But that seems like an optimistic reading of how much disposable 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. If you’re in this situation, Sharesies won’t handle your tax for you and you should seek tax advice. DIY Investment Services in NZ. We don’t provide personalised advice or recommendations. 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. Hnry automatically pays and files taxes for Freelancers and Contractors, so they never have to think about 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 ��� When an employee is on a tax rate of ~30% it is hardly fair to tax their perks at 63.93%. To buy US shares in Sharesies, you need to exchange your NZ dollars into US dollars. 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. 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! When it comes to investing in shares, our research suggests that New Zealand is lagging behind other countries. If you have an address outside of New Zealand, we aren’t able to claim a tax treaty rate on your behalf. Check out our foreign exchange blog for more info. Sharesies is available for anyone who is 16+ years of age, an NZ resident, and has an NZ bank account. You'll need to upgrade to a modern web browser to access this site. Sharesies becomes B Corp certified . With investing becoming more accessible than ever, it’s super encouraging to see more New Zealanders jump in and give investing a go! 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. You���ll need to be at least 16 years of age and have an NZ bank account. A big part of this is a lack of knowledge: only 35% of the people we interviewed said they understand how investing works. 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. You aren’t guaranteed to make money, and you might lose the money you start with. 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. Click below to see some options. I've been looking into Income Insurance and Life Insurance, and was wondering if the ~$50 a month would be worth it ��� Despite the Kiwisaver competition, Sharesies has undoubtedly been successful in reaching their target millennial demographic. You can also ���salary sacrifice��� (contribute your own income) into your Super, which may have tax benefits, as contributions are taxed at ��� Timothy Alvin Makalinao in The Savvy Savior. This week we talk to James Fuller whose company, Hnry, handles financial admin (Income Tax, GST, ACC, Student Loans, KiwiSaver etc.) Sharesies: Sharesies lets you buy and sell shares and ETFs on the New York Stock Exchange, the NASDAQ and the Chicago Board Options Exchange. How to Invest in iShares Index Funds by Blackrock while Living ��� Market data provided by Refinitiv, Drivewealth, and IEX Cloud. You aren’t currently able to transfer your existing US shares into Sharesies. A big part was me trying to check the validity of people's claims that high earners pay the majority of tax. 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 ��� Absolutely! 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. We don’t provide personalised advice or recommendations. this sort of investment can address custard like wayward tenants. Sharesies 若�營�瑥닸��竊�Sharesies Nominee Limited that holds your Portfolio for you and may transact on your behalf. At the end of the tax year (sometime in April), we’ll send you a tax statement showing how much tax you’ve paid. Sharesies is a customer of DriveWealth, not each individual Sharesies investor. 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. If your income hasn���t changed much during the year, you can use one income to estimate a full year income. Any information we provide is general only and current at the time written. Sharesies is making investing easy for everyone. This is ��� All rights reserved. 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! It works by requiring your employer to contribute 9.5% of your ordinary income into your Super fund. 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. Learn by doing: you don’t need to know heaps to get started. Generation Rent Investment Guide episode 5: What's the value ��� . Sharesies itself somewhat cheekily recommends to ���have it both ways��� and invest in both Kiwisaver and its product. Investing involves risk. The total tax Sharesies pays on your behalf for your US shares income is 48%. ONE: How did Hnry start and wh APPS Our tax system, also supports this baseline assumption that you���re rich if you earn ���high income��� (a relatively relative statement!). New online investment platform, Sharesies has had $1million dollars invested through the platform, after just 8 weeks. Both DriveWealth and Citibank are regulated by the Security Exchange Commission (SEC). If you live in New Zealand and you’re a New Zealand tax resident, you come under the New Zealand tax treaty. 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! 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. © 2020 Sharesies Limited. SmartShares just added a new investor portal for their existing investors. for self-employed people. We were interested to learn that the majority of Kiwi investors are Auckland-based males over the age of 60! Does Sharesies provide tax statements? 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. Do you have dreams of investing your money, watching it grow while you earn through other sources of income? 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 ��� ... How Income Tax Brackets Work and Why Going Up a Tax Bracket Will Never Earn You Less Money. We make things easy by paying tax on income from US shares for you! If you're prepared to require the danger then this investment may suit. If you have over $50,000 NZD invested in overseas investments, you’re subject to the Foreign Investment Fund (FIF) tax rules. 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 ��� You aren’t guaranteed to make money, and you might lose the money you start with. Is the face of investing changing? It provides access to a total of more than 2,300 US companies, and allows you to trade on the NZX as well. We like to think so! 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! If anything were to happen to DriveWealth or Citibank, your US shares would still be safe and owned by you. For example, Sharesies is designed for investing affordable amounts, regularly, over a long period of time. 20 ��� When you receive dividends or distributions in Sharesies, the amount you receive has the tax already accounted for. For US shares, there are no changes to our existing subscription fee. This is something we’re working on adding in the future! The different funds Sharesies offers also ��� While this has worked for some people, the lack of flexibility has been a big barrier for others. Currently, the brokerage fees are as followed - 0.5% for orders up to $3,000, and 0.1% for amounts over $3,000. 