To buy US shares in Sharesies, you need to exchange your NZ dollars into US dollars. 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 ��� Stake What���s the difference between ��� It works by requiring your employer to contribute 9.5% of your ordinary income into your Super fund. 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. If you sell the shares later, you'll pay 0.50% of the transaction value as a brokerage fee. Sharesies is a customer of DriveWealth, not each individual Sharesies investor. These require an investor to calculate annual income under one of the prescribed FIF methods. Sharesies is available for anyone who is 16+ years of age, an NZ resident, and has an NZ bank account. Dollar-cost averaging: invest an affordable amount, regularly, regardless of what the price is…and stick with your investments for the long-term! DriveWealth execute trades for US shares, and Citibank hold the US shares in custody on behalf of Sharesies Nominee Limited (and you!). At the end of the tax year (sometime in April), we’ll send you a tax statement showing how much tax you’ve paid. How to Invest in iShares Index Funds by Blackrock while Living ��� 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). 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 ��� For other cases��� 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). 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. 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. But that seems like an optimistic reading of how much disposable Is the face of investing changing? Sharesies: Sharesies lets you buy and sell shares and ETFs on the New York Stock Exchange, the NASDAQ and the Chicago Board Options Exchange. Some countries have tax treaties to avoid taxing you twice on the same investment. ... Information about what tax residency is and how it affects how much tax you pay on your US shares. If anything were to happen to DriveWealth or Citibank, your US shares would still be safe and owned by you. Sharesies will pay a total of 33% tax to the IRD on your behalf, but no tax to the IRS. Sharesies asked Renae, who is currently a student, to share her story about how she got into��� You can also ���salary sacrifice��� (contribute your own income) into your Super, which may have tax benefits, as contributions are taxed at ��� When you think of your typical investor, a student isn���t the first thing that pops into your mind. If you live in New Zealand and you’re a New Zealand tax resident, you come under the New Zealand tax treaty. Finally, Sharesies also allows you to invest in a small number of managed funds. 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 This week we talk to James Fuller whose company, Hnry, handles financial admin (Income Tax, GST, ACC, Student Loans, KiwiSaver etc.) Also note that both these companies use a flat administration fee as part of their charges. Sharesies Limited is an accredited participant on the NZX. We make things easy by paying tax on income from US shares for you! Market data provided by Refinitiv, Drivewealth, and IEX Cloud. Business. 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. I've been looking into Income Insurance and Life Insurance, and was wondering if the ~$50 a month would be worth it ��� DIY Investment Services in NZ. Through their top investment tips for self-employed people, Sharesies are helping to change the world of personal investment for all. This portal makes it easier for investors to check and manage their SmartShares investment. Despite the Kiwisaver competition, Sharesies has undoubtedly been successful in reaching their target millennial demographic. For full functionality of this site it is necessary to enable JavaScript in your web browser. This means we don’t share any of your personal information with DriveWealth—they only see the combined information of all Sharesies investors together. Sharesies becomes B Corp certified . If you have an address outside of New Zealand, we aren’t able to claim a tax treaty rate on your behalf. A big part was me trying to check the validity of people's claims that high earners pay the majority of tax. The going rate for custodial fees is .3% (and nil custodial fees on offshore holdings at asb securities). 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. Sharesies itself somewhat cheekily recommends to ���have it both ways��� and invest in both Kiwisaver and its product. Written by Renae Williams Updated over a week ago Kids Account Tax Information on how tax applies to Kids Accounts. So effectively you have to own $10k worth of shares with sharesies just to have the same custodial fees as a full service broker. You aren’t guaranteed to make money, and you might lose the money you start with. As a US citizen or Green Card holder, you may have other tax obligations to the IRS. 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. Sign up. 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. . Updated over a week ago PIE Funds and Income What is a PIE. If you know your annual income before tax, put that number ��� Our tax system, also supports this baseline assumption that you���re rich if you earn ���high income��� (a relatively relative statement!). Sharesies says a sharemarket listing could be on the cards in its ... Tax review redefines 'income' 20 Sep, 2018 05:00 PM Quick Read. In just over 18 months, Sharesies has attracted more than 41,000 investors, with nearly $46M in funds under management. Does Sharesies provide tax statements? 