independent Custodian. When you deposit funds into your Raiz account, there are a number of actions that happen before you see your balance increase. This diagram, taken from our PDS, provides an overview of what happens when you invest into your account.   [caption id="attachment_3903" align="aligncenter" width="812"]Structure of the Raiz Fund showing the role of the custodian Structure of the Raiz Fund[/caption] As you can see, Raiz doesn’t hold any ETF units. When we buy ETF’s on behalf of investors, the actual ETF units are then held by an independent Custodian (Australian Executor Trustees Limited).  

What is a Custodian?

Put simply, a Custodian’s job is to hold assets (in this case ETF units) on behalf of the investors in the registered managed investment scheme (Raiz). They could be thought of as a bank for Raiz, whose only role is to hold and safeguard the assets of the fund. The chosen Custodian, Australian Executor Trustees Limited (AET), is one of Australia’s largest and oldest licensed trustee companies. AET has been operating for over 130 years, having been providing Custodian and Trustee services since 1880.  

What benefits does a Custodian provide to Raiz users?

  • The primary benefit of our fund’s assets being held by a custodian is the assurance an independent custodian provides Raiz users. Hypothetically, if Raiz was to suddenly go out of business, the assets are still held by the Custodian and the dollar value of every user’s account would be returned to them. The ETF units, held by AET, would be sold on market by the Custodian so that their value in AUD would then be deposited back into users’ bank accounts.
  • Another benefit is the checks and balances a Custodian provides to Raiz users. They have a compliance function to ensure everything matches up.
If you’d like to read more in-depth about our Fund structure and Custodian, have a look through our PDS      Don’t have the Raiz App? Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
  Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
Terms & Conditions for completing our ‘Improving our Services’ online survey
  1. An active Raiz Account must be held (account balance greater than $5). Raiz account holders hold valid accounts as set out in the product disclosure statement found on the website: raizinvest.com.au.
 
  1. Entries open Sunday, 9th December 2018 at 11am and entries close Sunday, 23rd December 2018 at 5pm. To enter one must complete in full the ‘Improving our Services’ within the timeframe stated above and provide the email address on your active Raiz Investment account within the survey. Note there could be circumstances where the survey period is shortened, extended or otherwise modified at the discretion of the company.
 
  1. To thank you for completing the Survey, Raiz Invest will be giving away five $50.00 credit investments in to their active Raiz Investment Account. These five investments will be selected at random. We note that no individual prize exceeds $250.00 and total value of prizes do not exceed $50,000.00.
 
  1. These five random Raiz Account holders will be notified by email when the credit investments will be deposited into their Raiz account by Monday 14th January 2019 subject to any circumstances where the survey period is shortened, extended or otherwise modified at the discretion of the company.
 
  1. The permit number in the format NSW Permit No. LTPM/18/03853.
 
  1. This promotion is in no way sponsored, endorsed or administered by, or associated with any other third party.
 
  1. By entering this promotion, you agree that we may use entries / results / feedback for future marketing purposes in any media or branding.
 
  1. The competition is promoted by Raiz Invest Australia Limited, Level 11/2 Bulletin Place Sydney 2000 NSW, 1300 754 748. ABN 26 604 402 815, who is the Authorised Representative of AFSL 434776. The Raiz product is issued in Australia by Instreet Investment Limited (ACN 128 813 016 AFSL 434776) and promoted by Raiz Invest Australia Limited (ACN 604 402 815). A Product Disclosure Statement dated 10th April 2018 for this product is available on the Raiz website and App. A person should read and consider the Product Disclosure Statement in deciding whether or not to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement and include the risks that would ordinarily apply to investing. Amounts are in Australian dollars.
  NSW Permit No. LTPM/18/03853
Market and Economic Update - 03/12/2018

G20 summit

Market Update from George Lucas, CEO of Raiz Invest

Positive Trump-Xi meeting at G20 Summit

This week will start with analysis of the G20 Summit in Argentina and then the market should go back to focusing on US treasury yields and the possibility of a slowdown in the US. The G20 summit saw trade at the top of the agenda, with hopes for talks between Chinese President Xi Jinping and US President Donald Trump and that the two leaders would strike a deal easing US-China tensions after the recent APEC meeting confirmed deep divisions. In a positive outcome, Xi and Trump agreed to temporarily
halt imposing new tariffs and work on a more permanent deal at a dinner on Saturday after the Buenos Aires summit. Without a deal, Trump could have pushed ahead with levying tariffs on an extra $250bn or so of Chinese imports. [caption id="attachment_3862" align="aligncenter" width="500"]Business deal shake The US and China Agreed to a Temporary Trade Deal[/caption]

China stocks rally

Despite the talk of US protectionism before the G20, equities in China, which have been a big victim of trade war fears, have recovered recently and done better than those in the US. The underperformance of Chinese equities earlier in 2018 started around the same time Trump approved tariffs on $50bn of Chinese imports, and threatened more to come.  Worries about China’s economy, which also emerged around that time, didn’t help either. But since early October China’s stock market has performed noticeably better than its US counterpart, in line with some stabilisation in the renminbi relative to the greenback. That partly reflects the S&P 500 starting to come under pressure as investors fret about the outlook for the US economy and improved sentiment surrounding US-China trade tensions.

[caption id="attachment_3878" align="aligncenter" width="550"]Shanhai Shanghai is a key component of the Chinese Economy[/caption]

Spotlight on Fed Chair Jerome Powell

Turning to the US, markets will be watching US Federal Reserve (Fed) Chairman Jerome Powell’s address to the Joint Economic Committee of Congress on the US economy. Powell’s testimony this week is likely to see him hint that the Fed intends to continue hiking interest rates next year. I don’t think he can say anything else as the November employment report will likely be strong and cement expectations for a December rate hike. However, slumping oil prices and fears about the US economic outlook have caused investors to dial down expectations for tighter US monetary policy for the first time in ages. Investors are now discounting roughly two rate hikes between now and the end of 2019, rather than the three that they were anticipating a few weeks ago. [caption id="attachment_3872" align="aligncenter" width="500"]Jerome Powell Jerome Powell Will Address the Joint Economic Committee of Congress this Week[/caption]

2-year US Treasury yields dip

Still in the US, the 2-year US Treasury yield has fallen significantly since November 8. This has also been driven by the recent fall in oil prices pushing down inflation expectations and worries about the US economic outlook connected to future Fed tightening. Oil’s more than 30 per cent decline since touching a four-year high in early October has left energy stocks the worst performer on Wall Street this quarter. However, a question remains about how much of the tumble in oil is due to a sudden market oversupply, or if it’s down to fears of a broader economic slowdown next year.  

OPEC meeting could reverse oil-price plunge

The answer will likely come at this week’s OPEC meeting, with a supply cut on the agenda. There’s confidence that a deal to restrict supply will be reached after Russia signalled it would continue to cooperate with the cartel and may agree to some form of production cut. But if oil prices continue to fall and were to reach $45 a barrel, then that becomes a clearer signal that it’s not just an oversupply challenge, but that slowing global growth is a factor. [caption id="attachment_3867" align="aligncenter" width="600"]Oil Rig at sea Oil price plunge could be reversed[/caption]   Read our previous blog - 'Why Time in the Markets Matter' --------------------- Important Note: The information on this website is provided as general advice and does not take into account any person's particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this website. Investors only: The information on this website is confidential and it must not be reproduced, distributed or disclosed to any other person unless it is part of their statement of advice. The information may be based on assumptions or market conditions and may change without notice. This may impact the accuracy of the information. In no circumstances is the information on this website to be used by, or presented to, a person for the purposes of making a decision about a financial product or class of products. General advice warning: The information contained on this website is general information only. It has been prepared without taking account any potential investors’ financial situation, objectives or needs and the appropriateness of this information needs to be considered in that context. No responsibility or liability is accepted by Raiz Invest or any third party who has contributed to this content for any of the information contained here in or for any action taken by you or any of your officers, employees, agents or associates.
November 2018
Why Time in the Market Matters
  You may or may not have heard the saying, “It’s not about timing market, it’s about time in the market.” But what exactly does this mean? Some new investors may tend to place a short-term focus on how their investments are performing. They’ll frequently track how their shares are going, get excited when their position rises, and then, if it falls, they’ll become carried away with emotion and saddened by a change in market conditions and short-term loss of assets. But what about the long-term picture? Over time stocks tend to naturally go through periods of growth and decline – this is completely normal. Therefore, selling off stocks after a brief period of decline rather than focusing on the long-term goal can be a strategy that doesn’t add value, given it is likely that shares will rise later down the track. Just as hard as it is to predict the downturns, it is also hard to predict when stocks will turn around and rally.  This is known as timing the market – picking the tops and bottoms. To avoid having to time the market to invest, a more long-term strategy is to utilise the advantages of time in the market – that is, the longer you are in the market, the more likely you are to see a healthier return. The first step is to choose the right portfolio for you. If you are likely to withdraw your money when the market declines, you should probably be in Moderate to Conservative portfolio options. This way, a stock market decline should have less emotional impact on you. Therefore, you are likely to remain disciplined when markets decline by not withdrawing your money due to the fear of more losses and sticking with your strategy. If your savings goal is short-term (less than three years) a Conservative option is also probably best. The Aggressive and Emerald portfolio options are for those with long-term saving goals and the ability to remain disciplined during market down turns and the associated losses on their portfolios. Choosing the right portfolio is an important step in avoiding the emotional traps of euphoria and depression that can cause you to make rash decisions   [caption id="attachment_3816" align="aligncenter" width="900"]Raiz Investment Portfolio's An example of the projected value for a Moderately Aggressive Portfolio after 11 years.[/caption]   The second step is to have a disciplined saving/investing strategy or philosophy. At Raiz, our philosophy is to invest small amounts regularly, thus helping to manage market uncertainty. This is a well-known investment strategy, known as dollar cost averaging.   [caption id="attachment_3826" align="aligncenter" width="500"]Dollar Cost Averaging Definition See our blog on “The Advantages of Dollar Cost Averaging”.[/caption]   Raiz automates this strategy and does it more frequently, with the average Raiz customer investing at least once a week. The result can be a healthier balance over the long-term through the automation provided by Raiz. By automating the process, your investing strategy can also be protected against those short-term emotions. Another benefit of spending more time in the market is from compounding. This is when an asset’s earnings are reinvested to generate additional earnings over time. Reinvesting dividends into shares can increase returns due to the power of compounding.  So, the longer you spend in the market, the more dividends you are likely to receive, which are reinvested into more and more shares over time. It is not easy when it is your money.  We all experience the emotional high and lows that come with investing, however by maintaining a disciplined, automated approach, and selecting the right portfolio, you can avoid short term stress and take advantage of dollar cost averaging and compound returns over time.      

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
  Important Information  The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product.  The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information.  Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz.  Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.  The Raiz Invest Fund is issued in Australia by Instreet Investment Limited (ACN 128 813 016 AFSL 434776) a subsidiary of Raiz. A Product Disclosure Statement for this product is available on the Raiz Invest website and App. A person should read and consider the Product Disclosure Statement in deciding whether, or not, to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement and include the risks that would ordinarily apply to investing.
Terms & Conditions For Entering Our My Finance Facebook Competition
  1. An active Raiz Invest Account must be held (account balance greater than $5). Raiz account holders hold valid accounts as set out in the product disclosure statements found on the website: raizinvest.com.au.
  2. Entries open Monday 19th November 2018 at 4PM and entries close Sunday November 25th 2018 at 5PM. To enter, one must comment on the Facebook post within the time frame stated above.
  3. Raiz Invest will select five winners with a $100.00 credit investment in to their active Raiz Investment Account. These five investments will be selected at Raiz’s discretion. We note that no individual prize exceeds $250 and total value of prizes do not exceed $50,000.
  4. These five Raiz Account holders will be requested to message us their email and will be notified by email when the credit investment is deposited into their Raiz Investment account by Friday 30th November 2018.
  5. The permit number in the format NSW Permit No. LTPM/18/03853.
  6. This promotion is in no way sponsored, endorsed or administered by, or associated with any other third party.
  7. By entering this promotion, you agree that we may use entries for future marketing purposes in any media or branding.
  8. The competition is promoted by Raiz Invest Australia Limited, Level 11/2 Bulletin Place Sydney 2000 NSW, 1300 754 748. ABN 26 604 402 815, who is the Authorised Representative of AFSL 434776. The Raiz product is issued in Australia by Instreet Investment Limited (ACN 128 813 016 AFSL 434776) and promoted by Raiz Invest Australia Limited (ACN 604 402 815). A Product Disclosure Statement dated 10th April 2018 for this product is available on the Raiz website and App. A person should read and consider the Product Disclosure Statement in deciding whether or not to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement and include the risks that would ordinarily apply to investing.
NSW Permit No. LTPM/18/03853
Market Update - Is It Over?
by Raiz Invest CEO, George Lucas So, is the market volatility over? Unfortunately, when you invest into markets, it is never over.  The reason we invest is to give us the potential to earn more than can be earned from a bank account. With that in mind, here’s my best guess for the reason behind the recent downturn in the markets. It wasn’t about fears around global growth, it was about an expectation that company earnings, especially in the US, won’t be able to grow as fast in the future as they have over the last couple of years. Many in the market decided to take profit because of this earnings uncertainty, especially when it came to US technology companies. The latest US employment report, released last Friday night, didn’t help. It showed a strong US labour market, adding a better-than-expected 250,000 jobs in October, which means that company earnings may slow as wage-costs rise. In order to earn the potentially higher returns from investing we need to put in place strategies to manage the market uncertainty. Firstly, when it comes to portfolio selection, clients should consider their age and goals in deciding what portfolio selection is right for them.  Being in one of the aggressive portfolio options can work well when markets are rising.  However, when they fall, they will also lose more.  If the fall in the dollar amount causes you to withdraw your money or to time your market exit and then entry, then maybe you should explore a less aggressive option. Market timing usually doesn’t lead to higher returns, as funds may be withdrawn near the bottom of the market and added back near the highs.  There is a saying “It’s the time in the market, not the market timing” 😊. This is why our philosophy is about investing/saving small amounts regularly.  We minimise the effect of market timing and it can assist in managing market uncertainty. In my opinion no matter what your age, if you are saving for a short-term goal, then you should be in one of our conservative options.  Market uncertainty is then less likely to have the same affect on the value of your portfolio and you are more likely to reach you goal in the time frame you have set for yourself. If you are saving for the longer term, say greater than 3 years and you are young, then being in an aggressive option may suit you.  This is because markets do tend to go up in the long term (you need to include dividends). So even though in the short term you may have set backs in your portfolio value, in the long term you should earn more than you can earn in a bank account. In the end, it is your choice. We cannot recommend a portfolio choice.  Raiz is not a get rich quick scheme, it is about developing a habit of regular saving and investing to meet a long or short-term goal. Remember, the current drop in the markets has nothing to do with the health of current US corporate earnings or the current state of the global economy and global growth – it is all about future expectations.  Markets are currently digesting the recent information and trying to land on a consensus of what earning growth will be for 2019. Indeed, by many measures this quarter has been a record earnings season for US companies, while the US economy posted an impressive annualised growth rate of 3.5 per cent (annualised) for the third quarter. US stocks weren’t alone in having a horror October. The MSCI’s World Index of stocks in 23 Developed Market countries fell by more than five per cent in local currency terms over the month. So, is the market volatility over? My answer is probably not as it will take time and some more ups and downs for the market and investors to come to a consensus, if, and by how much, earnings for corporations could slow. In saying that, it is possible that November and December will see rallies. Although, February 2019 could turn into another sell-off until March 2019 when the forward-looking market has got its head around earnings growth for 2019 and begin focusing on earnings for 2020. What level we end up at, and how much down, if at all, I don’t know. I do hope I am wrong, and markets resume their steady rally, but that is not my best guess. So, choose your portfolio wisely -- based on your goals and expectations of what you want Raiz to deliver.  Also, the Raiz philosophy of investing small amounts regularly can assist with managing market uncertainty as market timing is difficult.   Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance. The Raiz Invest Fund is issued in Australia by Instreet Investment Limited (ACN 128 813 016 AFSL 434776) a subsidiary of Raiz. A Product Disclosure Statement for this product is available on the Raiz Invest website and App. A person should read and consider the Product Disclosure Statement in deciding whether, or not, to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement and include the risks that would ordinarily apply to investing.    
Terms & Conditions For Entering Our Raiz Rewards Facebook Competition
  1. An active Raiz Invest Account must be held (account balance greater than $5). Raiz account holders hold valid accounts as set out in the product disclosure statements found on the website: raizinvest.com.au.
  2. Entries open Monday 5th November 2018 at 4PM and entries close Sunday November 11thNovember 2018 at 5PM. To enter, one must comment on the Facebook post within the time frame stated above.
  3. Raiz Invest will select five winners with a $100.00 credit investment in to their active Raiz Investment Account. These five investments will be selected at Raiz’s discretion.
  4. These five Raiz Account holders will be requested to message us their email and will be notified by email when the credit investment is deposited into their Raiz Investment account by Friday 23rd November 2018.
  5. The permit number in the format “NSW Permit No. LTPM/17/02522.”
  6. This promotion is in no way sponsored, endorsed or administered by, or associated with any other third party.
  7. By entering this promotion, you agree that we may use entries for future marketing purposes in any media or branding.
  8. The competition is promoted by Raiz Invest Australia Limited, Level 11/2 Bulletin Place Sydney 2000 NSW, 1300 754 748. ABN 26 604 402 815, who is the Authorised Representative of AFSL 434776. The Raiz product is issued in Australia by Instreet Investment Limited (ACN 128 813 016 AFSL 434776) and promoted by Raiz Invest Australia Limited (ACN 604 402 815). A Product Disclosure Statement dated 10th April 2018 for this product is available on the Raiz website and App. A person should read and consider the Product Disclosure Statement in deciding whether or not to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement and include the risks that would ordinarily apply to investing.
NSW Permit No. LTPM/17/02522
October 2018
Why Superannuation is important (for you and the economy)
Why is superannuation important? What makes the guaranteed contribution scheme justifiable? And how much should you personally contribute to your super fund? With Australia’s pension fund (superannuation) ranked 4th in the world in 2018 by the Melbourne Mercer Global Pension Index, and super assets totaling $2.7 trillion at the end of the June 2018 quarter, it’s worth taking a look at what super means for Australian citizens and its economy. Australia’s modern superannuation system began in 1991, with a compulsory scheme that requires employers to pay a set portion of their employee’s salaries into a super fund, known as guarantee contributions. Currently, the super guarantee rate is 9.5% of your income, and is planned to be incrementally increased after 2021 to 12% by 2025. On top of these compulsory contributions, you can also choose to make personal contributions out of your own pocket to further grow your super.   When can I access my Super? To access your super’s funds, you need to reach your ‘preservation age’, which is currently between 55 and 60 depending on when you were born. As long as you’re permanently retired you can access your super once you reach this.   Benefits of Super? The obvious reason for super’s existence is to help people save money for retirement. Therefore, the main benefit of guaranteed contributions is that it forces you to set aside money for eventual retirement, so you have an adequate income stream post retirement to be comfortable and maintain a certain standard of living. This is especially helpful for anyone that may struggle to save money for long term goals, since it can be hard to think about putting aside money that may not help you for another 30 or so years. See our blog ‘Why you don’t care about Future you’ The drawback of mandatory super payments is of course, that in the short-term you feel a loss of disposable income, and with the savings being out of reach until your preservation age, you may have to save an additional pool of money to afford short to medium term purchases such as a new car or holiday (see our blog ‘5 Ways to Save More with Raiz’). Given this, it’s still hard to argue against investing in Super. A lack of retirement funds would mean more reliance on the government’s Age Pension scheme, which in turn would place more pressure on the government (and therefore tax payer dollars).   How does Super affect the Australian Economy? Hypothetically, if people began to not contribute much/any money to their super throughout their lives, an increased reliance on the Age Pension would strain government resources, causing either allowance per person to decrease, or forcing the government to increase funding. This funding would have to be sourced still within government funding in other areas, and/or increased tax rates. While Australia ranks number 54th in the world by population, ranking 4th by pension fund assets shows the great lengths in us as a country in ensuring enough wealth for Australians in the future.   Should you personally contribute to your super fund? Another way of growing your super balance is through voluntary contributions. The main advantage of this is that any contributions may be tax deductible*, reducing your personal income tax. For more detail, see our blog ‘New rules for Super Contribution’. These savings could also potentially accrue more returns than a standard bank savings account in the long term. When judged over the last 10 years, the top 30 super funds averaged a return of 6.4%. The top 30 performing funds over the last 12 months averaged returns of 9.2%.   How can you easily manage your Super? Raiz Super offers its users an easy to use interface that allows you to easily view your balance and all contributions (guarantee & personal), all on your mobile phone. Being entirely accessible digitally through the Raiz app and website means users can regularly check their Super balance, observe how the market has affected their overall amount, and easily contribute additional funds. So, given the importance of Super, do you feel connected enough to your future?    

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
   Important Information  The information on this website is general advice only.  This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product.  The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz.   Past return performance of the Raiz product should not be relied on for making a decision to invest in Raiz and is not a good predictor of future performance.  * For the new rules, there are certain eligibility criteria, which are not trivial, so you do need to check with a licensed tax adviser (or other) before deciding to make voluntary contributions and claim a deduction.
Helping millennials get the saving bug
Don't have the Raiz App? Download here   Australia is in the big league. According to the Bank of International Settlements (BIS) and the International Monetary Fund (IMF), we have the second highest household debt to GDP ratio out of 43 countries, with Switzerland getting the chocolates. But while household debt has been rising, we should not think this is a new phenomenon – Australians have typically not been savers. We’re not alone in this. Indeed, if a study by researchers at Cornell University is on the money, it’s an American trait, too. This piece of research contends that Americans are far more attuned to seeing opportunities to making money than saving it. It seems our “grey matter” is very creative when it comes to making a buck, but not nearly so good at seizing opportunities to save a dollar. What the study did was measure our attention to earning or saving money. According to a Wall Street Journal article, participants had to identify colours shown quickly on a computer: one “earning” colour that let them gain 30 cents, a neutral colour that had no monetary effect and one “saving” colour that let them avoid losing 30 cents. When the “earning” colour was shown, a staggering 87.5% of participants identified it more quickly and accurately than when the “saving” colour was shown. Even in trials that framed “saving” as earnings that would come slightly later, participants were still better at immediate earning. In the study’s second part, participants had to identify which colour appeared first. Three out of four said they saw the “earning” colour appear first—when in fact, the “saving” colour did. This suggests our “earning” bias may even be strong enough to warp our perception of time. “It’s such a powerful bias that it literally distorts the lens with which you see things. It’s not like people don’t care about savings,” says Adam Anderson, an associate professor and co-director of Cornell’s Affect and Cognition Lab, who co-wrote the study and is quoted by the Wall Street Journal. “We’re kind of blind when those opportunities are presented.” Australians, I would argue, are like Americans. We are good at earning money, but not so good when it comes to saving it. Perhaps a key reason is the fact we spend much of our lives making our “hard earned money”, and so little our lives considering, or working on how we can hold on to it and save it. We need to spend more time training ourselves to save money. At Raiz Invest, we would like to think we are playing a small – but significant – role in changing this thinking about savings. Our App, which now has more than 175,000 active users, many of whom fall into the millennial demographic, is an easy and price-competitive way to automatically save and invest. In the process we are teaching Australians, especially young Australians, about saving, making it a daily part of life, just like working to earn it. In the end we are hopefully empowering them to have a far greater sense of control over their financial affairs, of which saving is such a big part. It won’t happen overnight. But it does need to happen, and with governments and regulators still only paying lip service to financial literacy education in the schools, we hope the Raiz Invest App will be part of the solution to help Australian earn more, while saving.    

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
  Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
My Finance - How to save more by understanding your spending
What is My Finance? Need an easier way to understand your finances? My Finance is a free to use feature within the Raiz app. It provides you personalised insights and notifications on how you are spending. Spending is the other side of the equation when it comes to saving so by spending less, you can potentially save more…. Keeing a handle on how spending can help you meet your savings goals 🙂 In addition, we have harnessed machine learning & artificial intelligence into the feature so that it will provide you with tips & insights relevant to you - about your spending habits and where you may have saving opportunities. Or you can also  question our chatbot Ashlee – see our blog ‘Ask Ashlee – Raiz Intelligent Chatbot’ [caption id="attachment_3737" align="aligncenter" width="300"] My Finance Tip[/caption] How it works To use My Finance, please make sure you link up your spending accounts as this is how My Finance will be able to provide you personalised insights. The more up to date your My Finance is with categorised spends and linked accounts, the more accurate this will be. [caption id="attachment_3738" align="aligncenter" width="300"] Link your spending accounts to see where you spend[/caption] Check out ‘Uncategorised’ tab in My Finance Check out the ‘Uncategorised’ tab within ‘Categorise Transactions’ to categorise any that My Finance was unable to. My Finance will then learn to categorise this in the future and give you better insights, powered by machine learning technology. You are also able to change categorised transactions that we may have categorised wrong at any time by tapping on ‘All’ and the specific transaction you’d like to change. It will also fix up past transactions and My Finance will learn to categorise this in the future as well.   [caption id="attachment_3739" align="aligncenter" width="300"]Check out the ‘Uncategorised’ tab within ‘Categorise Transactions’ Check out the ‘Uncategorised’ tab within ‘Categorise Transactions’[/caption]   Future Cash My Finance also projects your future free cash based on your past spending and income, which may also help you determine if you are spending above your means or if you can save more. [caption id="attachment_3743" align="aligncenter" width="366"] Project your future free cash[/caption] Integrated into our Raiz Chat We know it can be hard to quickly check or calculate your expenses on the go. That’s why My Finance is also integrated into our Raiz Chatbot, Ashlee who will be able to respond to your spending and future cashflow questions in real-time. You can check this out in more detail on our blog – ‘Ask Ashlee – Raiz Intelligent Chatbot Questions’  

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below: [caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz App[/caption]   Important Information The information on this website is general advice only.  This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz.   Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
5 things to consider when buying a home
couple cooking in home By Rachel Gopez - uno Home Loans  

1. Where do I start?

Buying a property can be one of the most stressful times in your life. A lot of research, time and effort is required to find the ideal house. There are many things to consider, so it helps to have a structured set of steps to follow when starting the process. A great starting point is to work out a budget based on your deposit and how much you can borrow. It can be tricky to pull numbers out of thin air, so using an online calculator such as
uno’s borrowing calculator is a great tool to help you work this out. Once you get your pre-approval secured, you’ll have a good estimation of what purchase price you’re looking at. After finalising your exact budget, you can get started on the fun part: finding your dream home!  

2. How much money do I need for a deposit?

A deposit isn’t the exact same amount for everyone. When calculating your home deposit, most lenders generally require 10% of the property’s value and sometimes only 5%. For example, if the property you want to buy is valued at $800,000, the deposit required would usually be between $40,000 (5% of $800,000) and $80,000 (for a 10% deposit). With a 5% deposit, it needs to comprise genuine savings. This doesn’t include money from a parent or third party (this is known as a gift) and must be savings in a bank account. The more money you have saved for a deposit, the better. “Having at least a 20% deposit is your best option, as it saves you from paying lenders mortgage insurance,” says uno Home Loans team leader, Chris McNaughton.  

3. Can I buy a property with no deposit saved?

So you’re not a famous blogger and have no money saved yet? All is not lost! A guarantor loan is one way to buy property when you don’t have a deposit. A guarantor is legally responsible for paying back the entire loan if you cannot make the loan repayments. The guarantor is usually a family member and will also have to pay any fees, charges and interest. Learn more about guarantor loans here.  

4. What costs are involved in buying a home?

The exact costs involved in buying property depend on which state you live in. This is due to the variance in house prices, stamp duty and legal costs. You can calculate how much stamp duty you’ll have to pay, based on your state, here. You’ll also have to pay a transfer fee and a mortgage registration fee. The transfer fee is roughly around $200-$300 and the mortgage registration fee is around $100-$150. The legal work involved in preparing the contract of sale and thoroughly reading all legal documents is called conveyancing. A conveyancer can help you arrange and make changes to a contract. The price range for this service is typically around $600 to $1,500.  

5. How much does an average house cost in Australia?

Australian property prices are talked about more than Australia’s Prime Minister (who is it again?). Asking the cost of a house in Australia is like asking how much a latte costs: it really depends on where you are. Median property prices in each state change month-to-month, but you can find updated data from property analytics company CoreLogic. Remember, buying a home is one of the biggest decisions you’re likely to make in your lifetime. You want to do your research and take it seriously.   About Author Rachel Gopez is Content Producer at uno Home Loans, the online mortgage broker. Looking for a new home loan? What used to take days with banks and brokers can how be done in less than 10 minutes – from your lap top or mobile phone. uno is an online mortgage broker with one mission: to help you win at home loans. Whether you’re a home buyer or looking to refinance an existing loan, uno puts the power back in your hands. Visit www.unohomeloans.com.au It’s important to note that the information we give here is general in nature – no matter how helpful or relatable you find our articles. Even if it seems like we’re writing about you, it’s not personal or financial advice. That’s why you should always ask a professional before making any life-changing decisions.   Raiz: Need a way to start saving for a house deposit? Use Raiz to set up a Savings Goal to help you reach that house deposit easier. While just having round-ups turned on might take longer than you’d like to save this up, you can also set up a recurring investment or invest lumpsum deposits whenever you have free cash to spare. You can also manage your budget through the MyFinance feature, which shows an overview of your current and future cashflow. By automating your Savings plan, you can spend more time on looking for your perfect home!   [caption id="attachment_3723" align="aligncenter" width="300"] Set up a Savings Goal in Raiz to reach your deposit easier.[/caption]     Important Information The information on this website is general advice only.  This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz.   Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
Raiz Study: Recent political turmoil causing millennials to spend less
Sydney, Australia – 3 October 2018 – New research by Raiz Invest Limited, the mobile-first micro-investing platform, shows the recent political climate has made millennials more financially risk averse, with almost half (44 per cent) spending less than six months ago. An even greater proportion (48 per cent) considering changes to their investment strategy.   More than 1,000 young Australians were asked about changes in spending and savings habits, as well as trust in major institutions around personal finances – including superannuation, savings and investment funds – to uncover the impact of these major events on their behaviour.

 

Australians are feeling disillusioned - Raiz Study

No surprise that nearly one in three (29 per cent) mistrust their financial institutions with their superannuation, with a third (34 per cent) remaining neutral. A quarter of respondents no longer trusted financial institutions with their investment funds.   Recent research from the Museum of Australian Democracy and University of Canberra reinforces the growing pattern of disillusionment and cynicism with Australian politics. Only 31 per cent expressed trust in the Federal Government.   “Repeated leadership spills, continued investigation into the big banks, insurance and super regulation have all truly unsettled Australians, causing them to call into question, where they invest and deposit their savings and assets,” Raiz Invest Managing Director, George Lucas, says. “It is not a good outcome for the entire financial services industry including Raiz with all institutions and FinTechs being tainted by the revelations in the Royal Commission”.  royal commission study raiz

Millennials more risk averse

The research found more than half (51 per cent) of millennials consider themselves risk averse when it comes to investing. One in ten described themselves as extremely risk-averse investors. Since the Royal Commission into financial services, the majority still are not ready to consolidate superannuation into one fund, with over one in five (22 per cent) stating that they believe it’s better to spread the risk across a few funds and 34 per cent admitting to being ill informed on such matters.   “The high number of risk-averse millennials correlates with the idea of disillusionment in financial institutions.  It is not surprising that they still are reluctant to consolidate their superannuation into one financial institution but would rather spread the risk. Going forward the average Australian will find it more difficult and expensive to get financial advice, making it more important than ever that the FinTech industry continues to grow to fill the gap and provide advice in new innovative ways,” Lucas says.   “We’re seeing the games in Canberra having a real affect, with 58 per cent of millennials either saving more or spending less as confidence in politics shrinks,” Lucas says. “We are also seeing real impacts from the Royal Commission, with outcomes that may not benefit the average Australian, like more expensive financial advice or making it harder to obtain a home loan. Millennials need to continue the trend of saving and investing and improving their financial literacy early to meet the changing landscape of financial services in Australia.”   Raiz encourages millennials and all Australians to invest for the future, putting complete control in the palm of their hand. Through Raiz Invest and Raiz Invest Super, we will continue to help Australian’s become more financially literate and improve their financial confidence.   royal commission study raiz   Important Information The information on this website is general advice only.  This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz.   Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
Raiz Reviews - 300,000+ Australians have signed up to Raiz after being referred
raiz reviews Since launch, 300,000+ Australians have signed up to Raiz after being referred*. We want to thank you for bringing us up with your friends and family, for sharing your stories and for thinking of us when others ask for recommendations. Without your support, Raiz would not be possible! Your Raiz reviews – good and bad have continued to help us improve the Raiz product and features.

Check out some Raiz reviews below:

  [caption id="attachment_3687" align="aligncenter" width="794"]raiz reviews Raiz Review - Michael[/caption] [caption id="attachment_3688" align="aligncenter" width="794"]raiz reviews Raiz Review - Stephen[/caption] [caption id="attachment_3684" align="aligncenter" width="794"]raiz reviews Raiz Review - Jamie[/caption] [caption id="attachment_3682" align="aligncenter" width="794"]raiz reviews Raiz Review - Alyve[/caption] [caption id="attachment_3683" align="aligncenter" width="794"]raiz reviews Raiz Review - Anna[/caption] [caption id="attachment_3685" align="aligncenter" width="794"]raiz reviews Raiz Review - Luke[/caption] [caption id="attachment_3686" align="aligncenter" width="794"]raiz reviews Raiz Review - Matthew[/caption]   Since launch, we have released 9 major features from your direct feedback and support. We look forward to continue growing our community and product with your feedback and support! Your Raiz Team *Referred both paid & unpaid  

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz App[/caption]
Important Information The information on this website is general advice only.  This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz.   Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
September 2018
Terms & Conditions For Entering Our Raiz Invest Super Facebook Competition
  1. An active Raiz Invest Super Account must be held (account balance greater than $5). Raiz account holders hold valid accounts as set out in the product disclosure statements found on the website: www.raizinvest.com.au .
  2. Entries open Thursday 27thSeptember 2018 at 4PM and entries close Friday October 5th October 2018 at 5PM. To enter, one must comment on the Facebook post within the time frame stated above.
  3. Raiz Invest will select five winners with a $100.00 credit investment in to their active Raiz Investment Account. These five investments will be selected at Raiz’s discretion.
  4.  These five Raiz Account holders will be requested to message us their email and will be notified by email when the credit investment is deposited into their Raiz Investment account by Friday 19th October 2018.
  5. The permit number in the format “NSW Permit No. LTPM/17/02522.”
  6.  This promotion is in no way sponsored, endorsed or administered by, or associated with any other third party.
  7. By entering this promotion, you agree that we may use entries for future marketing purposes in any media or branding.
  8.  The competition is promoted by Raiz Invest Australia Limited, Level 11/2 Bulletin Place Sydney 2000 NSW, 1300 754 748. ABN 26 604 402 815, who is the Authorised Representative of AFSL 434776. The Raiz product is issued in Australia by Instreet Investment Limited (ACN 128 813 016 AFSL 434776) and promoted by Raiz Invest Australia Limited (ACN 604 402 815). A Product Disclosure Statement dated 10th April 2018 for this product is available on the Raiz website and App. A person should read and consider the Product Disclosure Statement in deciding whether or not to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement and include the risks that would ordinarily apply to investing.
NSW Permit No. LTPM/17/02522
5 Ways to Save More with Raiz
5 Ways to save more with Raiz Do you like to save? Here are 5 ways to save more by making the most out of Raiz!