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! Updated over a week ago PIE Funds and Income What is a PIE. If you sell the shares later, you'll pay 0.50% of the transaction value as a brokerage fee. The total tax Sharesies will pay on your behalf for your US shares income is 33%. Kia Ora, For reference I am 24, no dependents, no mortgage, non-smoker and have no health problems. Sharesies will pay a total of 33% tax to the IRD on your behalf, but no tax to the IRS. Business. 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. 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). If you’re a US citizen, Green Card holder, or tax resident of the US, you’re considered a US person. Sharesies $1million Media Release. The $30 yearly sharesies fee is really equivalent to a custodial fee as charged by the traditional brokers. This year, we interviewed 1000 Kiwis to learn more about how people spend, save, and invest their money. Any information we provide is general only and current at the time written. There are three tax treaty options depending on what country you’re a citizen or tax resident of. The going rate for custodial fees is .3% (and nil custodial fees on offshore holdings at asb securities). Government review could cut your tax rate. Some countries have tax treaties to avoid taxing you twice on the same investment. Some data to go with today's discussion about Income Tax in NZ (link towards bottom of post). Sharesies Limited is an accredited participant on the NZX. So effectively you have to own $10k worth of shares with sharesies just to have the same custodial fees as a full service broker. 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. 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 $0.33 to the IRD, and receive the remaining $0.67 (which is displayed in your USD Wallet). For other cases��� DriveWealth execute trades for US shares, and Citibank hold the US shares in custody on behalf of Sharesies Nominee Limited (and you!). As above. We had heaps of questions, feedback, and requests from you, so we thought we’d jump in and chat about some of these today! 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. Online investment platforms are helping to break down the barriers that once made investing inaccessible for self-employed people. This means we don’t share any of your personal information with DriveWealth—they only see the combined information of all Sharesies investors together. A rise of 29% (49.25% rising by 14.28 points to 63.93%) isn't exactly a "slight" rise. Sign up. But that seems like an optimistic reading of how much disposable income many young people have. But that seems like an optimistic reading of how much disposable income many young people have. 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. Sign up to Sharesies, or check out our help centre to learn how to start investing in US companies and exchange-traded funds. As a US citizen or Green Card holder, you may have other tax obligations to the IRS. This means if you purchase $500 in shares in one company, you'll pay $2.50 in brokerage fees. 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 won’t handle this for you and you should seek tax advice. 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. If you know your annual income before tax, put that number ��� Hnry | 1,317 followers on LinkedIn. The total tax Sharesies pays on your behalf for your US shares income is 33%. We've partnered with Drivewealth to provide access to US markets. Knowledge is power, and those who feel knowledgeable about the share market are more likely to own shares. Finally, Sharesies also allows you to invest in a small number of managed funds. 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. 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. Written by Renae Williams Updated over a week ago Kids Account Tax Information on how tax applies to Kids Accounts. 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 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. 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. Investing has traditionally been designed for those able to part with large sums of money on a consistent basis. Despite the Kiwisaver competition, Sharesies has undoubtedly been successful in reaching their target millennial demographic. Sharesies itself somewhat cheekily recommends to ���have it both ways��� and invest in both Kiwisaver and its product. You just need to multiply your weekly pay by 52, fortnightly pay by 26 and monthly pay by 12. US shares are available now! We’d love to see Kiwis feel more confident, empowered, and knowledgeable about investing! In just over 18 months, Sharesies has attracted more than 41,000 investors, with nearly $46M in funds under management. Greater flexibility means greater accessibility and freedom to invest in the ways that work for you. Set up KiwiSaver—put small amounts aside throughout the year to make use of the Government’s annual member tax credit. it's an excellent way for tax-deductible. 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. ... Information about what tax residency is and how it affects how much tax you pay on your US shares. Tax and taxation can be a very confusing subject, especially when there are very few easy to understand resources available. What���s the difference between ��� Start small and grow as you go! It's quick to sign up. For US shares, we’re partnered with a broker called DriveWealth and its custodian Citibank. 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. 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). Dollar-cost averaging: invest an affordable amount, regularly, regardless of what the price is…and stick with your investments for the long-term! You can buy, sell, and withdraw your investments whenever you want—and invest from as little as $5! Also note that both these companies use a flat administration fee as part of their charges. Stake These require an investor to calculate annual income under one of the prescribed FIF methods. When you think of your typical investor, a student isn���t the first thing that pops into your mind. You do not need to do this for the Superlife fund. As part of this, your US shares are held under Sharesies Nominee Limited. 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. This portal makes it easier for investors to check and manage their SmartShares investment. Sharesies says a sharemarket listing could be on the cards in its ... Tax review redefines 'income' 20 Sep, 2018 05:00 PM Quick Read. If you have less than $50,000 NZD invested in overseas investments, you don’t need to worry about this! Investing involves risk. 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