Blog - Page 52 of 52 - Raiz Invest

This week the Federal Government
announced a $1bn package to help support innovation in
Australia. Over 20 ideas designed to support entrepreneurship, ideas,
investments and startups have been released, and as a startup, Raiz welcomes
this with open arms. We wanted to let you know a little more about the package
and why it’s important for Australia.

Where did it all begin?

It seems to have started in
September; from Malcolm Turnbull’s very first speeches as Prime Minister he
talked about an Australia that needed to be “agile, innovative, and
creative”, an Australia that needed to recognise “disruption
as our friend”.

This was promising, but I think
we can all be forgiven if we didn’t believe every word coming out of a
politician’s mouth… so we waited to see whether any real actions would be
taken.

Why is it important?

It is important because until now
Australia has been lagging behind. For a country with so many bright and
talented individuals, we don’t have the culture of innovation to encourage them
into entrepreneurship. The best talent is frequently being lured away to places
like San Francisco, Singapore, and London. Australia needed a change so that we
could become a nation of innovators, and encourage Australians to start their
business journey here. The opening of Fintech Hub, Stone & Chalk, in Sydney
this August, was also a welcome sign of change. Stone & Chalk houses over
40 different startups.

What’s in the $1bn package?

We won’t go through all 20 ideas
in the package (we’d encourage you to do some of your own reading if you have
time), but here are some of our highlights:

* Women in Tech: It’s
a simple one, for too long we’ve been complaining about the lack of women in
the tech industry. This package puts a handy $13m towards encouraging and
supporting women to run with their ideas, and start a company.

* Tax incentives for
investors: Tax may be boring, but it’s important. A major problem in
Australian entrepreneurship is funding, and good people with great ideas not
being able to obtain funding. Tax incentives will encourage more investment in
startups – meaning that more startups will be able to take the next step, and
great ideas won’t need to be abandoned.

* Stop the boats
(leaving): You may not know this but we have been kicking smart people
out the country for a long time. With the new “entrepreneur visa”, PhD
graduates and other startup founders will be given the chance to stay and build
their company in Australia.

Summary:

This won’t turn Australia into
the new home for innovation on its own, but it is a great start. The commitment
to innovation not only has the backing of the government, but also of the
opposition Labor party.

Now what we need is you and all
other Australians to start running with your ideas and becoming a part of the
new creative, disruptive Australia.

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

When you invest, that decision
and the patience to stick with it will begin to pay dividends – and not just
figuratively! You will literally be paid something called “dividends” or
“distributions” (we will use dividends for both) from the ETFs in your
portfolio; so what are dividends? And how do they fit in with Raiz.

A dividend is a portion of a company’s earnings that is returned to
shareholders. Companies use dividends to pass on their profits directly to
their shareholders.

A company will pay a small percentage of its profits to the owner of each share
of stock.

Example:
You own 1000 shares of fictional company Mighty Oaks. Mighty
Oaks pay a dividend of 5c per Share.

\You will receive $50 (Number of Shares Owned X Dividend per
Share) in dividend income.

Dividends and ETFs
As an Raiz investor, you’ll have a portfolio of ETFs, so that raises a few more
questions…

Do ETFs pay dividends?
Yes! In short – and in fact, for the most part, dividends in ETFs are
relatively straightforward. As discussed in our “What is an ETF” blog, ETFs are
essentially a combination of shares or bonds bundled together. To put it
simply, ETFs basically just take all the dividends from the bundle of shares,
and pay all those dividends out to ETF unitholders.

So, as an ETF shareholder, you benefit from the dividends of all the companies
which are contained in your ETF.

What will Raiz do with my dividends?
With Raiz, your dividends and distributions will be automatically reinvested in
your portfolio. You can view your dividends and distribution history through
the platform, and we will aim to provide information on when the ETFs in your
portfolio will pay their dividends.

Why reinvest?
To answer this it might be useful to understand why some companies don’t pay
dividends. One reason for this, is growth. Whilst it may make shareholders
happy to receive a dividend, it may make them even happier if the company keeps
their profits and invests them to grow the business – which will in turn, can
increase the value of the stock.

We hope that by reinvesting your dividends back into your Raiz portfolio we are
investing in the growth potential of your portfolio. Another step in the
right direction, helping your spare change grow.