Automate your Savings Goal

By automating and naming your savings goal, this will help reaching your goal easier. With our Savings Goal feature, you can set a recurring investment in-line with your pay day, as Raiz allows you to customise investing daily, weekly, fortnightly or monthly. You can customise the goal name to keep you focused on what you are trying to achieve. You are also less likely to miss or notice the money when investing in small amounts regularly and stops you from thinking “I will save on my next pay” (on every pay check!) [caption id="attachment_3663" align="aligncenter" width="300"] Automate your Savings Goal[/caption]

Check out ‘Uncategorised’ tab in My Finance

MyFinance is a free to use feature within the Raiz app. It provides you personalised insights and notifications on how you are spending. Spending is the other side of the equation and keeping a handle on this can help you meet your savings goals. MyFinance also projects your future free cash based on your past spending and income, which may also help you determine if you are spending above your means or if you can save more. To make the most out of it on ways to save more, link up all your spending accounts and check out the ‘Uncategorised’ tab within ‘Categorise Transactions’ to categorise any that MyFinance was unable to. MyFinance will then learn to give you better insights, powered by machine learning technology. [caption id="attachment_3664" align="aligncenter" width="300"] Check out ‘Uncategorised’ tab in My Finance[/caption]  

Do your normal shopping through Raiz Rewards

Better than loyalty points! Racking up points which you can redeem later (for half a toaster…) have been the traditional model for rewards programs. With Raiz Rewards, by just clicking through our links, you can earn a cash reward on eligible purchases, invested back into your Raiz account. Just like the Raiz philosophy, all these small rewards can add up, especially with over 100 brands partners to shop from. Already do your clothing or grocery shopping online? Take advantage of saving more simply by doing the same shopping through the Raiz platform and receiving a cash reward every time. Read more about ways to save with Raiz Rewards on our blog - '
Raiz Rewards: Cash-forward is the new cashback' [caption id="attachment_3665" align="aligncenter" width="300"] Do your normal shopping through Raiz Rewards to get rewarded[/caption]    

Get to know your finances instantly with Ashlee, the Raiz Chatbot

The problem with managing your finances in the past was having to manually do it yourself, usually through a tedious spreadsheet. We’ve changed this by integrating our chatbot, Ashlee, with Facebook Messenger. Much like a personal fitness coach, Ashlee makes getting to know your finance easy and simple. She can respond in real-time on questions around your spending habits e.g. “How much did I spend on shopping last week?” or “how about last month?” as well as answer questions on future savings e.g. “Can I afford to buy a new phone?” or “how long will it take me to save $2,000?”. For more questions and ways to save more, check out our blog - 'Ask Ashlee – Raiz Intelligent Chatbot Questions' To use, just go into your Facebook Messenger app and search for 'Raiz Chatbot'. Please note, you will need a Facebook Messenger account to access the Chatbot. The more up to date your MyFinance is with categorised spends and linked accounts, the more accurate the responses from Ashlee will be. [caption id="" align="aligncenter" width="298"] Get to know your finances instantly with Ashlee[/caption]  

Personal Contributions to Raiz Invest Super

The more you save for your future now, the higher the potential income can be when the future arrives. New laws passed in July 2017 means all employees are now eligible to claim personal tax deductions on contributions up to a cap. Prior to this, it was limited and required arranging a salary sacrifice with your employer. This means now your savings in Raiz Invest Super may be tax deductible* through personal contributions! You can also open a Raiz Invest Super account and see all your other superannuation funds or consolidate any other existing Super funds you may have into Raiz Invest Super. By doing this, it may save you more from removing extra fees and insurance premiums. With Raiz, see all your investments in one place on your mobile phone. [caption id="attachment_3391" align="aligncenter" width="300"]raiz-super-app Raiz Invest Super is fully integrated into the Raiz app.[/caption]  

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below: [caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz App[/caption]   Important Information The information on this website is general advice only.  This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz.   Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.   * For the new rules, there are certain eligibility criteria, which are not trivial, so you do need to check with a licensed tax adviser (or other) before deciding to make voluntary contributions and claim a deduction.
Channel 9 News - Feature - The app increasing your super while you spend
Thanks to Channel 9 News for the great piece on how Raiz is helping Australians save more for their goals and Superannuation! To read more, please go to their article - 'The app increasing your super while you spend' or watch the video below.   [caption id="attachment_3648" align="aligncenter" width="300"] Channel 9 news video below[/caption] [embed]https://d2mhoisd9uf1g8.cloudfront.net/Channel%209%20News_20th%20Sep%202018.mp4[/embed]   Article Excerpt: Raiz is helping consumers use their spare change to boost retirement savings through an easy-to-manage investment account. And Raiz user Nathan Martyn said he has already saved hundreds. “I wanted to start paying attention to where my super was and how it was likely to generate over time,” Martyn told Nine News. “I’ve had over the last six months about $500, which has generated about a 10% return,” he said. Superannuation money is invested into the same funds as the investment account where your spare change goes. You then choose whether to invest in lower or higher risk funds, and can see how it is performing every day. “You have a Raiz invest account and with the push of a button your details are transferred over to create a super account,” said Raiz chief operating officer Brendan Malone. “It brings all your super into one place, into one investment app where you can see the opportunities.”  

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]  
Important Information The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for making a decision to invest in Raiz and is not a good predictor of future performance.
Ask Ashlee – Raiz Intelligent Chatbot Questions
We are excited to announce a new feature – the Raiz Facebook Chatbot – Ashlee – to help you feel even more control of your finances! Ashlee, the intelligent Chatbot, can answer both generic and specific questions relating to you such as “What is my balance?”, “How much did I spend on shopping last week? last month?” or “Can I afford to go out tonight?” [caption id="" align="aligncenter" width="298"] Chat to Ashlee, the Raiz Chatbot through your Facebook Messenger App[/caption] Ashlee responds in real-time to questions specific to you, through Facebook messenger to your mobile phone. The more up to date your MyFinance is with categorised spends and linked accounts, the more accurate the responses from Ashlee will be. To use, just go into your Facebook Messenger app and search for 'Raiz Chatbot'. Please note, you will need a Facebook Messenger account to access the Chatbot. [caption id="attachment_3622" align="aligncenter" width="300"] Search 'Raiz Chatbot' in the Facebook Messenger App[/caption]   Below is a list of questions you can ask Ashlee, the Raiz Chatbot! Ashlee can answer both generic and specific questions relating to your Raiz account. Feel free to try ask her any other questions so we can continue improving her responses.   [caption id="attachment_3627" align="aligncenter" width="840"] List of Questions you can ask Ashlee - or try test your own[/caption]   Below is a Video Demo on how to get started with Ashlee - the Raiz Chatbot: [embed]https://d2mhoisd9uf1g8.cloudfront.net/Chatbot%20Example%20Video.mp4[/embed]  

Article Mentions

   

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]  
Important Information The information on this website and through the Chatbot is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for making a decision to invest in Raiz and is not a good predictor of future performance.
Raiz Invest brings financial insights to life with Facebook chatbot
Sydney, Australia – September 18, 2018: Raiz Invest Limited, the mobile-first micro-investing platform, has today launched a chatbot to improve the user experience. Customers can ask Ashlee specific questions about their account or the financial markets and get general customer support. Much like a personal fitness coach, the aim is to help Australians have a healthier relationship with their finances. With an active (paying) customer base of more than 172,000, skewing towards the under-35 demographic, Ashlee provides intuitive and real-time responses. Integrated on Facebook Messenger, it takes advantage of the personal and instant nature of the app in aligning with millennials.   Personalised on-demand investment updates Ashlee further personalises the Raiz experience. She will answer personal spending questions by category including shopping, entertainment and dining. She’ll even advise whether you can afford to go out for dinner by predicting your future cash balance based on historic spending patterns. [caption id="" align="aligncenter" width="298"] Ashlee, the Raiz Chatbot can respond in real-time[/caption]   Developed by Raiz and powered by the latest artificial intelligence (AI) technology, Ashlee offers tips based on your historic spending and income. This provides a personalised experience via your mobile phone whenever you need guidance. This helps to plan more effectively for the future. Check out the type of questions you can ask here. “The Royal Commission into financial services will cause a significant reduction in the number of financial advisors and consultation costs will increase,” Raiz Invest Managing Director, George Lucas, says. “The average Australian will find it more difficult and expensive to get financial advice. “Ashlee is designed to fill part of this gap and will improve over time. Her investment and spending tips are instantly available, providing customers with bite-sized financial assistance when they need it most via their mobile phone.”   The future of micro-investing integration Ashlee continuously learns and gathers new insights using artificial intelligence. She’ll eventually be connected with Google Assistant and Siri. “Ashlee will help young Australians engage with their financial future by providing instant financial assistance when they need. This will give millennials the freedom to make better financial decisions for the future,” Lucas says. “Improving financial confidence is a goal we’re passionate about at Raiz. We’re excited to see how we can further adopt AI and help our customers make better decisions. We strive to continually think up new and innovative ways to improve engagement with their savings, so they can meet their goals.”   You can find Ashlee by searching ‘Raiz Chatbot’ on the Facebook Messenger App. [caption id="attachment_3622" align="aligncenter" width="300"] Search 'Raiz Chatbot' in the Facebook Messenger App[/caption]   Below is a Video Demo on how to get started with Ashlee – the Raiz Chatbot: [embed]https://d2mhoisd9uf1g8.cloudfront.net/Chatbot%20Example%20Video.mp4[/embed]  

Article Mentions

   

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
  Important Information The information on this website and through the Chatbot is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for making a decision to invest in Raiz and is not a good predictor of future performance.
Investing definitions and terms
New to investing or want to test your knowledge? Below are some helpful investing definitions on common words related to investing.  It would be great if there were no risks associated with investing, but there are, and because of market movements and other risk the value of investments can go up and down. To learn more about risks you should read this blog - 'Risks of Investing'    ETF Short for ‘exchange traded fund’, is a security that trades like a stock on a stock exchange. It usually tracks an index of stocks, bonds or more alternative assets like commodities of infrastructure. [caption id="attachment_3597" align="aligncenter" width="400"] ETF[/caption]   Dollar Cost Averaging An investment principle of buying a fixed dollar amount into a particular investment on a disciplined regular basis. The investor purchases more shares (units) when prices are low and fewer shares when prices are high. [caption id="attachment_3598" align="aligncenter" width="400"] Dollar Cost Averaging[/caption]   S&P 500 The Standard & Poor’s index that tracks 500 of the biggest companies listed in the USA and is a favourite tool for analysts trying to understand how the US market as a whole is performing. [caption id="attachment_3599" align="aligncenter" width="400"] S&P 500[/caption]   Net Worth The value of your assets minus any debt you owe. [caption id="attachment_3600" align="aligncenter" width="400"] Net Worth[/caption]   Compounding Generating earnings from previous earnings, when these returns are reinvested. Such as when the dividend you previously earned on your investment starts earning market returns as well. [caption id="attachment_3601" align="aligncenter" width="400"] Compounding[/caption]   Diversification Spreading your money among different investments to reduce the market risk. [caption id="attachment_3602" align="aligncenter" width="400"] Diversification[/caption]   Asset Anything of value is an asset: cash, stock, a car, a house, even the money owed to you by someone else. [caption id="attachment_3603" align="aligncenter" width="400"] Asset[/caption]   Dividend Money paid by a company back to their shareholder, out of its profits. [caption id="attachment_3604" align="aligncenter" width="400"] Dividend[/caption]   Volatility The rate at which the price of an asset changes - increases or decreases - over a given period of time. It is used as a measure of market risk. [caption id="attachment_3605" align="aligncenter" width="400"] Volatility[/caption] Liquidity A market's ability to absorb a purchase or sell order for an asset without causing significant change in the asset's price. [caption id="attachment_3606" align="aligncenter" width="400"] Liquidity[/caption]   20-30-50 Rule Allocate 20% of your monthly income towards goals, 50% for fixed expenses and 30% for flexible spending. [caption id="attachment_3607" align="aligncenter" width="400"] 20-30-50 Rule[/caption]   Basis Point 1 basis point is equal to 0.01% so 100 basis points is 1%. [caption id="attachment_3608" align="aligncenter" width="400"] Basis Point[/caption]    

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]  
Important Information The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for making a decision to invest in Raiz and is not a good predictor of future performance.
Risks of Investing
While the Raiz Philosophy is to invest small amounts regularly to manage the uncertainty associated with markets, it cannot eliminate it.  All investments carry risk, and some of them are not market risk. Different strategies may carry different levels of risk, and assets with the highest long-term returns may have the highest level of short-term risks. Below is a list of significant risks to consider before using Raiz. For more info, check out our Raiz PDS.  

PERFORMANCE RISK

The value of your Raiz Investment Account, can go up or down. Returns are not guaranteed, and you may lose money. The rate of return varies, so future returns may differ from past returns. Risk impacts vary for individual investors depending on age, investment time frame, and other investments held.  

MARKET RISK

Changes in financial markets, the economy, political changes, technological developments, and changes in market sentiment continually affect the value of investments and the level of income they generate. For instance, if you request a full cash withdrawal or close your Raiz Investment Account the amount you receive may be different (including less) from the last value displayed in your App due to market movements.  

INTEREST RATE RISK

Changes in interest rates can directly and indirectly affect investment value or returns. For example, an increase in official interest rates can result in a increase in the interest you receive on your cash but could also cause a fall in the value of bonds and other fixed interest securities.  

PORTFOLIO PERFORMANCE RISK

The performance of your Raiz Investment Account may vary from the performance of another Raiz Investment Account which invests in the same Selected Portfolio. This is because contributions will be invested in the Selected Portfolio over time and for differing amounts, and the rebalancing algorithm may lead to different weightings between Portfolios, differences in fees charged and in buy/sell spreads incurred when selling ETF to pay fees.   Important Information The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for making a decision to invest in Raiz and is not a good predictor of future performance.
Why you don’t care about Future you
‘That’s a future me problem’. Have you ever thought that to yourself? It’s a common thing that we all do. We tend to always care less about future you than the current you, which can lead to negative consequences. This is a problem that affects everyone. For example, it is why 13% of Australian’s still smoke, as it is a problem for tomorrow. Also surprisingly, 40% of Australians have no idea how much money they have saved for future them in their superannuation, and 1 in 4 Raiz users have four or more Super funds, eroding away their money through extra sets of fees and maybe ineffective insurances. [caption id="" align="aligncenter" width="300"] What eroding fees look like[/caption] Before online superannuation products came out, it would take hours to sort this all out, or cost thousands if you asked a financial planner.  However, today it can be done in a few minutes. So by taking just a few minutes today to sort out your future, this can potentially save you a life changing amount for tomorrow. Yet most of us don’t and won’t do this. But why don’t we care about future us? The most famous case is the Marshmallow experiment. [caption id="" align="aligncenter" width="400"] The Marshmallow experiment - one treat right now or two treats later?[/caption] In it, researches gave children some marshmallows. The choice was simple: one treat right now or two treats later. They had the option to either eat them straight away or wait for the researcher to come back in 15 minutes and then they’d get double the marshmallows. Only a few kids managed to wait until the researchers came back to be rewarded with two treats. Researchers have since tried to uncover the reasons behind why we care less about the future you vs. present you:   1. You see future you as a foreign person. Several studies have revealed that we often treat our future selves like complete strangers. This is the main reason you may struggle to save money or can’t choose the healthy salad despite promising yourself to be on a diet this week. [caption id="" align="aligncenter" width="500"] You see future you as a foreign person.[/caption] The good news is that by getting better connected with future you, you can make better choices in the now and later, such as creating a Savings Goal or actively showing your future funds to the present you.   2. Our brains are hardwired to not think about our future you. Studies have also found that thinking about your current self triggers different brain regions than when thinking about your future self. Thinking about future you actually activates the same areas of the brain as when we think about other people. This means our brain transmits present and future consequences to different parts of your brain. While you may know the benefits of helping future you now, you are unlikely to feel it. [caption id="" align="aligncenter" width="480"] Me to myself: Who are you?[/caption] One way to train yourself in changing this is by linking present goals with future ones. For example, by seeing both your short-term savings goal and superannuation in the one place, this will allow you to better link and recognise your present self with your future consequences and rewards.   3. We prefer definite over indefinite options. Is there a guarantee there’s really going to be double the number of marshmallows if we wait? Earlier studies showed there are many situations in which children can’t be certain that they would receive the delayed outcome. However, as we develop into adults, this is a thinking pattern we can learn to be aware of. Think in certainty. For example, while the time of your retirement can feel indefinite, it is certain that sorting out your superannuation now will allow you the best possible outcome for your retirement later. By being self-aware of how you can help future you, this will mean a better outcome for both of your selves today and tomorrow! [caption id="" align="aligncenter" width="300"] Self-5![/caption]   Feel more connected to your future now by exploring ‘Raiz Super’ in Raiz App today 🙂 Remember: “The best time to plant a tree was 20 years ago. The second-best time is now.”    

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
  References: https://www.ncbi.nlm.nih.gov/pubmed/5010404 https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2656877/ https://www.ncbi.nlm.nih.gov/pubmed/18156588 https://www.newscientist.com/article/2127901-your-true-self-the-future-is-a-foreign-person/ https://jamesclear.com/delayed-gratification   Important Information The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for making a decision to invest in Raiz and is not a good predictor of future performance.
August 2018
How to start Investing? Spare change and micro-investing
Choice, the leading consumer advocacy group in Australia, has provided a very comprehensive and extensive explanation of all things Raiz. To read more, please go to their article - 'Raiz: Spare change and smartphone investing' Excerpt below: Historically, two things have worked against young people investing in the stock market. First, a lack of knowledge about how to start investing. Second, not having enough money available to be of interest to the businesses that facilitate such investments. For example, if you chose to cut out the middleman and invest directly in the same ETFs, you would need hundreds of dollars to buy a single 'unit' in one of these funds. Likewise, investment funds, financial advisers and stockbrokers are typically only interested in clients who have a substantial sum to invest.

 

Overcoming barriers

Raiz addresses both of these barriers to entry. First, while Raiz does aspire to educate its customers, they don't need to know anything about investing to get started. Customers just download the Raiz app to their smartphone then link their Raiz investment account to their bank accounts and credit or debit cards. Raiz then pools the deposits from its customers and buys units in ETFs. For example, if 100 Raiz users deposit $9.50 each, Raiz will arrange the purchase of a $950 ETF unit and give each of those customers a one per cent stake in it. When that ETF pays dividends and distributions, each of those customers receives a one per cent share. Raiz isn't an ETF (or a brokerage, or investment fund). It simply provides the platform that allows its customers to pool their money and invest in the stock market via ETFs.  

Expert opinions

Raiz has attracted a lot of attention, including from the nation's personal finance experts. Noel Whittaker is a fan, having long dreamed of a product available to "anybody with a few dollars to invest, where investment could be automatic and your money placed in share-based investments without the hassle of going through a broker, paying brokerage or trying to save a big lump sum to get going".   To read more, please go to their article - 'Raiz: Spare change and smartphone investing' [caption id="attachment_3541" align="alignleft" width="250"] Choice, the leading consumer advocacy group in Australia[/caption]         See our other blogs - 'Raiz Invest Super: Bringing Superannuation to your mobile phone'    

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
  Important Information The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for making a decision to invest in Raiz and is not a good predictor of future performance.
Raiz Security: Bank-level Security and Encryption

Raiz Security

If this is your first time using Raiz to invest and save, we wanted to assure you that Raiz takes your security seriously (being an ASX publicly listed company and ASIC regulated). Your security is our highest priority. Raiz works hard to protect your information, prevent unauthorised account access, and notify you of any unusual activity.  

Bank Level Encryption

We protect the data and banking credentials you share with us, whether on our website or our app, with 256-bit encryption. That's the same level of encryption used by all the top Australian financial institutions.

Bank Level Security

We employ the latest bank-level security, and
artificial intelligence technology to keep your personal information safe on our servers.

Monitor for unusual activity

Even after all these safeguards, we monitor your account for any unusual activity and will immediately send you an account alert.

Insured against fraudulent and criminal activity

Finally, your money is insured against fraudulent and criminal activity through Lloyds of London. To find out more, please check out our Raiz security page or video below.

Raiz Security:

[embed]https://d2mhoisd9uf1g8.cloudfront.net/Raiz_Security_FINAL(music).mp4[/embed]   Important Information The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for making a decision to invest in Raiz and is not a good predictor of future performance.
Consumer still drowning after Royal Commission
By George Lucas, Managing Director & CEO of Raiz Invest The revelations unfolding at the Royal Commission into banking and financial services would make a mafia don blush. The pillars of banking and wealth management have been exposed for overcharging or charging for no service, poor and often conflicted advice, misleading regulators, and contravening trust laws, and that’s just to name but a few miscreant deeds. Reputations of regulators, corporates and individuals, are being trashed. It’s good that we are having a root-and-branch inquiry into our financial services system. Those who said an inquiry wasn’t necessary, from politicians to analysts to senior journalists, haven’t got egg on their faces. They have omelettes. But once it’s over and the media circus has moved on, where’s it going to leave most consumers. In my opinion, certainly not better off, and possibly worse off. Let me explain. It seems to me that there are three certainties coming out of this inquiry; tighter regulations, higher professional standards demanded of those offering advice, and stricter enforcement by the regulatory bodies. All good outcomes in themselves, but they do have one obvious consequence – higher fees – especially as they will have higher levels of education. In addition, there are suggestions that many advisers will chose to exit the industry (some suggest up to 50%). It means that advice could very much become the preserve of the well-heeled; the very people it could be argued least need advice. But for many Australians, getting good advice will be beyond their financial means, and this in a country where financial literacy is nothing short of a national disgrace.  As the Royal Commission was told, a 2006 survey showed 46 per cent of people aged between 15 and 74 struggle to understand simple financial services documents, and it’s my guess this situation hasn’t improved. So, the very consumers who have been shown to be the most vulnerable could now find themselves unable to afford any advice, although, it should be added, no advice is better than the bad advice many have been getting. So, what to do? It seems to me there are three viable options. First, there needs to be a focus on financial literacy – and it needs to start at an early age. Via social media it is possible to reach young people on matters financial, but they still need to have the basic financial literacy skills to distil this information. Governments, state and federal, need to make this priority, and not keep paying lip service to it.  This is one of the benefits of the Raiz App which increases financial literacy from the hands-on experience of participating in financial markets. Second, governments (Liberal and Labor) and regulators who have spent the past 30 years creating and cultivating an oligopoly in Australia in financial services need to seriously reconsider.  Barriers need to be imposed on large financial institutions to reduce their ability to user their existing market power to compete.  This may include allowing international institutions into the market and creating an “un-level” playing field so new FinTech players such as Raiz, which can fill some of the gaps left as advisors leave the market.  I am talking my own book here. Thirdly, in certain areas of the financial system, people must participate; banking, insurance and superannuation are three of the most obvious. These institutions have guaranteed markets, especially superannuation, where every working Australian is a conscript, not a volunteer. Any institution that compulsorily gets nearly 10% of your weekly wage needs to operate to an ethical standard that’s the polar opposite of a mafia don. There can be no excuses. People who hand over part of their salaries to an industry/retail/public sector/corporate super fund, supposedly to give them some financial security in retirement, should not have to wonder whether that money is being invested in a fiducial manner that considers their best interests. It should be holy writ, and institutions who fail to do should feel the full force of the law. If the Royal Commission at least achieves that end, then it will have been worthwhile. [caption id="attachment_3236" align="aligncenter" width="300"] George Lucas, Managing Director & CEO of Raiz Invest[/caption] Important Information The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for making a decision to invest in Raiz and is not a good predictor of future performance.
The Raiz Philosophy - Investing Small Amounts Regularly
raiz-philosophy

What is the Raiz Philosophy? (Dollar Cost Averaging)

The Raiz Philosophy is to invest small amounts regularly. While this can’t eliminate market uncertainty, the Raiz Philosophy can help manage it, and at the same time help you learn about the markets, build financial confidence or just save and invest in the background of life. This is the well-known investment strategy,
Dollar Cost Averaging. Raiz automates the strategy and does it more frequently, with the average Raiz customer investing at least once a week. By investing small amounts regularly, the Raiz philosophy protects your investments from emotion. If prices go up, you buy fewer of the now more expensive shares and, if they go down, you buy more of the now cheaper shares. It's an automated, disciplined approach to investing for the long term. Studies suggest that losses are twice as powerful, psychologically, as gains, leading this type of investment mindset to be more likely to make the mistake of needlessly selling holdings and switching to cash in a down market. By avoiding the media hype or fear in picking the ‘right time’ through regular contributions, investors can avoid both the euphoric and depressive investment traps. [caption id="" align="alignnone" width="1200"]raiz-protect-investments-from-emotions The Raiz Philosophy protects your investments from emotion[/caption] On average a Raiz customer saves $150 a month with the average balance of a customer is $1,250.  

Warren Buffet recognises the strength of simple investing.

Even Warren Buffet, who is often referred to as the world's greatest investor, recognises the strength of simple investing with ETFs: “Both large and small investors should stick with low-cost index funds.” In 2007, Buffett bet a New York hedge fund $1 million that his simple, low-cost investing strategy would outperform the hedge fund industry over 10 years. And he won.   [caption id="attachment_3492" align="aligncenter" width="300"]savings goal Raiz Savings Goal Feature[/caption]   Stick to your savings plan and invest small amounts regularly, no matter the market condition. By protecting your investments from emotion, the Raiz Philosophy is one of the keys to helping you and our community to better reach your financial goals and enable a healthier balance over the long term. Remember: “The best time to plant a tree was 20 years ago. The second best time is now.”   Any returns shown or implied in this email are not forecasts and are not reliable guides of future performance.   Video - How Raiz Protects your investments from Emotion [embed]https://d2mhoisd9uf1g8.cloudfront.net/Raiz_InvestmentFromEmotion_FINAL(music).mp4[/embed]    

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
  Important Information The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for making a decision to invest in Raiz and is not a good predictor of future performance.
Raiz Kids: Automatic Savings for your Child
raiz-kids Raiz Kids is a simple way to save and invest small amounts regularly for your children/grandchildren. We understand that life gets busy, life gets messy, especially when you have little ones. For the parents and grandparents in our Raiz community, we know it is not simple to get started on a savings fund for your kids.  

What is Raiz Kids?

Raiz Kids is a simple way to save and invest for your children and/or dependents who are under the age of 18. Raiz Kids is not a separate account for your child. Instead, Raiz Kids sits within your current Raiz account as a feature in the menu. Just like your main Raiz balance, you can invest your spare change from everyday purchases, set up a recurring or lump sum deposit towards you and your chosen Raiz Kid(s).
[caption id="" align="alignnone" width="1200"]raiz-invest-small-amounts. Turn your spare change into investments for your child's future.[/caption]  

How does it work?

Raiz Kids works by using your pre-existing Raiz account. Through the App on your mobile or desktop, you can select the portion of your balance that goes towards the Raiz Kids saving goals. At any time, you can split the portion of your current balance to Raiz Kids. Raiz Kids will then equally split among the dependents you have added. raiz-kids For example, if you have selected 50% of your total balance to go towards your Raiz Kids and your balance is $1000, then $500 of it will go towards your Raiz Kids goals. If you then put in a $10 recurring deposit, 50% of this ($5) will also go towards the Raiz Kids goals. Once your Raiz Kids reach the age of 18, they are then able to open their own Raiz Account, with the option of having these funds transferred into their account. Otherwise, the funds will remain within your account until you request a transfer. [caption id="attachment_3371" align="aligncenter" width="245"]raiz-kids-mobile Raiz Kids can be transferred when your child turns 18.[/caption]  

Why use Raiz Kids?

With Raiz Kids, you can apply the same Raiz philosophy of investing small amounts regularly, watching it grow for you and your children in the background of life. Learn to save and invest without affecting your lifestyle by automatically saving and investing small amounts for your kids in the background of life with Raiz! Join the award winning app and recent finalist of 'Best Tech Innovation' for Raiz Kids in the Finder Awards 2018!  

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below: [caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz App[/caption]   You can find out more about Raiz Kids on our Raiz FAQs Read more about our other features: Raiz Rewards  

Articles in the Media:

Noel Whittaker (Sydney Morning Herald, The Age, Brisbane Times) - 'Raiz (previously Acorns) launches micro-investment for kids' Finder - 'Micro-investing app Raiz (previously Acorns) launches ‘Raiz Kids’ feature' Mamamia - 'The app that will invest your money without you having to do a thing.'   Important Information The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for making a decision to invest in Raiz and is not a good predictor of future performance.
Raiz Security: Strengthens Financial Security and Compliance with AI Cybersecurity
raiz security Versive, Inc., an award-winning AI-based cybersecurity company, today announced that Raiz Invest Limited (Raiz), a mobile first micro-investment platform based in Australia, is using the Versive Security Engine (VSE) to help protect sensitive customer data and comply with financial regulations.   Raiz provides customers an easy way to regularly invest either small or large amounts in one of six portfolios of varying risk levels. The company has 164,000 active customers in Australia, and approximately $200 million in funds under management, growing at over 20 percent each quarter.   As a fast-growing financial company, Raiz wanted to increase its level of security. The company already offers bank-level security to consumers through the app to ensure customer data is held securely. In addition, Raiz recently listed on the Australian Stock Exchange and VSE is a critical component of their compliance with financial regulations. Partnering with Versive was a key step in achieving these goals.   The Versive Security Engine is built on a proprietary machine-learning platform that enables it to identify subtle patterns across massive volumes of data. VSE automatically exposes the activities that all adversaries must engage in to accomplish their mission: internal reconnaissance, collection and exfiltration. This strategic framework significantly reduces false positives so that VSE delivers only a handful of high-fidelity ThreatCases per week so that Raiz’s cybersecurity team can focus on defeating the most serious threats before damage is done.  
  • Continuous situational awareness: Raiz’s highest priority is protecting its customers’ information, data and money. VSE provides continuous situational awareness inside customer network and detects internal and external adversaries regardless of what new tools, tactics or exploits they use.
  • The power of AI: VSE uses AI to automatically uncover the required chain of potential threat activity that separates the signal—the real risks to Raiz’s business and customer information—from normal network noise.
  • Increasing consumer confidence: With VSE running seamlessly behind the scenes, customers can invest securely with Raiz, knowing the company is proactively hunting for potential threats and shutting them down before damage is done.
  [caption id="attachment_3455" align="aligncenter" width="1214"]Versive Versive Security Engine[/caption]   Joe Polverari, CEO of Versive, said: “Hackers and other bad actors have the time and resources to successfully find an entry point into your network. Financial services companies like Raiz understand that securing their customer’s information is of utmost importance. That’s why VSE is the critical missing piece in a company’s security portfolio, delivering the most dangerous threats that are already within the network so that security teams know what to focus on to avoid breaches.”   George Lucas, CEO and managing director of Raiz, said: “As our company grows quickly, we are tasked with maintaining both our level of service and the sacred trust of safeguarding customers’ data and money. The Versive Security Engine ensures that we are on the cutting edge of cybersecurity because it is one the most sophisticated technologies to protect our customers and investors from data breaches.” [caption id="attachment_2977" align="aligncenter" width="300"] George Lucas, Managing Director and CEO of Raiz[/caption]   Learn more about Raiz Security on our website.  