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! it's an excellent way for tax-deductible. Currently, the brokerage fees are as followed - 0.5% for orders up to $3,000, and 0.1% for amounts over $3,000. The total tax Sharesies will pay on your behalf for your US shares income is 33%. Knowledge is power, and those who feel knowledgeable about the share market are more likely to own shares. A big part of this is a lack of knowledge: only 35% of the people we interviewed said they understand how investing works. Some data to go with today's discussion about Income Tax in NZ (link towards bottom of post). Sharesies won’t handle this for you and you should seek tax advice. 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. All rights reserved. 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! Absolutely! Sharesies itself somewhat cheekily recommends to ���have it both ways��� and invest in both Kiwisaver and its product. Do you have dreams of investing your money, watching it grow while you earn through other sources of income? You'll need to upgrade to a modern web browser to access this site. © 2020 Sharesies Limited. For US shares, we’re partnered with a broker called DriveWealth and its custodian Citibank. When an employee is on a tax rate of ~30% it is hardly fair to tax their perks at 63.93%. 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 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). For US shares, there are no changes to our existing subscription fee. 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. In general, there are two methods in which you pay tax on your investments. Start small and grow as you go! 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. While this has worked for some people, the lack of flexibility has been a big barrier for others. 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. 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! ONE: How did Hnry start and wh APPS 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. If you have over $50,000 NZD invested in overseas investments, you’re subject to the Foreign Investment Fund (FIF) tax rules. If you’re a US citizen, Green Card holder, or tax resident of the US, you’re considered a US person. We’d love to see Kiwis feel more confident, empowered, and knowledgeable about investing! You aren’t guaranteed to make money, and you might lose the money you start with. A rise of 29% (49.25% rising by 14.28 points to 63.93%) isn't exactly a "slight" rise. Any information we provide is general only and current at the time written. My current salary is ~85k, and my only debt is student loan. 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. Hnry | 1,317 followers on LinkedIn. For example, Sharesies is designed for investing affordable amounts, regularly, over a long period of time. 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. ... How Income Tax Brackets Work and Why Going Up a Tax Bracket Will Never Earn You Less Money. We had heaps of questions, feedback, and requests from you, so we thought we’d jump in and chat about some of these today! 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! 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 ��� I consider the Rule of 72 and Sharesight as two useful ��� Click below to see some options. We were interested to learn that the majority of Kiwi investors are Auckland-based males over the age of 60! You can buy, sell, and withdraw your investments whenever you want—and invest from as little as $5! Click the button below for instructions on how to enable JavaScript, then refresh the page. 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. 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. But that seems like an optimistic reading of how much disposable income many young people have. Any information we provide is general only and current at the time written. We've partnered with Drivewealth to provide access to US markets. We don’t provide personalised advice or recommendations. We like to think so! Sign up to Sharesies, or check out our help centre to learn how to start investing in US companies and exchange-traded funds. This year, we interviewed 1000 Kiwis to learn more about how people spend, save, and invest their money. Sharesies $1million Media Release. You aren’t currently able to transfer your existing US shares into Sharesies. The total tax Sharesies pays on your behalf for your US shares income is 48%. 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. 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 ��� Sharesies 若�營�瑥닸��竊�Sharesies Nominee Limited that holds your Portfolio for you and may transact on your behalf. If your income hasn���t changed much during the year, you can use one income to estimate a full year income. The different funds Sharesies offers also ��� Timothy Alvin Makalinao in The Savvy Savior. Investing has traditionally been designed for those able to part with large sums of money on a consistent basis. for self-employed people. this sort of investment can address custard like wayward tenants. SmartShares just added a new investor portal for their existing investors. You do not need to do this for the Superlife fund. As part of this, your US shares are held under Sharesies Nominee Limited. This is ��� With investing becoming more accessible than ever, it’s super encouraging to see more New Zealanders jump in and give investing a go! 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! Held under Sharesies Nominee Limited that holds your Portfolio for you investing in shares in Sharesies, check... 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