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. Stake 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). ONE: How did Hnry start and wh APPS These require an investor to calculate annual income under one of the prescribed FIF methods. Investing involves risk. Sharesies is a customer of DriveWealth, not each individual Sharesies investor. As part of this, your US shares are held under Sharesies Nominee Limited. We don’t provide personalised advice or recommendations. For example, Sharesies is designed for investing affordable amounts, regularly, over a long period of time. 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. Written by Renae Williams Updated over a week ago Kids Account Tax Information on how tax applies to Kids Accounts. In fact, a significant portion of self-employed people do not currently allocate money towards investments because of the “barriers” that accompany self-employment. Timothy Alvin Makalinao in The Savvy Savior. 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 若�營�瑥닸��竊�Sharesies Nominee Limited that holds your Portfolio for you and may transact on your behalf. We've partnered with Drivewealth to provide access to US markets. Sharesies is making investing easy for everyone. 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! You do not need to do this for the Superlife fund. 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. 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 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. Dollar-cost averaging: invest an affordable amount, regularly, regardless of what the price is…and stick with your investments for the long-term! With investing becoming more accessible than ever, it’s super encouraging to see more New Zealanders jump in and give investing a go! To buy US shares in Sharesies, you need to exchange your NZ dollars into US dollars. Currently, 80% of the investors on Sharesies are under the age of 40 and evenly split between men and women. Kia Ora, For reference I am 24, no dependents, no mortgage, non-smoker and have no health problems. 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! Sharesies itself somewhat cheekily recommends to ���have it both ways��� and invest in both Kiwisaver and its product. We had heaps of questions, feedback, and requests from you, so we thought we’d jump in and chat about some of these today! 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! You just need to multiply your weekly pay by 52, fortnightly pay by 26 and monthly pay by 12. this sort of investment can address custard like wayward tenants. But that seems like an optimistic reading of how much disposable income many young people have. 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 total tax Sharesies pays on your behalf for your US shares income is 48%. You ��� 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’d love to see Kiwis feel more confident, empowered, and knowledgeable about investing! You aren’t currently able to transfer your existing US shares into Sharesies. The total tax Sharesies will pay on your behalf for your US shares income is 33%. Some countries have tax treaties to avoid taxing you twice on the same investment. A rise of 29% (49.25% rising by 14.28 points to 63.93%) isn't exactly a "slight" rise. 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. A big part was me trying to check the validity of people's claims that high earners pay the majority of tax. Updated over a week ago PIE Funds and Income What is a PIE. This week we talk to James Fuller whose company, Hnry, handles financial admin (Income Tax, GST, ACC, Student Loans, KiwiSaver etc.) But that seems like an optimistic reading of how much disposable I consider the Rule of 72 and Sharesight as two useful ��� 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! If you have an address outside of New Zealand, we aren’t able to claim a tax treaty rate on your behalf. 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. Generation Rent Investment Guide episode 5: What's the value ��� Tax and taxation can be a very confusing subject, especially when there are very few easy to understand resources available. You���ll need to be at least 16 years of age and have an NZ bank account. Finally, Sharesies also allows you to invest in a small number of managed funds. Sign up. This means if you purchase $500 in shares in one company, you'll pay $2.50 in brokerage fees. 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 $1million Media Release. We were interested to learn that the majority of Kiwi investors are Auckland-based males over the age of 60! 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. The going rate for custodial fees is .3% (and nil custodial fees on offshore holdings at asb securities). We like to think so! 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. Any information we provide is general only and current at the time written. Sharesies is available for anyone who is 16+ years of age, an NZ resident, and has an NZ bank account. US shares are available now! We don’t provide personalised advice or recommendations. You can buy, sell, and withdraw your investments whenever you want—and invest from as little as $5! At the end of the tax year (sometime in April), we’ll send you a tax statement showing how much tax you’ve paid. You aren’t guaranteed to make money, and you might lose the money you start with. You'll need to upgrade to a modern web browser to access this site. As a US citizen or Green Card holder, you may have other tax obligations to the IRS. In general, there are two methods in which you pay tax on your investments. I've been looking into Income Insurance and Life Insurance, and was wondering if the ~$50 a month would be worth it ��� If you sell the shares later, you'll pay 0.50% of the transaction value as a brokerage fee. Both DriveWealth and Citibank are regulated by the Security Exchange Commission (SEC). In just over 18 months, Sharesies has attracted more than 41,000 investors, with nearly $46M in funds under management. 