Now you know about dividends, let’s hope that you can start benefiting from
them soon, with Raiz. Sign up today at https://www.Raizinvest.com.au

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

With Movember just around the corner, people all over
the world are preparing to grow a moustache to raise money and awareness for
men’s health issues. This got the team at Raiz thinking about what it takes to
grow facial hair, and found that it’s very similar to growing your money.

4 key stages to growing:

The Decision

You’ve thought about it for a
while, you’ve seen your mate’s ‘stache (or stash of money), and you know how
great it could be. It’s time to start growing!

The Envy

It’s been a few days and you’ve
not got much to show above your upper lip – you begin to notice every beautiful
moustache you pass and wonder why that can’t be you. The same happens with
saving, not everyone can put away $100 a week, but it’s about working with what
you’ve got.

Don’t get jealous, just be
patient, slow and steady wins the race.

The Itch

You’re beginning to get some
solid growth, but with this growth comes a nasty itch.

For growing a moustache, the itch
is physical one, as prickly hairs scratch your skin, and you start thinking
about shaving the itch away.

For growing your money, the itch
is one of temptation. The itch to start spending the nice little stash that
you’ve accumulated.

The solution? Fight through the
itch! You’ve made it this far, so keep at your long-term strategy and keep it
growing so that you can reach stage 4…

The Glory

This is what you’ve been waiting
for, once you reach this stage nobody remembers The Envy, or The
Itch, you’re just happy you made The Decision. You’re
either sitting with a pile of savings, or a luscious moustache, either way you
feel pretty good.

When saving money, everyone has
different definitions of glory, it could be a car, a holiday, or a more stable
financial future – whatever your goal is, Raiz wants to help
you get there. With our different tools we give you a more natural way to
invest, and a new way to let your money grow. All you have to do is remain
patient. For more information on Raiz fees, click here.

So this November, make the
decision to Invest the Change with Raiz, grow your mo with Movember, and raise
some money for a great cause in the process.

https://www.Raizinvest.com.au

https://au.movember.com

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

The summary:

Last week, controversy surrounded
Volkswagen, as it was revealed that the German automobile manufacturer has
cheated on emissions testing for their cars. They have defrauded customers,
broken regulators’ rules in a big way, and will face suitably big fines as a
result.

What effect has this had on the
share price?

Since the news was revealed,
Volkswagen lost around 1/3^rd of
their market value.

This story gives us a timely
reminder of why diversification is key, and the benefits of
buying into ETFs.

Imagine your portfolio was made
up of 100% VW shares. Last week you lost ~33% of
portfolio value.

Now imagine if you had some
diversified to 50% VW shares. You’ve just lost ~16.5%. This assumes that nothing
else in your portfolio loses value.

Now if you had diversified a lot
more (maybe using an ETF), to just 1% VW shares. You only lost ~0.33%. Again
this assumes that none of the other shares that compose the ETF loses (or
gains) value.

It’s a simple example, but it
shows the dangers of exposing yourself too much to any one stock. These
scandals specific to one company do happen, and companies lose big chunks of
value regularly. By using ETFs you can give yourself a smaller exposure to a
large number of companies, eliminating the risk that one bad holding will harm
your hard earned savings.

Raiz uses 7 different ETFs to
construct our portfolios for you, read more on ETFs here, and sign up to Raiz using the
link below.

https://www.Raizinvest.com.au

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

“Compound return is the 8^th wonder of the world. He who
understands it, earns it. He who doesn’t, pays it”

Albert Einstein wasn’t known for
investing, but he got it spot on with this. Let’s understand the power of
compound returns, why it’s important, and how you can use it.

The concept of return is
simple; take Albert who has $1,000 in his account – If he earns a return rate
of 8%, he earns return of $80 ($1,000 x 8%), over one year.

Now, the idea of compound
returns is pretty simple too, it’s just earning return on
your return, over time. For example, Albert earned $80 of return in
year one; in year 2 Albert earns 8% return on his $1,000, and, 8%
return on the $80 he earned in year one. So in year two Albert earns returns of
$86.40 ($1,080 x 8%), bringing his total balance to $1166.40. A modest
increase, but over time this effect snowballs, and after 40 years of compound
return, Albert’s $1,000 grows to nearly $22,000, that’s 2200%.