Articles in the Media:

Australian FinTech  - 'Raiz chooses Versive’s AI-powered cybersecurity solution to strengthen financial security and compliance' Finextra - 'Raiz selects Versive AI to protect customer data' Adviservoice - 'Raiz chooses Versive’s AI-powered cybersecurity solution to strengthen financial security and compliance' FinTech Business - 'Raiz Invest shores up cybersecurity' Security Brief - 'Raiz chooses AI-powered cybersecurity solution for financial security and compliance' Financial Standard - 'Raiz beefs up security with AI'   Important Information The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for making a decision to invest in Raiz and is not a good predictor of future performance.
Meet the brains behind Raiz Invest research and insights
How Australia’s #1 Investment App use insights and research into the millennial audience to inform strategy and grow tools for finance education Raiz Invest Limited, the mobile-first micro investing platform, improving the financial confidence for over 164,000 Australians, is strategically using research and insights to continuously garner understanding and awareness of their customer needs, with the help of Dr. Jake An, Raiz Invest Research Phd and in conjunction with major Sydney Universities. [caption id="attachment_3419" align="aligncenter" width="300"] Dr. Jake An - Research & Development at Raiz Invest[/caption] Dr. Jake An applies his PhD theories to Raiz customers to improve the user experience and is now the brains behind the continuing research program of Raiz. His role is to merge his two passions, academia and research applying them to real world of financial literacy and behaviour. Working with Raiz since 2016, Jake identifies business problems and works directly with academics around the world – including Australia, Israel and Oxford University in the UK - to help solve them.   In a true success story, Jake came to Australia from Korea at age 11 and taught himself English, via economic and business text books. Jake has since hard-wired his brain for analysis since arriving in Australia. This passion for business and research led him to Raiz where he now works to dissect consumer behaviours to inform product development helping Australians become more financially savvy and set themselves up for the future. He believes that the critical element in furthering the growth of the FinTech industry in Australia and beyond, is tapping into the power of online word-of-mouth content.   Through his PHD, whilst at UNSW, Jake conducted research on the effectiveness of a company crafting the word-of-mouth message for a customer, rather than relying on customers to craft the message on their own. The research provides substantive marketing insights in terms of how FinTech companies can better design sharable word-of-mouth content, to generate greater customer referrals on digital platforms and create social benefits.   Managing director, George Lucas, said: “Jake needed a real-world test of his theories to complete his research and reached out to Raiz for assistance. He was instantly a hit and began working with Raiz to shift the company from a sale-oriented word-of-mouth (WOM) approach to a story-oriented WOM approach. Today, it’s an approach that’s borne great success for Raiz. From someone whose business career started when he requested his aunty to send him shoes from Korea which he could sell at Westfield Blacktown for a profit, to an expert in exploring the concept of word of mouth marketing to shape the Raiz brand, his story is one to call out in the finance industry.   The research is now a prime example of how data can empower customers by creating social benefits. The key benefit being that Raiz has now empowered customers to increase their personal influence and help others improve their financial confidence too. He is a motivation for millennials looking to educate themselves in finance.”   Jake is also informing Raiz’s business strategy and growing the brand through his application of concepts around pragmatic learning theories and how they can be applied to finance education through insights and research – a key element of the Raiz Invest platform today.   The work from Jake is a clear example of how education into the benefits of sound finance behaviours and the finance sector has contributed to building one of Australia’s most successful start-ups, who are using insights to understand the millennial audience to inform their strategy and continue to grow the brand as a tool for finance education.   The research conducted is currently under review with the Journal of Marketing, the leading international peer-reviewed academic journal in marketing and is also a finalist for Best Communications Campaign in the Australian FinTech Awards. See our other blogs - 'New research on money issues by Raiz'  

Media Coverage:

Adviser Voice - 'Meet the brains behind Raiz Invest research and insights' Australian FinTech - 'Meet the brains behind Raiz Invest research and insights'   Important Information The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for making a decision to invest in Raiz and is not a good predictor of future performance.
Raiz Invest Super: Bringing Superannuation to your mobile phone

Set up Raiz Invest Super: 30 second walkthrough

Mobile is key in today’s world. The Raiz app is the leading investment app in Australia that is completely digital and mobile-first. We have introduced
Raiz Invest Super which is fully integrated into the Raiz app. [caption id="attachment_3391" align="aligncenter" width="300"]raiz-super-app Raiz Invest Super is fully integrated into the Raiz app.[/caption] Raiz Invest Super is designed for a mobile world and the app is all you need to sign up, rollover and view your Superannuation in the palm of your hand.

Below is a quick video on how Raiz Invest Super has made it a simple and easy process to sign up on your mobile phone.

[embed]http://d2mhoisd9uf1g8.cloudfront.net/Raiz%20Super%20Walkthrough_Upload.mp4[/embed]

40% of Australians don’t know how much money is in their own Super. Do you?

Raiz Invest Super will allow you to check and rollover your other existing funds, if you choose, in just a few minutes on your mobile phone. The more connected you feel to your future, the more stress-free you can feel today. Invest in yourself today and connect to your future with Raiz Invest Super. [caption id="attachment_3395" align="aligncenter" width="300"]raiz-super-rollover View your existing Super fund balances with SuperMatch in the Raiz app[/caption]  

How do I sign up?

Simply log into your Raiz App and go to 'Raiz Super' in the menu. [caption id="attachment_5283" align="aligncenter" width="400"]Open Raiz Super Open Raiz Super[/caption]   [caption id="attachment_3398" align="aligncenter" width="300"]raiz-super-menu Tap 'Raiz Super' in the App menu[/caption]  

Don’t have the Raiz App?

Download it for free in the App store below: [caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz App[/caption]   You can find out more about Raiz Super on our Raiz Super FAQs   Important Information The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for making a decision to invest in Raiz and is not a good predictor of future performance.
July 2018
Investing in Stocks with Dividends – Distribution for FY 2020
All Raiz Portfolios pay out dividends from our ETF providers. Eager to know when your next dividends will be paid? Check out the dates below. Last financial year, Raiz paid out over $8M in dividends back to our users.  

What is a Dividend?

As well as gains on market returns from investing, dividends (or distributions) is money paid by a company back to you, their shareholder, out of its profits. Raiz users choose to invest in one of our six investment portfolios, that comprises a mix of nine different exchange traded funds (ETF). The underlying stocks of these ETFs which make up the Raiz portfolios pay dividends from time to time. The ETF provider pays these dividends out, quarterly or twice yearly.  All dividends received by Raiz will be automatically re-invested back into your Raiz investment account, and your chosen portfolio. See our blog on
What is an ETF and how they differ. When they are paid out will depend on what portfolio you are on. You will start to see these dividends appear in your account. Below is a schedule on when we expect dividends to be paid by the ETFs accordingly for the financial year ending 2020.   Raiz ETF dividend distribution dates for 2020   Note: These are estimated timings based from last year’s payment schedule that will change. Please refer to each ETF provider’s website for more details on exact dates when made available.   

A quick summary on each ETF payout:

  • AAA (Cash) pays monthly
  • IVV (S&P 500) pays quarterly
  • IEU (S&P Europe 350) pays twice yearly
  • STW (S&P 200) pays quarterly
  • RCB (Corp. Bond) pays quarterly
  • IAF (Composite Bond) pays quarterly
  • ETHI (Sustainability) – pays twice yearly
  • RARI (Responsible Investment) pays twice yearly
  • IAA (S&P Asia 50) pays twice yearly
  Important Information The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz.   Past return performance of the Raiz product should not be relied on for making a decision to invest in Raiz and is not a good predictor of future performance.
How To Get A Higher Tax Refund with Tax Deductions
by John Liston - Nixer For some, the tax season is a time people look forward to, having paid their taxes all year and are looking to get a nice refund to compensate for all the tax deductible expenses they have paid throughout the year. There are a few new changes in legislation that can help the everyday Australian get some well-earned tax relief. Deductible expenses depend on your industry; however, a general rule is that if your expenses have a direct correlation with earning your income, then you can claim it as a tax deduction.  Then there is also your contribution to superannuation marginal rate, however a tax of 15% will be applied in the superannuation fund on these contributions.  

Mobile Phone - tax deductions

If you use your mobile phone to make work calls, text messages or use the data for work purposes, then you can make a claim. To substantiate the claim, you will need to have a record that justifies the work-related percentage of your mobile phone expenses that you intend to . Please note that you are not able to claim mobile phone expenses if your employer reimburses you or pays your bill. [caption id="attachment_3296" align="aligncenter" width="640"] Mobile Phone Deductions[/caption]  

Motor Vehicle - tax deductions

You can make a claim for work related travel (and vehicle expenses provided they meet the eligibility criteria, such as keeping a log book or a log of work related kms. An important point to note here is that you can’t claim travel from work to home or vice versa. Click here to refer to our help section for more information on this. [caption id="attachment_3303" align="aligncenter" width="640"] Motor Vehicle Deductions[/caption]  

Ensure your health insurance is at the correct level.

If your income is $90,000 as a single adult or $180,000 for a family and you don’t have private health insurance, then you will be required to pay the Medicare Levy Surcharge (MLS). The MLS is at least 1% of your adjusted income and basic private health insurance is usually less than 1% of your income. Based on this information, it could be cheaper for you to take out private health insurance instead of paying the Medicare levy surcharge. Have a look into what private health insurance is relevant to your circumstances and then work out if it would be cheaper for you to have it than not have it. [caption id="attachment_3304" align="aligncenter" width="640"] Have a look into what private health insurance is relevant to you.[/caption]  

Income protection insurance  - tax deductions

Income Protection Insurance is an insurance that will replace your income if you are unable to work due to injury or sickness. One of the benefits of having Income Protection Insurance is that it is Tax Deductible if it covers your regular income!  

Claim your donations  - tax deductions

The ATO allows people to claim a tax deduction for any donations given to a deductible gift recipient (DGR)! You are allowed to claim a tax deduction for a gift if it meets the following conditions:
  • The gift must be to a DGR
  • The gift must be money or property
  • The gift must be a gift, which basically means you receive nothing in return
Click here for more information [caption id="attachment_3305" align="aligncenter" width="640"] Charity & Donation deductions[/caption]

______________________________

About Author:

Want your tax done in less than 10 minutes? Head to nixer.com.au, enter your details and Nixer will do the rest. Nixer is Australia's most innovative online tax agent, offering a unique online tax experience built for Raiz users. Plus as a Raiz user, you receive a special $10 discount on your tax return and $5 invested back into Raiz account when you lodge. Please check your emails for this offer or find Nixer through Raiz Rewards as you must sign-up through your unique link or code. Every tax return is carefully reviewed by Nixer's team of qualified accountants to check for accuracy and to help you find extra deductions.       Important Information The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz.   Past return performance of the Raiz product should not be relied on for making a decision to invest in Raiz and is not a good predictor of future performance.
Raiz Rewards: Cash-forward is the new cashback

Raiz Rewards

What is Raiz Rewards?

Raiz Rewards is our cashback or rather “cash-forward” loyalty program, accessed on the Raiz
mobile app or website. We’ve transformed loyalty by giving you the opportunity to earn cashback with some of your favourite brands. You shop online as normal and the retailer you shop at automatically invest a Raiz cash reward back into your Raiz account just because you made a purchase. From June 2019 - September 2019, we invested over $193,000 back into our customer’s Raiz Invest and Raiz Super accounts. Since inception, we have invested over $900,000 back into our customers' Raiz Invest and Raiz Super accounts, with the average Raiz Reward of $5 invested back into our customers' Raiz accounts per transaction. Better than loyalty points! Racking up points which you can redeem later have been the traditional model for rewards programs. With Raiz Rewards, just by clicking through our links, you can earn a cash reward on eligible purchases. We’ve partnered with over 200 retailers to fund either a percentage or a fixed dollar cashback which appears into your Raiz Account. Raiz Rewards sets a new standard for rewards programs by helping you invest in your future through your purchasing behaviour. This feature helps customers who shop online to increase their savings, meet their financial goals, and improve financial confidence. In addition to the cashback, we also work with brands individually to provide special promotions for our Raiz customer base. Watch out for our in-App messages.  

How does it work?

With the click of a button (or tap of a finger), you could be on your way to receiving cashback after making a purchase with one of our partners. Simply go to the Raiz Rewards section in the Raiz Invest app. Find the brand you’d like to purchase from and click the ‘Shop Here’ button. You’ll then be redirected to the partner’s site where you must make your purchase immediately without clicking any other external links.  

Where does the Raiz Reward appear?

The Raiz Reward will typically appear back into your Raiz account within 30 days from the date of purchase. You can view the total amount of Raiz Rewards invested by clicking the History tab in the app. You can see the history of Raiz Rewards invested from specific partners in the partner’s page under the Raiz Rewards tab. Please refer to individual partner terms and conditions before purchasing to understand eligibility requirements and when to expect a Raiz Reward deposited into your account.  

Where does the reward come from?

Brands pay us either a percentage or a fixed dollar amount per sale which we use to cashback to you as a Raiz Reward. Essentially, we use the money to buy shares on your behalf which are invested back into your portfolio.  

What brands do we partner with?

We partner with many local and international brands across a variety of categories in our Raiz Rewards section. We currently have partners in fashion, food, travel, tech and more. We’re also constantly on-boarding new partners so be sure to check the app and any communications about new partners. This means more opportunities for more cashback into your Raiz account.   Raiz Reward Partners  

Start earning cashback through Raiz Rewards now in the Raiz mobile app or web app:

  [caption id="attachment_4791" align="aligncenter" width="351"] Tap to open Raiz Rewards on Mobile[/caption]   [caption id="attachment_4796" align="aligncenter" width="351"] Click to go to Raiz Rewards on Desktop[/caption]  

Articles in the Media:

'Shop Smarter' - Whimn      

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
    Important Information The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for making a decision to invest in Raiz and is not a good predictor of future performance.
#cash reward #cash rewards #cashback #loyalty #raiz reward #raiz rewards #rewards
Raiz Super is out now on the Raiz App

Raiz Super is now available! 

You are now able to invest in the same six Raiz portfolios for your superannuation as you would for your investment account. Just like a bank account or your Raiz account, superannuation is your money. That's why we want you to feel confident and connected to your future, enabling you to view all your investments in one place, on your mobile phone. [caption id="attachment_3391" align="aligncenter" width="300"]raiz-super-app Raiz Invest Super is fully integrated into the Raiz app.[/caption]  

Check it out on the latest version of the Raiz App.

[caption id="attachment_3258" align="aligncenter" width="351"](Please tap this on your mobile phone) (Please tap this on your mobile phone)[/caption]

Fees?

Our ambition is to give you an easy and affordable way to invest and build wealth for your future. Raiz Invest Super fees place it in the bottom 25% or lowest quartile for accumulation superannuation funds on the market (based on a SuperRatings review of over 440 superannuation funds). Please refer to the product disclosure statement for more detail.  

Do I have to roll over?

No, this is up to you. You have the choice to just open a Raiz Invest Super Account and make employer and personal contributions, without rolling over other Super fund balances. If you would like to combine your Superannuation (and it’s not compulsory to do so), Raiz Super can run a SuperMatch search via the App in just a couple of minutes, giving you the choice to select which Super Funds you would like to consolidate by rolling into Raiz Invest Super. [caption id="attachment_3395" align="aligncenter" width="300"]Raiz Super can run a SuperMatch search via the App Raiz Super can run a SuperMatch search via the App[/caption]  

Do I have to select the same portfolio as my non-Super Raiz Invest?

No, you are able to select a different portfolio to your non-Super Raiz account. Raiz constructs six diversified portfolios (including a Socially Responsible option) with the help from the Nobel Prize winning economist and father of Modern Portfolio Theory, Dr. Harry Markowitz.  

How do I join?

To join, download the latest version of the app. Go from the menu > Raiz Super to get started! Below is a 30 second walk through on how to sign-up and roll over your existing funds (if you choose to).
[embed]https://d2mhoisd9uf1g8.cloudfront.net/Raiz%20Super_Video.mp4[/embed]   Thank you again for your ongoing support. We look forward to your feedback on Raiz Super through support@raizinvest.com.au or 1300 754 748, as we strive to continue improving the financial confidence of our Raiz community.  

Articles in Media:

Investor Daily - 'Raiz Invest enters superannuation market' Super Review - 'Raiz Invest adds super feature to wealth app'   Important Information The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for making a decision to invest in Raiz and is not a good predictor of future performance.
Raiz: Money issues creating strain in the bedroom
money-issues New research on money issues by Raiz Invest Limited, the mobile-first micro investing platform, improving financial confidence for over 160,000 Australians, has found that financial stress is having a negative impact on the sex lives and wellbeing of millennial Australians. The research found that men are more likely to believe that financial stress has a negative effect on their sex life than women, whereas women feel the impacts on their wellbeing. Almost one in 10 (nine per cent) admitted they would sacrifice their relationship for financial confidence. Previous research conducted by Raiz found that money issues are a significant cause of stress in young people.   The survey identified the differences in financial stress on men vs. women. It also looked at confidence levels of 1,000 respondents when it came to money issues, debunking many of the myths around financial security along the way.  

Women more financially stressed than men

 The findings revealed that 42 per cent of women often / always felt financially stressed, compared to just 28 per cent of men. Women felt this stress impacting their wellbeing, stating the regular side effects of financial pressures included sleepless nights (65 per cent), depression (64 per cent), and illness (45 per cent). Raiz Invest managing director, George Lucas, said: “We hope taking active steps to managing personal finances, like using the Raiz app should be empowering. As financial confidence increases, we hope to see the negative wellbeing impacts diminish. This year, we’ve already seen women account for 41 per cent of new Raiz investors. We hope to see this number increase year on year to contribute to lower levels of financial stress currently evident amongst young women.”  

Male sex life impacted by financial stress 

Despite women being more financially stressed, men are more likely to believe that financial stress has a negative effect on their sex life, with a third of male respondents telling us this has an impact. There were also clear differences in attitudes toward financial stresses and sexual sacrifices – with women (three out of ten) much more likely to give up regular sex than men (28 per cent vs. 16 per cent) to achieve financial security. “Not surprisingly, financial stress has a differing burden on men and women in their everyday lives. There is still education that needs to be done when it comes to managing expenses, savings and investments, with platforms like Raiz empowering customers to increase financial confidence and hopefully reduce financial stresses. Raiz understands that personal finances can be difficult to manage and plan, which is why our platform aims to automate the process to work in the background of life to improve savings/investing and manage expenses and hopefully improving other parts of their life that don’t really need to be sacrificed” Lucas said.  

Millennials more confident about their financial future

Despite the finding on stresses related to money issues the research found that 42 per cent of respondents are confident with their current financial status. Lucas added: “The preconception that millennials think they will never own a house needs to start changing. We are seeing a significant trend of millennials making smart finance decisions by investing and building wealth for their futures, particularly with the research revealing that young people are feeling more confident about achieving their financial goals in future.” See more on our blog: 'Is the Great Australian Dream still a reality?' To learn more about Raiz Invest and Raiz Invest Super visit www.raizinvest.com.au.

Media Coverage:

  Important Information The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz.   Past return performance of the Raiz product should not be relied on for making a decision to invest in Raiz and is not a good predictor of future performance.
#raiz #saving #study #wealth
Superannuation Product Update - Raiz Invest Super
superannuation raiz invest super ASX Release 9 July 2018 - Business Update

Superannuation –  New Product Update 

In line with Raiz Invest Limited (“Raiz” or “the Company”) (ASX:RZI) strategy to bring new innovative financial solutions and products to customers, Raiz has now successfully completed beta testing of the Raiz Invest Super product. It plans to officially launch this on 16 July 2018. The strategy of introducing a superannuation product was outlined in Raiz’s Prospectus dated 9 May 2018. Raiz Invest Super has been designed to help Australians build wealth for retirement in a simple and transparent manner. The superannuation feature will be fully integrated into the existing Raiz app post its launch. Read our previous blog
- Why your Super is still Important when you’re Young Raiz has a large millennial customer base and has achieved over 500,000 customer sign-ups (as at 9 July 2018) putting it in a unique position to market Raiz Invest Super using its own internal online channels.  Raiz customers are highly engaged with the current Raiz product, with more than 80% of users making an investment in the past four weeks. Chief Executive Officer and Managing Director of Raiz, Mr. George Lucas said, “We continue to execute on our stated strategy of growing our active customer base by bringing new innovative financial solutions and products to customers. This superannuation product was developed in response to customer demand for an engaging, affordable superannuation investment. Pleasingly, our offering will sit within the lowest quartile of fees for accumulation superannuation funds in the Australian market. Raiz Invest Super will charge a fee of around $425 on balances of $50,000 to account holders, on an annual basis, placing it in the bottom 25% or lowest quartile for accumulation superannuation funds on the market. The product also helps address some of the key issues identified in the recent Productivity Commission draft report into superannuation – such as the multiplicity of super accounts and lost super by simplifying how customers engage with their superannuation. “Customers will find that growing their savings and achieving financial confidence does not have to be a complicated or daunting process. We continue to focus on improving financial confidence in investing and saving money within our customer base as well as to potential customers”, added Mr. Lucas. [caption id="attachment_3165" align="aligncenter" width="641"]fee in lowest quartile for accumulation superannuation funds New superannuation product fee will be in the lowest quartile for accumulation superannuation funds on the market[/caption]

Raiz Rewards Update

The Raiz Rewards feature assists customers who shop online to increase their savings while they shop, by receiving a loyalty cash back into their Raiz Account from participating brands. An additional feature of the product is that brands can also offer special promotions to the Raiz customer base. In the June quarter, Raiz Rewards continued to grow its brand partnership portfolio, increasing the number of partners by over 20%. Raiz customers can now receive rewards with more than 115 brands including BWS, Apple, AirBNB, Woolworths Online, and STA Travel. [caption id="attachment_3166" align="aligncenter" width="573"]Raiz Rewards brands june Some Brands added over the June quarter[/caption] The Company has seen 12,000 customer transactions associated with Raiz Rewards and $78,000 of rewards invested into customer accounts in the last quarter (to 30 June 2018). Raiz customers have shown a willingness to earn dollars as they shop which are invested back into their Raiz accounts rather than loyalty points for redemption sometime in the future. Raiz Invest Super and Raiz Rewards are built into the app’s existing mobile first investment platform. Other features of Raiz’s app include Raiz Kids, a savings tool for children, Carbon Offsetting, and the introduction of a Socially Responsible Investing Portfolio.  

Operational Update

Raiz is pleased to announce that since its ASX listing in June, demand for Raiz’s simple, transparent, and affordable financial services has remained strong. Raiz continues to place in the top 10 apps within financial sections of both the Apple and Google app stores.  In the “free financial” section of the Apple App store, Raiz has a customer star rating of 4.8 and similarly in the Google Play Store it has a customer star rating of 4.5.  Funds under management have increased to $205 million. The average Raiz user has seen their investment portfolio grow by 10 per cent a year in the past 12 months and 11 per cent a year since start in February 2016 (including all fees but not the $1.25 a month maintenance fee).  Based on an average account balance of $1250, this would translate to $110 a year return (after the maintenance fee). The Company recently raised over $15 million from investors as part of its listing. This has provided the company with additional funds to service customers, with a focus on offering new products and innovative financial solutions, such as the Raiz Invest Super product.  

Quarterly Update

Raiz intends to provide a quarterly update for the period ending 30 June 2018, in the week of the 23 July 2018.  This will include performance reports as to growth, customer engagement, and funds under management.  

About Raiz

Raiz Invest Limited (ASX: RZI) is a first of its kind Australian, mobile-led, financial services business offering customers an easy way to regularly invest either small or large amounts, in or outside superannuation, using its micro-investment platform available via the Raiz app or its website. Since launching in 2016, Raiz has achieved solid growth, amassing over 470,000 signups, with 160,000 active monthly customers and $200 million funds under management as at 20 June 2018. Raiz was awarded Australia’s Investment Innovator of the Year at the 2017 and 2018 FinTech Business Awards. For more information: www.raizinvest.com.au   Important Information The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz.   Past return performance of the Raiz product should not be relied on for making a decision to invest in Raiz and is not a good predictor of future performance.
#invest #product #raiz super #superannuation #update
June 2018
5 Habits of Wealthy People
By Phil Usher The difference between rich and wealthy, is that getting rich is just about the accumulation of money. It can come and go, and if someone who’s rich loses their money, they may have trouble regaining that or rebuilding again. When we talk about building wealth, we generally think of numbers or how we can increase our income, how we can invest, or how we can make better decisions based on numbers. But wealthy people are also doing things that aren’t numbers focused. History is full of lotto winners that end up broke in a matter of a few years after winning big, or sports people who are great at what they do but not so much with their money. But for wealthy people, it’s very much a mindset. This blog will go through five things that wealthy people do on a regular basis that make them financially successful. Of course this isn’t a “every millionaire does this” or “do these things for guaranteed wealth”, it’s more a look into consistent behaviours of the most successful and wealthy people.   1. Exercise First up is that they exercise. Generally they’re exercising for at least 30 minutes a day, and they’re doing that around four days per week. It’s not a lot, it’s not a huge commitment, but research shows that people who exercise have much better outcomes in terms of the way that they think, getting clarity in their life, and making decisions. There is tons of research out there on exercise. I’ll let you see what you can find, but exercise is something that wealthy people do constantly. Richard Branson is notorious for kite surfing and jogging. And billionaire owner of the Dallas Mavericks, Mark Cuban says he does 1 hour of cardio 6 or 7 days per week!   2. Read Wealthy people read. A lot of research has come out saying that CEOs, top-level CEOs, are reading on average 60 books per year. 60 books compared to about one or two that everyone else reads. The information that you get from books is unbelievable. It’s something that you can’t access anywhere. The dense information that you can get in your ear through audio books is also an efficient use of time! You can read for half an hour per day while your exercising. That’s health and wealth in one hit! And I’m not necessarily just talking about fiction books either, it’s non-fiction and ways that you can learn to improve your thinking. Do a healthy mix between the two. Bill Gates says that he reads 50 books per year and Warren Buffet says he reads 5 to 6 hours per day!   3. Network. A lot of people say that your network is your net worth. That means that you’re getting exposed to other people and it opens the doors for many other opportunities. You’re not going to be able to build your wealth just by sitting in your back room and keeping to yourself. You’ve got to get out there, you’ve got to get to events, you’ve got to talk people. Some of my biggest sales have come from just going to a networking event, exchanging my card, having some food, and having a beer with a decision maker. Prior to that, I’ve tried cold calling or I’ve tried dropping in and they’re always too busy, but when you get face to face with someone, and they can see what you’re like as a person, that’s when the opportunities can really start to open up. So, get out there and start networking.   4. Mentors Arnold Schwarzenegger says in his book, “There’s no one that is self-made.” Everyone has mentors, everyone has guides, everyone has coaches, advisors. Find your mentors, find people who’ve been there and done that with that experience. It doesn’t necessarily have to be face to face, that’s ideal, but I understand that it can be limiting. For me growing up, I had my father as a mentor, but looking beyond that, in terms of building wealth, I turned to books. Having those books, having those people that have built billion dollar fortunes, and seeing what decisions they make and how they operate, is what I’ve used as mentoring as well. Ask business owners or investors you look up to. But don’t come out and ask ‘hey can you be my mentor?’ Play it cool. Go for coffee and follow up with a few emails.   5. Gratitude Wealthy people practice gratitude every day. There’s nothing worse than thinking and comparing yourself to others and saying how far you are behind. Instead of saying I don’t have this, be grateful for what you do have. There are plenty of people out there who believe that you are living a version of their best life. So if you’re getting sick and tired of going to work, rather than waking up and saying, “I have to go to work today,” wake up and say, “ I get to go to work today,” because there are plenty of people who are out there struggling that don’t have employment who would like to be in your opportunity and take advantage of what you have. So, practice some gratitude. It changes that way you think, you become a lot more satisfied with life, so you’re not out there chasing the material things. Instead, you’re starting to chase what feeling gratitude allows you to become. By building your mindset, this is the muscle that you need to raise your wealth. Once you’re able to start to doing that, and hone that, then the money part will become easier. It’s probably 80% mindset and 20% process, so by working on your mindset, this will go a long way towards raising your wealth.   Important Information The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz.   Past return performance of the Raiz product should not be relied on for making a decision to invest in Raiz and is not a good predictor of future performance.
#invest #raiz #wealth
May 2018
Why your Superannuation is still Important when you’re Young
superannuation-important-young
Whilst you don’t care about retirement now (we get it, why would you if you’re young?), we can almost guarantee you that one day you probably will. This may happen when you start a family or just when you get older (which also we can pretty much guarantee). So, don’t forget that your Superannuation is still your money, just like it is your money in a bank account or your Raiz account. You have spent time learning to be more financially confident, so it is just as important to understand Superannuation and how to get the most out of it.    

How is your Superannuation funded?

Your employer will pay contributions to your super fund on your behalf. It’s required that your employer pays at least 9.5% of your salary at all times. However, it may be a great idea to explore boosting your super balance even further and letting the power of compound interest do its magic if you can afford it. Like the Raiz Philosophy of investing small amounts regularly, what might be insignificant amounts now, will add-up over your working life and could mean a big difference to your lifestyle upon retirement. Last year, the government announced you can also voluntary contribute on top of the employee guarantee payment further, cash taking the total up to $25,000 per annum and that this contribution will be before tax (check with your advisor or superannuation fund on how this is done). This extra ability to do voluntary contribution rolls forward for 3 years. This means if you didn’t voluntarily contribute this year, your cap rises to $50,0000 the following financial year ($25,000 from first year, and $25,000 from the second year).  

What’s the first step to getting your Super under control? – Consolidate.

Every year, billions of dollars are lost in fees paid to manage and administer your super, mainly due to a lack of consolidating your super. This is because many superannuation funds charge a flat fee for administration. If you’ve had a lot of jobs (casual, part time or full time), you may have all your money sitting in separate funds or lost supers and having to pay flat fees on each fund. Consolidating all these into one super fund could help you save on fees and help you feel more financially confident by managing this money all in one place. Tools such as Raiz Super, once fully launched, can help you search for all your Supers through your TFN and can consolidate them on your behalf.  

Did you know?

  • Australia was one of the few countries to avoid a major recession during the GFC, with some economists believing that Australia’s superannuation system is what helped prevent it.
  • Australian superannuation is the fourth largest asset pool in the world   and totaled approximately $2.6 trillion in 2017.
  • All Superannuation products in Australia, including Raiz Super, are governed by five separate regulatory bodies including Superannuation Complaints Tribunal, Australian Taxation Office, Australian Securities and Investments Commission, Australian Prudential Regulation Authority and the Department of Human Services
 

Why is Super important?

Today, the average person changes jobs ten to fifteen times during his or her career. Future generations are predicted to have this increased to 17 employer changes across five different careers. This means it will be more important than ever to know where your superannuation contributions are going, and how you can make the most out of it for your retirement by reducing the fees you pay now. We know you probably don’t care about retirement now, but you will one day. For this reason, like your bank or Raiz account, your superannuation fund should never be out of sight, or out of mind. It is your money and your funds for living a comfortable future 🙂   Important Information The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz.   Past return performance of the Raiz product should not be relied on for making a decision to invest in Raiz and is not a good predictor of future performance.
Terms & Conditions for entering our Raiz Facebook competition

1. An active Raiz Account must be held (account balance greater than $5). Raiz account holders hold valid accounts as set out in the product disclosure statement found on the website: www.raizinvest.com.au

2. Entries open Thursday 24th May 2018 at 5.30PM and entries close Thursday 31st May 2018 at 5.30PM. To enter, one must comment on the Facebook post within the time frame stated above.

3. Raiz Invest will select five winners with a $100.00 credit investments in their active Raiz Investment Account. These five investments will be selected at Raiz’s discretion.

4.  These five Raiz Account holders will be requested to message us their email and will be notified by email when the credit investment is deposited into their Raiz account by Friday 8th June 2018.

6. The permit number in the format “NSW Permit No. LTPM/17/02522.”

7.  This promotion is in no way sponsored, endorsed or administered by, or associated with any other third party.

8. By entering this promotion, you agree that we may use entries for future marketing purposes in any media or branding.

9.  The competition is promoted by Raiz Invest Australia Limited, Level 11/2 Bulletin Place Sydney 2000 NSW, 1300 754 748. ABN 26 604 402 815, who is the Authorised Representative of AFSL 434776. The Raiz product is issued in Australia by Instreet Investment Limited (ACN 128 813 016 AFSL 434776) and promoted by Raiz Invest Australia Limited (ACN 604 402 815). A Product Disclosure Statement dated 1st June 2017 for this product is available on the Raiz website and App. A person should read and consider the Product Disclosure Statement in deciding whether or not to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement, and include the risks that would ordinarily apply to investing.

NSW Permit No. LTPM/17/02522

Raiz Invest announces Public Offering
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Media Release

10 May 2018

Raiz Invest Limited (“Raiz” or “the Company”, formerly known as Acorns Grow Australia), Australia’s first mobile-led investing platform, today announced the lodgement of its prospectus for the Company’s public offering  to raise over $15 million from investors.


The offering, which is fully underwritten, will provide current Raiz customers with priority access, while also allowing institutional and retail investors the opportunity to participate.  Shares will be issued at $1.80, valuing the company at approximately $119 million. The offer is expected to close on 1 June 2018 with official listing targeted for 21 June 2018.


Raiz is a first of its kind Australian, mobile-led, financial services business offering customers an easy way to regularly invest either small or large amounts using its micro-investment platform available via the app or the web. Raiz’s model is centred on breaking down the barriers to investing, giving customer’s confidence in their finances and offering products driven by their feedback and needs. Its end-to-end technology platform, including registry, operations, administration, fund management and customer communication, allows Raiz to deliver a superior customer experience and build-out its product portfolio.


Since launching in 2016, Raiz has achieved solid growth, amassing over 440,000 signups, with over 155,000 active monthly customers and over $170 million funds under management. The business most recently changed its name from Acorns Grow Australia to Raiz Invest. It is well known for its ‘Round up’, which allows customers to invest spare change from purchases.


With significant first mover advantage in technology-led financial services and having now established its core micro-investing product feature, together with a loyal and growing customer base, Raiz is well placed to expand its unquie and simple business model both domestically and offshore. Funds from the offer will be used to support the Company’s growth strategy to expand its products and services and also extend its offering offshore, thereby increasing customers.


Managing Director of Raiz, Mr. George Lucas, said, “The public offering of Raiz marks the next step in the growth of the business as we seek to expand our customer base in Australia, offering customer-led innovative products, such as superannuation, and expand into South-East Asia.  Raiz has improved financial literacy,  financial inclusion and broadened capital market participation in Australia and this is an attractive proposition for South-East Asian markets.


“As part of the offering, we are excited to offer current customers the opportunity to invest and participate in the future growth of our business.


“In the more than two years that Raiz has been in operation, it has received overwhelming positive support and feedback from its customers about its affordable service, reflected in the strong growth in active customers and funds under management that we have achieved.


“Through technology, we are breaking down the barriers that have previously prevented many Australian’s from saving and investing. This helps our customers to build confidence in managing their own finances as well as increasing their financial literacy. Our philosophy of investing small amounts regularly has resonated with our customer base. Raiz makes this happen automatically, in the background of life, reducing some of the stress associated with managing your finances.”


Raiz’s competitive advantage is that it leverages technology to offer and facilitate the provision of affordable financial services and products at a lower cost, with greater efficiency, than a traditional financial services business. The business is able to cost-effectively tap into Australia’s huge appetite for financial services.


Timetable Dates

Lodgement of Prospectus with ASIC

Wednesday, 9 May 2018

Offer opens

Thursday,  17 May 2018

Offer closes (5pm)

Friday, 1 June 2018

Settlement date

Wednesday,  6 June 2018

Expected commencement of trading on the ASX

Thursday,  21 June 2018

April 2018
Thank you for supporting Raiz


From George Lucas (Managing Director/CEO):

I would like to thank everyone for the support around the name change to Raiz and the associated rebranding. It was an arduous process for us and we still have lots of work to do to ensure you that all the qualities of the old Acorns remain. We also want to ensure that Raiz gives us a platform and opportunity to improve the features of the App and the service we provide to you. I believe becoming an independent Australian company will allow us to achieve these goals.

