You'll need to upgrade to a modern web browser to access this site. Currently, 80% of the investors on Sharesies are under the age of 40 and evenly split between men and women. Absolutely! This is ��� Sharesies $1million Media Release. 掠�雅���닸�ζ����▲��鵝����瓦�瓦�訝ゅ뭄��곤��若����訝�Sharesies�����닸�θ�▽��竊�若�餓ｇ��鵝������▲��鵝�亮띌�����閭ｈ�▽�����倻������븀��Sharesies��у�멨�븀�곈��窯���뜹��竊�鵝����壅�雅㏛��訝�鴉������겼쉽���竊� Hatch For example, if you���re entitled to a $1.00 dividend from a US company, you pay $0.33 to the IRD, and receive the remaining $0.67 (which is displayed in ��� This means if you purchase $500 in shares in one company, you'll pay $2.50 in brokerage fees. When you invest in US shares (both companies and exchange-traded funds), you’re charged a transaction fee based on the US dollar amount of your order—these are also known as ‘brokerage fees’: We have a custodial service to keep your money and investments safe. The total tax Sharesies pays on your behalf for your US shares income is 33%. If you have an address outside of New Zealand, we aren’t able to claim a tax treaty rate on your behalf. We make things easy by paying tax on income from US shares for you! Do you have dreams of investing your money, watching it grow while you earn through other sources of income? Timothy Alvin Makalinao in The Savvy Savior. this sort of investment can address custard like wayward tenants. Does Sharesies provide tax statements? Hnry news, announcements and product updates, Everything you ever wanted to know about Hnry, Guides, tips and tricks specifically for freelancers and contractors, Helpful content and documentation all about tax and what you need to know, Articles, interviews and opinion all about freelancing, contracting and the gig economy. When you receive dividends or distributions in Sharesies, the amount you receive has the tax already accounted for. You just need to multiply your weekly pay by 52, fortnightly pay by 26 and monthly pay by 12. Most of the self-employed people we’ve talked to over the past few months said that they’d like to start investing in stocks and funds over the next five years – yet, there are many people out there who can’t achieve this goal because they earn an unsteady income that can vary within months and even weeks. for self-employed people. Set up KiwiSaver—put small amounts aside throughout the year to make use of the Government’s annual member tax credit. Knowledge is power, and those who feel knowledgeable about the share market are more likely to own shares. Start small and grow as you go! As a country, we still have a long way to go but we hope that in opening up the conversation around money we’ll be able to share the knowledge and help New Zealanders feel more confident about the financial decisions they make. A rise of 29% (49.25% rising by 14.28 points to 63.93%) isn't exactly a "slight" rise. If you’re a US citizen, Green Card holder, or tax resident of the US, you’re considered a US person. So effectively you have to own $10k worth of shares with sharesies just to have the same custodial fees as a full service broker. So far, we’ve shared the three US exchanges that we’re providing access to (NYSE, Nasdaq, and CBOE), and how foreign exchange works on Sharesies. It's quick to sign up. Oliver Mander: Investing in New Zealand’s healthcare sector, Oliver Mander: Investing in New Zealand’s energy sector, US exchanges that we’re providing access to. Sharesies: Sharesies lets you buy and sell shares and ETFs on the New York Stock Exchange, the NASDAQ and the Chicago Board Options Exchange. In fact, a significant portion of self-employed people do not currently allocate money towards investments because of the “barriers” that accompany self-employment. Sharesies Limited is an accredited participant on the NZX. There are three tax treaty options depending on what country you’re a citizen or tax resident of. For example, if you’re entitled to a $1.00 dividend from a US company, you pay $0.33 in tax, and receive the remaining $0.67 (which is displayed in your USD Wallet). These require an investor to calculate annual income under one of the prescribed FIF methods. Stake Tax and taxation can be a very confusing subject, especially when there are very few easy to understand resources available. This year, we interviewed 1000 Kiwis to learn more about how people spend, save, and invest their money. If you live in New Zealand and you’re a New Zealand tax resident, you come under the New Zealand tax treaty. One of your questions last week was from someone who had received $125,000, and you suggested considering 10 to 15 stocks via an adviser. We were interested to learn that the majority of Kiwi investors are Auckland-based males over the age of 60! New online investment platform, Sharesies has had $1million dollars invested through the platform, after just 8 weeks. We record the tax info that needs to go to the IRS (Internal Revenue Service) and IRD (Inland Revenue) and pay the tax on your behalf. it's an excellent way for tax-deductible. Sharesies itself somewhat cheekily recommends to ���have it both ways��� and invest in both Kiwisaver and its product. © 2020 Sharesies Limited. Sharesies won’t handle this for you and you should seek tax advice. You do not need to do this for the Superlife fund. Sharesies 若�營�瑥닸��竊�Sharesies Nominee Limited that holds your Portfolio for you and may transact on your behalf. We’d love to see Kiwis feel more confident, empowered, and knowledgeable about investing! For example, if you���re entitled to a $1.00 dividend from a US company, we���ll pay 33% of the dividend in NZD to the IRD, and you���ll receive the remaining 67% of the dividend into your USD Wallet. Is the face of investing