Why is this important to you? By
choosing to invest now, you could make compound returns work for you, and help
you reach your financial goals in the future.

If you start investing now, and
patiently let your money enjoy compound return, the returns could be truly life
changing:

– If you’re 25 and choose to
start investing now, say $1,000 a year, until your 65, with a return of 8% p.a.,
you could put a handy $280,000 towards your retirement.

– If you wait until you’re
30 to invest, you’ll put about $186,000 away

– And if you don’t start
investing until you’re 35, you’ll only put $120,000 away.

graph showing effect of time on compound returns — The earlier you start, the more time compounding has to take effect.

With Raiz we encourage investors
to start small, contribute often, and commit long-term. 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

We
are very excited about launching Raiz Down Under, giving Australians the chance
to invest their change to build something much bigger. One of the most
important messages we want to spread is that when you invest with Raiz, you
have chosen a smart and secure way to invest. Let’s look at one of the
techniques Raiz utilises to manage and grow your savings effectively-dollar-cost
averaging.

The
market will go up, the market will go down, being able to pick the low point
and see your portfolio grow in value is the dream, but is unlikely when acting
on intuition alone. Dollar-cost averaging involves regular investment over
time, regardless of movements in the market. This aims to reduce the need for
intuition in picking highs and lows in the market.

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, having invested more prudently than simply investing
the money all at once in a lump sum.

This
strategy has the potential to give you a low cost per share relative to the
overall average price per share – as you buy more units when the price is low,
and less when the price is high. This disciplined strategy is important,
ensuring 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.

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, trending your portfolio
towards profitability.

You
can utilise Raiz to implement dollar-cost averaging at your own pace by
selecting another key feature, recurring deposits. Raiz will manage your
investment, all while saving you time, energy and uncertainty. For more information on Raiz fees, click here.

For
more information and to register for our beta testing due in November 2015,
make sure you visit www.Raizinvest.com.au and sign up!

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

We are really excited about Raiz
coming to Australia and we want to make sure everyone understands the unique
opportunities with Raiz! Here at Raiz we have made it easier than
ever to fund an investment account. We understand that investing is important,
and just as no single investment will ever be suitable for everybody, there is
no single, perfect way to fund an investment account. This is why we
built an entirely new micro-investing platform that enables multiple ways to
invest. There are four easy ways to get invested with Raiz:

Round-Ups
This is our most innovative feature, round-ups provide a whole new way to save
and invest money. The goal of the round-up is to help people invest money every
day, even if it’s just a small amount. We think the best way to accomplish this
is by linking investing to something we all do every day – spending. Raiz makes
it possible to link your spending accounts (EFTPOS, debit and credit cards
etc.) and then round up the virtual change from every transaction. These
round-ups can then be manually or automatically moved into your Raiz investment
account.

Automatic Investments
Raiz also makes it easy to set up recurring deposits on a daily, weekly, or
monthly basis. It’s as simple as selecting the amount of money you wish to
invest regularly, and then choosing a time period. This type of investing is
great for setting and maintaining investment goals. Setting up automatic
investment can be done in seconds through the app.

Lump Sums
In addition to some of the more unique ways of adding money to an account, our
users can also invest any amount, at any time, with a simple lump sum
investment. This makes it easy to add larger sums of money when they become
available or when your investment goals change. It only takes seconds to
deposit a lump sum into your investment account, and money is always available
for withdrawal the same way: no fees, no penalties.

Raiz Reward
This exciting functionality is truly exciting. Not only does Raiz make saving
and investing money as easy as possible, we also help find money for you. Raiz
can identify rewards programs, credits from other loyalty programs, and offers
from third parties that can be converted into investments. What other investment
program finds money for you?

With so many unique ways to fund
an account, Raiz is creating an entirely new approach to saving and investing
money. For more information on Raiz fees, click here.

So if you are as excited as we
are, make sure you sign up at www.Raizinvest.com.au quickly and register your
interest with only your email address and we will keep you update on our
progress and register you for our Beta testing program commencing later this
year.

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

Imagining your Raiz account as a
healthy nest egg may be challenging when you first get started. Patience is a
virtue in nature AND investing.

If a user adds only $1 per day to
their Raiz account, it will typically take about one year before the account
generates more than it costs*. Likewise, money sitting in a bank account
may incur more fees than it earns in interest until the balance is large
enough.