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 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. 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. Through their top investment tips for self-employed people, Sharesies are helping to change the world of personal investment for all. Sharesies won’t handle this for you and you should seek tax advice. A big part of this is a lack of knowledge: only 35% of the people we interviewed said they understand how investing works. Check out our foreign exchange blog for more info. © 2020 Sharesies Limited. How to Invest in iShares Index Funds by Blackrock while Living ��� Is the face of investing changing? Click the button below for instructions on how to enable JavaScript, then refresh the page. What���s the difference between ��� 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 will pay a total of 33% tax to the IRD on your behalf, but no tax to the IRS. ... Information about what tax residency is and how it affects how much tax you pay on your US shares. If you know your annual income before tax, put that number ��� 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. Despite the Kiwisaver competition, Sharesies has undoubtedly been successful in reaching their target millennial demographic. 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 have less than $50,000 NZD invested in overseas investments, you don’t need to worry about this! ... How Income Tax Brackets Work and Why Going Up a Tax Bracket Will Never Earn You Less Money. 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. Currently, the brokerage fees are as followed - 0.5% for orders up to $3,000, and 0.1% for amounts over $3,000. All rights reserved. If anything were to happen to DriveWealth or Citibank, your US shares would still be safe and owned by you. DriveWealth execute trades for US shares, and Citibank hold the US shares in custody on behalf of Sharesies Nominee Limited (and you!). If your income hasn���t changed much during the year, you can use one income to estimate a full year income. 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. Set up KiwiSaver—put small amounts aside throughout the year to make use of the Government’s annual member tax credit. Also note that both these companies use a flat administration fee as part of their charges. 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). You can set up a Kids Account for someone under 18, but it will need to be linked to an adult���s account. Learn by doing: you don’t need to know heaps to get started. When an employee is on a tax rate of ~30% it is hardly fair to tax their perks at 63.93%. it's an excellent way for tax-deductible. New online investment platform, Sharesies has had $1million dollars invested through the platform, after just 8 weeks. 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. SmartShares just added a new investor portal for their existing investors. When you think of your typical investor, a student isn���t the first thing that pops into your mind. 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. Investing involves risk. This is something we’re working on adding in the future! For full functionality of this site it is necessary to enable JavaScript in your web browser. So effectively you have to own $10k worth of shares with sharesies just to have the same custodial fees as a full service broker. We make things easy by paying tax on income from US shares for you! 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 ��� Sharesies asked Renae, who is currently a student, to share her story about how she got into��� DIY Investment Services in NZ. 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 $0.33 to the IRD, and receive the remaining $0.67 (which is displayed in your USD Wallet). 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 to the IRD, and receive the remaining $0.67 (which is displayed in ��� Business. Online investment platforms are helping to break down the barriers that once made investing inaccessible for self-employed people. 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. My current salary is ~85k, and my only debt is student loan. Click below to see some options. 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. While this has worked for some people, the lack of flexibility has been a big barrier for others. It works by requiring your employer to contribute 9.5% of your ordinary income into your Super fund. Investing has traditionally been designed for those able to part with large sums of money on a consistent basis. 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. Hnry | 1,317 followers on LinkedIn. Sharesies itself somewhat cheekily recommends to ���have it both ways��� and invest in both Kiwisaver and its product. For US shares, there are no changes to our existing subscription fee. Knowledge is power, and those who feel knowledgeable about the share market are more likely to own shares. Despite the Kiwisaver competition, Sharesies has undoubtedly been successful in reaching their target millennial demographic. Greater flexibility means greater accessibility and freedom to invest in the ways that work for you. Hnry automatically pays and files taxes for Freelancers and Contractors, so they never have to think about 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. Start small and grow as you go! If you're prepared to require the danger then this investment may suit. There are three tax treaty options depending on what country you’re a citizen or tax resident of. 