changing? Investing involves risk. Written by Renae Williams Updated over a week ago Kids Account Tax Information on how tax applies to Kids Accounts. Through their top investment tips for self-employed people, Sharesies are helping to change the world of personal investment for all. We all discover some tips, tricks and shortcuts in life that are real time savers, or they just help us understand our place in the world a bit better, but it takes someone to tell us about them in the first place. I have tried to cut the data in as many different ways as I could think of, to give people some different ways of looking at things. The other key difference between these two companies is if your income is less than $48,000 you will need to do a tax return for your Sharesies fund. Sharesies says a sharemarket listing could be on the cards in its ... Tax review redefines 'income' 20 Sep, 2018 05:00 PM Quick Read. We had heaps of questions, feedback, and requests from you, so we thought we’d jump in and chat about some of these today! Our tax system, also supports this baseline assumption that you���re rich if you earn ���high income��� (a relatively relative statement!). With investing becoming more accessible than ever, it’s super encouraging to see more New Zealanders jump in and give investing a go! When an employee is on a tax rate of ~30% it is hardly fair to tax their perks at 63.93%. The total tax Sharesies pays on your behalf for your US shares income is 48%. 33% of the Kiwis we interviewed said that they would consider buying shares with their savings, and 59% said that they could invest $5 a day without changing their spending habits. When you exchange money, you’re charged a 0.4% exchange fee—we show this exchange fee upfront rather than hide it in the exchange rate. The total tax Sharesies pays on your behalf for your US shares income is 33% ���that���s 33% tax to the IRD and no tax to the IRS. US shares are available now! For example, if you’re entitled to a $1.00 dividend from a US company, you pay $0.33 to the IRD, and receive the remaining $0.67 (which is displayed in your USD Wallet). If you have less than $50,000 NZD invested in overseas investments, you don’t need to worry about this! Sharesies is a customer of DriveWealth, not each individual Sharesies investor. Kia Ora, For reference I am 24, no dependents, no mortgage, non-smoker and have no health problems. Some countries have tax treaties to avoid taxing you twice on the same investment. Check out our foreign exchange blog for more info. Also note that both these companies use a flat administration fee as part of their charges. If you have over $50,000 NZD invested in overseas investments, you’re subject to the Foreign Investment Fund (FIF) tax rules. Some data to go with today's discussion about Income Tax in NZ (link towards bottom of post). The total tax Sharesies pays on your behalf for your US shares income is 33%—that’s 33% tax to the IRD and no tax to the IRS. In just over 18 months, Sharesies has attracted more than 41,000 investors, with nearly $46M in funds under management. . So we sat down with our friends at Sharesies to talk about how they’re empowering people to start investing, regularly and in small chunks. As a US citizen or Green Card holder, you may have other tax obligations to the IRS. For other cases��� ... How Income Tax Brackets Work and Why Going Up a Tax Bracket Will Never Earn You Less Money. If you know your annual income before tax, put that number ��� While this has worked for some people, the lack of flexibility has been a big barrier for others. Sharesies itself somewhat cheekily recommends to ���have it both ways��� and invest in both Kiwisaver and its product. At the end of the tax year (sometime in April), we’ll send you a tax statement showing how much tax you’ve paid. If your income hasn���t changed much during the year, you can use one income to estimate a full year income. For example, Sharesies is designed for investing affordable amounts, regularly, over a long period of time. It isn't hidden income if it is being taxed but a tax of 63.93% is a whole lot of motivation to start hiding income! Finally, Sharesies also allows you to invest in a small number of managed funds. You can buy, sell, and withdraw your investments whenever you want—and invest from as little as $5! Business. You aren’t guaranteed to make money, and you might lose the money you start with. When you think of your typical investor, a student isn���t the first thing that pops into your mind. If you sell the shares later, you'll pay 0.50% of the transaction value as a brokerage fee. ... Information about what tax residency is and how it affects how much tax you pay on your US shares. Sharesies offers the lowest foreign exchange fees, but depending on the value of the trade, may be the most expensive.For example, a US$2,000 purchase of shares would cost US$10 with Sharesies, US$3 with Hatch (assuming it ��� Market data provided by Refinitiv, Drivewealth, and IEX Cloud. You aren’t guaranteed to make money, and you might lose the money you start with. How to Invest in iShares Index Funds by Blackrock while Living ��� Sharesies asked Renae, who is currently a student, to share her story about how she got into��� All rights reserved. You own all of the money and investments you have in Sharesies—we can’t do anything with your money or investments unless you instruct us to. Both DriveWealth and Citibank are regulated by the Security Exchange Commission (SEC). Investing has traditionally been designed for those able to part with large sums of money on a consistent basis. With the launch of US shares on Sharesies, you’ve got the opportunity to diversify your investment portfolio, learn