Rask - How to Invest in 2025: Shares, ETFs & Platforms Explained!
The episode begins by stressing the importance of having an emergency fund before starting to invest, highlighting that many Australians struggle to save even a small emergency fund. It then advises listeners to commit to learning about investing through resources like podcasts, courses, and books. The host suggests starting small with investments, emphasizing that there is no perfect time to invest and that starting with small amounts can help mitigate risks. The episode also covers the importance of writing down a simple investment thesis to clarify investment goals and reduce impulsive decisions.
The host discusses various investment platforms, categorizing them into micro-investing platforms, traditional brokerage platforms, and 'do it for me' platforms. Micro-investing platforms like Raiz and Pearler allow investments with minimal amounts, while traditional platforms like CommSec require larger initial investments. 'Do it for me' platforms like Rask Invest require more substantial initial investments but offer managed services. The episode concludes by advising listeners to verify the legitimacy of investment platforms through their financial services guide and ensuring they operate under an Australian Financial Services License (AFSL).
Key Points:
- Start with an emergency fund to avoid using investment money for unexpected expenses.
- Commit to learning about investing through podcasts, courses, and books before starting.
- Begin investing with small amounts to minimize risk and gradually get comfortable with market fluctuations.
- Choose the right investment platform based on your investment amount and preference for DIY or managed services.
- Verify the legitimacy of investment platforms by checking their financial services guide and AFSL status.
Details:
1. 🎙️ Introduction and Sponsorship
1.1. 🎙️ Introduction
1.2. Sponsorship by Beta Shares
2. 🤝 Partnership with Beta Shares
- Beta Shares manages tens of billions of dollars on behalf of investors across the country, indicating substantial market influence and trust.
- The partnership with the Australian Finance Podcast aligns with both organizations' long-term philosophies, suggesting a strategic alignment to enhance financial education and outreach.
- This collaboration is expected to leverage Beta Shares' market influence to expand the podcast's reach and impact, promoting financial literacy across Australia.
- The partnership aims to deliver actionable financial insights to a broader audience, capitalizing on Beta Shares' expertise and resources.
- Future plans include joint initiatives that will focus on creating accessible financial content and educational resources for diverse demographics.
3. 🗣️ Episode Overview: Investing in 2025
- The episode provides a clear and detailed step-by-step guide on how to start investing in 2025, tailored for both beginners and seasoned investors.
- It explores different investment options such as shares and ETFs, providing insights into their potential benefits and risks.
- In-depth examples are discussed to illustrate how to effectively use shares and ETFs in a diversified investment strategy.
- The episode offers guidance on both self-directed investment approaches and managed investment services, ensuring that all types of investors find valuable information.
- The popularity of investing in 2025 is highlighted, with specific audience engagement metrics indicating high interest levels.
- Concrete case studies are provided to demonstrate the outcomes of different investment strategies, enhancing practical understanding.
4. 💡 Importance of an Emergency Fund
- Establishing an emergency fund is crucial before beginning any investment activities to ensure financial stability and avoid common pitfalls faced by new investors.
- Despite the increasing number of people seeking investment advice, the emphasis on building an emergency fund remains undervalued, leading to potential financial vulnerabilities.
- An emergency fund serves as a financial buffer, allowing individuals to address unforeseen expenses without the need to liquidate investments prematurely, thereby protecting long-term financial goals.
- To effectively build an emergency fund, start by setting a specific savings goal, ideally covering 3-6 months of living expenses, and consistently allocate a portion of income to this fund until the goal is met.
5. 📚 Learning and Starting Small
5.1. Financial Vulnerability and Support
5.2. Investment Education Resources
6. 🔍 Practical Steps for New Investors
- Investing should be viewed as a three-year apprenticeship for those looking to manage their own money long-term.
- It's important to establish an emergency fund or set aside some money, even if it's a small amount like $10 or $20, to start investing.
- Take a few months to learn the basics of investing before diving in fully, but it's okay to start with small investments during this learning phase.