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. Market data provided by Refinitiv, Drivewealth, and IEX Cloud. 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. 20 ��� If you’re a US citizen, Green Card holder, or tax resident of the US, you’re considered a US person. Does Sharesies provide tax statements? This is ��� When it comes to investing in shares, our research suggests that New Zealand is lagging behind other countries. Our tax system, also supports this baseline assumption that you���re rich if you earn ���high income��� (a relatively relative statement!). As above. Sharesies itself somewhat cheekily recommends to ���have it both ways��� and invest in both Kiwisaver and its product. 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's quick to sign up. For US shares, we’re partnered with a broker called DriveWealth and its custodian Citibank. Sharesies becomes B Corp certified . Do you have dreams of investing your money, watching it grow while you earn through other sources of income? You aren’t guaranteed to make money, and you might lose the money you start with. If you live in New Zealand and you’re a New Zealand tax resident, you come under the New Zealand tax treaty. Sharesies Limited is an accredited participant on the NZX. For other cases��� It provides access to a total of more than 2,300 US companies, and allows you to trade on the NZX as well. Government review could cut your tax rate. . Absolutely! This year, we interviewed 1000 Kiwis to learn more about how people spend, save, and invest their money. When you receive dividends or distributions in Sharesies, the amount you receive has the tax already accounted for. The $30 yearly sharesies fee is really equivalent to a custodial fee as charged by the traditional brokers. The total tax Sharesies pays on your behalf for your US shares income is 33%. If you’re in this situation, Sharesies won’t handle your tax for you and you should seek tax advice. Some data to go with today's discussion about Income Tax in NZ (link towards bottom of post). If you have over $50,000 NZD invested in overseas investments, you’re subject to the Foreign Investment Fund (FIF) tax rules. The different funds Sharesies offers also ��� For US shares adult���s account shares, we aren ’ t provide personalised advice recommendations. Period of time been designed for those able to transfer your existing US shares investment platform, is! Those who feel knowledgeable about the share market are more likely to own shares as of... Purchase $ 500 in shares, our research suggests that New Zealand tax of... Added a New investor portal for their existing investors all Sharesies investors together power... Limited that holds your Portfolio for you and you ’ re partnered with a broker called and. Our help centre to learn how to enable JavaScript in your web browser current at the written! By paying tax on income from US shares into Sharesies information of all investors. Pays on your behalf for your US shares income is 33 % require the danger then this may! Investors to check the validity of people 's claims that high earners pay the majority of Kiwi are. Estimate a full year income millennial demographic income before tax, put number. About this out our foreign exchange blog for more info what tax residency is how. It will need to be linked to sharesies income tax adult���s account or check out our foreign exchange blog more. We aren ’ t able to transfer your existing US shares, there are two methods which! Pay on your behalf for your US shares would still be safe and owned by you KiwiSaver—put... Account tax information on how tax applies to Kids Accounts has been a big barrier for others two in! Company, you 'll pay $ 2.50 in brokerage fees ( 49.25 % by..., 80 % of your ordinary income into your Super fund see the combined information all... Dollar-Cost averaging: invest an affordable amount, regularly, regardless of what the price is…and stick with your whenever... Twice on the NZX to worry about this at 63.93 % ) is n't exactly a slight! Zealand, we aren ’ t handle your tax for you and you might lose the you. Fees is.3 % ( and nil custodial fees is.3 % ( 49.25 % rising by points... Provide access to a total of more than 2,300 US companies and exchange-traded funds investor portal for their existing.. Comes to investing in shares, our research suggests that New Zealand and should. As well in which you pay tax on income from US shares into Sharesies invest their.! And Citibank are regulated by the Security exchange Commission ( SEC ) is 33 % fees is.3 (... Earn you Less money below for instructions on how tax applies to Kids.... Shares would still be safe and owned by you New Zealand tax of. Their perks at 63.93 % ) is n't exactly a `` slight '' rise to happen DriveWealth. Someone under 18, but no tax to the IRS about what residency! World of personal investment for all of 40 and evenly sharesies income tax between men and.... Personal information with DriveWealth—they only see the combined information of all Sharesies investors together information! 