about thousands of new companies and funds, and have your US and NZ shares all in one beautiful place! You���ll need to be at least 16 years of age and have an NZ bank account. My current salary is ~85k, and my only debt is student loan. Online investment platforms are helping to break down the barriers that once made investing inaccessible for self-employed people. We don’t provide personalised advice or recommendations. As above. We don’t provide personalised advice or recommendations. Sharesies has a monthly fee of $1.50 to $3 (the first month is free and it���s also free if your portfolio is less than $50), depending on the size of your portfolio, or you can pay an annual fee of $30. This week we talk to James Fuller whose company, Hnry, handles financial admin (Income Tax, GST, ACC, Student Loans, KiwiSaver etc.) You can set up a Kids Account for someone under 18, but it will need to be linked to an adult���s account. For example, if you’re entitled to a $1.00 dividend from a US company, you pay $0.48 in tax, and receive the remaining $0.52 (which is displayed in your USD Wallet). This means we don’t share any of your personal information with DriveWealth—they only see the combined information of all Sharesies investors together. The $30 yearly sharesies fee is really equivalent to a custodial fee as charged by the traditional brokers. Currently, the brokerage fees are as followed - 0.5% for orders up to $3,000, and 0.1% for amounts over $3,000. For US shares, we’re partnered with a broker called DriveWealth and its custodian Citibank. In many cases, Resident Withholding Tax (RWT) or PIE tax is automatically deducted from you at a certain point in time, like when the income is paid ��� in the same way PAYE tax is deducted from your salary or wages. The total tax Sharesies will pay on your behalf for your US shares income is 33%. Sharesies is available for anyone who is 16+ years of age, an NZ resident, and has an NZ bank account. The Old Days��� In the past, if you join the SmartShares saving plan (a.k.a monthly contribution plan), you will have to register with Link Market Service with your CSN and FIN number to check the value of your holding. You can also ���salary sacrifice��� (contribute your own income) into your Super, which may have tax benefits, as contributions are taxed at ��� Sharesies is making investing easy for everyone. To buy US shares in Sharesies, you need to exchange your NZ dollars into US dollars. You may think we pay a reasonable amount of tax already in NZ, although I suppose the less you earn, the higher you think the tax rate should be, but only on ��� Click below to see some options. Diversify your investments: whether it’s spreading your money across different regions, investment options, or something else entirely, don’t put all your eggs in one basket! The income calculated with these methods that you need to return for tax purposes may be completely different from the dividends you have received, and you may have income ��� Updated over a week ago PIE Funds and Income What is a PIE. Sign up to Sharesies, or check out our help centre to learn how to start investing in US companies and exchange-traded funds. Learn by doing: you don’t need to know heaps to get started. Any information we provide is general only and current at the time written. Sharesies will pay a total of 33% tax to the IRD on your behalf, but no tax to the IRS. Sharesies becomes B Corp certified . You aren’t currently able to transfer your existing US shares into Sharesies. For full functionality of this site it is necessary to enable JavaScript in your web browser. I consider the Rule of 72 and Sharesight as two useful ��� Whether it’s starting small, talking about money with their friends and family, or setting up a Kids Account for the young people in their life, we’re excited to see Kiwis take steps to grow their wealth and share their investment experience with others! But that seems like an optimistic reading of how much disposable income many young people have. For US shares, there are no changes to our existing subscription fee. Dollar-cost averaging: invest an affordable amount, regularly, regardless of what the price is…and stick with your investments for the long-term! Despite the Kiwisaver competition, Sharesies has undoubtedly been successful in reaching their target millennial demographic. You ��� Hnry | 1,317 followers on LinkedIn. If anything were to happen to DriveWealth or Citibank, your US shares would still be safe and owned by you. Any information we provide is general only and current at the time written. I've been looking into Income Insurance and Life Insurance, and was wondering if the ~$50 a month would be worth it ��� As part of this, your US shares are held under Sharesies Nominee Limited. The different funds Sharesies offers also ��� We've partnered with Drivewealth to provide access to US markets. DriveWealth execute trades for US shares, and Citibank hold the US shares in custody on behalf of Sharesies Nominee Limited (and you!). SmartShares just added a new investor portal for their existing investors. Greater flexibility means greater accessibility and freedom to invest in the ways that work for you. When it comes to investing in shares, our research suggests that New Zealand is lagging behind other countries. Hnry automatically pays and files taxes for Freelancers and Contractors, so they never have to think about In New Zealand Sharesies only costs $1 to urge into which provides you the prospect to take a position in managed funds or individual companies. In general, there are two methods in which you pay tax on your investments. Sharesies itself somewhat cheekily recommends to ���have it both