Thursday, 3 November 2022

Get $10 bonus when joining Superhero for share trading

** Sponsored Post **

Superhero is an easy to use app that I use to trade a small portfolio of US shares without having to pay commissions. I currently had the following portfolio:

CORN - Teucrium Corn Fund

WEAT - Teucrium Wheat Fund

ITA - iShares U.S. Aerospace & Defense ETF

SQQQ - ProShares UltraPro Short QQQ

Total gain since I added CORN, WEAT and SQQQ to my portfolio in July has been +USD $30.34 (+4.68%). I'm not recommending this as a portfolio - I simply thought investing in ITA was a good idea at the start of the year (due to developments in the US aerospace industry and the likely positive impact of the Ukraine war on US defense companies), and then added SQQQ as the tech bubble started to deflate, and added CORN and WEAT due to the likelihood of food commodities seeing price increases due to the impact of the Ukraine war. I only have about $500 invested in this 'portfolio' as a small speculative investment to amuse myself (I am mostly a long term investor in index funds -- which is a bit like watching grass grow).

Features of trading using  the Superhero App include:

* Earn Qantas Frequent Flyer points: Earn Qantas Points on eligible trades and transfers with Superhero. Eligibility criteria, min share trade amounts, terms and conditions, fees and charges apply.

* Trade Australian shares: $5 per trade ($0 brokerage on ETFs). $100 minimum investment.

* Trade US shares: Invest in US shares and ETFs with $0 brokerage and $10 minimum investment.

* Free to join and no monthly account fee.

To get $10 of Telsa shares for free (when you deposit $100 or more within the first 30 days) simply join using the link:

Disclaimer: If you use this link to join and qualify for the free $10 of Tesla shares, I'll also receive $10 of free Tesla shares ;)

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Wednesday, 2 November 2022

Net Worth: OCT 2022

My monthly NW estimate has been updated in NetWorthShare for the end of October. Chart is in the side-bar.

Stocks and managed fund investments recovered some of the recent falls during the past month. My 'Stocks' figure was up $4,291 (1.62%) to $269,582 net equity.

The value of my 'Other Assets' category (gold and silver proof coin collection, valued at bullion value only, Perth Mint unallocated gold, silver and platinum holdings, and my small art investment via Masterworks) were mostly unchanged during October, rising only $48 (0.16%) to $30,923.

Our estimated house price for October (my half) fell another $27,595 (-2.43%) to  $1,106,405 with weakness in the Sydney real estate market due to rising interest rates. Declines are likely to continue until inflation is brought under control, the RBA ends the cycle of interest rate hikes, and home loan interest rates stop rising. I expect falls in absolute terms to continue, with the decline in real terms being worse due to inflation (currently running at 7.3% pa).

I was notified that settlement for my 'off-the-plan' investment unit will occur sometime in January, so I have a meeting to discuss a mortgage application with our current bank during November. The prices for units (apartments) in the suburb have started to decline slightly, but on the other hand rents have been rising (which will help with cashflow to fund the mortgage repayments).

The value of my retirement savings recovered to $1,403,709 (up $78,966 or 5.96%) during October, reversing the decline suffered in September.

Overall, my estimated NW increased to $3,121,926 during the past month - up by $55,962 (1.83%), recovering about half the decline in NW suffered during September.

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Saturday, 15 October 2022

Unexpected 'fee for no service' refund

As a registered Financial Adviser (sans clients) I'm all too familiar with the litany of complaints the 'Royal Commission into Misconduct in the Banking, Superannuation and Financial Service Industry' uncovered several years ago here in Australia. At the time I wasn't surprised that there were some Financial Advisers who had given inappropriate advice to their clients, given that up to then there was a fairly lax requirement to become registered as a financial planner  (a short course that could be done in one week to get 'RG146' certification was all that was required) and quite a lot of 'advisers' were apparently either just product/insurance salesmen (and women) or else spruiked products based on which ones provided the highest initial and trailing commissions.

But I was rather surprised by the number of instances where advisers employed by the 'big four' banks not only pushed (recommended) products produced by the banks (or their associated companies), which was a major aspect of the profitability of 'vertical integration' (get existing banking customers to buy insurance or investment products sold by the banks themselves) but only then also provided little or no ongoing 'advice' (no matter how poor quality) to their 'clients' despite receiving ongoing trailing fees for years on end.

I had known that retail customers had a hard time avoiding paying ongoing 'trailing fees' to a financial adviser for any investment products they purchased, as I had found that nearly all investment product application forms at the time required the details of a financial adviser be filled in (who would then receive 'trailing commissions' of between 0% and 1% or more). If a retail customer didn't fill in any adviser details the relevant 'trailing fee' was simply retained by the product provider! I had managed (as a retail customer) to at least get 50% of such 'trailing fees' refunded on my investments by making use of a service by 'YourShare' who refunded 50% of such fees (you were paying 50% fees for basically just aggregating the fees and sending you a cheque each years, but at least they were doing *something* in exchange for the fees received).

I was therefore surprised to receive a letter from one of the 'big four' banks last week advising that their subsidiary financial planning company had received such trailing fees for one of my investments between August 2008 and April 2010 (probably before I signed up with YourShare) and because the didn't have records to prove I had received any relevant 'services' in exchange for the fees, the bank was refunding the $629.16 of fees paid, plus interest (at 6% pa) on that amount for the subsequent years (adding up to another $1,202.86 in interest). Quite an unexpected 'windfall' of $1,832.02.

I'll have to check up on the ATO webpage relating to 'Compensation paid from financial institutions'. I probably won't owe tax on the actual fee amounts (as such fees would have been tax deductible if I'd been aware of them, but I never claimed a deduction) but the interest component will probably be taxed as 'other income' or 'interest received'.

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Tuesday, 4 October 2022

Net Worth: SEP 2022

My monthly NW estimate has been updated in NetWorthShare for the end of September. Chart is in the side-bar.

Stocks and managed fund investments fell over the past month, probably due to a combination of rising interest rates, increasing prospects of a global recession, and increasing possibility of the Russian invasion of Ukraine and annexation of 20% of the country leading to a widening of the conflict. My 'Stocks' figure was only down $2,074 (-0.78%) to $265,291 net equity. This relatively good performance is due to having eliminated gearing and liquidated most of my direct share and fund investments (outside of super) a few months ago to increase my cash holdings prior to settlement falling due for my off-the-plan investment unit purchase.

The value of my 'Other Assets' category (gold and silver proof coin collection, valued at bullion value only, Perth Mint unallocated gold, silver and platinum holdings, and my small art investment via Masterworks) did quite well during Septemeber, rising $1.507 (5.13%) to $30,875.

Our estimated house price for September (my half) fell by $32,000 (-2.74%) to  $1,134,000 due to the general weakness in the Sydney real estate market finally flowing through into sale prices in our suburb.

The value of my retirement savings dropped to $1,324,743 (down -$71,970 or -5.15%) by the end of September, due to our SMSF being practically 100% invested in the Vanguard High Growth Index Fund.

Overall, my estimated NW decreased to $3,065,964 over the past month - down by $104,287 (-3.29%). It isn't much fun watching one's net worth decrease by my annual salary during a single month. But I won't be surprised if there are worse months ahead during the remainder of the 22/23 FY.

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