Finding a unique name in financial services wasn’t easy. We started with a list of over 500 names. From the top 50 names, we did URL searches and found they were all taken. We then looked at the next 50 names, some were taken when we did the URL search, the rest failed when we did trademark searches. Therefore, in the end we needed one that could be uniquely spelt and one we could build our new brand around.

Despite these limitations, we picked Raiz based on the feedback from our community, wanting us to at the foremost continue championing the opportunity to raise your wealth, raise your financial confidence and raise your investment knowledge, all in the background of life.

For those who need a meaning to the word Raiz, it also symbolises the root of a plant, continuing the idea of growth and the importance of having the right foundations to raiz your wealth. For me, it is about ensuring that the team can create a personality around the name which will continue allowing us to enable your financial confidence and wellbeing.

Thanks again for your support and feedback - good and bad. Please update the App with the new name and brand by going to the “Updates” section of the app store. Look out for the new releases and more new features coming to your App Store soon!

George Lucas
Managing Director/CEO

March 2018

Terms & Conditions for completing our ‘Improving our Community & Brand’ online survey.

1.      An active Acorns Grow Australia Account must be held (account balance greater than $5). Acorns account holders hold valid accounts as set out in the product disclosure statement found on the website: www.acornsau.com.au.

2.      Entries open Sunday, 1st April 2018 at 4pm and entries close Saturday 7th April 2018 at 11.59pm. To enter one must complete in full the ‘Improving our Community & Brand’ within the timeframe stated above and provide the email address on your Active Acorns Grow Australia Investment account at the end of the survey.

3.      To thank you for completing the Survey, Acorns Grow Australia will be giving away five $50.00 credit investments in their active Acorns Grow Australia Investment Account. These five investments will be selected at random.

4.      These five random Acorns Account holders will be notified by email when the credit investments will be deposited into their Acorns account by Saturday, 28th April 2018.

6.      The permit number in the format “ NSW Permit No. LTPM/17/02522 .”

7.      This promotion is in no way sponsored, endorsed or administered by, or associated with any other third party.

8.      The survey competition is promoted by Acorns Grow Australia Limited, Level 11/2 Bulletin Place Sydney 2000 NSW, 1300 754 748. ABN 26 604 402 815, who is the Authorised Representative of AFSL 434776. The Acorns product will be issued in Australia by Instreet Investment Limited (ACN 128 813 016 AFSL 434776) and promoted by Acorns Grow Australia Limited (ACN 604 402 815). A Product Disclosure Statement dated 1st June 2017 for this product is available on the Acorns website and App. A person should read and consider the Product Disclosure Statement in deciding whether or not to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement, and include the risks that would ordinarily apply to investing.

9.      “Acorns” and “Invest the Change” are registered trademarks of Acorns Grow, Inc.

NSW Permit No. LTPM/17/02522

Terms & Conditions for Tinybeans Giveaway July 2018 1.      An active Raiz Account must be held (account balance greater than $5). Raiz account holders hold valid accounts as set out in the product disclosure statement found on the website: www.raizinvest.com.au 2.      Entries open Wednesday, 18 July 2018 and entries close Sunday 29 July 2018 at 11.59pm. To enter one must create an active Raiz Account with at least one Raiz Kid using the download links in the Giveaway email within the timeframe stated above with an account balance greater than $5. 3.      For being a Tinybeans user and new Raiz user, we will be giving away ten $100.00 credit investments in their active Raiz Investment Account. These ten investments will be selected at random. 4.      These ten random Raiz Account holders will be notified by email when the credit investments will be deposited into their Raiz account by Sunday, 12 August 2018. 6.      The permit number in the format “NSW Permit No. LTPM/17/02522.” 7.      This promotion is sponsored by Tinybeans - https://tinybeans.com/ 8.      The survey competition is promoted by Raiz Invest Australia Limited, Level 11/2 Bulletin Place Sydney 2000 NSW, 1300 754 748. ABN 26 604 402 815, who is the Authorised Representative of AFSL 434776.  The Raiz Invest Australia Fund is issued in Australia by Instreet Investment Limited (ACN 128 813 016 AFSL 434776) a subsidiary of Raiz Invest Limited and promoted by Raiz Invest Australia Limited (ACN 604 402 815).  A Product Disclosure Statement dated 10 April 2018 for this product is available on the Raiz website and App. A person should read and consider the Product Disclosure Statement in deciding whether or not to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement, and include the risks that would ordinarily apply to investing. NSW Permit No. LTPM/17/02522
Investing into an ETF and how do ETFs differ?
 

The Raiz philosophy is to invest small amounts regularly, no matter the market condition, as this strategy can minimise the risk of investing in markets and we believe is one of the keys to having a healthier balance over the long run.

All your investments, whether it be your spare change from round-ups, lump sums or recurring deposits, are invested into one of the 6 diversified portfolios that were constructed with help from the Nobel Prize winning economist and father of Modern Portfolio Theory, Dr. Harry Markowitz.

 

What is a diversified portfolio?

To find the right balance between risk and reward, your money is never invested into one specific share or company. It is instead invested across a bundle of shares or bonds that form one financial product, called an Exchange Traded Fund (ETF).

The Raiz portfolios are made up of a combination of different ETFs that range from cash, bonds, Australian and international shares. Every investment you make will be allocated towards these ETFs.

Watch our video on -
How our Raiz Portfolios are built

Let’s take a deeper look into these ETFs:

The first six are called ‘Large Cap Stocks’

1.      Australia Large Cap Stocks (ASX:STW)

2.      Asia Large Cap Stocks (ASX:IAA)

3.      Europe Large Cap Stocks (ASX:IEU)

4.      US Large Cap Stocks (ASX:IVV)

5.      Australia Social Responsible Large Cap (ASX:RARI)

6.      Global Socially Responsible Large Cap (ASX:ETHI)

 

What are large cap stocks?

Large cap stocks are the biggest companies on their respective country’s stock exchange in terms of market capitalisation – or total dollar value of a company. Companies that fall in this category tend to be in established industries and are major players in their field. Large cap stocks can be a safer option as their earnings may be more consistent than less-established companies, making them more likely to show returns over time.

Examples of Large Cap stocks that your investments can go towards are international shares such as Apple, Google & Microsoft and Australian shares such as Telstra, Westpac & Woolworths.

You can also see all the hundreds of companies that make up these ETFs by searching for the ETF code or the provider from our product disclosure statement.

7.      Australia Government Bonds (ASX:IAF)

Australia Government bonds are viewed as more secured and as less risky investment products than large cap stocks. It differs to stocks as you are instead essentially lending money to the government at an agreed interest rate. The government will then pay the interest and return the money that was lent at maturity. Rather than hold a bond to maturity though, they can also be traded. The risk is therefore tied to the ability of the Australian Government to pay you back both the interest and the money that was lent at the end.

8.      Australia Corporate Bonds (ASX:RCB)

Similar to government bonds, corporate bonds are a way for Australian companies to raise money, by borrowing from you. The business will pay the interest and return the money lent. It can also be traded on an exchange before maturity. The risk is again therefore tied to the ability of the Corporate to pay you back both the interest and the money that was lent at the end.

9.      Australian Money Market (ASX:AAA)

This ETF is invested into the money market, which has the least volatility. The fund focuses on investing in term deposits and high interest accounts offered by banks in Australia.  As these tend to be short dated, the risk that a bank cannot repay both the interest and the money back is low.

 

What are the allocations for the ETFs?

We invest your money in a combination of the above ETFs on a sliding scale depending on how aggressive or conservative you want to be with your investments. Conservative portfolios will have a bigger allocation in bonds & cash, while the more aggressive portfolios will have a bigger allocation in Australian and international shares.

You will be able to find the exact allocations that makes up your portfolio in our product disclosure statement.

Example of allocation for the Aggressive portfolio:
 

How can I keep track?

The Raiz app will give you the daily, monthly and yearly performance of your portfolio. You are also able to keep track of the individual ETF’s performance yourself through the web or via a stock app. Keep in mind though, markets go up and markets go down. Therefore, it is important to look at the long-term big picture and not the daily fluctuations. You can find more in our blog, The Advantages of Dollar Cost Averaging

 

Important Information

The information on this website is general advice only.  This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product.

The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information.

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz.  

Past return performance of the Raiz product should not be relied on for making a decision to invest in Raiz and is not a good predictor of future performance.  
#etf #invest
February 2018
How Interest Rates can Affect Volatility
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After a strong rise in the US market over the last 6 months (nearly 7% in January alone), investors have been caught by surprise due to the strength of recent inflation reports (yep the US economy is doing well), and therefore increased speculation that the US Fed could raise interest rates more aggressively than had been expected. This is the catalyst for the recent fall.

So why does the rise in interest rates affect equity markets?

Company earnings & consumer spending

Equity investors see increasing inflation as an indication that interest rates may push higher, which could lead to a slow down in company earnings and consumer-spending power. As both companies and consumers may need to pay back more on any debts they hold as interest rates increases, rising interests rates may eventually in a year or two slow down the economy and help to balance growing inflation. Equity markets take this into consideration when valuing equities, looking this far into the future.

At the moment though, the fear of rising interest rates in the market is on the back of expected improvements in the global economy. News on the global economy looks set to remain positive in the coming months.

Profit taking

Prior to this sell-off, the US market had not fallen 3 percent from any high in more than a year. Therefore, investors are also seeing this as a catalyst to start some profit taking. This is usual market action and usually referred to as a correction or pull back.

Market Cycles Despite the recent fall, the U.S. stock market has proven remarkably resilient; it routinely has recovered from these short-term events to move higher over longer time periods. This is not to say it will always recover but history shows by staying invested no matter the market conditions, investors can keep their portfolios on track in pursuit of their long-term goals. These market cycles are completely normal, and has still been up over the long-term picture.  
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US Markets have pulled back to November pricing, but is still up over the long-term picture.

Why does this affect Australian Markets?

They say “When the US market sneezes, the rest of the world catches a cold.”

As the US is the world’s biggest economy (for now), good market news from the US is usually good market news for markets globally, including Australia. Bad news from the US also signals vis versa across global markets. A change in the US economy usually has a global effect in most other economies affecting businesses, import/export trades and currencies.

The Australian Stock Exchange (ASX) is typically correlated to the US stock market. You will notice that the opening level of the ASX is often influenced by what the US markets did the previous night. Another consideration is that a large majority of Australian shares are also owned outside of Australia.

However, while we expect Australian markets to follow US market movements, we don’t expect them to fall as much the US markets as they have not risen over the last few months as quickly. While US markets will continue to influence our market, it will still eventually move independently based on both global and local economical factors closer to home.

Please remember markets go up and markets go down. This is completely normal. The Raiz philosophy is to invest small amounts regularly, no matter the market conditions. Stick to your savings plan and these moments could be an opportunity. You can learn more about this from our blog on the advantages of Dollar Cost Averaging here.

Important Information

The information on this website is general advice only.  This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product.

The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information.

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz.  

Past return performance of the Raiz product should not be relied on for making a decision to invest in Raiz and is not a good predictor of future performance.

#interest rates #invest #markets
January 2018
25 Simple Saving Tips for the New Year
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With the new year upon us, it’s easy to say “I will save more this year” but what you might not have brainstormed is “How can I save more this year? What are the practical ways to go about it?” The good news is even small efforts can add up to big savings over time. No matter what you’re saving money for —whether it’s to reach a savings goal, pay off debt faster or plan ahead for a holiday or first home—these simple suggestions will help you get there faster.

With 25 simple suggestions, there is one to suit everyone and to help you stick to your goal or resolutions this year!

1. Create sub-accounts for different savings goals or use your Raiz Account. It’s an easy way to measure your progress and make quick adjustments.

2. Nickname those goals. Research proves this creates an emotional connection that motivates you to save more.

3. Set up automatic recurring investments after payday. You won’t have time to miss the money.

4. Treat yourself to a birthday freebie. Most restaurants, if you tell them it’s your birthday, will give you a little something just for dining with them. The key is signing up early.

5. Raid your drawers for unused gift cards. If you probably won’t put them to good use, re-gift or sell them.

6. Cancel unused subscriptions for magazines, gym memberships, for example.

7. Turn off the tap when you brush your teeth. This can save 5,000L per year, cutting down your water bill.

8. Take shorter showers.

9. Unplug your laptop and other appliances when you aren’t using them. Leaving your computer on all day could add up to hundreds in a year.

10. Convert to low-flush toilets and high efficiently appliances when your current ones need replacing.

11. DIY when it makes sense. (Doing major repairs on your own won’t save you money if you end up having to a pay a pro to fix your shoddy work.)

12. Make a list before hitting the store, and stick to it—and avoid grocery shopping when you’re hungry and more likely to make impulse buys.

13. Buy the floor model for a discount when you’re shopping for big-ticket items like furniture or appliances.

14. Buy last year’s model—especially when you’re shopping for electronics

15. Buy holiday candy, decorations and wrapping paper the day after a major holiday.

16. Borrow. A friend may own a black-tie outfit you can wear to an upcoming wedding.

17. Get books at the library instead of purchasing your own copies.

18. Use generic or store-brand products for everything from cereal to face lotion.

19. Buy everyday items like batteries and bottled water in bulk.

20. Try the lunch menu at your favorite dinner spot.

21. Make your own coffee, saving you anywhere from $1 to $5 per drink.

22. Commit to bringing your lunch just one more day a week.

23. Stock up on wine and liquor the day after a major holiday to score discounts. Those are among the quietest days for liquor stores.

24. Look for other freebies in your city, like yoga classes or one-day workouts in public parks.

25. Volunteer. It’s free and will make you feel good too.

Bonus tip: Use all the features available on Raiz to save and invest (Round-ups & Recurring Investments), manage your finance better (My Finance), save for your kids (Little Raiz), and shop with an investment bonus (Found Money). Happy investing!

Important Information

The information on this website is general advice only.  This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product.

The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information.

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz.  

Past return performance of the Raiz product should not be relied on for making a decision to invest in Raiz and is not a good predictor of future performance.

#resolution #saving #tips
6 ways to improve your credit score with minimal effort
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Bessie Hassan | Money expert at finder.com.au

Whether you have a great credit score, a bad one or you’re confused as to what the numbers actually mean, improving your credit score will shape your financial future for the better. A good credit score can help you get a discount on your home loan or help you secure new finance.

Here are six ways that you can improve your credit score with minimal effort.

1)  Check your credit report

Your credit score is based on the historical borrowing and repayment behaviour listed in your credit report. Checking your credit report on your own won’t have any impact on your credit score. However, if a lender requests your credit report, it may leave a negative mark. This is why you should be careful of how many lenders you approach for a loan, as it will often prompt them to check your report.

Checking your history yourself allows you to see what activities have affected your credit score, giving you a better understanding of what you should and shouldn’t be doing. You might also be able to find any mistakes that have been made by credit reporting bodies and take action to correct them.

2)  Make sure you have a borrowing and repayment history

Having debt doesn’t sound like it would improve your credit score but a completely blank credit report doesn’t assure lenders that you’re a responsible borrower. If you don’t have any loans, it might be a good idea to start using a credit card, even if you only use it to pay for petrol.

3)  Pay your bills on time

Once you have debt, it’s important to pay it off on time. Missed or late payments on credit contracts such as credit cards, personal loans and home loans can negatively affect your credit score. Making the minimum payment on time will show healthy borrowing behaviour.

To make this easier on yourself, set calendar reminders on your phone or computer so that you don’t miss a due date. If you’re sure that you’ll always have enough in your account to pay your bills, try setting up a direct debit to automatically pay the bills when they’re due. Also make sure to let any banks or lenders know your new address if you’re moving. That way, you’ll prevent yourself from missing your bills and having them listed as defaults.

4)  Lower your credit limit

A recent survey from finder.com.au found that two-thirds of Aussies believe that only your credit utilisation ratio (that is, how much of your credit that you’ve actually used) affects your credit score. However, in Australia, only your credit limit is recognised rather than how much you’ve borrowed out of it.

For instance, if your credit card has a $6,000 credit limit and you’ve only borrowed $1,400, the only figure affecting your credit score will be the $6,000. Therefore, it’s a good idea to lower your credit limit to $2,000, or to whatever credit limit is just enough for you.

5)  Consolidate your debt

If you have several loans, consolidating them all into one account can make it easier to manage your repayments. It will also reduce the risk of any negative activity on your credit report and it can help you save on fees and get you a lower interest rate.

6)  Check your credit score regularly

The final way you can actively improve your credit score is to check it regularly. Getting your credit score doesn’t require much effort or time. All you need to access your credit score for free is your email, name, sex, date of birth, driver’s licence and your address.

Once you’ve made an account, checking your credit score is easy. Generally, your credit score will change every month if there is any new activity on your credit report.

Ultimately, improving your credit score comes down to proving that you’re a responsible borrower that can make punctual and regular payments. Ensuring that you borrow within your means and never miss a due date can almost definitely lead to an improved credit score.

Important Information

The information on this website is general advice only.  This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product.

The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information.

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz.  

Past return performance of the Raiz product should not be relied on for making a decision to invest in Raiz and is not a good predictor of future performance.

#acorns #finance #investthechange
November 2017
4 Money Lessons to Teach your Kids
Father and daughter walking on beach Bessie Hassan | Money expert at finder.com.au   With the lack of education about personal finance these days, it’s up to parents to teach their kids the value of a dollar. In a world where more and more transactions are taking place digitally, it becomes harder to explain money management without it being confusing or just plain boring for your kids. However, by keeping it simple and speaking their language, you can set your little ones up for greater financial security. Here are four ways you can teach your kids about good money habits.  

1. Make smart money decisions

There are many finance-related decisions and experiences that you can share with your kids to help them understand the value of money. For instance, explaining how you compare different prices at the supermarket and letting your kids find some of the items on your grocery list is an easy way to get them started (and it can cut down the time you spend shopping!).

While you’re at the grocery store, let your kids hand the money to the cashier. You can also get them to count the change to make sure everything adds up. Hopefully, they’ll feel confident enough to do this alone at the school canteen as well.

 

2. Let them earn pocket money

Giving your kids pocket money is one of the best ways to teach them financial independence. Though you may not want them to slave away doing household chores, you also don’t want them thinking that money grows on trees. Research from finder.com.au has found that 58% of parents who had to work for their pocket money are now giving their kids free handouts.

Each family will have different strategies in regards to how much each chore is worth. To keep your kids motivated to earn more pocket money, help them set a savings goal, whether it be a dollar value or a specific item like a new toy or gadget.

 

3. Teach them about physical vs digital money

Starting off by giving your kids physical money will help them understand the physical worth of money. However, you do have to explain the concept of digital money too. For instance, you could show them an Internet bill and explain how long you have to work to earn enough money to pay the bill. This helps them become more aware of their everyday actions by understanding the value of work and money.

Along the same lines, equipping your kids with online resources will definitely help them as they grow up in the digital world. This could involve using an online calculator to help them budget for their goals or using a finance app such as Raiz to teach them about the power of long-term investing and compound interest through Little Raiz.

 

4. Show them the consequences of being financially irresponsible

Despite all these different lessons, sometimes it’s impossible to prevent your kids from getting into trouble as a teen. It’s important to help them out but not to pay off any of their debt for them.

They might have to work extra hard to pay of their debt by doing extra shifts at the local cafe or saying “no” to a new video game. Showing your child that there are consequences to being financially irresponsible will set them up for a better future. It’s better for your kids to learn this when they’re younger rather than ending up thousands of dollars in debt as a young adult.

Talking to your kids about money doesn’t always have to be a burden. With simple lessons and by allowing them to get involved with the family finances, your kids will be feel more enthusiastic and prepared when managing their own money both now and well into the future.

     

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
  Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
#acorns littleacorns investthechange
Four things you may not know about your superannuation (but should)

[ New Product Announcement ]

Following your feedback, we are planning to launch a superannuation product. The superannuation feature will be fully integrated into the existing app, using the current six portfolios when it becomes available in late March 2018. 

For those who are interested or want to be updated on its release, you can 
pre-register here: https://super.Raizinvest.com.au

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By Alison Banney (Finder.com.au)Superannuation isn’t everyone’s cup of tea. Let’s be honest, it’s boring and complicated and it’s something that young Australians won’t need for another 20, 30 or even 40 years. However, your superannuation is likely your largest asset, and while there’s no need to know every word of your fund’s PDS, there are definitely a few things you should know.

 

1. Where your money is invested

Australians are becoming more and more aware of the footprint they’re leaving on our earth. We’re seeing more people use reusable coffee cups, hearing more of our friends and colleagues commit to eating less meat and seeing more people bring their own shopping bags to the grocery store. But what about your super?

Your superannuation is likely to be the largest investment portfolio you’ll ever have and you could be supporting tobacco companies, ammunition manufacturing or coal-seam gas extraction without even knowing it. You should be able to find the details of where your money is going on your super fund’s website, although you may need to do some digging. If you don’t like what you find, don’t hesitate to switch to a fund that aligns with your values.

2. Your insurance cover

If you’re young, healthy and fit you might not consider life insurance as something you need. But believe it or not, you’re almost certainly paying for it through your superannuation. Most super funds will provide you with automatic Death and Total and Permanent Disablement (TPD) cover when you open a policy, and some will also include automatic Income Protection insurance.

These insurance policies are almost always opt-out rather than opt-in, meaning that unless you specifically opt-out of your policy you’ll be paying fees for this cover, whether you want it or not. Have a look at your latest super statement or read your fund’s PDS online to see what insurance you’re paying for, and decide whether it’s right for you.

3. What fees you’re paying

While you’re poking around your latest statement, you should also take a look at how much you’re forking out in fees. You might already know what admin fees you’re paying, but what about the rest? There are also investment fees and a fee for indirect costs (known as the Indirect Cost Ratio) charged to most accounts, and these can vary greatly between funds.

The difference in fees between funds might not seem like a big deal when you’re young, but it can have a huge impact on your superannuation balance by the time you’re ready to retire.

4. How your fund has been performing

Because of the compulsory nature of superannuation, many people think that all super funds perform equally, but this is simply not the case. It’s important to think of your superannuation as one large investment portfolio. It doesn’t guarantee positive returns, it relies on the skills and knowledge of the fund manager to invest in assets that will provide positive returns. And some are better at this than others.

When applied to a balance of $100,000, the performance becomes quite serious. You should be able to find your fund’s portfolio performance figures on its website.

Superannuation is incredibly complex, and it can be overwhelming to try and understand every tiny detail of your fund. Instead, use these four areas as a starting point from where you can learn more about your super.

Please also check out our blog on new rules for super contribution as voluntary contributions may now be tax deductible.

Important Information

The information on this website is general advice only.  This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product.

The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information.

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz.  

Past return performance of the Raiz product should not be relied on for making a decision to invest in Raiz and is not a good predictor of future performance.

#Acorns superannuation #wealth

Terms & Conditions for completing our Acorns Facebook competition.

1. An active Acorns Grow Australia Account must be held (account balance greater than $5). Acorns account holders hold valid accounts as set out in the product disclosure statement found on the website: www.acornsau.com.au.

2. Entries open Wednesday 15th November 2017 at 5PM and entries close Wednesday 22nd November 2017 at 5PM. To enter one must comment on the Facebook post within the time frame stated above.

3. Acorns Grow Australia will be randomly giving away five $100.00 credit investments in their active Acorns Grow Australia Investment Account. These five investments will be selected randomly from valid entries.

4.  These five Acorns Account holders will be requested to message us their email and will be notified by email when the credit investment is deposited into their Acorns account by Wednesday 29th November 2017.

6. The permit number in the format “NSW Permit No. LTPM/17/02522.”

7.  This promotion is in no way sponsored, endorsed or administered by, or associated with any other third party. 

8. By entering this promotion, you agree that we may use entries for future marketing purposes in any media or branding.

9.  The competition is promoted by Acorns Grow Australia Limited, Level 11/2 Bulletin Place Sydney 2000 NSW, 1300 754 748. ABN 26 604 402 815, who is the Authorised Representative of AFSL 434776. The Acorns product will be issued in Australia by Instreet Investment Limited (ACN 128 813 016 AFSL 434776) and promoted by Acorns Grow Australia Limited (ACN 604 402 815). A Product Disclosure Statement dated 1st June 2017 for this product is available on the Acorns website and App. A person should read and consider the Product Disclosure Statement in deciding whether or not to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement, and include the risks that would ordinarily apply to investing.

10. “Acorns” and “Invest the Change” are registered trademarks of Acorns Grow, Inc. 

NSW Permit No. LTPM/17/02522

October 2017

Terms & Conditions for completing Little Acorns Facebook competition.

1.      An active Acorns Grow Australia Account must be held (account balance greater than $5). Acorns account holders hold valid accounts as set out in the product disclosure statement found on the website: www.acornsau.com.au.

2.      Entries open Wednesday 1st November 2017 at 5pm (AEST) and entries close Wednesday 8th November 2017 at 5pm (AEST). To enter one must comment on the Facebook post within the timeframe stated above.

3.      To celebrate the launch of Little Acorns, Acorns Grow Australia will be giving away five $100.00 credit investments in their active Acorns Grow Australia Investment Account. These five investments will be the comment with the most likes on the Facebook post.

4.      These five Acorns Account holders will be notified by email when the credit investments will be deposited into their Acorns account by Thursday 30th November 2017.

6.      The permit number in the format “NSW Permit No. LTPS/16/08287.”

7.      This promotion is in no way sponsored, endorsed or administered by, or associated with any other third party. 

8.      The competition is promoted by Acorns Grow Australia Limited, Level 11/2 Bulletin Place Sydney 2000 NSW, 1300 754 748. ABN 26 604 402 815, who is the Authorised Representative of AFSL 434776. The Acorns product will be issued in Australia by Instreet Investment Limited (ACN 128 813 016 AFSL 434776) and promoted by Acorns Grow Australia Limited (ACN 604 402 815). A Product Disclosure Statement dated 1st June 2017 for this product is available on the Acorns website and App. A person should read and consider the Product Disclosure Statement in deciding whether or not to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement, and include the risks that would ordinarily apply to investing.

9.      “Acorns” and “Invest the Change” are registered trademarks of Acorns Grow, Inc. 

NSW Permit No. LTPS/16/08287

Terms & Conditions for completing our ‘Improving our Services’ online survey.

1.      An active Acorns Grow Australia Account must be held (account balance greater than $5). Acorns account holders hold valid accounts as set out in the product disclosure statement found on the website: www.acornsau.com.au.

2.      Entries open Thursday 26th October 2017 at 1.00am and entries close Wednesday 1st November 2017 at 11.59pm. To enter one must complete in full the ‘Improving our Services’ within the timeframe stated above and provide the email address on your Active Acorns Grow Australia Investment account at the end of the survey.

3.      To thank you for completing the Survey, Acorns Grow Australia will be giving away five $50.00 credit investments in their active Acorns Grow Australia Investment Account. These five investments will be selected at random.

4.      These five random Acorns Account holders will be notified by email when the credit investments will be deposited into their Acorns account by Friday 10th November 2017.

6.      The permit number in the format “NSW Permit No. LTPS/16/08287.”

7.      This promotion is in no way sponsored, endorsed or administered by, or associated with any other third party. 

8.      The survey competition is promoted by Acorns Grow Australia Limited, Level 11/2 Bulletin Place Sydney 2000 NSW, 1300 754 748. ABN 26 604 402 815, who is the Authorised Representative of AFSL 434776. The Acorns product will be issued in Australia by Instreet Investment Limited (ACN 128 813 016 AFSL 434776) and promoted by Acorns Grow Australia Limited (ACN 604 402 815). A Product Disclosure Statement dated 1st June 2017 for this product is available on the Acorns website and App. A person should read and consider the Product Disclosure Statement in deciding whether or not to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement, and include the risks that would ordinarily apply to investing.

9.      “Acorns” and “Invest the Change” are registered trademarks of Acorns Grow, Inc. 

NSW Permit No. LTPS/16/08287

Dealing with Foreign Markets - How Investors Can Utilise Foreign Markets
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By Ben Barlow of UMS Freelance

There are a lot of benefits to diversifying your portfolio and exploring markets outside of Australia. Overseas investments can offer plenty of new opportunities to profit from. Of course, it isn’t that simple, or everybody would be doing it too. A lot of effort must go into any kind of investment you make outside of the market you understand best to avoid bad decisions that can cost you dearly. However, with the right research and advice, you can fare well if you do make the decision to branch out. Here are some points on the whys and why nots of working with foreign markets:

Currency Value

Right now, Australia’s currency is strong. It bounced back in May and is still sitting comfortably above US78c. This is good news for travellers, but bad news for Australian export businesses. Aussie travellers now have more buying power abroad, particularly when they travel to the UK, Canada, and New Zealand, where the local currency is weaker against the AUD. A strong currency is also good news for anyone who loves to shop online. It’s bad news for exporters, however, as the AUD makes Australian products far more expensive for overseas customers.

For businesses that import goods from overseas, a strong AUD is a good thing, as they have more buying power. Importing supplies becomes less expensive, particularly from countries such as the United States, Japan and the UK. Importing from countries with a weaker currency reduces costs in the supply chain and allows for greater profit margins.

This is all simple economics, but something you need to investigate quite heavily if you want to deal with foreign markets. Learn about forex markets and follow the markets in any countries you want to deal with – after all, these things can change very rapidly. Australia may have a strong currency right now, but currencies fluctuate daily, depending on macroeconomics and global events, so the value of your investments could change very easily. Keeping up with political and macroeconomic news in any country you might invest in or trade with is therefore crucial.

Emerging Markets

While we have touched on trading with major economies like the USA, Japan, Europe and the UK, another benefit from foreign investment is when you get in with an emerging market at the right time. China, for instance, has a growing middle class of an estimated 300 million people, and this may be a good target audience for luxury imported products as they tend to enjoy shopping for items that are made in the West as these can be seen as more luxurious.

This is a huge market for American, European, Chinese and Japanese businesses now, but can also be tapped into by Australians who are China’s sixth largest trade partner. Investing in property and business in emerging markets can also be something to consider. Brazil, for example, is a country that is having something of a business boom, and there are also interesting projects going on in the Caribbean that could inspire the right type of investor.

Should You Try It?

The problem is, of course, that emerging markets tend to be culturally and linguistically quite different from Australia. Engaging with them can be quite profitable however will require a lot of research and travel, and this is something off-putting to people who’d rather deal with the Western, English speaking markets they already know well.

The idea of dealing with completely different audiences and markets may be a bit intimidating, however it can work out well for the people willing to put the work in. What you will need however, is contacts in your country of choice who can help you understand and learn. Things like exchange rates, politics and business etiquette you can learn from online research, but you won’t truly feel tapped into the market unless you have someone on your side who is part of it. If you can get that kind of connection going, are willing to learn about another culture, and possibly learn another language (for instance, in India and many parts of the Caribbean, English is the first language anyway, however, if you decide you want to work with Brazil you’ll need Portuguese), you may have a better chance to make some great investments.

Business is very international, and being global can generally be a wise move, but do be prepared to put some work in.

Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
#acorns #invest
September 2017
Is the Great Australian Dream still a reality?
Suburban house
 

For the past half century the Great Australian Dream has centred on home ownership; a detached house with a Hills Hoist out the back or, more recently, an inner-city terrace. But, with average house prices in some metro areas circling the $1 million mark, the Great Australian Dream has become more of a fantasy for many millennials and first home buyers.

For this reason, many of the newspapers have dubbed millennials as “Generation Rent”: a moniker that has transformed into something of a mantra, as many millennials effectively give up on saving for a deposit. The problem is this apathy is coming at a critical time, where they need to be doing the exact opposite – that is, saving more not less. Whereas once, saving for a home took a little dedication and hard work, price-to-income ratios are today around 5.8x nationally, and up to 7.0x in Sydney. The trend also isn’t occurring in isolation; it’s combined with high levels of household debt and stagnant wage growth.

 

However despite this, 42 per cent of respondents are confident with their current financial status.

In practice, it means that first step – from renter to home owner – is a large and difficult one. The Reserve Bank of Australia (RBA) found the ability to save for a deposit is the primary constraint for one third of potential home buyers – bigger than the ability to continue to service a mortgage on an ongoing basis.

 

Does this mean the Great Australian Dream is dead? Far from it.

But it does mean millennials need to work even harder to reach their goals and take hold of their own financial futures. To do this, they need to adopt a saving mindset.

The challenge is that learning to budget is not necessarily part of everyone’s daily priorities. We’re not taught to manage our money at school or given any sort of formal education on it. Instead, people are expected to learn how to manage their finances from their parents or through a costly process of trial and error. But the trick to it – like anything – is starting small and being persistent.

 

The first step is always the most difficult one.

Moving from spending all of your income to saving $20 a week can be a big leap but once it’s conquered, it gets easier to save more and more because the habit has already been introduced. Further, small savings goals can help reinforce positive behaviour, and make it easier to take bigger steps. Saving enough money to buy a new car could be an initial goal that makes the idea of budgeting for a bigger item – a wedding, a holiday – seem easier. Eventually, with the right type of financial confidence, it’s easier to look at buying a house in a new light.

There also needs to be a discussion about the need for home ownership. Knowing Australia’s culture and the mythology around The Great Australian Dream, it’s hard to imagine our young people adopting the European mindset of renting for life, rather than aspiring to own. But in reality, there is no reason to think everyone should own their own home.

There are many other investment types that can often lead to better financial outcomes. What millennials need is the right financial education, to understand different asset classes and then be able to choose the ones which will work hardest for them. It also means if they decide to buy a house down the track, they’ll be a better position to do so.

Let’s be clear – none of this advice will magically help anyone afford a house overnight. But it will help build a critical change in attitude and provide first step into having a healthier financial balance sheet. It all goes a long way in making the ambition of buying a house seem less like a pipedream!