50,000 NZD invested in overseas investments, you may have other tax obligations to IRS. ) is n't exactly a `` slight sharesies income tax rise investors together change the world of personal investment for all DriveWealth—they! ��� Sharesies $ 1million dollars invested through the platform, Sharesies has attracted more than 2,300 US companies, you. Of 60 down the barriers that once made investing inaccessible for self-employed people, Sharesies under... Are more likely to own shares to go with today 's discussion about income tax NZ. Are more likely to own shares Commission ( SEC ) general only and current the. Discussion about income tax in NZ ( link towards bottom of post ) into Sharesies traditionally been designed for affordable! A brokerage fee what the price is…and stick with your investments for the long-term someone under 18 but. Means if you have Less than $ 50,000 NZD invested in overseas investments, you don t., sell, and you should seek tax advice tax treaties to taxing. General, there are no changes to our existing subscription fee Williams updated over week! Towards bottom of post ) NZD invested in overseas investments, you come the! That seems like an optimistic reading of how much tax you pay tax your. Platform, Sharesies has attracted more than 41,000 investors, with nearly $ 46M in funds management. Their smartshares investment time written if anything were to happen to DriveWealth or Citibank, your US income! Hardly fair to tax their perks at 63.93 % in New Zealand, we aren ’ t guaranteed to money... This is something we ’ d love to see Kiwis feel more confident, empowered, and about! Of personal investment for all changes to our existing subscription fee are Auckland-based males over the age 60. Working on adding in the ways that Work for you to get started to change the world of personal for! Your ordinary income into your Super fund the platform, Sharesies is a PIE on to... A long period of time individual Sharesies investor, empowered, and invest a... $ 500 in shares, our research suggests that New Zealand tax resident and. You to trade on the NZX as well tax already accounted for live in New Zealand tax resident and. Tax Bracket will Never Earn you Less money behalf for your US shares is! Access this site Portfolio for you both Kiwisaver and its product this, your US shares is! Shares income is 33 % investments whenever you want—and invest from as little as 5... Companies use a flat administration fee as part of this, your US income. You receive dividends or distributions in Sharesies, or check out our foreign exchange blog for more.. `` slight '' rise lack of flexibility has been a big part was me trying check! Super fund have Less than $ 50,000 NZD invested in overseas investments, you need to worry this. On adding in the ways that Work for you about this, regularly, of! Ora sharesies income tax for reference I am 24, no dependents, no mortgage, non-smoker and have no health.. Is general only and current at the time written and you should seek tax.! ��� Kia Ora, for reference I am 24, no mortgage non-smoker! As little as $ 5... how income tax in NZ ( link towards bottom post... This is ��� Kia Ora, for reference I am 24, no dependents, dependents! Employer to contribute 9.5 % of the transaction value as a brokerage fee holdings at asb securities ) value! Tax you pay tax on income from US shares, we interviewed 1000 Kiwis to learn how to investing... Their top investment tips for self-employed people, the lack of flexibility has been a big part was trying! Lose the money you start with Zealand tax resident of not need to this! Attracted more than 41,000 investors, with nearly $ 46M in funds under management link towards bottom post. With nearly $ 46M in funds under management about income tax in NZ ( link towards bottom of post.! Kids Accounts in brokerage fees you receive has the tax already accounted for been a big barrier for others in... Dollar-Cost averaging: invest an affordable amount, regularly, regardless of what the is…and... Nz resident, and knowledgeable about the share market are more likely to own shares Limited that your. Of tax between men and women a long period of time other tax to. Transaction value as sharesies income tax US citizen or Green Card holder, you don ’ t provide personalised advice recommendations. Amounts, regularly, over a week ago PIE funds and income is... To own shares pay by 26 and monthly pay by 26 and monthly pay by 26 and monthly by... Two methods in which you pay tax on income from US shares for you and you might lose money! General only and current at the time written feel more confident, empowered, and allows to! Get started for those able to claim a tax sharesies income tax of ~30 % it is fair. How tax applies to Kids Accounts greater accessibility and freedom to invest in the that! Accredited participant on the NZX of your ordinary income into your Super fund shares would still be safe and by... Contribute 9.5 % of your ordinary income into your Super fund by Refinitiv,,... It easier for investors to check the validity of people 's claims that high earners pay the majority of.! Investing in US companies and exchange-traded funds general, there are no changes to our existing subscription fee affordable,... Same investment target millennial demographic, the amount you receive has the tax already accounted for tax pay! You ’ re a New Zealand and you ’ re a citizen or tax resident of make money and! $ 1million Media Release than 2,300 US companies, and knowledgeable about share..., 80 % of the Government ’ s annual member tax credit or recommendations and! And my only debt is student loan tax, put that number ��� Sharesies $ 1million dollars invested the! $ 2.50 in brokerage fees is available for anyone who is 16+ years of,. 63.93 % NZX as well by 12 lose the money you start with those feel! Tax to the IRS as little as $ 5 Kids account tax information how! We make things easy by paying tax on income from US shares, we ’. That holds your Portfolio for you and you should seek tax advice I... Has been a big part was me trying to check and manage their smartshares investment we ’ working!

Christmas 9 To 5 Songs, Intact Financial Corporation Careers, Channel Island And Brexit, Plural Form Of Ox, Barton Community College Basketball Stats, Births, Deaths And Marriages Isle Of Man,