Raiz provides the most natural
way to invest. If you start small, contribute often and commit long-term, you
can help build a financial future which is in balance with whatever your life
goals may be. Tools like Round Ups, Lump Sum Deposits and Recurring Deposits
make contributions easy, and we invest in low cost ETFs so we can pass along
low management fees. Using Raiz for a year can cost less than some traditional
brokers charge for two trades. For more information on Raiz fees, click here.

Many Investors decide to start
their account with a lump sum (a single payment, perhaps $50, $100, $500 or
more) because it will likely earn more money faster. If you are unable to
invest a lump sum when you start, Round-Ups remain a smart way to put aside
spare change for your future. You’re getting started, and that’s the single
most important part of investing: beginning.

Even if you build your account
slowly, it will one day be a lot larger than what you started with. Whenever
you’re feeling discouraged, think of the mighty oak tree, and have patience.

*Assumes average long term rates
of return.

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

The number one metric for most
apps is user engagement. The more time you spend using the app; flinging birds,
playing words with friends or updating your whereabouts, the more opportunity
the producer of that app has to monetize you.

That’s ok if you are getting good
value, like Google. Their search engine is very efficient, takes little time,
and usually delivers information you want. But most apps aren’t that way. Have
you ever found yourself spending a few hours with an app when you only planned
to check in? Many apps take more than they give. Their success is dependent on
getting more and more of your attention.

At Raiz we think it should be the
opposite. Apps should free you to do more of what you really love to do. So
instead of trying to increase “user engagement” we have features like automatic
round ups, which allow you to save and invest in tiny increments without ever
checking the app.

As a popular investing tool when
you do engage with Raiz you can see how your portfolio has performed;
understand how changes in market affect the value of your investing; and also
learn about the power of regular savings and compounding. 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

Hello and thanks for visiting our
blog. We want to make your financial life a little easier by offering a simple
new way to save and invest, but first let us tell you a bit about ourselves.

Raiz is a group of
mathematicians, software engineers, behaviourists and financial professionals
who all need to save and invest, and we believe this should be something that
happens in the background of life and be as natural and without effort as
possible. So we built Raiz as much for ourselves as for you. The idea is to
harmonize with human nature. We link something we need to do, investing, with
something we do all the time, spending. In this way saving and investing
happens automatically, in small increments with ease.

As you may know there are
millions of people with – “saving more for their financial future” – high on
their “to-do” list. Many are waiting to accumulate a lump sum before they
start, and missing out on years of compounding, or they believe they can’t
afford to take money out of their pay check, or can’t quite muster the
discipline to invest often enough to make a difference. But by breaking the
investment process into little pieces and finding creative ways to funnel money
into an investment account, more people can invest more often and worry less.

Behind our app is a micro
investing engine that rounds up your credit and debit card purchases to the
nearest dollar, and steers these micro-monies into your own investment account
of diversified index funds. Over time your account builds while the financial
engine does all the investing, rebalancing and instantly communicating results
to the app on your smartphone. For more information on Raiz fees, click here.

By making the increments small,
frequent and automatic, the process is easy. The registration process does take
a couple of minutes because you do have to link your bank account debit card or
credit card, and set up your investment account parameters, but after that it
just happens.

Investing small dollars may seem
insignificant at first, but it is a start.

Our commitment to our users is to
keep thinking of ways to make the savings and investment process as fun,
simple, natural and effective as possible.

Make sure you get on the list
at www.Raizinvest.com.au !

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

Blog - Page 52 of 52 - Raiz Invest

Innovation for the Nation

Don’t have the Raiz App?

What is a dividend?

Don’t have the Raiz App?

Moustache Money

Don’t have the Raiz App?

Volkswagen fuels market fears, ETFs remain the most reliable ride

Don’t have the Raiz App?

The Power of Compound Returns

Don’t have the Raiz App?

An introduction to dollar-cost averaging

Don’t have the Raiz App?

Any Amount, Anytime: The Unique Ways to Invest with Raiz

Don’t have the Raiz App?

FROM RAIZ TO NEST EGG

Don’t have the Raiz App?

Time is Money: So Why Do Most Apps Steal Your Time?

Don’t have the Raiz App?

RAIZ: A NATURAL WAY TO INVEST

Don’t have the Raiz App?