  Important Information The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz.   Past return performance of the Raiz product should not be relied on for making a decision to invest in Raiz and is not a good predictor of future performance.
#raiz #saving #wealth
5 Tips From Warren Buffett investors should take to heart
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  Whether you have been in the investing world long or not, it is very likely you’ve heard of Warren Buffet. A top dog in finance of all sorts, he is one of the five most wealthiest people in the world. Often referred to as the world’s greatest investor, his long-term track record suggests that title is well deserved! Investors and the business world alike have been seeking his advice for decades, so here we have picked our favourite moments of his wisdom:   “Try to be fearful when others are greedy and greedy only when others are fearful.” Probably the most famous Buffett-ism, this quote is essentially another way of phrasing the popular investing maxim, “Buy low; sell high.” Investors frequently do the opposite because of herd mentality; our psychological desire to follow the crowd. But being a contrarian can be much savvier. For example, when current events scare investors away from a down market, you might use that opportunity to buy quality stocks on sale.   “Both large and small investors should stick with low-cost index funds.” Buffett may be a brilliant stock picker, but he still recognises the strength of simple investing with a low-cost S&P 500 index fund. In 2007, Buffett bet a New York hedge fund $1 million that his simple, low-cost investing strategy would outperform the hedge fund industry over 10 years. And he won.   “The investor of today does not profit from yesterday’s growth.” This oldie but goodie reminds us that past performance is no guarantee of future results, so you can’t count on a hot investment continuing its streak. Instead, look to the future. Be sure any investment you’re interested in has good prospects and can help you reach your goals.   “Our favorite holding period is forever.” Of course, Buffett doesn’t really expect anyone to hold onto an investment forever. His point is that you should “buy into a company because you want to own it, not because you want the stock to go up,” as he put it to Forbes magazine in 1974. That means if you’re trying to invest in individual stocks, you look for good businesses you believe can be profitable for the long haul. Then you’ll only sell when you need the cash, not because it’s time to unload a dud.   “Anything can happen anytime in markets… Market forecasters will fill your ear but will never fill your wallet.” Listen to Warren: Ignore the noise—especially given today’s media landscape, where we have constant access to information, and every minor event stands a chance at making headlines and moving the market (at least in the short term). In the end, as long are you’re confident in your plan and portfolio, this shouldn’t change your long-term investing strategy! Like the Raiz philosophy to invest small amounts regularly, even in falling markets, this can help you to ride out the downturns in the market and is one of the keys to having a healthier balance over the long run.   Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
#acorns #investing
The costs to consider when buying your first property
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By Michael Gilbert, co-founder of Cubbi

Congratulations!

You’ve scrimped, saved, got the cash in hand and you’re just about to buy your first investment property.

Unfortunately, the work doesn’t stop here. In fact, it’s only just beginning.

Whether you’re going to be renting or living in it yourself, buying an investment property always comes with additional expenses that you need to be aware of ahead of time.  

The Raiz community is very familiar with the concept of how small amounts can add up over time and the same can be said for the seemingly innocuous extra costs of owning a house (only in a slightly less enjoyable way).

Here’s a breakdown of exactly what some of those expenses are and how you can prepare for them.

Stamp duty

Scratch this, if you’re a first home buyer with a purchase under $600,000 in Victoria or New South Wales (conditions apply in NSW) where state governments have ditched stamp duty altogether.

For everybody else, chances are you’re going to pay some stamp duty and this is generally the biggest additional cost you’ll have to fork out for. For example, an established home worth $500,000 purchased as a rental property in Queensland will cost a first-time buyer no less than $15,925 in stamp duty.

Another key factor you need to keep in mind is that in some cases lenders won’t allow you to lump your stamp duty in with your mortgage and you’ll need to ensure you have that cash upfront. Always speak to your lender in advance about stamp duty to know where you stand.

Registration and conveyancing fees

Registration fees are paid to the Land Titles Office when you submit documentation for processing and can range up to $3605 in Victoria for properties over $500,000.

They are also usually lumped in with your conveyancing fees, the cost of hiring a solicitor to review all the contracts of sale and ensure the it follows the right legal process. Conveyancing fees are not standardised but are generally close to $1000, if not more.

Council rates

It’s amazing how many people don’t take council rates into consideration. You’re going to end up paying at least $1200 per year and it could be more depending on where you live.

Many councils also charge late fees so to avoid paying even more than necessary find out what your rates will be and set up a direct debit as soon as you’ve settled so you’re never late.

Preparing the property for tenants

When you buy a property there are no clear cut rules that say the seller must have the property in pristine condition when it’s time to hand over the keys.

However, when renting out your property there are more stringent standards for the condition it needs to be in and thus you need to factor in the likelihood of having to carry out some maintenance tasks such as: mowing, hard rubbish clearing, painting, carpet cleaning and replacing old or broken fittings such as old blinds and shower screens.

Getting this stuff done while it’s vacant will help attract better tenants (which in itself can save you money) as well as reducing the cost associated with last minute repairs.

Vacancies

As a landlord your first goal is to get some tenants but have you prepared for the fact you might have a month or two without any? As a rule of thumb, you’ll need to budget for about four weeks of vacancy per year.

In between tenants you’ll likely need to spend more money on maintenance and repairs, such as painting, fixing a wobbly towel rack or extra cleaning costs. Things that just didn’t get done or reported by your tenants.

Engaging a real estate agent might help you find tenants faster but that brings us to our next point…

Agency fees

A lot of people underestimate just how much real estate agents cost. They can plug you for between 5-10% of the rent, depending on location and other factors. If you’re renting a property for $450 a week with an agent charging 7%, that’s $1600 gone a year!

General maintenance

Things happen. They aren’t usually anyone’s fault but they happen. A shower starts leaking, a tenant scrapes a piece of furniture against the wall and leaves a mark, a skirting board comes loose.

These are all perfectly normal things that are inexpensive, in and of themselves, but can quickly add up. If you’re a landlord then you need to have cash on hand to make sure maintenance issues get repaired quickly, especially if they involve critical things like hot water systems or electrical issues - two things that can throw your budget out really quickly.

To be on the safe side, you should set aside 5% of the rent amount in a separate savings account to make sure you’re covered for maintenance emergencies. You don’t want to be wacking those on the credit card and racking up 20% interest on top!

Unfortunately, the supplementary costs of buying a house are - for the most part - unavoidable. The smartest thing you can do is know what they are, when they apply and be prepared for them. Hopefully, this brief guide gives you a bit of an idea of what you need to keep in mind before you start raising your hand at auction.

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Author, Michael Gilbert, co-founder of Cubbi

Cubbi is an online property management platform - for the purpose of cutting out the expensive (and often underperforming) middleman and replacing him with technology. For example, when you accept your tenant, you can create your own lease agreement right then and there online instead of waiting for your agent to get round to it.


Important Information
The information on this website is general advice only.  This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product.The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information.Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for making a decision to invest in Raiz and is not a good predictor of future performance.

August 2017
What is the comparable rate?
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When it comes to investing, returns on investments (positive and negative) are generally expected to vary from year to year.

While market fluctuations are completely normal, this can make it difficult to measure how much you may potentially make when you are investing small amounts on a regular basis. This is further complicated with making withdrawals when you need the money, as Raiz lets you do. People also like to understand returns in a similar way to interest on a bank account.

This is where the comparable rate needs to be calculated using the internal rate of return (IRR) method.

As of Dec 2018, the average Raiz user has made 12.4% p.a. (return includes all fees but before the monthly maintenance fee) – IRR – comparable rate. But we don’t know what the future may hold so this return cannot be relied on because of market risk going forward*.

 

Let’s look at two different market scenarios when opening an Raiz account.

You open an Raiz account with $100 and add a recurring $20 monthly deposit for the next 12 months. However, after 6 months you then decide to take $50 out of your Raiz account.

In the first scenario, the market goes up 20% in the first 6 months and then falls 10% for the remaining. This means you would have invested $220 in the first 6 months while the market was rising – taken $50 out – and invested the remaining with $120 recurring in a falling market.

In the second scenario, the market falls 10% in the first 6 months and then rallies 20% for the last 6 months. This mean you would have invested $220 in a falling market – taken out $50 – and invested the remaining with $120 recurring in a very strong rising market.

While both these markets finished at the end of the year on 10%, the return on your Raiz account will be completely different and will depend on how the market got there. In the first example, the comparable rate is 4.75% p.a. While in the second scenario the comparable rate is 16.4% p.a.

These two scenarios illustrate how the market gets there is important, hence the need to do an IRR calculation which takes into account when you made your investment and when you made your withdrawals to calculate a rate that is comparable to, for example, a bank account rate.

To learn more about IRR please visit Investopedia link here

*Please refer to the product disclosure statement and the additional information document to understand more about the markets risks that can affect your portfolio.

     

Important Information

The information on this website is general advice only.  This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product.

The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information.

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz.  

Past return performance of the Raiz product should not be relied on for making a decision to invest in Raiz and is not a good predictor of future performance.

#acorns #invest #investment
New rules for Super Contribution

When you think of super, it may feel so out of reach that people might be assuming it will be like a pot of gold awaiting them during retirement. That might not be the case if you aren’t aware of what is going on. There’s no doubt that most young people are not engaged with it when they should be. A great article by Caitlin Fitzsimmons goes into this further here on how important it is to get your super right or see more on our blog 'Why your Superannuation is still Important when you’re Young'

It’s also important to keep up to date with the new rules so you can feel in control of your decisions and any actions to take.

Below are the new updates on super contribution from 1 July 2017.

 

All employees are now eligible to claim personal tax deductions on contributions

Prior to 1 July 2017, only established self-employed taxpayers or taxpayers that had little employment income were eligible to claim personal tax-deductible for their voluntary superannuation contributions.

This was due to a rule which prevented you from claiming a tax deduction if 10% or more of your total assessable income came from employment sources.

This rule has now been removed, meaning you could be eligible to claim personal tax deductible on voluntary contributions at any time throughout the financial year, right up until 30 June (depending on your circumstances). This also means you don’t need to arrange a salary sacrifice with your employers to contribute or add more if your circumstances allow.

Raiz also allows you to make voluntary contributions to your superannuation directly from the App for a range of Super Fund Providers. If your Super Fund provider is not listed in the App, please let us know and we will get it listed.

Now your savings in Raiz may be tax deductible*.

 

Raiz Super is also now available. Engaging, affordable superannuation. You can now invest in the same 6 Raiz portfolios and view all your investments in one place, on your mobile phone.

 

The new Concessional Contribution cap

Concessional contributions are the contributions made to your super before your income tax is taken out. Moving forward, this cap has been reduced to $25,000 and applies to all taxpayers, regardless of age. In future years, this cap will be indexed in increments of $2,500.

This cap includes compulsory employer contributions (SG 9.5%), pre-tax salary sacrificed super contributions you have arranged with your employer, and any voluntary contributions you have made.

 

Rolling over unused contribution cap

Off the back of this cap and the ability now for all employees to do tax-deductible voluntary contributions, there is also a new super rule that allows for a ‘catch up’ claim of unused concessional contributions for following years.

What this means is that if you don’t use up the full amount of your concessional contribution cap of $25,000 in a year, the unused amount will be rolled over and accumulated over a rolling 5-year period. This may provide opportunities to make higher voluntary contributions in a future year.

For all these new rules, there are certain eligibility criteria, which are not trivial, so you do need to check with a tax advisor before deciding to make voluntary contributions and claim a deduction.

In additional to these new announcements, for more info on how to use your super in the future for your first home deposit (1 July 2018), check out the news here

 

Important Information

The information on this website is general advice only.  This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product.

The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information.

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz.  

Past return performance of the Raiz product should not be relied on for making a decision to invest in Raiz and is not a good predictor of future performance.

* For the new rules, there are certain eligibility criteria, which are not trivial, so you do need to check with a licensed tax adviser (or other) before deciding to make voluntary contributions and claim a deduction.

#acorns #invest #superannuation
The Advantages of Dollar Cost Averaging

Markets go up and markets go down. This is completely normal, and is known as market volatility or risk. The Raiz Philosophy is to invest small amounts regularly, even in falling markets as this can help you to ride out the downturns in the market and is one of the keys to having a healthier balance over the long run. This is the well-known principle of Dollar Cost Averaging.

How does it work? For example, say you have $1,000 to invest. Instead of investing it all at once, you could invest $100 each month into the market for 10 months, despite the changes in the market value.

If for example the stock of choice was priced at $10 the first month, you would purchase 10 units. If during the second month the stock was priced at $5, you would purchase 20 units, and so on.

In the end, you would have purchased more shares when prices were lower and fewer shares when prices were higher. The outcome is that you may have invested more prudently than simply investing the money all at once in a lump sum.

Let’s look at the other key advantages to sticking with Dollar Cost Averaging (DCA):

 

Avoids Bad Timing

Investing in one lump sum and trying to pick the best price to enter the stock is known as market timing, and is something very difficult to do and get right.

If an investor could have any superpower in the world, it would be to pick the low points of the market. Many have tried, succeeded and failed but no one knows exactly when the lows and highs will happen, and no one can stop unwanted surprises from happening.

Dollar Cost Averaging can provide a disciplined strategy as it ensures you are not too exposed to falls in the market when you buy at the top; and rewarding you when the market recovers, for buying when the market was falling.

By not depending on the timing, DCA can smooth out the market’s ups and downs.

 

Reduces Risk

Dollar Cost Averaging is most effective in a long term saving strategy. As the market moves up and down, dollar-cost averaging over time reduces your risks of trying to pick the best times to invest from these swings.

By viewing falling markets as buying opportunities, you can significantly enhance your long-term return potential when the market rebounds.

 

Removes Emotional Investing

People often make decisions based on emotion or loss aversion. Loss aversion refers to an investor’s tendency to strongly prefer avoiding losses to acquiring gains.

Studies suggest that losses are twice as powerful, psychologically, as gains, leading this type of investment mindset to be more likely to make the mistake of needlessly selling holdings and switching to cash in a down market.

By avoiding the media hype or fear in picking the ‘right time’, investors can avoid both the euphoric and depressive investment traps.

 

A Dollar Cost Averaging strategy is in line with the Raiz’ philosophy and provides a disciplined strategy.

“We don’t have to be smarter than the rest, we have to be more disciplined than the rest.” – Warren Buffett

     

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:
[caption id="attachment_3372" align="aligncenter" width="351"]download-raiz-app Click to download the Raiz app[/caption]
    Important Information The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for making a decision to invest in Raiz and is not a good predictor of future performance.
#investing #investthechange #money
July 2017
DIVIDEND DATES FOR FINANCIAL YEAR 2018

Eager to know when your next dividends will be paid? 

As well as gains on market returns, dividends (or distributions) is money paid by a company back to you, their shareholder, out of its profits.

Raiz users choose to invest in one of our six investment portfolios, including the recently launched Emerald portfolio that comprises a mix of nine different exchange traded funds (ETF). The issuers of these underlying ETFs which comprise the Portfolios pay dividends from time to time. All dividends received by Raiz will be automatically re-invested into your Raiz investment account.

When they are paid out will depend on what portfolio you are on. You will start to see these dividends appear in your account.

Above is a schedule on when we expect they will be paid by the ETFs accordingly for the financial year ending 2018.

 

A quick summary on each ETF payout:

· AAA (Cash) pays monthly

· IVV (S&P 500) pays quarterly

· IEU (S&P Europe 350) pays twice yearly

· STW (S&P 200) pays quarterly

· RCB (Corp. Bond) pays quarterly

· IAF (Composite Bond) pays quarterly

· ETHIC (Sustainability) – pays twice yearly

· RARI (Responsible Investment) pays twice yearly

· IAA (S&P Asia 50) pays twice yearly

Note: These are estimated timings that will change and are estimated from last year payment schedule.

  Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
June 2017
The Investment Rollercoaster
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By Clayton Daniels, author of
Fund Your Ideal Lifestyle I remember when I first started trading stocks. Before the likes of Raiz came around, the only way to access the market was through a broker. These brokers had minimums of $500. As a uni student a decade ago at 23 years of age, that $500 minimum was a confronting minimum. My emotional investment was high. If the stocks went up, I was elated. If the stocks went down, I was devastated. It was only at the end of a few years of this type of investing – which of course didn’t end up all too profitable – did I learn how unbeneficial it was to be emotionally invested in my investments. Because when investments go down, it doesn’t automatically equal a bad result. It’s a bad result if you need the money straight away, but if you don’t, all it means is you now get to purchase more of the asset at a discount. This is counter intuitive I know, but it is how the ultra rich get richer. When the GFC happened, there was a massive transfer of wealth from the middle class to the upper class because the middle class sold down at the exact time they should have been buying. At the end of the day, if you are investing, you are accepting that what you are buying is a fair price. If your investments temporarily go down, then you should be buying in these moments. This very simple investment strategy is called ‘buying in the dips’. If you are emotionally investing, this does not make sense. But this is why being in control of your emotions during your investment career is so important. When the roller coaster happens – as it will every year of your investment career – take the opportunity to buy more. If you ultimately believe the world will continue to produce value, and continue to earn a profit, then ultimately the stock market will go up again, and so will your investments. Especially if they are invested across indices such as with the Raiz portfolio If your only response to a falling market is ‘sell sell sell’, then perhaps you shouldn’t be in the market. Again, I know this is counter-intuitive, but your investment goals should be to control your emotion, and buy more when the stock market goes down, not the other way around. We all need reminders of this every now and again, and as we have seen some roller-coaster action as of late, I figured this was a timely reminder.   Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
May 2017
Do you need a financial concierge?
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By Clayton Daniel  

Do you know what I like most about technology? It’s that I can do less boring things, and focus more on the things I like. I’m not the only one, this has been happening for thousands of years.

Years ago as hunter-gatherers, one of the more lazy villagers looked at everyone else and said ‘why don’t we have the plants and animals we want to eat here instead of looking for them every day?’ And just like that, farming was born.

Then we started riding the animals rather than simply eating them. This turned into the horse and cart. A bit more tinkering created the steam engine, and finally the car. Technology solved the problem of transportation.

Daily annoyances to keep a tidy house have taken the same journey. Electricity and plumbing have solved many of the smaller day to day requirements we need to keep our homes clean.

As you can see, the roll of technology has been to remove us from performing grunt work. Free our time and resources up. Allow us to get more out of less.

But the interesting thing about technology these days is that it’s focus is no longer about solving physical menial work. It’s actually starting to solve cognitive problems. Being helpful in ways to help us maximise what we want to do with the free time we now have.

For example, I can simply say the words ‘hey Siri’ and my phone lights up, waiting to answer my questions. It’s not perfect yet, but it’s getting better. Raiz in a similar way have been helping us invest simply by rounding up purchases and investing the spare change. As you can see, technology is solving more than simply physical exertion.

And now, Raiz is stepping it up a notch. The suite of financial services is extending to help you get the most out of your day to day cash flow. This new update more closely resembles your own financial concierge, all from the inside of your phone.

So what does it do? Well to put simply, it takes the cognitive grunt work out of getting the best result from your day to day cash flow. And how does technology do this? Well it uses machine learning to understand your usual spending patterns. From there, it can tell you a lot.

It can tell you if your overspending compared to your normal spending patterns. It can tell you if you are overspending compared to other people your age and on your salary. If you miss a regular bill it will remind you, and it can give you insights such as where you are spending most of your money, and what days you spend the most.

It gives you useful information in the moments you need the information. It removes you from having to know everything, and outsources it to automation.

As a finance guy, my main message over the last few years has been to outsource to automation. And I’ve seen remarkable results from everyday people who reduced the amount of things they monitor and measure, and simply focused on what they want out of life instead.

Technology in the past has helped us reduce grunt work so we have more time. Technology of the future on the other hand will help us make the most of our new found time. The Raiz financial concierge is one of the first apps to help you do just that. Clayton Daniel, author of
Fund Your Ideal Lifestyle   Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
April 2017
7 Top Tips for Travel Budgeting
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  By Craig Joslin, the founder of
The Australian Expat Investor

When travelling abroad, one of your key considerations will likely be costs and budgets. The smart traveler knows the best way to limit cash risks, make the most of money-saving opportunities, and most importantly how to make the right decisions on spending. Many “old hands” will offer country-specific advice, but there are some simple tips to save money when travelling abroad.

You can divide your “battle-plan” into three sections; long range planning, before you go, and hitting the ground running. In this article we’ll look at the key tips to making your travel a success.

LONG RANGE PLANNING

 

If you have enough time to organise things well in advance, you’ll save money. It is often the long range planning that will avail you of the biggest savings.

1. Purchasing Your Tickets

There are certain times of the year when it is cheaper to travel, and there are figures available to give you a guide on exactly how far in advance you should be purchasing. Both Cheapair and CNtraveler provide great information. As a rough range, anywhere between 21 days and 50 days in advance is optimal, but don’t book from Friday through Sunday. Studies suggest that if you follow this, you’re likely to save up to 30% on average.

2. Sorting Out Accommodation

The days of staying in a run-down hotel near the airport just to save money are long gone.   The sheer range of options available to the consummate traveler is now huge, and if you have the time you can compare options such as hotel rooms, AirBnB, or short-term apartment rentals.   Set a realistic accommodation budget and start looking on sites like booking.com or  Airbnb.com for a great comparative search engine.

Figure out your length of stay, estimated budget and most importantly, how far you’re willing to travel on a daily basis. Add the data set to the search function and see how many good options are available.

3. Travel Light

Depending on your choice of carrier and destination, you’re likely to have between 20 and 40 kg of luggage allowance. Try to prioritise your luggage into “must haves” and “nice to haves”.  Consider what you will need when you land and what things you can either do without entirely or can do without for a few weeks.

Should you be planning on taking heavier items such as a golf bag, surfboard, or a musical instrument, it can not only be cumbersome, but you are likely to be charged per kilo over your luggage allowance. Evaluate sending them separately as unaccompanied air freight instead, and you might save a considerable amount of money.

BEFORE YOU GO

 

Just before you set off, there are plenty of small tasks you can be doing to not only achieve a smoother transition, but also to save money.

4. Travel Insurance

Although the cost of travel insurance can be high, it is guaranteed to give you peace of mind and work out cheaper than running into any out-of-pocket expenses. Insurance will in many cases also entitle you to a higher standard of care if you are not going to a less developed country.

One of the key considerations with insurance is to “get only what you need”. Many companies that offer travel insurance begin consultations with a global package which will include the United States. Because of the high medical costs in the US, if you also include America on your insurance, you’ll pay a much higher premium. Be specific about where you are going and what you’re likely to be doing, this will get you a better quote. And don’t be afraid to shop around, either.

5. How Do You Intend To Spend?

Undoubtedly, the easiest option for spending money overseas is to use your credit or debit card; you can do big purchases on the card, or get cash from a range of ATMs. But just because it is the easiest way, this doesn’t mean it’s the cheapest. Bank charges (in particular foreign currency transaction fees) can be extremely high. There are several alternatives worth considering:

Travel Cards: They work almost exactly like credit/debit cards but are set-up for international use. They have the added advantage of not ruining your life if it becomes lost or stolen. Check out the reviews at choice.com.au.

Get Currency in advance: When most people land, the first thing they do is go to the airport ATM or Money Exchange desk. The rates are based on the idea of a captive crowd that needs local currency before they can catch a taxi or a bus, so the exchange rate is not as good as you could otherwise receive. Having local cash already in your hand will save time, effort and money. Try buying your currency in advance. Places like Travelex.com or Travel Money Oz can get you better rates as they are seeking out customers as opposed to relying on desperate need. For more information on advance currency buying, check out this article.

HITTING THE GROUND RUNNING

 

If you’ve ever gotten off a plane and seen other people “floating around” the airport, it’s because they don’t have a plan. And those that don’t have a plan are likely to end up spending a lot of money for no good reason. If you know exactly what you’re going to do and where you’re heading, you can ensure that the cheapest/best options are available to you. Here’re a couple of tips to be the “best-prepared on arrival”.

6. Get a Local SIM

Most phones today come with International capabilities; which is great, but expensive. Ask around the airport for a place to buy a local SIM card. It doesn’t have to be your main/permanent SIM, but it will cut costs on calls and especially internet usage whilst you are travelling abroad.

If you don’t buy a local SIM card and just want to rely on free local wifi networks, at least don’t forget to switch off mobile data on your smart phone. You don’t want to return home to get the nasty surprise of the high cost of international data downloads whilst you have been on holiday.

7. Immediate Transport

There will be several counters in the arrival hall offering various modes of transport either into the city or to your hotel. There will also be a lot of people offering taxi services. Don’t feel pressured into choosing one straight away. “Informal taxis” or “private cars” can end up costing you a lot more (and may be a lot less safe) than what you need to spend (depending on the location)

Wherever you’re going and whatever you intend to do when you get there, being prepared is never a bad idea. Proper research will allow you to set a realistic budget and stick to your spending goals. The more cash you save on unnecessary expenditure, the more money you’ll have for fun. By Craig Joslin, the founder of The Australian Expat Investor   Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
March 2017
Oh Snap(chat)!
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  By Clayton Daniel.  

I’m sure you heard the news. Snapchat listed on the US stock exchange this month.

This was a pretty big deal. A company which built itself on a scandalous premise has just turned it’s founder and CEO Evan Spiegel into the world’s youngest self-made billionaire.

This nineties kid has shown the world that eyes are what matters the most. Not early sales, not the barriers to entry – but simply attention. And if you can pull it off, riches and super model fiancés await.

Things couldn’t be better for Evan. But what about the investors since Snapchat listed?

Well we’ve seen a lot of volatility. In March alone the stock price has bounced around between $19 and $30. This isn’t completely out of the ordinary for such a high profile IPO, but I’m sure the market is still deciding on whether Snapchat is the next Myspace or the next Facebook.

But imagine all those people who waited patiently for this stock to list, bought at the top, freaked out and sold when it bottomed out, and sat there looking at their bank account with 30% in it only a few days later.

I promise you this happened.

Do you know why? Because unless you are an investment expert, unless investments are your day to day job, investing is controlled by emotion. The old Wallstreet adage is still true “financial markets are driven by two powerful emotions – greed and fear.”

And I’m not slamming those who did it. More than likely it was those hoping to learn more about investing, were aware of Snapchat, so took the plunge. Emotions would have completely driven the entire experience.

I’ve been there. All investors have. Controlling your emotions while investing is one of the hardest – yet most pivotal things to master. The problem is, unless you want to spend many hours trading for either yourself or a large institution, you’re always going to be emotionally involved.

Another option is an investment strategy that has been outrageously popular since the GFC, outsourcing your investment decisions to an algorithm. This trading algorithm doesn’t suffer from emotional involvement, isn’t swept up in the latest craze, or sell at the worst time possible.

It is simply designed to follow investment instructions. It’s called an ETF. There are many different types, but the most popular simply hold a tiny piece of the biggest companies in the world. For example, if you had owned an S&P500 ETF, you would have automatically invested around 0.2% of your portfolio in Snapchat regardless.

No effort. No research. No getting swept up in the emotion of the trade. However now Snapchat will play a roll in your overall performance. Not a massive roll, but an appropriate sized roll. It would sit relatively equally among 500 other large and profitable businesses.

And this is the beauty of ETF investing. It is emotionless investing, the best kind of investing. And unless you become a full time investor, it will be the best way to unemotionally invest over many years. So unless you are a professional investor, any head-space you put towards investing is simply going to create decision fatigue. And the best way to invest without emotion, without the effort, and without the need to become an investment expert – invest in ETFs. Luckily for you, that’s all Raiz uses. By Clayton Daniel of Fund Your Ideal Lifestyle   Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
Working out without the sweat.
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By Clayton Daniel
Fund Your Ideal Lifestyle  

I hate working out.

I still do it.

Sometimes.

But mostly I hate it.

The reason I hate it, is I have to do it repeatedly. If I go to the gym four times a week for six months - great. Things are getting ahead. But if I drop down to once a week for six months. It’s all gone again.

I’m sure you know my frustration. Health is a constant battle.

There is yet to be a piece of technology to take care of this for us. At the moment, we all still have to use self control, self discipline and sweat to reach our health plans. None of this is automatic. Every push, pull, grunt, squat, sit up – it’s all based on us. There is zero work around.

But the awesome thing about technology, is the basics of money management can now be taken care of for us. Without us doing anything.

It’s like having a personal trainer that does the working out for us. Every single day.

What I like about automated investments is that I don’t have to rely on my self control and self discipline to succeed. I don’t even need to learn how to invest any longer.

That massive change has only come about in the last decade. Over ten years ago when I started getting into investing, I had to learn about everything. From clearing days, to stock brokers, to investment philosophies. I can go on and on.

But you don’t have to. While you still have to learn how to do a pull up correctly, you don’t need to learn about ‘speculative mining stocks’. And in order to avoid getting hurt you should learn how to warm up correctly, but you don’t have to learn about ‘active fund management’.

These days, technology and automation can take of most of the hassle with investing. I don’t need to worry about what my investments are, or even how regularly I am investing. All I know is that this is now being taken care of for me.

With the world changing so rapidly, it’s not worth waiting for it to change back again. Instead, leverage technology where possible to create shortcuts for yourself. Money management is a rabbit hole you can explore for many years. But is it the best use of your time? Probably not. So while I’m all for learning, I’m not a big fan of inefficiency.

These days you need to be selective on where you spend your time and attention.

As such, an app like Raiz can’t replicate an entire career in the personal finance space, but it can take care of the basics extremely well. And unless you plan to head down the path of becoming a personal finance expert, the basics are more than enough.

Outsource your investments to automation.

Get results without the sweat. Check out the exclusive Acorns offer for Clayton Daniel’s new book Fund Your Ideal Lifestyle.   Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
February 2017
Twelve Months in - did you miss out?
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By Clayton Daniel of
Fund Your Ideal Lifestyle

As Raiz ticks over the first twelve months of a successful campaign to engage Australian’s with their money, I wanted to circle back around to see if you benefited. To see if you were in the market, or out of the market.

See Raiz simply holds your investments for you. And I say ‘simply’ on purpose. As a former financial adviser who built a career around investing millions of dollars, I can tell you – how the money is invested is usually the hard part. But thankfully it’s all now at the tip of your fingers.

So over the last twelve months – the market went UP. Great result for everyone invested. But were you invested, or were you ‘trying to get a better return’ someplace else?

A big misconception with Raiz is that they are an investment – which they aren’t. The investments that sit within the Raiz investment structure (the app on your phone) hold investments called ETFs. In a nutshell, these ETFs go up if the market goes up, and down if the market goes down.

Really simple stuff.

So again I ask – did you invest, or did you miss out?

Do the markets go up all the time? Of course not. But do they go up more than the go down? Yes – that’s because our economy keeps growing, and companies like Commonwealth bank and Woolworths keep making a profit. And as long as our economy keeps growing, and our companies keep making profits, the market will continue to go up.

I’ve had my account for around nine months now. And I’m happy with how the market went. Again, the result wasn’t created by Raiz – but they gave me the opportunity to access growth over the last nine months. Check out the screen capture below:
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Did I make life changing money?

No.

But would I make life changing money in any retail investment in less than twelve months?

No.

So why am I such a big fan of this non-life changing money?

Because I didn’t think about this investment at all. Not at all. I invest without thinking about it, and the market does what it does, and the majority of the time I’ll make more money. Some weeks it goes down, and even some years it will go down, but none of that matters. Assuming our economy has many years in it – the investments will ultimately go up. And I won’t think about any of it.

Compare that to the Melbourne property I own with a couple of mates inside of a Self Managed Super Fund. We have to have annual meetings with each other, with the accountant, with the rental manager, with the banks, think about tenants, think about bills, think about vacancy – think about everything! There’s a lot of thinking going on!

If you’ve read any of my previous articles on decision fatigue you’ll know I’m not a big fan of thinking about investing and cash flow. Turns out you get better results when things are set up on automatic.

Which is why I ask – did you miss out?

Raiz shouldn’t be your entire investment strategy – that wouldn’t be prudent. No one should have all their eggs in one basket when it comes to investments. But should it be an additional little regular investment you have on the side which you spend zero head space on?

Yeah.

Use it for Christmas presents every year, use it for an annual getaway, use it for an emergency account (probably the best idea) or use it to simply ‘go hard on the money’ and learn about investing in the simplest way possible. Whichever way you choose to use your Raiz account is up to you – just don’t miss out. Check out the exclusive Acorns offer for Clayton Daniel’s new book Fund Your Ideal Lifestyle.   Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
January 2017
Investing isn’t just for financy pants
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  By Clayton Daniel of
Fund Your Ideal Lifestyle   I remember over a decade ago when I didn’t know anything about investing. It’s a really good frame of reference to have, and one that I hope I never lose. Because investing can seem ten million times more complex than it really is. Why? Well, money is an emotional topic, and the first time you do anything it seems hard. So with that in mind, I wanted to explain all the financy pants terms that get thrown around, and give some explanation as to where all the pieces of the puzzle fit in. I think the more you understand about where you are investing, and what you are investing in, the more control you will feel, and ultimately the more comfort. So here we go. Starting right at the top we have the ever-ethereal word ‘market’. This word gets thrown around a fair bit. It basically means the same as it always has. A place where people gather to buy and sell. But instead of buying and selling fish or bread, they are buying and selling assets like property or equities. So when something is traded on the market, it really means it is traded in a place where there are buyers and sellers. If an asset has a market price, it simply means the price is at a point between where buyers want to buy and sellers want to sell. Now let’s talk about the most common type of asset traded on the market – an equity. An equity is called as such as when you own it, you own equity in a company. You own a part of the company. Equities have the remarkable distinction of being able to interchange their name at any given moment. Have you ever heard the terms ‘shares’ or ‘stocks’. Yeah, same thing. At this stage, now you know that equities are traded on the equity market (or shares/stocks are traded on the share/stock market). This is where you can buy and sell blue chip shares like the big four banks, or speculative mining shares. There are thousands of different stocks to trade on the stock market. The only limits are your limits to research and what equities you are comfortable in buying. Okay, so that’s great right? You can go out right now and start investing. Fantastic. What are you going to buy? If you are an investment professional, you will have an investment philosophy that works for you. If you are not an investment professional, you probably don’t have an investment philosophy. Therefore you can either spend a lot of time researching to become an investment professional, you can hire an investment professional for you, or you can buy what’s called an Exchange-Traded Fund (ETF). An ETF is simply a computer algorithm that invests your money into equities. The benefit is, for every change to the portfolio you aren’t charged a fee. Instead, you pay an ongoing percentage fee to cover the management of your portfolio. This reduces the conflict of ‘churning’ investments which is the natural result of a business model where revenue is made through the amount of buy/sells that are made.
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As you can see above, the amount of global money invested in ETF’s has grown significantly since the start of the Global Financial Crisis (GFC) in 2007. So why has the ETF market grown by 400% in less than a decade? Well for a few reasons.

Firstly, investors were burned so bad during the GFC that they got sick of paying for stockbrokers, financial advisers, and fund managers to invest their money. The argument that people were better at picking equities than computers were largely proven wrong.

This in turn created the rise in Modern Portfolio Theory. Put basically, you get 80% of your gains and losses simply by being in the market. There are easily refutable points to this theory, but put simply, it provided a framework to build a portfolio without human involvement.

Which brings me to technology. The technology to build these trading algorithms have improved like all other tech has improved over the decades. These days there are many different types of ETF’s, though most the money is still in the easy to understand simple ones.

