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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.

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

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.

Raiz Rewards brands june
Some Brands added over the June quarter

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.

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.

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.

 

image

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.

image

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.

image

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.

image

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.

Since
inception, the average Raiz user has made 10.5% p.a. (including all fees except
the $1.25 per month) – 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.

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.

image

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

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.

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.

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. 

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.

Exchange Traded Funds (ETFs) are
one of the fastest growing investment products in the world, offering investors
a simple and cost-effective way to achieve diversification in their investment
portfolios.

ETFs blend the benefits of both
managed funds and shares. ETFs offer efficient, low-cost diversification,
combined with flexibility and liquidity of a share.

ETFs can be bought and sold on a
stock exchange like shares. And, like managed index funds, they contain a
diversified portfolio of securities designed to track specific stock and bond
indices, like the S&P/ASX200 a measure of the Australian stock market. This
means investors can use ETFs to gain the exposure and diversification they
want, quickly and simply.  ETF shareholders are also entitled to interest
or dividends paid by the share or bonds that make up the ETF.

We at Raiz have done the hard
work for you, have selected a basket of widely traded ETF’s that are quoted on
the Australian Securities Exchange, the ones that are designed to match
well-known benchmarks and combined them into 6 different portfolios ready for
your selection.

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.

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