Blog - Page 47 of 52 - Raiz Invest

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.

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:

download-raiz-app — Click to download the Raiz 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 product.

A Product Disclosure Statement for Raiz Invest and/or Raiz Invest Super are available on the Raiz Invest website and App. A person must 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.

The information may be based on assumptions or market conditions which change without notice. This could 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 Invest or Raiz Invest Super.

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

Read Post

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!

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:

Important Information

The information may be based on assumptions or market conditions which change without notice. This could 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 Invest or Raiz Invest Super.

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

Read Post

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.

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:

Important Information

The information may be based on assumptions or market conditions which change without notice. This could 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 Invest or Raiz Invest Super.

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

Read Post

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.

———————————————————————————————————-

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.

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:

Important Information

The information may be based on assumptions or market conditions which change without notice. This could 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 Invest or Raiz Invest Super.

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

Read Post

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.

For more information on Raiz fees, click here.

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:

Important Information

The information may be based on assumptions or market conditions which change without notice. This could 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 Invest or Raiz Invest Super.

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

Read Post

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. For more information on Raiz fees, click here.

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

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:

Important Information

The information may be based on assumptions or market conditions which change without notice. This could 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 Invest or Raiz Invest Super.

Past return performance of the Raiz products should not be relied on for making a decision to invest in a Raiz product 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.

Read Post

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. For more information on Raiz fees, click here.

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:

Important Information

The information may be based on assumptions or market conditions which change without notice. This could 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 Invest or Raiz Invest Super.

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

Read Post

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. For more information on Raiz fees, click here.

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.

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:

Important Information

The information may be based on assumptions or market conditions which change without notice. This could 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 Invest or Raiz Invest Super.

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

Read Post

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. For more information on Raiz fees, click here.

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

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:

Important Information

The information may be based on assumptions or market conditions which change without notice. This could 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 Invest or Raiz Invest Super.

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

Read Post

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.

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.

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.

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

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:

Important Information

The information may be based on assumptions or market conditions which change without notice. This could 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 Invest or Raiz Invest Super.

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

Read Post

Newer Posts

Older Posts

Currency Value

Emerging Markets

Should You Try It?

Don’t have the Raiz App?

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

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

The first step is always the most difficult one.

Don’t have the Raiz App?

Don’t have the Raiz App?

Stamp duty

Registration and conveyancing fees

Council rates

Preparing the property for tenants

Vacancies

Agency fees

General maintenance

Don’t have the Raiz App?

Don’t have the Raiz App?

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

The new Concessional Contribution cap

Rolling over unused contribution cap

Don’t have the Raiz App?

Avoids Bad Timing

Reduces Risk

Removes Emotional Investing

Don’t have the Raiz App?

Don’t have the Raiz App?

Don’t have the Raiz App?

1. Purchasing Your Tickets

2. Sorting Out Accommodation

3. Travel Light

4. Travel Insurance

5. How Do You Intend To Spend?

6. Get a Local SIM

7. Immediate Transport

Don’t have the Raiz App?

Currency
Value

Emerging
Markets

Should
You Try It?

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

The
first step is always the most difficult one.

Stamp
duty

Registration
and conveyancing fees

Council
rates

Preparing
the property for tenants

Agency
fees

General
maintenance

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

The
new Concessional Contribution cap

Rolling
over unused contribution cap

Avoids
Bad Timing

Reduces
Risk

Removes
Emotional Investing

1.
Purchasing Your Tickets

2.
Sorting Out Accommodation

3.
Travel Light

4.
Travel Insurance

5.
How Do You Intend To Spend?

6.
Get a Local SIM

7.
Immediate Transport