As always, price is very important. Some ETF’s are so unbelievably cheap that it’s hard to see where the revenue is being made by the product issuer. Some ETF’s are so cost effective that on a million-dollar portfolio you can pay as little as $300 a year.

And with all these benefits it drew in many investors, which in turn created more awareness, and more education. To the point where now ETF’s are essentially the most popular way to invest. And considering the points above, it’s not hard to see why.

Now you know how to invest in the market, by purchasing equities through an ETF. Brilliant. You’re nearly there. So how do you do all this? How do you pick which broker to use, and which ETF’s to invest in. Well again, you can either learn to do it yourself, hire someone to do it for you, or use technology.

This brings me to the last piece of financy pants education today. The technology to make all this happen – Raiz. Raiz is simply an app which takes the small amount of round ups on purchases you make in everyday life, and invests them for you into ETFs.

Raiz themselves don’t have anything to do with the ups and downs of the market. They simply make easy what has typically been hard to do – open an account and start investing. They take the manual work out of starting a brokerage account, and choosing which ETF’s to invest into.

They take all the complexities out of investing, and make it as easy as buying your daily coffee. And that to me is brilliant. As a personal finance expert, the ease in which they make investing is unbelievable. Raiz are the packaging to make investing easy for the every day person.

So to recap: You invest in the market, by purchasing shares, with an ETF, through the Raiz app.

Look at you – all financy pants…..

By Clayton Daniel of Fund Your Ideal Lifestyle

  Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
What to do as the Dow Jones approaches 20,000?
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By Leveraged 

With the Dow Jones Industrial Average approaching 20,000 and the ASX All Ordinaries Index reaching its 12-month high, many investors are wondering what they should do from here. Some are wondering if they have missed the run, others are asking if they should take profits at these levels.

The short answer to these questions is that investors should do little different as a result of this milestone level. This is a timely moment to remind investors of a basic but often forgotten quality of investing. Investors should continue to invest with a longer term outlook rather than trying to time the market.

Whether investors enter the market here or if they should take profits here has nothing to do with these milestone numbers. Instead investors should keep in mind things such as the timeframe of their financial goals and their tolerance to investment volatility.

Those saving for a distant goal, such as saving for retirement or their children’s education should look to start investing right away. For those who are aiming to retire soon, they could consider decreasing exposure to growth assets if a short term shock could be detrimental to their retirement goals. Investors could also consider rebalancing portfolios from asset classes that have appreciated into other asset classes to ensure the mix is still in line with their risk profile.

Too many investors are tempted to buy the market during bull markets but flee the market during a correction. This results in buying high and selling low. Instead, investors should keep in mind things such as their investment time horizon and the tolerance to ride market ups and downs. It is better to have a rule based investment approach than to make investment decisions based on emotion.

Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
If I could talk to my 21 year old self about money....
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By Clayton Daniel of
Fund Your Ideal Lifestyle As one from the older end of the Millennial generation (1982 – 2000), I can say without a doubt the world is changing rapidly. It’s crazy to think my first games console was the Atari 2600. Then Nintendo and Sega came along, which were ultimately supplanted by Xbox and Playstation. VR it seems will likely take both their scalps. I use video games as an illustration of progression. Sometimes I forget I’ve actually aged thirty three years, but then seeing is believing. But this article isn’t about lamenting how my metabolism has slowed down, or how young everyone looks in bars these days – it’s about what I would say to my 21 year old self about money. At 21 I didn’t know anything. I could punch out a nasally punk rock lyric to a room full of rowdy teenagers, but not much more than that. To say I didn’t know anything about money was an understatement. Then at a pivotal time in my life I met an entrepreneur who was travelling around the world having a grand old time. He bought me the book ‘rich dad poor dad’ and it set my on a path I now find myself over a decade later. That book taught me my first lessons in personal finance, and I became obsessed. Absolutely obsessed. I realized by understanding the language of money, the rest of life’s problems can get in line. Money is simply transportable power. The more you control, the more control you have over your own world. And my thought process was this – ‘more money equals better, therefore more time spent learning about money equals better’. Fast forward another twelve years and I have a degree in accounting, worked as an accountant, then financial adviser, and ultimately grew and sold a financial planning business. And even though I ‘get it’ now, I’ve dedicated my life to understanding it. Again, I’m obsessed with it so I’m lucky. But what about the 99.99% of people who don’t dedicate their lives to understanding personal finance? What about everyone else who knows a little, but not enough? What about my 21 year old self? Well, this is what I would tell my 21 year old self about money before I ever dedicated my life to understanding it. ‘Get 80% of the results with 20% of the effort’. While we all have heard of the Pareto Principle, have you ever considered using this principle with money? Everyone thinks they need a PHD in personal finance to do well – but you don’t. Everyone thinks they must think about their money a lot in order to get the most out of it – but you don’t. So I’m talking to those people who want to do better with their money, but can’t be bothered to do so. And I know, there are a lot of you out there. So let’s get to it. How do you 80/20 your personal finance? Easy, use technology. Outsource your self-discipline to automation. I promise you, money more so than anything else in life, if you use an automatic system to perform a task rather than rely on yourself to do it personally, your chances of success go from 10% to 100%. So get your own outcome, and outsource to automation. Tip 1 – Your salary account should not be your spending account. For example, if you had two accounts, you get paid into account (a) and AUTOMATICALLY transfer across to yourself an amount you’re happy to spend guilt free each week into account (b). Account (b) has a bank card attached, account (a) does not. Social psychologist Roy Baumeister showed unfulfilled desire causes us decision fatigue. Reduce your desire to spend money in your account by putting one level of separation between you and your savings/salary. Less distractions, better outcomes. Tip 2 – If you want to invest, do it automatically, don’t rely on being interested enough each week to follow up. Raiz can AUTOMATICALLY receive regular contributions from your account. How hard is that to set up? Five minutes? Five minutes ‘work’ upfront equals long term investing with zero ongoing effort. Sure you can get more fancy than that, but start simple. By doing these two things you are taking care of your money today (cash-flow) and tomorrow (capital assets). And if you have an automated investment system to think about your tomorrow, your only focus is guilt-free spending today . By Clayton Daniel of Fund Your Ideal Lifestyle   Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
December 2016
Big Plans Succeed With Little Steps
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By
Clayton Daniel Have you ever woken up one day and said to yourself ‘wow, I really have to get my act together…’. The next day it’s all green smoothies, two hours at the gym, open the credit card statements, and of course – calling your mother. “While we forgot what it meant to build something slowly and quietly in the background, believe it or not, I think we are starting to remember again.” It’s a knee jerk reaction. As such, you and I both know it won’t last. We over-estimate what we want to achieve in a week. But in a similar fashion, we can also under-estimate what we can achieve in a year. I recently wrote an article on how a five year plan changed my life. It did quite well off the back of Linkedin (I’ll never understand Linkedin), but I think I know why. While we forgot what it meant to build something slowly and quietly in the background, believe it or not, I think we are starting to remember again. What was once a long way to the top if you want to rock and roll was replaced with reality TV singing competitions. Napster came along in the nineties, the whole music industry went digital. And as Sanity and the Virgin mega-stores shut down, we called it a day on hard copy music . But then this happened… ‘Vinyl albums just outsold digital for the first time ever’ “Money it seems, is returning to its roots also.” Instant gratification is rather gratifying, but so is something else. Anticipation. The buildup. The ability to appreciate what you’re holding in your hands. The process of buying an album was a part of the journey. Music is more than just listening, it’s experiencing the whole package. Money it seems, is returning to its roots also. Credit cards are instant cash. Savings take a little bit of time. But I can guarantee which one feels better to spend. I can guarantee which one is guilt free spending and which one isn’t. I can guarantee which one will keep you from reaching all your other goals, and which one simply plays it’s roll in being a part of your financial life. “Even if you are disciplined enough to put money aside in an account – the fact that it is sitting there and you aren’t spending it is a mental drain.” So how do you build up a treasure trove of cash? Well with my work around understanding decision fatigue in regards to money, savings make for a strange situation. See, even if you are disciplined enough to put money aside in an account – the fact that it is sitting there and you aren’t spending it is a mental drain. What a pain. This comes from the research performed by American social psychologist Roy Baumeister. Basically unfulfilled satisfaction distracts you from your task and hand. This in turn reduces your performance in all areas of life. Put simply – if you save money in an account you have access to, it’s simple existence will demand you spend it. If you don’t, your brain will be distracted until you do. Again, what a pain. So how do we achieve two things: Build up a guilt free amount of money to spend once a year on something big Do so in a way in which we aren’t reminded of every time we look at our bank accounts. Luckily, you’ve come to the right person - I do this for a living. You build up a savings accounts with regular deposits in a side account that you can’t spend with a card. “Build regular deposits in an account you don’t have instant access to. By accumulating savings in account you don’t think about everyday, you avoid the decision fatigue associated with the constant desire to spend it.” See my journey from sojourn savant to lifestyle finance expert took over five years of small regular improvements (plus another five years previously in accounting – but who’s counting). When I woke up on a beach in Southern France five years ago and decided I needed to get my act together, I didn’t make a large knee jerk reaction. I built success with little steps over a period of time. From my professional experience of handling the cash flow of many young professionals over the years, I can say this applies to the personal finance space more than anything else. And so like everything else, how do we reduce the barrier to entry? How do we make this easy on you? Simple - build regular deposits in an account you don’t have instant access to. By accumulating savings in account you don’t think about everyday, you avoid the decision fatigue associated with the constant desire to spend it. “If you were to set in motion today a $10 a week regular deposit arrangement, next year for Christmas there will be around $500 waiting for you to spend.” Great, so where can you find these types of accounts? Well, what about opening a new bank account with a new bank? That would work right? Why of course! I’m sure you’re a massive fan of the banks and can’t wait to open another account with another institution…. To save that hassle you could always open another bank account with your current provider. But then, we both know a simple transfer is 0.2 seconds away from spending. That’s going to defeat the whole purpose of cognitive minimalism. We want the money far enough away from you so you don’t have to think about it, but close enough to spend when the time is right. So what are you to do? While Raiz is a financial literacy tool to help you engage with your money, it has a lesser known function called regular deposits. All this does is automatically move a set amount across each month into your account. If you were to set in motion today a $10 a week regular deposit arrangement, next year for Christmas there will be around $500 waiting for you to spend. And in the meantime you’ll see the market go though it’s classic roller-coaster up and down. It will go up, it will go down. And withstanding any kind of cataclysmic wild events - it will only ever mean a couple of dollars up or down as investment amount is comfortably low. The benefit however is your investor intelligence will increase while simultaneously building a small portfolio in the background that doesn’t create decision fatigue. Big plans succeed with little steps. Clayton Daniel In this example, $10 a week put aside over 52 weeks would equal $520 if there were no movements in the market. Obviously this is a theoretical case study with the end result being above or below this amount. The case study mentioned above is not a suitable long term investment strategy as anything less than five years in the market is considered too short of a time frame to benefit from returns. Instead the case study above is simply to provide education around the benefit of consistently making small regular deposits into an investment account – the withdrawal after 52 weeks is not mandatory. Raiz cannot provide any certainty around how much money an investor would be able to withdraw in the event they followed the above case study as investment returns are unpredictable, and past performance does not provide insight into future performance.   Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
Top ways to save for your holiday
By RateCity We all know that travel can be expensive. By the time you add up your flights, accommodation and insurance costs it almost feels like there’s no money left to go out and enjoy the city to which you have travelled.

Finding new ways to come up with the cash for your holiday, and to keep costs down while you’re on vacation, is a must for every travel addict.

Here are some of the best ways to pay for your holiday necessities and still have enough money left over for those once in a lifetime travel experiences.

Saving up before you go 

Saving enough to go away on a trip is often the first and most difficult hurdle for cash-strapped travellers.

Incentive based savings accounts are a great way of stashing some cash for your next holiday as they tend to both require a minimum monthly deposit and discourage you from making any withdrawals.  By sticking to the account’s basic terms and conditions, you effectively sign yourself up to a relatively simple savings plan.  By doing so you are rewarded with bonus interest which can go a long way to making your trip even more memorable.

The RAMS Saver account is a great example of an incentive based saving account.  It has some conditions in order for customers to earn bonus interest (on top of the variable base interest rate the account offers). Firstly, customers must deposit at least $200 each month. This could be as easy as getting a portion of your salary paid into the account each month.

Secondly, in order to be eligible for the bonus interest rate, customers must not make any withdrawals each month. This effectively makes customers think twice about whether they really need to spend money now or instead build up the spending money for their trip. Bonus interest is only payable on balances up to $500K.

Apart from the traditional savings account, new apps can help you stay disciplined and save extra cash before your big trip. An example of this is the Raiz app that can be a useful tool for savers who find it hard to stick to a financial plan.

The app helps in identifying areas of your spending where you can cut back, and setting reasonable short and long term targets for yourself. Raiz allows you to automate how much you save by allowing you to save & invest any amount on a daily, weekly, or monthly basis.

Another key feature of Raiz that helps relieve the stress of saving is Round-Ups. Round-Ups takes any transaction you make on your credit or debit card, rounds it up to the nearest dollar and invests the change into your portfolio. By linking saving to spending, it is a great way of showing that you can save without affecting your lifestyle.

Saving on insurance 

Travel insurance is a must for any holiday. While it will involve an initial cost, the cost of not having insurance if something goes wrong could be infinitely higher.

Online travel insurance specialists, InsureandGo, suggest buying directly from a specialist to help cut out middle man fees on travel insurance. Buying your insurance direct from an online supplier can work out cheaper, but make sure you shop around for cover that is appropriate for you – not just cheap.

It’s also recommended to read the terms and conditions and take note of any inclusions and exclusions on your policy so you know exactly for what you are covered. This should help you avoid running into any surprise costs down the track.

While most policies will cover you for standard items – like medical/hospital and emergency, trip cancellation, liability, baggage. Before you purchase your insurance think about what other unique areas you will need cover for.

Will you be doing any risky sports or activities that required extra cover? Perhaps you taking an expensive camera or renting a car? These are just some of the things that you should take into consideration when choosing your cover so you are not left out of pocket if something goes wrong.

Another tip is to look out for discounts and promotions. Just like your favourite clothing store, travel insurers also offer coupon and discounts. If you’re a regular traveller, it may be worth signing up to their newsletters or checking out their social media pages is a great way to find out about these limited time offers.

Saving on accommodation 

For those looking to pay less for accommodation and more for experiences, house and pet sitting is the ideal option. By providing free pet care when you travel, you can enjoy the opportunity to spend time with a pet and live like a local in the places you visit.

You could reduce the cost of your trip by over a third and help pet owners find peace of mind while they are away from home. Instead of checking into a hotel you can stay for free in homes across Australia and all over the world.

This style of accommodation is an experience in itself and gives you the chance to make connections with local people, discover off-the-beaten-path destinations, and take advantage of the companionship having a pet can provide. By organising house and pet sitting stays through a community like TrustedHousesitters, for less than the cost of one night in a 3-star hotel, you could save thousands of dollars on your holiday accommodation.

TrustedHousesitters is an online community of pet lovers who engage in a mutually beneficial exchange to ensure all members can find the freedom to travel. Providing a simple solution to a universal problem, they help home and pet owners connect with caring, verified sitters who offer free pet care in exchange for a free retreat, because they want to spend time with pets when they travel.

Saving on the road 

Apps are not only for saving before your trip, they can also make life a lot easier when you’re out on the road. One way that apps can make your travel experience better (and cheaper) is by helping you avoid those “tourist trap” restaurants that give you inauthentic food for double the price of a true local feed.

Using the Townske app, you are able to easily uncover the places that locals go to again and again. These are the places that are doing amazing things, providing amazing experiences and are often at or below prices of more touristy places. With Townske, you could improve you travel experience and have the opportunity to enjoy the true richness of cities.

Another hot tip that could see you saving thousands over your travels is getting access to an International Student Identity Card (ISIC). Full time students, teachers and anyone under the age of 31, qualify for one of 3 lifestyle and discount cards.

First established in 1953, all bona fide students over the age of 12, regardless of their nationality, race, gender or religion can purchase an ISIC card at an affordable price. Via one single card, ISIC students gain preferential and discounted access to products, services and experiences relevant to all aspects of student life, from software licenses, cinema access to bookstores, public transport, cafés and eateries and much more.

Whether you’re staying put in Australia or heading off on an overseas adventure, these internationally recognised discount and lifestyle cards are the real deal when it comes to savings.

ISIC gives you a choice of up to 42,000 lifestyle and travel benefits in over 133 countries, including more than 5,000 in Australia and New Zealand. For example, you could get 20 per cent off your meals at over 2,500 restaurants, cafes and takeaway outlets across Australia and New Zealand.

There are also exclusive discounts on flights and other travel products through STA Travel and negotiated discounts on train, bus, tram & ferry tickets around the world. There is an ISIC app that can be downloaded to help you check for discounts while you’re on the go.

  Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
November 2016
The legal Australian Offshore bank account
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  By
Clayton Daniel

Creating wealth is a long-term process, and in the same way that being a small degree off-course can have a huge impact while navigating a long journey, small effects add up to big outcomes over long-term investing.

As such, tax efficient investing creates better returns for no extra investment risk. For example if you built two identical portfolios in two separate entities, with the only difference being the tax rate applied to the earnings, the result will be better returns for the entity with the lower tax environment.

With that in mind there is a tax structure in Australia you can build assets in, so tax efficient it makes seeking a tax dodging strategy like an offshore bank account in the Isle of Man redundant.

Why risk either being ripped off or going to jail by siphoning your money offshore to avoid tax, when there is a perfectly legal way to reduce your tax right now?

Very few people understand how attractive this tax vehicle is, as it has a very boring and bureaucratic name. Considering the advantages of ending up with more money in your pocket over the long term, it’s strange you never see this tax structure up in lights.

However, for those in the know, it has such unbelievable advantages that the government built restrictions on how much you can put in. They did so to stop those who bother to wade through the technical data from pouring as much money in as possible.

Lucky for you, I’m going to save you the hassle of peeling through hundreds of pages of dry government fact sheets, and instead put all the tax benefits here for you in plain English.

The crazy thing is, you would already have heard of this tax structure before, probably even own one, but found it to be as stimulating as a Top 40 dance track from the 1990’s (Except The Prodigy, they were awesome, and I won’t hear another word about it.) It’s called Superannuation.

The misconception about Superannuation is that it’s an investment. It isn’t. It’s a tax structure. Think of it as a car. Just as you can put almost any kind of person in a car, you can build almost any kind of investment portfolio inside of Superannuation (restrictions exist: here for summaryhere for in-depth).

It will save you money right now today, save money every year, and save money in retirement. Put simply, with the choice to build an investment portfolio in your own name, compared to building an identical portfolio in Superannuation, you can ensure a better after-tax result by using a tax-efficient entity while not taking on additional investment risk.

1) SAVE MONEY TODAY

As an ex-tax accountant, I can’t tell you how many people ask this question around tax time: ‘What can I do to reduce my tax?’ Most people hate paying more tax than they must, and will do anything to reduce it. Think Negative Gearing, the purposeful loss in income to pay less tax.

What if there was a way to reduce your income, but rather than losing your money through Negative Gearing, you kept the money instead?

This strategy is called salary sacrifice. It is redirecting a portion of your salary to Superannuation and is taxed at 15% (for incomes <$300k). For example, if your salary is above $180k, you pay close to half your income in taxes and levies. By redirecting a portion of your salary to long-term investments, you immediately save over 30% in tax.

2) SAVE MONEY EVERY YEAR

Investments should earn the investor income every year. If you hold investments in your own name, this income goes on top of your salary. For example, if you earn $80,000 per year from employment, and a further $20,000 per year in investment income, the investment income is taxed at almost 40%.

If instead, you earned the $20,000 investment income inside of a Superannuation tax structure, you would have only paid 15% tax. Saving over 20% tax on your investment returns every year of your wealth creation is going to have a substantial positive effect on your long-term results. Also, as franked dividends are taxed at 30%, and the tax environment for Superannuation is only 15%, you’re able to claw back the other 15% tax from the government. Imagine that! The government paying you tax instead of the other way around!

3) SAVE MONEY IN THE FUTURE

The benefits of the Superannuation tax structure are impossible to beat once you hit the age you are finally going to start using your asset base for the purpose it was designed for: to pay you an income when you no longer work. It is impossible to beat because these three points have a tax rate of 0%. And you can’t beat 0% tax. It’s truly an offshore bank account within our own borders.

3a. SELL ASSETS FOR 0% CAPITAL GAINS TAX (CGT)

When a couple in their sixties is sitting in front of me and about to declare retirement, they often tell me with pride the size of the investment portfolio they have built up over the last forty years in their own names. Properties, shares, managed funds etc.

The pain in their eyes when I tell them the size of their tax bill because of their success has stayed with me. It’s not fun learning you have to pay the government hundreds of thousands of dollars just as you’re about to start surviving on the spoils.

If they had only known about the ability to transfer assets held inside of Superannuation into tax-free environments before selling, they could have avoided every cent of tax payable.

As soon as you ‘flick the switch’ on the Superannuation tax structure from ‘accumulation’ to ‘pension’, every asset immediately becomes tax-free (assuming your super account allows this).

3b. TAX ON EARNINGS DROP TO 0%

For the entire wealth creation journey inside of Superannuation, you only pay 15% tax on all earnings by investments. And it gets even better from there. Once you hit pension phase, the tax then becomes 0%.

From the moment you start receiving income from your assets, your investment portfolio will live in an entirely tax-free environment, never to pay tax on investment earnings again.

3c. INCOME FROM SUPERANNUATION IS TAXED AT 0%

And finally the last benefit of reaching pension phase and having your assets inside of a Superannuation tax structure, is the income you draw down to fund your ideal lifestyle when you no longer work is taxed at 0% also (Only after age 60. From age 55 – 60 the income is taxed Marginal Tax Rates less 15%. This age 55 access is only available to those born before 1 July 1960. Sounds complicated but it isn’t. If you are under age 50 now, you have to wait until you’re 60.)

From the benefits above, you can see the Superannuation tax structure is the best entity for you to build an investment portfolio in the short term as you pay less tax today, the medium term as you pay less tax every year, and the long term when all assets and income become tax-free.

Now consider the only ‘downside’ of using Superannuation to build an investment portfolio: you can’t spend the funds until you reach retirement. But investing is a long term endeavor, so I have no qualms in putting forward the merits of Superannuation.

So how do you get money into your superannuation? Firstly you can use Salary Sacrifice to get pre-tax money in there. This can be helpful to save tax today, but it has low thresholds (found here note this limit includes your mandatory super contributions from your employment).

You can also simply deposit money into super from your bank account as it is after-tax money and the threshold is much higher (found here), however when was the last time you did that?

Raiz again have come to the rescue by bringing this valuable tax entity to the fingertips of the money-smart. All you have to do to start being proactive in using this tax effective vehicle to build your long term asset base is 1) click Settings, 2) click Super Fund and follow the prompts. The simplest way I’ve seen to start using the benefits already afforded to you under law.

Disclaimer: While deep diving into topics and education is great, we have a responsibility to ensure you don’t make any mistakes so please read this statement first:

Superannuation is not an offshore bank account, and the term is used as an entertainment analogy only. Thresholds and super laws are notorious for changing, and the rules change frequently. As such, Clayton Daniel nor Raiz cannot be held responsible for the validity of the information contained in this article, nor the outcome you achieve with this information. This article gives an overview of the tax benefits of superannuation, but it does not reference the returns of the investments within any Superfund. It neither takes into consideration your personal situation or your needs. Therefore the information is general in nature. This article - and indeed any article - is not capable of being used as personal financial advice nor is it intended to be. If this isn’t clear enough, before taking any action with superannuation, get professional advice first. More information can be found here.

 

Clayton Daniel is a financial commentator best known for reducing decision fatigue through financial automation. He is the author of upcoming book Fund Your Ideal Lifestyle.

  Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
Donald Trump has been elected, what next?
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  Trump has won, so what happens now. The sun will come up tomorrow. Mums and Dads still go shopping. Children go to school. Workers still go to work and business continue to trade. So economically, nothing has changed and the economic fundamentals of the US economy are fine and improving. Social policies will change, as the Republicans have not only won the Presidency but also the House and the Senate. In fact, the Republicans tend to introduce very favourable business policies. Some of the policies will seem strange to Australians (like winding back Obama care) but It is unlikely Republicans Senators and Congressmen, no matter how much they dislike Trump, will block his proposed tax cuts or pro-business policies. Stock markets don’t trade on social policy they worry about economic policies and very few saw a clean sweep for the Republicans in this election which means a very pro-business government in the USA. America, however will become more protectionist and more withdrawn. This was the outcome regardless of a Democratic or Republican win. This may mean that their foreign policy will become withdrawn with less direct international interference. This may cause Australia to be drawn closer to Asia as trade blocks deals like the TPP (Trans-Pacific Partnership), which pivoted on US involvement, looks now likely fail. This could end up being good for Australia especially as the UK will also be looking for new trading partners. Don’t panic. Stick with your investment strategy. We know this is easier said than done and we know it is time & experience that helps with this. We hope the Raiz App can assist you in learning this. The markets will now focus on the next move from the Federal Reserve which we expect to be a hike in the December. Especially as the FED will now worry about the possible Republican inflationary policies. But more on this in the coming weeks. Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
Are you a risk taker?
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What is risk in Raiz?

Risk is the level of variability you are willing to accept for potential investment returns.  With higher risk, comes greater potential returns but also a larger chance of loss.

Although every investment involves risk, it is important to consider assets with the potential for higher long-term gains are often associated with greater short-term risk.

It is therefore essential to take into consideration the time frame of your savings goal when selecting an Raiz portfolio that suits you. Are you wanting to use Raiz to save up for a holiday in a few months, or are you in it for the long haul?

Managing Risk with Raiz

Raiz allows you to select one of following 5 risk profiles for your account.

Some people with short-term goals of around a year or less prefer secure assets that have low volatility, stable returns and lower risk, in exchange for smaller potential returns. These type of short term investors are better suited to a more conservative portfolio.

Others with long-term goals of greater than 3 years may be able to afford risky investments in the pursuit of high profit potential and are prepared to accept short-term fluctuations, and will select a more aggressive Raiz portfolio.

Conservative

Conservative portfolios will be weighted toward fixed income and cash based ETFs, typically have lower risk and lower return potential. Investors using the profile may expect to use the money after a 3 or 6 month period.

Moderately Conservative

This portfolio is used by investors concerned with protecting their money. It is associated with low - moderate risk and some potential capital growth. Investors should use this portfolio if they expect to have an investment time frame of about a year.

Moderate

This portfolio has ETF weightings towards Australian and international equities, fixed income and cash. It has moderate capital growth potential and a moderate level of risk. Investors would use this profile if they have no specific savings goal and are just looking to see how much they can accumulate from Raiz features such as Roundups.  These investors expect to have an investment time frame of 2 to 3 years.

Moderately Aggressive

This portfolio has weightings towards international and Australian equities. It involves more risk with the potential for higher returns. Investors are comfortable with volatility and negative returns in the short run. They typically have a 3 - 5 year investment horizon.

Aggressive

This portfolio invests towards ETFs in international and Australian equities. It has high risk and the potential for even higher returns. Similar to the moderately aggressive portfolio, investors should be comfortable with volatility and negative returns in the short term. They should have an investment horizon of 5 - 7 years.

What does this actually mean for your investments?

Your saving goal should determine your portfolio choice not what you expect the market to do soon. Raiz provides five portfolio choice by varying the weightings of 7 ETFs. You can view these weightings and more details about each ETF by visiting the PDS at https://Raizinvest.com.au/product-disclosure-statement/.

Whatever your goal, Raiz has the portfolio that will suit you.

  Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
October 2016
The 80/20 Principle of Investing
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  By
Clayton Daniel Do you know what investing is? Confusing.

To circumvent that issue, you can do what most people do – learn.

Ahh yes. Learning about investing. Such a fantastic topic isn’t it. Perhaps, the more you learn, the better returns you’ll get? Maybe outperform the market? Maybe find the NBT (Next Big Thing)?

I know. I started on this journey over a decade ago. Read a bunch of books. Went to a few classes at uni. Even got a degree! Worked in tax, super, investments, cash flow. Opened up my own shop. Clients came in. I researched portfolios. We discussed those portfolios. These portfolios had ‘Foreign Exposure’ with ‘Counter-Cyclical Hedges’, ‘Active Managers’ that would use ‘Dynamic Asset Allocation’ to ensure ‘Market Trends’ were taken advantage of.

Oh God. It hurts even just to write it all down.

Here’s the thing. The world of investing has taken something that is honestly quite rudimentary and fluffed it up to be something it isn’t. Or to put simply, we spend 80% of our time, effort and resources aiming for that last 20%.

What do I mean?

I mean, it’s not a surprise to anyone in the greater investment industry to spout off this fact ‘the majority of active managers underperform the benchmark’. Now what that financy-pants language means is that the majority of professional investment teams do worse than if they had just done nothing.

That’s right.

For all the posturing, all the research, all the education, all the fanfare, all the talk, all the mumbo-jumbo………………. Most of the time it’s not only for naught, but detrimental.

That’s a pretty condemning statistic. Could you imagine if the medical industry had these kind of results? Could you imagine if ‘go home and rest’ had a higher chance of survival for cancer patients than having treatment? We would be up in arms.

But the investment community has a different opinion. And that is because everyone is convinced they can pick that top 20%. And so that is what everyone is aiming for. To ‘beat the market’ by being smart enough to get in the top 20%. It makes sense. Everyone has an ego. And everyone has hubris – especially when it’s other people’s money…

But here’s the thing. What if you said ‘no more’. What would happen? What if you stepped out of the hustle and bustle of trying to get that last 20% and were happy with the 80%. What kind of world would that look like? What kind of research, education, monitoring and ongoing effort would that require from you?

Or put simply, how much of your attention would you have to give your investments if you were happy with 80% of the possible returns?

I’m sure you’re probably anticipating the answer to be 20% of the effort. I mean, that’s how it normally goes doesn’t it. Well not quite. It’s less than that.

How about one percent?

One percent effort is all you need. And even that is pushing it. If you’re happy to just go along with the ups and downs of the market, you don’t have to do anything. At all. Once the purchase has been made, there is zero upkeep for you.

Let me explain how this works.

Like everything else in finance, the solution comes in the form of an acronym.

ETF – Exchange Traded Funds. Really simply, ETF’s are an algorithm that trades stocks. Sounds complex, but it isn’t. Most ETF’s have a VERY simple trading strategy. The algorithms aren’t looking for undervalued hidden gems, or for promising speculative mining stocks. They aren’t looking what pays a good dividend, or any other investment strategy.

All they do is blindly buy what they are programmed to buy. And while these algorithms are starting to get more complex, the majority of money invested in ETFs are in the S&P 500 (http://etfdb.com/compare/market-cap/).

And what is the S&P 500? It’s the top 500 publicly traded companies in the States. That’s it. The algorithm simply buys the biggest 500 companies. If company 500 drops down to 505 it’s sold. If company 550 goes up to 400, it’s purchased. Simple. Indiscriminate investing. The Aussie version is called the ASX200. So instead of the top 500, it’s the top 200.

Now, this is why I like ETF investing.

It takes 1% knowledge and effort to get in, and the algorithm ensures you’re only ever invested in the top companies. Even in 20 years from now, say if 50% of the companies that are currently in the S&P500 or the ASX200 were to go bankrupt and fall off the face of the world – you don’t have to know about any of it, and you don’t have to take any action.

The ETF trading formula does it all for you.

In addition, as this is the simplest, easiest to monitor trading strategy that takes so little money to run, it is by far the cheapest way to invest.

So the easiest way to invest, is also the cheapest way to invest. Winning.

But not only that, this whole easy/cheap way of investing is backed up with a Nobel prize. If you want to look into it more, it’s called Modern Portfolio Theory (https://en.wikipedia.org/wiki/Modern_portfolio_theory)

Like all theories, it absolutely has it’s detractors, and the detractors have a point. But I’m not suggesting this passive ETF investment strategy because I think you’ll get the best returns. Absolutely not. This article is all about 80/20, and while you’ll never get in the top 20% of investment returns with this long term investment strategy, do you really want to spend 80% of your time, money, resources etc. going after that last 20%.

Nope. Not me.

I have exited my ego stage left when it comes to investing. I used to think I could out-perform the market, and at times I absolutely have, but to do it consistently is nigh on impossible.

And here is why you shouldn’t be looking for that last 20% either - because it’s just not a good use of your time or your headspace. I’ve written extensively on decision fatigue (http://www.fundyourideallifestyle.com.au/decision-fatigue/), and I’m a big proponent on the less you try to think about money, the better you do in every other area of your professional and personal life.

So how do you get your hands on these ETF’s? Well you can go out and open a brokerage account, go online and find a risk profiling tool to see what mix of ETFs you should have. Then decide which ETF you should buy, save up at least $500 for each ETF, go back to your broker, pay the brokerage fee, and have a portfolio you can log on to once every six months to look at.

Or you can download the Raiz app, go about your day, spend your money, and have the roundups get invested for you.

You decide.

By Clayton Daniel

Financial commentator and author of upcoming book Fund Your Ideal Lifestyle.

  Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
How to eat an elephant
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By Ash McAuliffe Q: How do you eat an elephant? A: One bite at a time

It’s a dad joke but a good one none the less, and it stems from a quote attributed to Creighton Abrams: “When eating an elephant, take one bit at a time”. Not only is this one of my favourite quotes, but it is one of the underlying philosophies of the financial advice that I give my clients.

“In my time in helping people hit their financial goals, one trend that stands out is what I call the ‘Back-Burner effect’.”

The conversation that I had this week with a new client was typical of so many conversations that I have had with my clients over the years. He had a financial goal and we were discussing the best way to get there and how this goal should be prioritised against his other goals.  This was his biggest goal, and thankfully had the longest time frame attached but as my experience tells me, this meant that this was the goal that he was least likely to achieve.

“Letting a big important goal sneak up on you is a Financial FAIL.”

In my time in helping people hit their financial goals, one trend that stands out is what I call the ‘Back-Burner effect’.  This is where the less immediate goals lose significance because they’re off in the distance, and regardless of their importance, they don’t get the attention that the immediate ‘in-your-face’ goals do so the result is that these big, important, long-term goals are neglected…. Which allows them to sneak up on you.