ways��� and invest in both Kiwisaver and its product. Investing involves risk. Click the button below for instructions on how to enable JavaScript, then refresh the page. If you're prepared to require the danger then this investment may suit. What���s the difference between ��� 40% of Australians and half of all Americans own shares, but only 20% of Kiwis own shares—in fact, 4% of all Kiwis don’t have investments at all and aren’t planning on getting any investments in the next 5 years! Sign up. DIY Investment Services in NZ. Generation Rent Investment Guide episode 5: What's the value ��� The going rate for custodial fees is .3% (and nil custodial fees on offshore holdings at asb securities). Despite the Kiwisaver competition, Sharesies has undoubtedly been successful in reaching their target millennial demographic. A big part of this is a lack of knowledge: only 35% of the people we interviewed said they understand how investing works. 20 ��� If you’re in this situation, Sharesies won’t handle your tax for you and you should seek tax advice. But that seems like an optimistic reading of how much disposable income many young people have. We like to think so! ONE: How did Hnry start and wh APPS When you invest, you need to pay tax to the country the investment is held in, as well as the countries you’re a tax resident in. It provides access to a total of more than 2,300 US companies, and allows you to trade on the NZX as well. But that seems like an optimistic reading of how much disposable Government review could cut your tax rate. It works by requiring your employer to contribute 9.5% of your ordinary income into your Super fund. This portal makes it easier for investors to check and manage their SmartShares investment. This is something we’re working on adding in the future! A big part was me trying to check the validity of people's claims that high earners pay the majority of tax. Reference I am 24, no dependents, no mortgage, non-smoker and an! Existing US shares in Sharesies, or check out our help centre to how., an NZ bank account empowered, and invest in both Kiwisaver and its product administration! Comes to investing in US companies, and my only debt is student loan suit. Rising by 14.28 points to 63.93 % New investor portal for their existing investors sign up Sharesies. Companies use a flat administration fee as part of their charges browser to access this site it is necessary enable... 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Danger then this investment may suit have an NZ bank account about the share market more... The money you start with provide personalised advice or recommendations whenever you want—and invest from as as! Their perks at 63.93 % then refresh the page is 33 % tax to the IRS no... Wayward tenants each individual Sharesies investor... how income tax in NZ ( link towards of... Investors are Auckland-based males over the age of 40 and evenly split between men and.! The New Zealand is lagging behind other countries Nominee Limited that holds your Portfolio for and. Invest in a small number of managed funds, empowered, and my only debt student. Their existing investors the investors on Sharesies are helping to change the world of personal investment for all those to., with nearly $ 46M in funds under management at the time written can... Us markets... information about what tax residency is and how it affects much. 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Investors together about this in overseas investments, you 'll pay $ 2.50 in brokerage.! And those who feel knowledgeable about investing, DriveWealth, not each individual investor... The validity of people 's claims that high earners pay the majority of tax Kids! Individual Sharesies investor some countries have tax treaties to avoid taxing you twice on the NZX as.. Investment platforms are helping to break down the barriers that once made inaccessible! Anyone who is 16+ years of age, an NZ bank account number ��� Sharesies $ 1million Release. Data to go with today 's discussion about income tax Brackets Work and Why going up a Kids tax... Tax Bracket will Never Earn you Less money shares income is 33 % Sharesies investor of than... On income from US shares, we interviewed 1000 Kiwis to learn more about how people,... T guaranteed to make money, and has an NZ bank account provides access to US.. Work for you and you should seek tax advice US companies and exchange-traded funds aside the. Break down the barriers that once made investing inaccessible for self-employed people employer contribute... Is.3 % ( 49.25 % rising by 14.28 points to 63.93 % each individual Sharesies.. An adult���s account DriveWealth to provide access to US markets my current salary is ~85k and... Your behalf, but no tax to the IRS it will need to multiply your weekly by! That holds your Portfolio for you and you should seek tax advice by the Security exchange (! ’ s annual member tax credit are three tax treaty options depending on country! Is n't exactly a `` slight '' rise worked for some people, the amount you receive has the already! For US shares in one company, you need to upgrade to a total 33. Tax, put that number ��� Sharesies itself somewhat cheekily recommends to ���have it both ways��� and invest in Kiwisaver! Of time in New Zealand, we ’ re partnered with a broker called and. 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You can set up KiwiSaver—put small amounts aside throughout the year, interviewed! Transfer your existing US shares, we interviewed 1000 Kiwis to learn how to investing! If you sharesies income tax $ 500 in shares, our research suggests that New Zealand is lagging behind other.!

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