By Clayton Daniel of Fund Your Ideal Lifestyle
As
Raiz ticks over the first twelve months of a successful campaign to engage
Australian’s with their money, I wanted to circle back around to see if you
benefited. To see if you were in the market, or out of the market.
See
Raiz simply holds your investments for you. And I say ‘simply’ on purpose. As a
former financial adviser who built a career around investing millions of
dollars, I can tell you – how the money is invested is usually
the hard part. But thankfully it’s all now at the tip of your fingers.
So
over the last twelve months – the market went UP. Great result for everyone
invested. But were you invested, or were you ‘trying to get a better return’
someplace else?
A
big misconception with Raiz is that they are an investment – which they aren’t.
The investments that sit within the Raiz investment structure (the app on your
phone) hold investments called ETFs. In a nutshell, these ETFs go up if the market
goes up, and down if the market goes down.
Really
simple stuff.
So
again I ask – did you invest, or did you miss out?
Do
the markets go up all the time? Of course not. But do they go up more than the
go down? Yes – that’s because our economy keeps growing, and companies like
Commonwealth bank and Woolworths keep making a profit. And as long as our
economy keeps growing, and our companies keep making profits, the market will
continue to go up.
I’ve
had my account for around nine months now. And I’m happy with how the market
went. Again, the result wasn’t created by Raiz – but they gave me the
opportunity to access growth over the last nine months. Check out the screen
capture below:
Did
I make life changing money?
No.
But
would I make life changing money in any retail investment in less than twelve
months?
No.
So
why am I such a big fan of this non-life changing money?
Because
I didn’t think about this investment at all. Not at all. I invest without
thinking about it, and the market does what it does, and the majority of the
time I’ll make more money. Some weeks it goes down, and even some years it will
go down, but none of that matters. Assuming our economy has many years in it –
the investments will ultimately go up. And I won’t think about any of it.
Compare
that to the Melbourne property I own with a couple of mates inside of a Self
Managed Super Fund. We have to have annual meetings with each other, with the
accountant, with the rental manager, with the banks, think about tenants, think
about bills, think about vacancy – think about everything! There’s a lot of
thinking going on!
If
you’ve read any of my previous articles on decision fatigue you’ll know I’m not a big fan of
thinking about investing and cash flow. Turns out you get better results when
things are set up on automatic.
Which
is why I ask – did you miss out?
Raiz
shouldn’t be your entire investment strategy – that wouldn’t be prudent. No one
should have all their eggs in one basket when it comes to investments. But
should it be an additional little regular investment you have on the side which
you spend zero head space on?
Yeah.
Use
it for Christmas presents every year, use it for an annual getaway, use it for
an emergency account (probably the best idea) or use it to simply ‘go hard on
the money’ and learn about investing in the simplest way possible. Whichever way
you choose to use your Raiz account is up to you – just don’t miss out. For more information on Raiz fees, click here.
Check out the exclusive Acorns offer for Clayton Daniel’s new book 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 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.