Letting a big important goal sneak up on you is a Financial FAIL.

Back to my conversation with my client… his exact words were “this is 15 years away so I think I’ll sort these other things, get them out of the way, then in about 5-10 years, I’ll really smash this one”.  It’s safe to say that he wasn’t really ready for my reaction (truth be told, neither was I) I stood up and at the same time I slammed my hand on the table and said “NO WAY!…  This is an elephant, you need to take your first bite now”

“what is underestimated is the power of developing a habit of chipping away at your goals”

He had absolutely no idea what I was talking about… but who could blame him?

The $100 per month that this guy can put towards his big, long-term goal (aka: the elephant) today, is so much more powerful than the $500 per month that he will maybe put towards it in 10 years.  This is because of the magic of compound returns, but what is underestimated is the power of developing a habit of chipping away at your goals.  Taking one bite at a time.

What I tell my clients… repeatedly… is that whatever their goal, they need to start now, even if it means starting small.

There are so many cliché quotes/examples that I can give… “a journey of 1,000 mile starts with a single step”.. ‘be the tortoise, not the hare’… give your goals a ‘death by a million cuts’, but the lesson remains….start.

Start now, start small if you have to, but take one small step towards your goal every single day.  You will get there sooner, I promise.

Ash McAuliffe CFP

The Asset Lab   Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
COMPETITION TERMS & CONDITIONS:

 1.      An active Acorns Grow Australia Account must be held (account balance greater than $5). Acorns account holders hold valid accounts as set out in the product disclosure statement found on the website: www.acornsau.com.au.

2.      Entries open Thursday 13th October 2016 at 5pm and entries close Thursday 20th  October 2016 at 5pm. To enter one must comment on the designated post with the “reason why they are saving.” The finalists will be selected by an independent adjudicator.

3.      Four of the finalists will receive a $50.00 credit in their active Acorns Grow Australia Investment Account. The winner from the five finalists will receive $300 invested into their Acorns Account.

4.      Finalists will be announced on Friday 21st of October 2016 and the Grand Prize winner announced on Friday 28th of October. Winners will be announced directly through Facebook.

5. Finalists must contact Acorns via madison@acornsgrow.com.au with the email address connected with their personal Acorns account. The prize amounts will be made available in their Acorns within 3 days of this date.

6.      The permit number in the format “NSW Permit No. LTPS/16/08287.”

7.      This promotion is in no way sponsored, endorsed or administered by, or associated with, Facebook. 

8.      The competition is promoted by by Acorns Grow Australia Limited, Level 11/2 Bulletin Place Sydney 2000 NSW, 1300 754 748. ABN 26 604 402 815, who is the Authorised Representative of AFSL 434776. The Acorns product will be issued in Australia by Instreet Investment Limited (ACN 128 813 016 AFSL 434776) and promoted by Acorns Grow Australia Limited (ACN 604 402 815). A Product Disclosure Statement dated 27 May 2016 for this product is available on the Acorns website and App. A person should read and consider the Product Disclosure Statement in deciding whether or not to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement, and include the risks that would ordinarily apply to investing.

9.      “Acorns” and “Invest the Change” are registered trademarks of Acorns Grow, Inc. 

NSW Permit No. LTPS/16/08287

What would happen to the markets if Donald Trump were to become president?
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It’s looking less and less likely as time goes on, but we have been thinking a bit about what might happen in the markets if Donald Trump were to be elected President of the USA.

He hasn’t exactly inspired investors, and indeed the markets seem to be reacting positively as his chances of being elected diminish. But are they making a mountain out of a molehill? A good place to start is by looking at another big political event in 2016, Brexit.

When Britain voted to leave the European Union in June this year, the markets were sent into panic mode. We saw the markets fall, then for a relative short period movement up and down, as investors decided how they felt about Brexit. After this period, everyone seemed to realise that Britain wouldn’t leave the European Union any time soon, that a Brexit takes time, and that the world wasn’t really burning down. The markets settled back and even rallied higher than the pre-Brexit levels and calmness was restored.

Why is this important?

Whilst Donald Trump becoming President would certainly cause some uncertainty, it is unlikely that he will be able to dramatically affect the USA or business as many seem to predict. He does not have control of congress, he does not have support of much of his own party and as President Obama found out, it is difficult to enact significant changes or allocate funds for new projects – such as building a wall between Mexico and USA - with this dynamic.

So expect some short term volatility if the unlikely happens and Donald Trump becomes President, but as we always remind Raiz investors, remain calm and stick to a disciplined investment strategy!

Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
6 Ways to Save This Silly Season
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  1. After the fun of Christmas is over, many of us are left with a hefty bill or a ton of guilt in the New Year. It can be hard to avoid over spending in the festive season, but saving in the run up will help soften the blow for the rest of your summer.

    It can be difficult to fund Christmas festivities and gifts with just your December pay check alone – so it makes sense to be prepared. The Raiz philosophy of saving small amounts regularly can apply when preparing for the silly season - a small amount over a few months can make a big difference.

    According to ASIC, Australians spend on average $1, 079 over the holiday season! This includes food, presents, travel and decorations, among other expenses. Their research also reveals that during the year the average Australian spends $32 a week on meals out in restaurants, $161 on recreation costs and $44 on clothing and footwear. Over the next 10 week period in the run up to the holidays, that adds up to $2370 in ‘extra’ costs.  

    If you make a conscious decision to cut spending and save the difference in preparation for the silly season – that’s the Christmas cost covered.

    Money tips from Raiz on how to save this Christmas:

    1.       Make a list and check it twice - start budgeting early! ASIC believe that only 57% of Australians set a Xmas budget, and then only 4 in 5 stick to it.

    2.      Automate those Christmas savings with a Recurring Deposit function offered by Raiz

    3.      Try and avoid paying for Xmas fun on credit, you will thank yourself when you start 2017 free from holiday debt

    4.      Plan and prepare your purchases– prices are always jacked up in December!

    5.      Consider starting some cheaper Christmas traditions – picnics in the park over fancy lunches, Kris Kringle over individual presents for every family member etc.

    6.      Look for Christmas deals and hacks – keep a special eye out of Raiz Found Money Christmas promotion launching in December to boost your savings when finding the perfect Christmas gift.  

  Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
You don’t need to get it to make it!
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By
Clayton Daniel

I was in South America a month ago visiting Machu Picchu with my dad. The bloke is a mad dog old school traveller but was recently diagnosed with Parkinson’s. As such we made plans to tick off the final item on his bucket-list together.

It was awesome. Although between the both of us we have nearly seen every corner of the globe, we had never travelled together. It meant a lot to both of us, and I hope we get to do it again.

Now before you hit the edge of the Amazon jungle and start the journey to the mountain top ruins, the last main city you come across is Cuzco. Cuzco is a strange melting pot of traditional Peruvian life, significant religious influence and tourists.

And even though there are tourists, the good news is the city doesn’t bend its own culture to appease us like Thailand or Bali. As such it still seems authentically Peruvian. It’s mostly safe (although I was robbed there five years previously on a backpacking sojourn under a higher level of inebriation – I consider it my own fault), and many of the buildings are from Inca times or early Spanish settlement.

I’m trying my best to set the scene because there was one massive difference between this visit and my first visit five years ago – large numbers of people standing in one corner of the town all on their phones.

Okay, so I’m sure you’ve heard of this Pokemon game. It took something like a week to become the most downloaded mobile game of all time. And I’m all for a video games getting people out of the house. The only problem was, I didn’t see anyone interested in their surroundings, all I saw was people looking down to an item right in front of them.

This event didn’t really impact me as it was the first time I had seen it, and thought it was a weird Peruvian anomaly. Alas, when I turned up in New York only a couple of weeks later I saw the exact same thing – just more people this time.

As I walked up to the south western entrance to Central Park, I noticed I was surrounded by hundreds of people staring at their phone. In disbelief I realised that again, everyone was playing Pokemon.

In my first ‘senior moment’ as a thirty-three-year-old, I pushed a small amount of air out of my nose which can only be described as respiratory disdain and thought to myself ‘why are these people so focused on the small thing in front of them, when they have all of this to experience’?

“The issue is what is constantly being taught by formal education, and by the media is that you have to ‘pay attention’ to your money” 

Thankfully as I choose not to hold grudges towards large non-descript masses of people casually enjoying their lives, I was easily able to continue with my exploration plans, but I did take away this story as it works so wonderfully as an analogy for how we interact with money.

The issue is what is constantly being taught by formal education, and by the media is that you have to ‘pay attention’ to your money. Staring at the amount in front of you is more important than the bigger picture – the outcome of your money. The passive point being, the more attention you pay to your money, the better you will be with it.

“Of course if you pay attention to your money you will be better with it…. The big trick. The point every financial commentator misses is this: you don’t have to”

Now, caveat. This is actually correct. I can’t claim otherwise because I would be lying. Of course if you pay attention to your money you will be better with it. I’m a perfect example of this. Ten years ago I knew nothing about money. I dedicated my life to understanding it, and now I’m here.

But guess what. The big trick. The point every financial commentator misses is this: you don’t have to.

My entire life for the last decade has been dedicated to understanding money. I did an accounting degree, worked as an accountant before turning to financial advice. A decade later, I know a thing or two about dollar signs followed by numerals.

I had the type of personality to do so. But what if you don’t? What if you don’t want to pay attention? Does this have to mean you won’t be successful with your money?

“Thinking about money all the time on top of thinking about your career, your family, and your own personal goals adds up. It’s called decision fatigue and is the plague of our generation.”

I no longer subscribe to the concept you have to become a monetary version of a Pokemon player. To have your head down, only concentrating on the thing in front of you. And the reason is, you probably find it all sensationally boring. And that’s okay.

Thinking about money all the time on top of thinking about your career, your family, and your own personal goals adds up. It’s called decision fatigue and is the plague of our generation. In fact unless you work with money, you should be doing whatever you can to put as much distance between you and it so you can focus on things that are important to you.

Money is simply a facilitator of what you want out of life. What you want out of life – your ideal lifestyle – should be the focus. Your money will ultimately fill in the spaces to meet the direction you want to go.

If you want a family, mortgage, a new car on lease – you will get that.

If you want time to tick off a bucketlist with your old man before he shakes down the mountain – you will get that.

If you want to become rich at the sacrifice of family and time to yourself – you will get that.

“Whatever you choose to do with your life, the good news is you do not need to understand money as well as Warren Buffet in order to wield it….There are shortcuts”

We can’t have everything – you only get one life after all – but I’m a big believer in everyone getting what they want out of life. There’s no right, and no wrong, there is only those who have sat down to think about it, and those who let the decisions happen to them without much thought.

Whatever you choose to do with your life, the good news is you do not need to understand money as well as Warren Buffet in order to wield it. You don’t need to dedicate a decade of your life. You don’t need to stare at a screen infront of you and miss the bigger picture. There are shortcuts.

Firstly, decide what you want out of life. That’s a big point in a small sentence I know – but it still deserves your time. If you don’t, the easy and default answer is simply ‘more’.

Second, put aside an amount for yourself to spend each week to fund your ideal lifestyle today.

Lastly, put aside an amount for yourself to spend later in life when you no longer work. Medical science is getting quite good, so you’re not going to die anytime soon. You’ll want some money to fund your ideal lifestyle in the future also. And the best way to invest is low cost/low tax environments – but that’s an article for next time. Clayton Daniel author of upcoming book Fund Your Ideal Lifestyle    Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
August 2016
Money Doesn’t Make Life Better – Money Management Does
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I have a confession. Even though I’m a personal finance guy - I still waste money.

Okay, that actually feels quite good to say out loud.

I mean, I do fairly well with my money management, but I am no Patron Saint of Savings.

I did however meet one last night. And while in some quarters this may be seen as a laudable pastime, I have to say by the sounds of it, the juice just isn’t worth the squeeze.

Let me share with you a conversation I had over dinner last night. As a bunch of guys in our late twenties / early thirties, the topic of money came up as we critiqued the latest (and greatest) iteration of my upcoming book’s cover. With that came questions about what my career has been in the personal finance space over the last few years, and then one of them casually popped out this sentence:

‘I save 75% of my after tax income’.

What? Excuse me? As the rest of us queried his definition, I sat in disbelief.

How can someone in their late twenties, living in a capital city in Australia, survive on 25% of their after tax income? But despite our best efforts to get him to ‘fess up to his obviously incorrect calculations, he stuck by it. He said his goal was to retire by 40, in which case he had 12 years to put money aside.

Now, I for one am not going to diminish his efforts. To his credit, he was the only one not to join us at Baxter’s Inn later that night, so perhaps he wasn’t facetious, but I will question one thing - his intention of retiring at age 40.

It’s this part of the story which makes the least sense to me. As someone used to teasing out lifestyle plans, and bringing to light the inherent conflicts which exist for everyone, I found the concept of someone young and full of ambition putting forward the goal of ceasing to work as young as possible to be a complete non-sequitur.

And here in lies why money management is far more important than money itself. The uncomfortable truth is – it’s only those who can work hard enough and smart enough, and are successful enough at an early age are able to retire at age 40. And if I was to present to you the exact type of person who doesn’t want to sit around all day doing nothing – well it’s the exact same type of person.

So this young gent, earning lots of money, hard working, and not spending any money is going to probably achieve his goal of retiring early. The only problem is, when he gets there – he’s not going to want it. There will be too many well ingrained habits of early mornings and full days for him to simply wave goodbye to it all.

I don’t mean to call this guy out all alone, he is just another one of us. He’s caught up in the emotional effects of money, has chosen a direction, but hasn’t really played the end scenario out in his mind. At some point he learned of the concept of an early retirement and had been impressed with the idea. As anyone does, he would have went about figuring out how to achieve it, and set the process in motion.

But it’s a half baked idea. Early retirement is certainly not what it’s cracked up to be. Infact most people are forced into retirement, they aren’t looking for it. Generally, people want to do whatever they can to stay active, stay important, and be productive as long as possible.

If your goal is to ‘own 150 properties’ by the time you’re 50 so you can retire early – you can do it. Vendor leasing isn’t exactly a dark art and I’m sure you can figure it out. If your goal is to continuously travel the world and never get swept up in the stress of city living – you can do it. There are endless ways to make a few bucks online these days.

Whatever your plan is – that’s great – just make sure your behavior and lifestyle adjustments match the outcome. For our young and successful hero who wants to retire at age 40, all that is going to happen is he is going to miss out of some pivotal life stages with friends while his asset base grows, only to find it wasn’t worth it when he gets to age 40.

So what does your ideal lifestyle look like? What is it you want to build an asset base for? Knowing this, and thinking it through clearly will not only give you a target to hit, but ensure you are spending your time as well as your money in a way that benefits you the most.

First thing is to decide what you want out of life without any external pressures pushing you in any direction. Then you figure out what to do with your money to make it happen.

And building a large asset base will absolutely be a part of ensuring you live your ideal lifestyle in the future also, so how do you go about doing this.

Well, once there was a time where you needed a real estate agents, solicitors, stock brokers, or financial planners to invest.

These days you need a smart phone and the Raiz app.

One is expensive, time consuming, inaccessible, and overly complicated.

One is cheap, quick, transparent, and easy.

I’ll let you decide which one’s which.

- Clayton

Author of upcoming book Fund Your Ideal Lifestyle www.fundyourideallifestyle.com.au   Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
Are your a risk taker?
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What is risk in Raiz?

Risk is the level of variability you are willing to accept for investment returns. With higher risk, comes greater expected return but also a larger chance of loss .Although every investment involves risk, it is important to note assets with the potential for higher long-term gains are often associated with greater short-term risk.It is therefore essential to select an Raiz portfolio that suits your risk tolerance and investment situation.

Managing Risk with Raiz

Raiz allows you to select one of following five risk profiles for your account. Some people prefer secure assets that have low volatility, stable returns and lower risk, in exchange for smaller potential capital gains. Especially if their time horizon for investing is for a short term goal. These type of investors tend to select conservative portfolios. Others like the thrill of risky investments in the pursuit of high profit and are prepared to accept short-term fluctuations, will select a more aggressive Raiz portfolio. They may be prepared to accept this risk because their time horizon for investing is long.

Conservative

Conservative portfolios will be heavily weighted toward fixed income and cash based ETFs, these typically have lower risk and lower returns profile. Investors using the profile may expect to use the money after a 3-month period.

Moderately Conservative

This portfolio is used by investors concerned with protecting their money. It is associated with low - moderate risk and some capital growth. Investors should use this portfolio if they expect to have an investment time frame of about a year.

Moderate

This portfolio has ETF weightings towards Australian and international equities, fixed income and cash. It has moderate capital growth and a moderate level of risk. Investors would use this profile if they expect to have an investment time frame of 2 years.

 Moderately Aggressive

This portfolio has weightings towards international and Australian equities. It involves more risk with the potential for higher returns. Investors are comfortable with volatility and negative returns in the short run. They typically have a 3 - 5 year investment horizon.

 Aggressive

This portfolio invests towards ETFs in international and Australian equities. It has high risk and the potential for even higher returns. Similar to the moderately aggressive portfolio, investors should be comfortable with volatility and negative returns in the short term. They should have an investment horizon of 5 - 7 years.

What does this actually mean for your investments?

Raiz adjusts your investments to your portfolio choice by varying the weightings of 7 ETFs. You can view these weightings and more details about each ETF by visiting the PDS at https://Raizinvest.com.au/product-disclosure-statement/.

Whatever your attitude towards investing, Raiz has the portfolio that will suit you. You can change your portfolio at any time by going click ‘portfolio’ in the right hand drop down menu. You can also use the calculator which predicted value of your account, and the associated risks over time based on your portfolio choice.

  Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
Search for yield pays dividends for Aussie equities and currency
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As we enter the 3rd week of August, the Northern Hemisphere is on holiday and it is no surprise that the markets are confounding investor expectations, as they are meant to do in August.

In the current low interest rate environment, it is all about yield!

Yield is the income return on an investment, such as interest, a bond coupon, or a dividend from and equity investment.

Negative yield in debt means that the holder of a bond loses money on their investment. With the amount of debt in negative yield now at a staggering $13tn, it is no wonder that the main driving force for equities will be the global hunt for yield. Which in turn is seeing increased investment into the local Aussie market.

Thanks to years of continued investor activism, top Australian companies pay higher dividends and help produce one of the highest yielding markets in the world. Compared to the S&P 500, which yields about 2.3%, the yield from ASX 200 companies is attractive, resulting in foreign inflows and leading Australian companies being included in global yield ETFs listed in the US.

…and it’s not just equity yield that is attractive in Australia, with AAA-rated government bonds producing significant yield when compared to negative yields you would receive from both countries and corporates with lower ratings.

Foreign investment in the Australian market are also having an effect on the Aussie dollar, which is on the rise despite the RBA cutting rates to record lows in August. This rise in the dollar, coupled with mortgage lenders not passing on the full rate cut to borrowers, has seen the RBAs recent decision completely wasted. If it is a weakening in the dollar that the RBA are interested in, then they may think twice about cutting again.

Investors will be keeping a keen eye on the Australian employment report this week for an indication to the strength of the economy!

Important Note: The information is general advice and does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this website.

Investors only: The information in this Document is confidential it must not be reproduced, distributed or disclosed to any other person unless it is part of their statement of advice. The information may be based on assumptions or market conditions and may change without notice. This may impact the accuracy of the information. In no circumstances is the information in this Document to be used by, or presented to, a person for the purposes of making a decision about a financial product or class of products.

General advice warning: The information contained in this Document is general information only. It has been prepared without taking account any potential investors’ financial situation, objectives or needs and the appropriateness of this information needs to be considered in that context. No responsibility or liability is accepted by Instreet or any third party who has contributed to this Document for any of the information contained herein or for any action taken by you or any of your officers, employees, agents or associates.

It’s all about hitting your splits
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Any marathon runner will tell you: You don’t think about all 42 kilometres at once. That would be too overwhelming. Instead, picture the race in chunks: 5km, 10km, or even one kilometre at a time. Manageable chunks.

This same philosophy can be useful when saving for your post-work life, especially when it’s still decades away. While the idea of saving $1 million may feel like a near-impossible feat, putting away just $150 or so per month in your 20s seems completely reasonable—and that still may get you to the million-dollar mark by retirement age, provided you’re disciplined, start early and hit your “splits,” as runners would say.

Just get started, save regularly, experience the power of compounding returns and learn about market risks– and track your progress. 

For the sake of simplicity, let’s set aside inflation, fees, taxes and dividends. Yes, those things are important, but it’s more important that you just get started, save regularly, experience the power of compounding returns and learn about market risks– and track your progress.

Here’s what this example could look like:

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Okay, deep breaths. I’m going to walk you through these targets, and explain why they’re more reachable than you might think—and why, if you’ve hit 30 and haven’t saved that much, it’s not too late.

The first thing you’ll probably notice about this chart is that your money doubles every seven years. I’m basing that on an investing concept known as the rule of 72, which says that if you earn 7.2 percent interest annually your money doubles in 10 years. Roughly, the reverse is true, as well: If you earn 10 percent on your money, it doubles in 7.2 years.

You also likely noticed that the larger you’re starting point in each doubling cycle, the larger the growth….That means the most important consideration is starting the doubling clock. 

For the milestones listed above to work, you’ll likely need growth from both equity market returns (say, 7 percent) and additional cash saved (3 percent). Any percentage variation works—bigger investment returns, less cash added; more cash added, smaller returns—so long as you get to about 10 percent, your money will double every seven years or so. 

You also likely noticed that the larger you’re starting point in each doubling cycle, the larger the growth. Under the example above, the balances really start to grow—to $200,000, $400,000 and beyond—during your 40s and 50s. That means the most important consideration is starting the doubling clock. If you embarked on this particular milestone chart at 37 instead of 30, for example, you may be missing $800,000 by retirement age.

Now, let’s talk through my assumptions, and how I got there. Again, it’s not that difficult to get from $50,000 to $100,000 in just seven years. You can do it by earning 7 percent in returns—a fair guideline for market returns—and contributing about $150 per month to your account.

Note the difference saving regularly makes, by contributing larger cash you may significantly reduce the time to double your money.

it’s entirely possible to start a humble retirement account, add $150 per month in your 20s and 30s and still be on target to retire a millionaire. You just have to hit your splits. 

Another thing to keep in mind about your contributions: As you get older, the amount of cash that must be added in order to keep up the doubling effect—the 3 percent—needs to grow substantially. But you’re likely making more money, so that’s not unrealistic. For example, between ages 37-44, you’ll grow your retirement balance from $100,000 to $200,000 by earning 7-percent returns, for example, and depositing at least $250 per month (based on 3 percent of your starting balance, and assuming you’re getting 7 percent returns). Then from ages 44-51, your balance will balloon from $200,000 to $400,000 with 7 percent returns and at least $500 in monthly deposits (3 percent of $200,000 divided by 12).

Raiz fully automates this process, with the Roundup and Automatic Investment feature you can hit your splits whilst living your everyday life. 

So yes, it’s entirely possible to start a humble retirement account, add $150 per month in your 20s and 30s and still be on target to retire a millionaire. You just have to hit your splits.

It is time to start thinking about saving for retirement, just like you would if training for a marathon.  This is where Raiz can comes in.  Instead of just waking up one day and trying to sprint 42km, you need to train, and start working on your financial fitness. Raiz fully automates this process, with the Roundup and Automatic Investment feature you can hit your splits whilst living your everyday life.

But none of those facts detract from the undeniable power of regular savings, time and compounding. A journey of a mile begins with the first step. A journey to $1 million begins with your first $100 investment.

Important Information

The examples above are for display purposes only and to illustrate a point – actual returns will be different and could be significantly less than the examples.  

This blog was written by Raiz Limited– Authorised Representative of AFSL 434776. The Raiz product is issued in Australia by Instreet Investment Limited (ACN 128 813 016 AFSL 434776) and promoted by Raiz Limited (ACN 604 402 815). A Product Disclosure Statement dated 27 May 2016 for this product is available on the Raiz website and App.

A person should read and consider the Product Disclosure Statement in deciding whether or not to acquire and/or continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement, and include the risks that would ordinarily apply to investing.

July 2016
The Design Behind Raiz
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We at Raiz take great pride in the design of our app – and having won the 2016 Good Design Best Digital Design and multiple national awards in the US it looks like our designers’ hard work is paying off.

We’ve turned to Raiz’ VP of Design in the USA, David Keegan, to let you know a bit more on the design of Raiz, and why it’s so important.

Why is design important?

“Design is how people see and engage with a product. This is important because it’s how people use and interact with the technology behind Raiz. We think a lot about ways we can make Raiz beautiful and delightful while at the same time easy to use and understandable.”

What is the most important thing to consider when designing an app?

“The most important thing to consider when designing an app is to think about how people are actually going to use it. Above all else we strive for simplicity. When designing mobile apps people are often on the go, using their phones here and there hundreds of times throughout the day. Everything from the signup process to depositing money, or simply checking your balance needs to be quick and easy, never more than one or two taps away.”

What are the key elements to the design of Raiz?

“The most important element to the design of Raiz is its simplicity. Raiz makes it easy and streamlined to get signed up, and to start saving and investing. We also use beautiful graphics the help make the app enjoyable. Investing is often an emotional experience so we try to infuse the app with calming natural colours and gradients.”

What other apps, products, or brands do you admire?

“My favourite brands are ones that embrace elegant and simplistic design. Some of my favourite brands that exemplify this are of course Apple as well as Audi and Tesla. I try to draw inspiration from these brands, with a dash of Lamborghini colours for aspiration 😉 I constantly keep these brands in mind when working on the branding and design of Raiz.”

Let us know on our Facebook and Twitter pages what you think of our design, and what other brands inspire you!

  Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
Pokemon Go sky rocketing Nintendo share prices
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Unless you have been living under a rock, it would have been impossible to not notice that Pokemon Go has taken Australia by storm.

Launched last week, Pokemon Go is a mobile game which has reinvented the popular 90’s cult franchise Pokemon. The game uses GPS to track players and through their smartphone cameras, incorporates the game’s monsters into the player’s surroundings.

The game has been an instant hit, with the app currently topping several charts on Apple’s App Store.  Nintendo shares are up 60% in the past three days since Pokemon Go was launched on the 7th of July – illustrating the power of pop culture!

Nintendo has enjoyed a whopping AUD$12bn increase in market value. It should give a new lease of life to the conservative Kyoto-based firm, which had long steered clear of smartphone gaming.

The app is free to download and is estimated to have been downloaded 7.5bn times in the US alone. The lucrative value of the app is seen in its in-app purchases, which occurs when a player is tempted to buy more useful items within the game.

Excuse the pun, but Pokemon Go is literally ‘changing the game’ when it comes to mobile apps. We can’t wait to see how more apps like this push boundaries and sail into uncharted territory.

  Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
Feeling bullish? The best 10 uses for your tax refund
bull By the Superfitdad  

It’s the end of the Australian financial year which means, for those who have incurred personal expenses in the course of their business, it’s tax return season and, ideally, tax refund season.

Much like the truffle season in Alba or the Indian wedding season for Gold prices, this can mean a flurry of expectant spending or, at the very least, plotting about what spending might ensue, assuming things work out favourably.

And irrespective of whether you have a tax refund in the offing, any time you have a lump sum coming your way, it’s a great opportunity to start building or growing your asset base.

So, in no particular order, here are some things to consider.

 

1.Clear Debts (Especially Credit Card)

You might think: so what? A measly $1k on the credit card. No need to worry about that. Let’s buy some shares or a holiday or some fun – pick your poison!

NO. Not on your nelly, my friend. The reason? Unless you have an interest-free card or have transferred a balance, you’ll be paying 15-25% on the credit card debt. All your other investments will NOT be paying you anywhere near this much. At least on a consistent basis.

 

2. Pay Down Mortgage / Save For A Mortgage

Paying down your mortgage might not seem sexy. In fact, there an entire industry geared around enticing you to do other things with you money. Ignore them, though, and seriously consider paying down your home loan.

But being mortgage-free, early, is a pretty cool thought. If you don’t have own property yet, start thinking how you can accelerate the process.

 

3. Invest In Yourself

How many new skills have your learned since you were 25? For many of us it’s hard enough mastering the meagre skills we’ve been given or acquired so far. But investing in ourselves and our future by cultivating our skill-set or talent stack is probably the most important investment we can make.

To a certain extent, it doesn’t even matter what you’re learning. Whether it’s learning a foreign language, taking a course on public speaking, learning to write code, the key thing is to be challenging and stimulating ourselves to develop and grow. Do this and, almost by osmosis, your performance in all areas will soar.

 

4. Top Up Your Superannuation / Pension Fund

Propping up your pension with an after-tax lump sum isn’t as attractive as chucking in pre-tax and reaping the tax benefits offered by salary sacrificing, say.

And, it’s not really sexy.

BUT…

Don’t you want to have a comfortable retirement, especially given that there’s no telling how long we might live nowadays? Also, once you’ve tucked it away in your pension, it’s there for a very long time, giving it a very love-you-long-time cogitation period. Which, in plain English, means it’s got plenty of time to grow and accumulate.

 

5. Become An Owner

Feeling emboldened now that you’re newly flush? Hit the markets. Not the Farmer’s Markets, silly. The Stock Markets. A good way to get some exposure to the markets and become an owner (in a very tiny way, of course) of some of the world’s biggest and best companies is via index funds.

Index funds are popular because they don’t carry the same kind of costs associated with actively managed funds. [Question: have you ever met a poor fund manager? No, me neither. It’s because your fees are paying for the Jag, the Rolex and their kid’s school fees.]

Not only are index funds cheaper than managed funds – often by 1-2.5% per year – they routinely outperform the funds with managers. Strange, huh? So if you’re looking for a proven way to create and grow wealth over a long time-frame (10+ years), the stock markets and index-linked funds tread a proven path.

Or you could…

 

6. Buy Individual Stocks

Not for the faint-hearted, this can be an exciting ride.

If you get a tip from a mate about a firm that makes mining valves and supplies a firm who’ve just found a massive unknown copper deposit somewhere in the middle of Whup-Whup, well, you could be quids in.

You’re unlikely to get any information before hundreds and thousands of others have that same information. That hot tip your mate gave you has been through brokers and dealers and market-makers. People will be all over it.

The golden rule, though: always tick the box to have your dividends invested. Never deviate from this and you should be okay [assuming your stock pays a dividend].

 

7. Travel

They say nothing broadens the mind like travel.

Which is tricky because if you’re a new-ish parent, the idea of transporting your chaotic sleep-deprived existence to somewhere unfamiliar where you don’t know the name of the barista or the nearest 24 hour petrol station for the late-night banana dash. But whether you’re encumbered by kids or not, it’s never that bad.

It’s actually wonderful. The whole family seem to recognise the importance of the trip and improve their behaviour tenfold.

 

8. Buy Art

If none of the options listed before appeal, then there are a couple of other options to consider.

I select them because they have the potential to be appreciating assets.

If you can cultivate an appreciation of art, I think it can be useful. Finding something (as in, a piece of art) that resonates with you and can calm you when seas get stormy can be a real comfort.

 

9. Buy Jewellery

This is basically: a watch.

As we’ve seen there are a myriad of options and we’re in danger of suffering from a Paradox Of Choice when it comes to using our tax refund wisely.

There are other things I couldda and shouldda mentioned – But, in the interests of expedience, we’ll leave it there for now.

At the very least, buy something that will appreciate and grow or will help you or someone else appreciate and grow. As long as you do that, you’ll be winning.       Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
Tackling Tax
person working on table The new financial year has begun, and the tax-man is knocking at your door again. Here are some key tips to send him on his way with a smile: Ensuring you have all the accurate information makes the tax return process that much smoother. Before you start, make sure you have all that paperwork ready to go. Hopefully you’ve kept all necessary information very organised throughout the year… Some of the key documents you’ll be needing are: Your Income:
  • Payment summaries
  • Bank statements
  • Shares, unit trusts or managed funds statements
  • Buy and sell investment statements
  • Records from your rental property
  • Foreign income details
Your Expenses:
  • Private health insurance policy statement
  • Donation receipts
  • Educational records and receipts
  • Investment property receipts
  • Your spouse’s income and expenses
  • Union membership
  • Work related expenses
Deductions are awesome. They allow you to claim work-related costs against your tax, these can include sun glasses, computers, vehicles etc. Although, one must remember that these expenses must be: Real – you must have spent the money yourself for the product or service Relevant – they must be related to your job Recorded – in the form of a receipt The ATO has some good info on
possible tax deductions based on your occupation. As a Raiz investor, any realized capital gains/losses through Raiz will be tax liable.  We will produce an annual tax statement for all investors by the end of July. These statements will contain all details necessary for filling your tax returns. If you have any further questions about your tax statements please do not hesitate to email the Investor Success Team at support@Raizinvest.com.au or alternatively call us on 1300 754 748.   Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
Undecided election leads to an undecided market
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The focus of the Australian market is on the result – or rather lack of result – from the weekend’s federal election. It appears the most likely outcome is a hung parliament although we may have to wait some time until we know for certain. Unfortunately, the Australian Electoral Commission has made it clear that it won’t begin counting any more votes until Tuesday, leaving buyers and sellers in an information vacuum.

“Such uncertainty is never good for markets…. However, the Australian economy remains strong.”

As the possibility of a hung parliament looms closer, the financial market grows more and more uncertain. Additionally, the prospect of the second hung parliament within three years escalated speculation the governments AAA-credit rating will come under pressure in the coming weeks.

Such uncertainty is never good for markets, and traders may have to wait a month or even longer to start to get a picture on who will be forming a government for the next three years. However, the Australian economy remains strong. We do expect international money flows into our market will slow until the election outcome is known.

“If Brexit taught investors anything, at times of such economic uncertainty it is important to remember the golden rule; do not panic!” 

Australian Chamber of Commerce and Industry boss James Pearson believes it’s very likely that whoever does form government will now have to build strong relationships with crossbenchers “to get things done.” Sometimes a minority government can implement a higher level of discipline and ultimately work better.

If Brexit taught investors anything, at times of such economic uncertainty it is important to remember the golden rule; do not panic! Much to the surprise of market participants, equities and bonds have recovered most of the losses they experienced in the wake of the Brexit vote.

Additionally, The Reserve Bank is observing all of this unfold, potentially intervening with an interest rate cut on Tuesday, although economists think this is unlikely. We are also expecting a 0.5% month on month rise in retail sales reflecting a sustained rebound in consumer confidence following the RBA’s decision to cut interest rates in May.

  Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
Diversification: the key to success
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In the 2004 documentary Supersize Me, Morgan Spurlock eats food only from McDonalds for a whole month. What was the result? He gained weight (a lot of it), experienced mood swings, and frequent headaches.

“Like your diet, your share portfolio generally suffers if you just choose one stock and don’t mix it up”

Now we all love the occasional Macca’s every now and again, but it’s probably safe to say that you should mix it up and maintain a balanced diet. Our body stays healthy that way.

Like your diet, your share portfolio generally suffers if you just choose one stock and don’t mix it up. Choosing different stock types to work together is one of the most important things to keeping your portfolio healthy.

“By spreading out your investments, you avoid putting your eggs in one basket. If that basket breaks, you can’t have your omelette, that’s a risky situation”

For eating we call it a balanced diet, for investing we call it Diversification. This blog will tell you a little bit about diversification, how it works, and how you can achieve it.

How does diversification work?

Diversification basically means spreading your money across a variety of different investment types. Often these investments perform differently at different stages of the business cycle, or have different correlation with each other.

By spreading out your investments, you avoid putting your eggs in one basket. If that basket breaks, you can’t have your omelette, that’s a risky situation.

For example, take the example of stocks and bonds. During a bad period for the stock market, we tend to see bonds perform better than stocks. If you had a portfolio full of stocks and no bonds at this time, you’ve just missed out on the action. By diversifying you can avoid big shocks to your portfolio.

But it’s not just different asset classes that behave differently. Healthcare stocks will perform differently to Oil stocks, Oil stocks may behave differently to Tech stocks, Foreign Tech stocks may behave differently to Australian ones. There’s many different investment types to diversify.

How can you diversify?

ETFs are a great start (What is an ETF?).

“When you invest with Raiz, you diversify” 

With ETFs, you can spread out your investments over hundreds of different stocks. There are ETFs for local stocks, foreign stocks, bonds, and much more.

When you invest with Raiz, you diversify. Each of the 5 portfolios offered by Raiz are diversified across 5 different ETFs, different countries, and asset classes.

Our portfolios were designed with diversification in mind, and to give the investor the best expected return for the amount of risk they’re willing to take on.

So don’t have Macca’s for every meal, and sign-up to invest with Raiz today.

  Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
June 2016
Brexit - now what?
  As many of you will be aware, last week Britain voted to leave the European Union (EU). This caused much discussion and uncertainty in the markets, however this is settling down and the ASX looks like opening flat this morning. We will not know the full extent of the economic impact until we understand the deal that the UK will negotiate with the EU. This could take a number of years, and will probably happen before they invoke Article 50 in the Lisbon Treaty which starts the divorce of the UK from the EU. We expect this initial shock to die down over this week, so don’t panic, be calm The UK will be negotiating for the next few years on the options below:
    • Being part of the EU all but in name, like Norway but this also includes payments to the EU with no seat at the table.
 
    • They could negotiate a Customs Union model like Turkey.
 
    • A bilateral agreement between the UK and EU similar to the Swiss model, but this also requires payments to the EU.
 
    • A free trade agreement like Canada, but this took Canada 15 years to negotiate.
 
  • A combination of the above while also relying on the WTO agreements.
The above options take time to negotiate, also the UK will also need to start negotiations with other countries outside of the EU ( for example it will not be able to rely on the FTA the EU has with Canada). So the main takeaway is that UK will be part of the EU for a while longer, and we can expect the status quo from an economic perspective. So don’t panic and remember that this is the time when a disciplined investment strategy shows it’s true value. Thanks for investing!   Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
ASIC responds to the important issue of providing internet banking credentials to Acorns

As you may be aware, I wrote to the Prime Minister, Malcolm Turnbull, (4 March 2016) about the ePayments Code, and how the banks were playing fast and loose with the truth when telling consumers that their internet banking login details should not be disclosed to third parties, such as Raiz.

This is an important issue as most of our users provide their internet banking details.

It was Raiz’ opinion that the banks were overstepping the mark and now correspondence I have received from ASIC would suggest the regulator, at the very least, has sympathy with our point of view.

Without going into all the details, this was positive news because of the following points ASIC made.

1. ASIC acknowledges that the messaging from banks about not sharing your login details with third parties is from the early 1980s, when ATMs were introduced, and is out of date in the new world of apps such as Raiz.

2. ASIC acknowledged the potential value of third party services, such as Raiz, having interaction with a consumer’s bank accounts.

3. ASIC notes that the Government has accepted the recommendation of the Financial System Inquiry to make the ePayments Code mandatory.  If this mandatory adoption of the Code were implemented, ASIC would ensure that the Code, which protects the consumer when providing internet login details, is “operated appropriately” by banks. Although ASIC did not spell it out, we understand that what ASIC is saying is that the banks are currently not “operating appropriately” under the Code. But until the Code is mandatory they will not act unilaterally while other areas of government, such as the Productivity Commission, are reviewing related issues.

This correspondence from ASIC indicates that the regulator understands the position of Raiz and has expressed a degree of solidarity with that position in regards to the misleading information being provided by some banks. We’re looking forward to seeing how this develops and reaching a point where Australians are free to engage with services such as Raiz without concerns that they are breaching conditions set by their banks.

George Lucas, Raiz CEO

  Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
Save like a vault, spend like a Rock Star
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By Clayton Daniel I love it when a simple mathematical illustration can explain things clearly. Think the Pareto Principle of 80/20. Pretty much a well-established fact you will get 80% results from 20% of the effort. Simple, easy to understand, and pretty accurate. “People are split almost down the middle 50/50 between savers and spenders” The same goes with standard deviations. We all know the bell curve, but the fact it almost perfectly summarises the population in terms of whether they are a Spender or a Saver is almost uncanny. Based around research from a range of sources and my own experience as a former tax accountant and financial adviser, I’ve come to the conclusion people are split almost down the middle 50/50 between savers and spenders. Half the population spend everything they earn, and the other half manage to put some money aside. It gets a little more interesting when you break those two halves up even further between moderate and extreme. Run-of-the-mill Spenders By that I mean, the first deviation of Spenders are your everyday, run-of-the-mill Spenders. They are the type of person that runs out of money just before pay day, and are relieved when the next pay cheque comes in. They don’t really get themselves into too much trouble, but aren’t really interested in doing anything to ‘get ahead’ other than focusing on the next pay rise or promotion. Pay-check to Pay-check Spenders The second deviation Spenders get a little more serious as these people start to get themselves into a little bit of trouble. The first filter they gauge each decision with is ‘what do they want’? The basic premise is if they can’t afford something now, they will with next month’s paycheque. These type of people carry around the $10-$20k debt in credit cards and personal loans and don’t really think it’s a problem. The idea of putting money aside for the future is redundant as they have ‘bills to pay now’. Train Wreck Spenders The third deviation on the Spenders are train wrecks. The problem is, by looking from the outside in, you can never tell. These people make up the 2.5% of the population that look amazing on the outside, but peer beneath that surface and things are going to hell in a handbasket. These type of people are in astronomical amounts of credit card and personal loan debt and really only have two ways out, lots of hard decisions or bankruptcy. The problem is generally too big to admit to themselves, and instead they focus on a mythical ‘big pay day’ to solve all their problems. The Savers on the other side of the divide may sound like they have everything together, but they too experience their own set of problems. Save to Spend Savers Let’s first examine the first deviation, the regular Savers. Interestingly, these type of Savers only save to spend. That’s right, the majority of Savers are really just delayed Spenders. These Savers will save for a specific purpose, be it a holiday, a new vehicle, or a home. The purpose of their savings is to facilitate the purchasing of things they want to spend money on without going in to too much debt. Savers with Intent The second deviation Savers have a little more intent in their savings. It’s only at this point do we finally meet people who are interested in putting money aside for later in life. They will put aside the classic 20% of their salary to build long term wealth, have no personal debt, but struggle to find the balance between reaching lifestyle goals and not spending too much money. I understand this issue, because if you are disciplined enough to stick to putting money aside, it’s hard to turn that switch off. Dollar Saved is a Dollar Earned Savers And finally the third deviation or most extreme Savers are the one’s solely focused on building wealth from a young age and put every single cent aside to achieve that goal. They want to save every single cent, any money spent is money lost. To them ‘a dollar saved is a dollar earned’. They are the kind of people who never do anything social, and on the off chance you get them to join you, don’t get stuck on a round of drinks with them as we both know you’ll end up carrying them. “The mentality of each side means that once the grooves of consistent behaviour have set in, it is extremely hard to change” So you have your Spenders on one side and your Savers on the other, and never the both shall meet. The mentality of each side means that once the grooves of consistent behaviour have set in, it is extremely hard to change. Not to say it can’t be done, but it’s hard. And if there is ever any conversation around change, it is always to move someone from being a Spender to a Saver. “It’s as if the answer to all of life’s issues can be solved as one moves from being a Spender to a Saver….and here in lies the problem” The problem the Spenders will attest to here, is it’s much more boring on the Savers side. And let’s face it. They have a point. It is. But I think this idea epitomises the major flaw in our corrosively boring ‘personal finance’ education. It’s as if the answer to all of life’s issues can be solved as one moves from being a Spender to a Saver. “The answer is not to go from spending to saving, it is to exist simultaneously everywhere on the divide. To save like a vault and spend like a Rock Star” And here in lies the problem. What self-respecting Spender is going to hang up the gloves and become a penny pincher? It’s not going to happen. In fact it rarely does happen. So do we just leave it there? An endless array of personal finance specialists, one after the other repeating this advice to no avail? Is this the only answer? Or once again, have we all just taken this advice from people with no real world experience? “ The answer is not to feel bad about spending your own money, but instead to have an amount set aside for guilt free spending” After managing the cash flow of people on all ends of this divide, I can tell you the answer is not to go from spending to saving, it is to exist simultaneously everywhere on the divide. To save like a vault and spend like a Rock Star. The answer is not to feel bad about spending your own money, but instead to have an amount set aside for guilt free spending. The goal is not to have ‘long term savings’ as the word ‘savings’ is super boring and un-engaging, but instead to have ‘investments’. And the goal is not to avoid travelling, but to have a ‘lifestyle bucket’ to support your need and want to live the life you’ve worked hard for. “Automation. Automation is key” But here is the hard part. How do you hold two opposing thought patterns - both Spender and Saver – at the same time? If you were lucky enough to 
read my last article for Raiz you will know the answer. Automation. Automation is key. Remove your fallible self and the inefficient use of your own time and decision capacity and outsource to automation. Stop wasting your time managing your own money and let technology do this for you. Clayton Daniel, Financial commentator and author of upcoming book Fund Your Ideal Lifestyle   Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
May 2016
The Sneaky Money Trick That Fools Us All
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By Superfitdad You might not be into investments for any number of reasons. Maybe you don’t understand the vagaries of the markets and prefer to stay away from things you don’t understand. That’s perfectly understandable. Maybe you’re more into property, since “there’s no better investment than bricks and mortar.” Again, perfectly understandable. But, I’m telling you right here and right now, if you’re in Australia (or most anywhere in the world), there’s an element of the investment markets that you simply CANNOT AFFORD TO IGNORE because you have a (in)vested interest in it. This is something so simple and so basic that it’s almost invariably overlooked. And yet it takes just 5 minute to review it and see if you’re making a simple mistake that could end up costing you hundreds of thousands of dollars. That’s right: fixing this one thing up – the one thing that I’m betting you haven’t looked at recently (because it’s tucked away in fine print on the statement that you barely look at, let alone understand (I’m just starting to get my head around it) – could literally save you hundreds of thousands of dollars. Or put those dollars in your pocket. Do I have your attention? Good. Now, what is it? Your. Superannuation. Fees. Really? Yup, those measly 2% or 3% fees tucked away in a corner of your annual super statement, which, as we’ve established, you probably don’t read because those things are about as user-friendly it’s as if they were written in Arabic. Or Latin. These fees can eat away at your retirement fund like a cancer, compounding and growing as your pot grows. And you’re (probably) letting it happen around you. So if you do one thing and one thing only in regard to anything I’ve ever written, it’s this: See how much you are paying in fees and assess whether the fund manager deserves your money based on their performance. Why This Matters?
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The illustration above makes it clear just how the fees can mount up if left unattended. Assuming you (and your employer) have saved wisely for 40 years, your fund could end up being “worth” circa $1m. Except you’ve been paying an itty-bitty 2% annual management fee to your superannuation fund manager – regardless of their performance – so all you’re left with is $630,000. The scoundrels have taken $370,000 in fees. Compare this $630K with the guy who has been paying 0.5% as an annual management fee. He’s left with a pot of $890,000. That’s 41% more at retirement (or $261,000). That’s a lot of cruises. A lot of pina coladas. Worth checking out what you’re paying, huh? You might be thinking that if your fund is performing well, returning maybe 8% per annum or more, then it’s worth paying a little extra in fees. You’re damn right, it might be. But, often it’s not. High fees don’t always come with high returns. And if you end up accepting high fees for poor or average returns, well, you’re getting mugged off paying for schmick offices and coffee waiters. Remember this: you can’t control how the market performs. But you can control the fees you pay and your approach to risk. Your Task Now (yep, right now, don’t put it off) Promise me this one thing. You’ll go and check the annual management fees you’re paying and take whatever action is necessary.  Superfitdad   Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
Minus the Minutia: the Power of Automation
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by Clayton Daniel, Financial Commentator  

Around twelve months ago I surveyed some 25 – 40 year olds as to what they wanted out of life and what they wanted to avoid. I expected the results to reflect everything I had ever read about Gen X and Y wanting to be rich, retire early on a passive income, kick up the heels or go travelling around the world. The results however did not reflect that expectation.

Instead of early retirement, people wanted job satisfaction. Instead of wanting more money, people wanted more time. Instead of perpetual travel, people wanted something to show for their hard work.

“[Baby boomers] were taught safety and security was purchased with the ownership of assets…..we have now seen the concept of ownership go from the domain of security, to the realm of responsibility”

I was amazed at the findings. Had I been lied to, or had no one simply done what I had done – gone to the demographic and asked? What I realised is that over the last twenty years, a lot has changed. In fact, that is an understatement, everything has changed.

The baby boomers grew up with parents from a war torn era. They were taught safety and security was purchased with the ownership of assets. And that’s what the baby boomers did. They bought. From homes to cars to fancy appliances. Ownership guaranteed freedom.

“Ownership takes time, it takes hard work, and it removes instant gratification”

Gen Y on the other hand have grown up in an economy of uninterrupted growth for the last 25 years. Add in the growth of technology, and the boom of the sharing economy, and we have seen the concept of ownership go from the domain of security, to the realm of responsibility. Why own a car when Uber can pick me up from anywhere and take me to anywhere I want to go. I don’t have to find parking, I don’t have to own a depreciating asset, I don’t even need to worry about sobriety. More convenience for a lower cost, where do I sign?

“Our brain is not built to handle so many things competing for our attention”

This idea of access over ownership has been a massive shift in the way we interact with the world. Ownership takes time, it takes hard work, and it removes instant gratification.

And there is so much to be instantly gratified by these days. Whether you Tinder your way through the weekend, Netflix binge your new favourite series, or stream a new album on Spotify, whatever you want these days you can have it. Immediately.

The problem is, these new services comes with a time cost. And despite the amazing complexity of our neo cortex to create fully functioning and (mostly) rational humans, we still haven’t outpaced our 200,000 year history. Put simply, our brain is not built to handle so many things competing for our attention.

Even a couple of hundred years ago it was simply:

a) Is there food?

b) Is there water?

c) Is there shelter?

If all three are checked, you were good.

These days our tick boxes are a lot more complex. Does your boss like you, did you choose the right career path, and is there kale in your green smoothie?

“You adapt, and create shortcuts to get big results from little changes. And my pro tip is automation”

Our brains are so exhausted by these open loop questions, when you add on the fact we are working longer than ever, and filling every other second we aren’t indulging our senses with a social media hit, it’s no wonder some of us are feeling under the pump.

But this is modern day life, you can’t avoid it. And saying ‘let’s go back to the old days when it was better’ is redundant advice. Instead you adapt, and create shortcuts to get big results from little changes. And my pro tip is automation.

“Once we remove ourselves from needing to make every single financial decision, we can free our minds up to focus on what we should be giving attention to”

Research tells us all these distractions and interruptions require us to make decisions every day. And each of these decisions saps you of your ability to make good decisions. It’s called decision fatigue and explains why over the course of a day, your decisions get worse. Judges make worse decisions in the afternoon compared to the morning, people buy useless extras at car dealerships, and we are susceptible to ‘impulse purchases’ at the checkout. Therefore, the lower amount of decisions you make, the higher your ability to make good decisions.

“One of the best things you can do with your money is to set it all up on automation”

So when the results of the survey I conducted came back, I realised what people needed was a way to deal with modern life. With so many things competing for your attention, how is it possible to make the best decisions? What I found was the more decisions were set to automation in the background, the better the results were for every other part of life.

Once we remove ourselves from needing to make every single financial decision, we can free our minds up to focus on what we should be giving our attention to: performing better at our jobs, making time with family, and finding new experiences.

“[Raiz] hits the spot on two fronts, access and automation”

After implementing this theory for a few years and seeing the results, I am convinced; one of the best things you can do with your money is to set it all up on automation. I don’t know when my rent is paid, how much I have for my next holiday to New York in August, or whether my long term asset base is getting larger, all I know is it is. Why? I don’t control it. It’s all on automation.

In no small way, this is why Raiz has been as successful as it has been. It hits the spot on two fronts, access and automation. It’s easy for me to see my investments as I can access them right on my phone, and secondly I don’t have to do anything, the money is deposited into my account with every purchase.

Avoid decision fatigue and outsource to automation. Go spend your time on things that matter.
Clayton Daniel, Financial Commentator   You can start using Raiz at any time by clicking this link!   Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
Mindful in May
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The buzzword “mindfulness” seems to be everywhere at the moment. Whether you are using a mindfulness app or practicing mindfulness through meditation and yoga – the trend of mindfulness is hard to miss.  Mindfulness is usually discussed in terms of achieving spiritual and emotional awareness, often ignoring the more practical applications it can provide.  Financial mindfulness will lower your anxiety, focus your approach and save you money.

The principle behind being mindful in May is spending 10 minutes a day practicing meditation, and at Raiz we believe this should be applied to being mindful with your money. With the End of Financial Year just around the corner, May is the perfect time to concentrate on being mindful about spending and saving.  This May designate some time to not just develop a financial plan, but reflect on your saving goals, research into investment options, and be mindful about what you are spending your money on.

You can become a master, rather than a slave to your money with these easy tips:

1. Track your expenses manually:

Instead of painfully examining your bank statements at the end of the month, try tracking your purchases manually as you make them. A good way to do this is to write down what you spend whilst you are making the transactions.  Awareness starts in realizing how much and what you’re spending money on. By getting in the habit of tracking your expenses, you’ll become more aware of your purchases and what they mean for your overall financial health.

2. Set a waiting period:

It is so easy in the digital age to buy something without considering if you really need it. With PayPal and Paywave shopping can be such a mindless activity, and it’s not till you receive your bank statement that the guilt sinks in.  To stop yourself from spending in a vacuum, set a waiting period of at least 24 hours to decide if your purchase is really a necessity. The age old advice of ‘sleep on it’ can really make a difference when it comes to impulse purchases.

3. Realise what the trade-offs are:

It is easy to spend money if you are not aware of what you are sacrificing in the long run.  For example, spending $100 eating out a week, or buying an unnecessary item of clothing may not seem like a big deal, but in the long run $100 can go towards paying off a stressful debt, or starting a saving fund for a well-deserved relaxing holiday. It may seem difficult to practice self-control, but challenge yourself for the month of May. Bring your own lunch to work, or meet a friend for a walk in the park on the weekend rather than for a drink.  

Make May your month to reflect on and develop your mental and financial health!
You can start using Raiz at any time by clicking this link!   Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
April 2016
Raiz: A new way to invest
   

Raiz is a micro-investment app looking to bring a new, natural approach to saving and investing. The concept behind Raiz is simple; by starting small, contributing often and committing long-term, anyone can achieve “financial well-being” and reach their saving goals. What is revolutionary about Raiz is that it is a micro- investing platform that allows you to get fully invested in a basket of ETFs quoted on the ASX for as little as $5. This provides first time investors with the tools to make small contributions easily, regularly and cost efficiently.

With low maintenance fees of $1.25 a month, using Raiz for a year can cost less than some traditional brokers charge for a trade. Furthermore, with Raiz there are no exit fees, switching fees, brokerage fees and withdrawing money from your account takes a couple of swipes.  For as little as $5, anyone can now own a diversified portfolio of stocks. We also believe in the financial education of all Raiz customers; a lack of knowledge shouldn’t be a barrier to investing; this is why we make the app easy to use, provide real-time information on your investments, and give everyone a chance to learn about markets through the app and through Raiz content.

These are the three easy ways to get invested with Raiz:

Round-ups

This key innovative feature links spending to savings.  People invest small change every day without even thinking about it.  Raiz makes it possible to link your credit and debit cards and then round up the virtual change from every transaction.  A virtual “piggy bank”.

Automatic Investments

Raiz also makes it easy to set up recurring deposits on a daily, weekly, or monthly basis.  Setting up automatic investment can be done in seconds through the app, and is great for maintaining a regular savings plan.

Lump Sums

Our users can also invest any amount, at any time, with a simple lump sum investment.

With these unique ways to fund your account, Raiz is creating an entirely new approach to saving and investing your money.

 

 Invest with Raiz today

  Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
March 2016
5 Things to Know About Investing
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Thinking about starting your portfolio? Or maybe you’re already a small time investor looking for a little more education. Either way, there’s no shame in not knowing all the ins and outs of markets. And sometimes, just getting familiar with the most basic concepts is all you need to make you feel more comfortable investing.

With that in mind we’ve got 5 investing basics to start you off:

1.       OWNING A COMPANY (OR AT LEAST A LITTLE BIT OF ONE)

When you purchase a share on the stock market you may ask, what am I actually buying? You know your money has gone somewhere, but other than some documentation you don’t get much back. So it’s a good question to ask.

The answer: You own a percentage of the company (or companies) of the stock that you just bought.

If a company has 100 shares and you buy 50, you own 50% of that company.

If you buy 10, you own 10%.

If you buy 1, you own 1%.

You’ll usually own much, much smaller percentages than that, but no matter how much you own, if you have a share you have a legal stake in that company.

2.       THE MARKETS CAN GO UP AND DOWN

One of the greatest myths of the stock market is that they usually go in one direction, up. We can very much bust that myth and tell you they also go down.

Over days, weeks, months, and years the markets can move in both directions. This is important to bear in mind to avoid nasty surprises.

Read more: Dollar-cost averaging

3.       DIVIDENDS

You’ve probably heard of dividends, and you’re definitely forgiven for not knowing what they are.

Dividends are a portion of a company’s earnings, paid to their shareholders. Usually a way for shareholders to enjoy company profits.

If you own 10 shares of a company, and they pay a dividend of $1 per share, you get $10 ($1 x 10)

Read more: What is a dividend?

4.       INVESTING IS FOR EVERYONE

You’d be forgiven for thinking that you need a fancy suit and a degree in finance to invest in the stock market. However, you don’t. Anyone can invest in publicly listed companies, because they are as the name suggests, public! Just like kicking a ball around with your mates on a public oval.

We suggest you do your research and think about your personal situation before making any investment decision. With apps like Raiz around anyone can invest, any time they want, with as little as $5.

Read More: Unique Ways to Invest with Raiz

5.       ROME WASN’T BUILT IN A DAY

This isn’t the Wolf of Wall Street, and sadly we’re not Leonardo DiCaprio. When most people invest they don’t do it to get rich quick. Building a portfolio and letting it grow takes time, but like much of life, good things come to those who wait…

… but don’t wait until tomorrow to start investing. Now you know the basics you can start building your portfolio today!

  Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
Why moving money with Raiz can take time
We get a lot of questions about why it takes so long for a balance to appear in Raiz accounts after hitting deposit, so to explain this we thought we’d break this process down step-by-step, and how long these steps take. When you invest or withdraw with Raiz, we try to make the process as smooth as possible, from the moment you hit the button, to the money appearing in your Raiz account or back into your bank account.

DEPOSITS:

When you hit deposit, it should take just 1, but can take up to 2 business days for Raiz to withdraw money from your chosen funding source.  This is because we send withdrawal requests once a day to our bank, every business day. If you deposit in your Raiz Investment Account before our daily cut-off time (approx. 3.30pm Sydney Time), your bank account will be debited that same night (and the following night if you deposit is received after this cut-off time). This can seem longer over a weekend or public holiday.   The following business day, once the withdrawal requests are processed, we invest that money, buying the shares for your investment (this is also done only once a day as outlined in the Product Disclosure Statement at around midday Sydney Time). As soon as that money has been invested, the value of your investment should be reflected in your Raiz Investment Account balance.When you hit deposit, it should take just 1, but can take up to 2 business days for Raiz to withdraw money from your chosen funding source. This is because we send withdrawal requests once a day to our bank, every business day. If you deposit in your Raiz Investment Account before our daily cut-off time (approx. 3.30pm Sydney Time), your bank account will be debited that same night (and the following night if you deposit is received after this cut-off time). This can seem longer over a weekend or public holiday.   The following business day, once the withdrawal requests are processed, we invest that money, buying the shares for your investment (this is also done only once a day as outlined in the Product Disclosure Statement at around midday Sydney Time). As soon as that money has been invested, the value of your investment should be reflected in your Raiz Investment Account balance.

WITHDRAWALS:

When you withdraw from your Raiz Investment Account, we will execute that withdrawal within 1 business day. We sell the relevant shares for that investment once a day again.  If your withdrawal request is received after 9.30am Sydney time, your ETFs will not be sold until the next business day. Due to the rules of buying and selling shares on the ASX, it takes 2 business days for us to receive payment for your withdrawal. Once received, Raiz transfers the withdrawal amount straight to your chosen funding source, which can take 1-3 business days depending on your bank. This is why you can expect withdrawals to come back to your account in 5-7 business days. We want this process to be as painless as possible for you, if you have any further questions or concerns we encourage you to contact us at 
support@Raizinvest.com.au or call us on 1300 754 748.   Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
4 Reasons you should build a budget today
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It’s probably not going to be the most interesting thing you do this year, but building a budget could be one of the most important… and it doesn’t really take that much effort. Here’s 4 quick reasons you should take an hour out of your busy schedule to build a budget:

1)      Gets You Thinking

It’s too easy to live your life on autopilot these days. When you can use your card just about anywhere it’s easy to forget just how much you are spending, and what you are spending it on. If anything, writing out a budget gets you thinking about what you’re currently spending your hard earned money on, and what you actually want to be spending it on.

2)      No Nasty Surprises

Not only will an effective budget tell you what you’re spending money on, but also when you are spending it. This can’t help avoid nasty surprises in your bank account when you have to pay your phone, electricity, rent, gym membership or any other kind of bill as many of us do.

3)      Forward Planning

Having a budget allows you to look not only to tomorrow, but to the coming weeks, months, and years. It allows you to plan a path to financial fitness, and identify what you need to do to get there.

4)      Old Habits Die Hard

Even if it’s not the most pressing issue, developing a disciplined saving plan is always important. If you get into the groove of keeping a track of your spending habits, it’ll be all the more easy when you have a bigger, more complicated budget to deal with.

So if you have a bit of spare time this week, try building a budget, and be sure to let us know on Facebook and Twitter of any tips you have!
You can start using Raiz at any time by clicking this link!   Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
Our Letter to The Hon. Malcolm Turnbull (from Raiz, previously Acorns)

4 March 2016

The Hon. Malcolm Turnbull,   MP

Prime Minister

Parliament House

Canberra ACT 2600

 

Dear Prime Minister,

Establishment of the FinTech Advisory Group

I write to congratulate the Australian Government on its decision to establish a FinTech Advisory Group, and I continue to welcome the increased focus on encouraging innovation in Australia, particularly in the FinTech sector.  As an active member of this community, and having recently launched our Acorns product in Australia, I have experienced first-hand the dramatic surge in activity in this industry, and I look forward to its continued growth.

That said, I strongly believe there is major issue that, if left unresolved, will prevent FinTech innovation and competition achieving its full potential in Australia.  

It is my contention there is lack of understanding and confusion in the public mind that they are no longer protected by Australian regulations, and that the liability protections under the terms and conditions on which they conduct their internet banking do not apply when they deal with FinTech start-ups such as ourselves.  This is not the case.

I am concerned and disappointed to see banks and other financial institutions seek to discourage users from engaging with FinTech by exacerbating the confusion and fear in this area.  

It should not fall upon the small start-ups to educate investors about their rights and obligations vis-à-vis their banks, and it should not fall upon small start-ups to monitor the information that is being disseminated to consumers by bank employees.

To explain this more specifically, Acorns is a micro investing / micro savings smartphone application. When a user signs up to the app, they provide Acorns (and its service provider Yodlee) with their bank account log-on details and password. There has been significant media commentary (both social and mainstream), including comments made by persons who purport to be bank employees, that by doing this, the user becomes liable for any unauthorised transactions. As you would expect, these type of comments are creating great consternation and discouraging users from engaging with FinTech companies, such as Acorns.

However, this commentary, and the stance taken by the purported bank employees, is wrong. It is clear under the ePayments Code (Code) (which all major Australian banks have subscribed to) that the user will not be liable for any unauthorised transactions because:

(a)             the user expressly appoints Acorns and Yodlee to collect information on the user’s behalf only (i.e. Acorns and Yodlee have “read only” access to the user’s bank account. They cannot effect transactions); and

(b)             Acorns and Yodlee protect the data using encryption and bank standard security measures to keep it safe.

Consequently, the user does not breach the requirements of the Code, nor the terms and conditions of their bank contract and does not become liable for any and all unauthorised transactions.

I would urge the FinTech Advisory Group and ASIC to consider this issue, given their mandate to encourage FinTech innovation, while reducing barriers and ensuring that these barriers are not (mis)used by incumbent players to discourage competition. Unless this issue is resolved, I believe it will stunt the development of FinTech, an integral part of the Innovation strategy recently articulated by you.

Please be aware that we will release a copy of this letter to our users (of which there are over 50,000) and to the media at large.

Should you wish to discuss this matter further or if you have any questions or comments, please contact me on 1300 954 678.

Yours faithfully

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 George  Lucas

Managing Director

Acorns Grow Australia  Limited

Back to Uni - Time to get smart about investing
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As summer officially comes to an end, it is time to go back to University – and we know that whether you are a first year student or a returning graduate the temptation to spend is everywhere. 

The harsh reality of returning to Uni is that it is time to recover from a summer spent emptying your bank account travelling, shopping and celebrating the festive season. Even if you spent the summer working, the start of the academic year is the perfect time to start thinking about the best way to make your hard earned cash last longer. 

Instead of falling into the trap of spending all your savings on overpriced but underwhelming lunches on campus, or unnecessary Tuesday afternoon drinks at the union bar, get smart about saving and investing – whilst you spend.

 It may seem trivial today, but these little savings add up and will pleasantly surprise you, helping fund your next summer activities. Not only is saving a bit of extra cash useful, but being disciplined with your money is an important life lesson for everyone…

 However, if you cannot function without three double-shot soy flat whites a day, at-least start saving whilst you spend. That’s where Raiz comes in!

 Many university students think that they are not ready to start investing. Whether you think that your income isn’t big enough, you are too young, or that you are lacking the financial knowledge, it’s time to stop making excuses because it’s easier than you think. You can start investing from as little as $5.00.

By rounding-up your purchases, Raiz links your everyday spending to saving and investing. 

The goal of the round-up is to allow you to invest small amounts, without even thinking about it! By linking your spending accounts (EFTPOS, debit and credit cards etc.), the virtual change from every transaction is invested into your Raiz investment account. This combined with lump sum investments and automatic deposits gives you an easy way to effectively develop your first portfolio.  You can get your money out at any time with a couple of swipes of the app. 

The registration process only takes a couple of minutes and no previous knowledge of markets is needed to set up your account.

Whether you are already planning your mid-year escape, thinking about paying off your University debts or just feel like your laptop is in need of an upgrade – you are ready to start investing.  With so much on your mind at the beginning of a university semester – let Raiz take care of your savings.

  Important Information The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product. The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information. Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz. Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.
#acornsgrow #investthechange
February 2016
Using Your Internet Banking Details With Raiz (previously Acorns)
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  We’ve received a lot of questions regarding the legality of submitting one’s personal bank login details to Raiz in order to use our Round-Ups feature, so we thought we would try to explain the ePayments Code, which the Australian Securities & Investment Commission (ASIC) administers on behalf of its subscribers, the banks and institutions. To see if your financial institution is a subscriber,
you can view a list on ASIC’s website. We recommend you keep reading, but if you can’t be bothered with the legal mumbo jumbo, here’s the take home message: Having researched ASIC’s ePayments code, we can tell you that using your internet banking login details with Raiz should not void any terms and conditions with your bank.   To quote ASIC’s site directly: Almost all banks, credit unions and building societies in Australia are subscribers to the ePayments Code. Other providers of consumer electronic payment facilities such as PayPal have also subscribed to the code. Among other things, the ePayments Code: · requires subscribers to give consumers clear and unambiguous terms and conditions, · stipulates how terms and conditions changes (such as fee increases), receipts and statement need to be made · sets out the rules for determining who pays for unauthorised transactions, and; · establishes a regime for recovering mistaken internet payments. Most of the questions we have received come from customers who believe that entering one’s login details into the Raiz app will make them liable for any losses in their account. This is false. Entering banking login details into the Raiz app to create round-up opportunities will not see you become liable for unauthorised transactions because: (a)        the user expressly appoints Raiz and Yodlee to collect information on the user’s behalf only (i.e. Raiz and Yodlee have “read only” access to the user’s bank account. They cannot effect transactions); and (b)        Raiz and Yodlee protect the data using encryption and bank standard security measures to keep it safe. Raiz uses industry-standard security like 256-bit SSL encryption of sensitive information, redundant backups, and disaster recovery planning. Even in the incredibly unlikely event that all these measures fail, customers of Raiz are insured against fraud & cyber-crime. This insurance does not invalidate the liability of your financial institution, so you are protected against liability and loss. In conclusion, Raiz and its use of a transaction aggregator to retrieve round-ups on your behalf, we believe, is in compliance with ePayments Code as outlined by ASIC. You will not be forfeiting any protection by using your online login with Raiz. Stay safe out there, and continue to be smart about with whom you share your sensitive information.