- There's no perfect time to invest, so start small with the money you have available without rushing.
- Be aware of external factors like politics and market conditions, but don't let them prevent you from starting to invest.
7. 📊 Choosing a Brokerage Platform
7.1. Starting Small and Setting Investment Goals
7.2. Account Management and Discipline
8. 🔍 Microinvesting and Platform Options
- Platforms like Market Index and Google Finance help track investment values over time.
- Key steps before investing include establishing an emergency fund, committing to learning, starting small, and writing an investment thesis.
- Choosing the right brokerage platform is a significant step for investors.
- Microinvesting platforms allow investments with minimal amounts, sometimes less than $100.
- Raise Invest, an Australian company, rounds up spare change from transactions to invest in ETFs.
- Pear Micro offers options to invest small amounts, as little as $10.
- Sherzies in New Zealand allows small initial investments and is popular in finance communities.
- Beta Shares Direct platform enables investments under $100 and is connected to the Australian Finance podcast.
- Comse Pocket, associated with the largest brokerage in the country, supports microinvesting.
9. 📈 Traditional Brokerage and Fees
- ComSec, a division of the Commonwealth Bank, offers two main services: ComSec Trading for investments over $500, and ComSec Pocket, which allows investments as low as $50, providing flexibility for different investor profiles.
- Accounts with ComSec can be opened at no cost, reducing barriers for potential investors to explore the platform.
- Typically, a minimum investment of $500 is required when buying shares or ETFs on traditional brokerage platforms, which could be a limitation for some investors.
- Pearler, BHS Direct, and SelfWealth are highlighted as popular brokerage platforms, with SelfWealth noted for its fixed price brokerage model, offering a predictable fee structure.
- Brokerage fees typically range from $5-$10 per trade, though promotional offers may provide limited free trades upon joining, which can be an attractive incentive for new users.
- The impact of brokerage fees on different types of investors varies; for example, frequent traders may benefit from platforms with lower per-trade fees, while long-term investors might prioritize low account maintenance costs.
10. 🤖 Do-It-For-Me Platforms
- Do-It-For-Me platforms like Ras Invest require higher initial investments, typically in the thousands of dollars, compared to DIY platforms or micro-investing.
- Ras Invest mandates a starting investment of $10,000, except for children, highlighting the higher entry barrier for these services.
- Stockspot is another established platform in this category, offering portfolio development services.
- These platforms often blend the characteristics of traditional brokerage accounts and managed investment services, especially with options to invest in diversified ETFs.
11. 📝 Legal Considerations and AFSL Verification
11.1. Popular ETFs and Investment Options
11.2. Types of Investment Platforms
11.3. Understanding Fees and Legal Documents
11.4. Verification of Financial Services License
12. 🛡️ Final Tips and Advice for Investors
- Brokerage accounts are well-regulated, but it is crucial to verify the legitimacy of the company you are dealing with by checking professional registers and consulting with a licensed financial advisor.
- Investigate different investment structures like HIN (Holder Identification Number) versus custodial models by using resources such as the RAS website or community forums.
- Ensure the brokerage account uses an AFSL (Australian Financial Services Licence) before opening an account, and evaluate the platform's user interface for any overwhelming features.
- Consider automating your investments as many platforms offer automation features, which can simplify the process.
- Seek financial advice if confused, especially after reading legal documents, to make informed investment decisions.
- Start investing with ETFs (Exchange-Traded Funds) as they are simple to begin with minimal amounts like $50 or $500, and are offered by many reputable providers.
- Follow essential investment steps: establish an emergency fund, commit to learning for 2-3 months, start small, document your investment thesis, and ensure the brokerage's license is active.
13. 📢 Closing and Call to Action
- Encouragement for listeners to write in with topics or questions, such as stocks, ETFs, budgeting tools, or how-to guides, for future episodes.
- Listeners can provide feedback through links in the YouTube description or their podcast player by selecting 'ask a question'.
- Listeners are urged to like and subscribe on the RAS Network to receive daily videos on business, finance, and investing.