If you’re a US citizen, Green Card holder, or tax resident of the US, you’re considered a US person. Some data to go with today's discussion about Income Tax in NZ (link towards bottom of post). In general, there are two methods in which you pay tax on your investments. 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 ��� If you’re in this situation, Sharesies won’t handle your tax for you and you should seek tax advice. Our tax system, also supports this baseline assumption that you���re rich if you earn ���high income��� (a relatively relative statement!). © 2020 Sharesies Limited. Sharesies asked Renae, who is currently a student, to share her story about how she got into��� this sort of investment can address custard like wayward tenants. There are three tax treaty options depending on what country you’re a citizen or tax resident of. Currently, 80% of the investors on Sharesies are under the age of 40 and evenly split between men and women. You aren’t guaranteed to make money, and you might lose the money you start with. This is something we’re working on adding in the future! 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 33%—that’s 33% tax to the IRD and no tax to the IRS. As part of this, your US shares are held under Sharesies Nominee Limited. 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. Timothy Alvin Makalinao in The Savvy Savior. While this has worked for some people, the lack of flexibility has been a big barrier for others. For US shares, we’re partnered with a broker called DriveWealth and its custodian Citibank. But that seems like an optimistic reading of how much disposable income many young people have. If your income hasn���t changed much during the year, you can use one income to estimate a full year income. 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. Both DriveWealth and Citibank are regulated by the Security Exchange Commission (SEC). 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. Sharesies $1million Media Release. This portal makes it easier for investors to check and manage their SmartShares investment. 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. The going rate for custodial fees is .3% (and nil custodial fees on offshore holdings at asb securities). 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. 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. You ��� This means we don’t share any of your personal information with DriveWealth—they only see the combined information of all Sharesies investors together. 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 if you purchase $500 in shares in one company, you'll pay $2.50 in brokerage fees. it's an excellent way for tax-deductible. 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 ��� Online investment platforms are helping to break down the barriers that once made investing inaccessible for self-employed people. Sharesies won’t handle this for you and you should seek tax advice. Business. Sharesies Limited is an accredited participant on the NZX. US shares are available now! 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! Stake It provides access to a total of more than 2,300 US companies, and allows you to trade on the NZX as well. 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). It's quick to sign up. 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. All rights reserved. Knowledge is power, and those who feel knowledgeable about the share market are more likely to own shares. Dollar-cost averaging: invest an affordable amount, regularly, regardless of what the price is…and stick with your investments for the long-term! 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. You aren’t guaranteed to make money, and you might lose the money you start with. 20 ��� 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 ��� Hnry automatically pays and files taxes for Freelancers and Contractors, so they never have to think about for self-employed people. 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. Sharesies: Sharesies lets you buy and sell shares and ETFs on the New York Stock Exchange, the NASDAQ and the Chicago Board Options Exchange. 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 ��� We had heaps of questions, feedback, and requests from you, so we thought we’d jump in and chat about some of these today! Updated over a week ago PIE Funds and Income What is a PIE. Sharesies itself somewhat cheekily recommends to ���have it both ways��� and invest in both Kiwisaver and its product. Investing involves risk. Currently, the brokerage fees are as followed - 0.5% for orders up to $3,000, and 0.1% for amounts over $3,000. We like to think so! To buy US shares in Sharesies, you need to exchange your NZ dollars into US dollars. We were interested to learn that the majority of Kiwi investors are Auckland-based males over the age of 60! Sharesies itself somewhat cheekily recommends to ���have it both ways��� and invest in both Kiwisaver and its product. 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. You just need to multiply your weekly pay by 52, fortnightly pay by 26 and monthly pay by 12. 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. 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. We've partnered with Drivewealth to provide access to US markets. Absolutely! What���s the difference between ��� Sharesies is available for anyone who is 16+ years of age, an NZ resident, and has an NZ bank account. 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! 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). Hnry | 1,317 followers on LinkedIn. Is the face of investing changing? Also note that both these companies use a flat administration fee as part of their charges. The total tax Sharesies pays on your behalf for your US shares income is 33%. Some countries have tax treaties to avoid taxing you twice on the same investment. Click the button below for instructions on how to enable JavaScript, then refresh the page. Do you have dreams of investing your money, watching it grow while you earn through other sources of income? ONE: How did Hnry start and wh APPS 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. We’d love to see Kiwis feel more confident, empowered, and knowledgeable about investing! You'll need to upgrade to a modern web browser to access this site. Click below to see some options. Check out our foreign exchange blog for more info. Market data provided by Refinitiv, Drivewealth, and IEX Cloud. A rise of 29% (49.25% rising by 14.28 points to 63.93%) isn't exactly a "slight" rise. Despite the Kiwisaver competition, Sharesies has undoubtedly been successful in reaching their target millennial demographic. So effectively you have to own $10k worth of shares with sharesies just to have the same custodial fees as a full service broker. If you have an address outside of New Zealand, we aren’t able to claim a tax treaty rate on your behalf. 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. These require an investor to calculate annual income under one of the prescribed FIF methods. If you have over $50,000 NZD invested in overseas investments, you’re subject to the Foreign Investment Fund (FIF) tax rules. A big part was me trying to check the validity of people's claims that high earners pay the majority of tax. Any information we provide is general only and current at the time written. You can set up a Kids Account for someone under 18, but it will need to be linked to an adult���s account. If anything were to happen to DriveWealth or Citibank, your US shares would still be safe and owned by you. 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. With investing becoming more accessible than ever, it’s super encouraging to see more New Zealanders jump in and give investing a go! 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 We don’t provide personalised advice or recommendations. Sign up to Sharesies, or check out our help centre to learn how to start investing in US companies and exchange-traded funds. You can also ���salary sacrifice��� (contribute your own income) into your Super, which may have tax benefits, as contributions are taxed at ��� Through their top investment tips for self-employed people, Sharesies are helping to change the world of personal investment for all. DriveWealth execute trades for US shares, and Citibank hold the US shares in custody on behalf of Sharesies Nominee Limited (and you!). DIY Investment Services in NZ. Government review could cut your tax rate. Learn by doing: you don’t need to know heaps to get started. Does Sharesies provide tax statements? Sharesies 若�營�瑥닸��竊�Sharesies Nominee Limited that holds your Portfolio for you and may transact on your behalf. If you're prepared to require the danger then this investment may suit. Written by Renae Williams Updated over a week ago Kids Account Tax Information on how tax applies to Kids Accounts. 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