Why don’t more Kiwi’s invest? Perhaps it’s apathy or perhaps it’s inaccessibility – Hatch Invest aims to solve both these problems in one move.
Here’s the problem – many Kiwi’s shy away from investing in anything other than property. It makes sense why property has been the’go-to’ for many of us who have already started our wealth journey. For a whole new generation of New Zealanders though, it’s time to finally shake the hangover of the ’87 stock market crash and bring some balance back into our ways of developing wealth.
Kiwisaver is a great start and for many, this may be the only exposure to equities (subject to the fund they have chosen) they will get. Kiwisaver has a branding issue however – it’s not a savings vehicle, it’s an investment vehicle – these two financial disciplines are different.
Developing wealth does not mean you’re greedy – that way of thinking comes from a scarcity mentality which permeates much of NZ culture – this needs to stop. There’s more than enough to go around and if you’re doing well, that doesn’t mean someone else is suffering. More money means more freedom – we like being free correct?
One of the big themes in this recording is ‘alignment’. Consumerism clouds much of our lifestyle but what if you could flip that around and instead of buying the next iPhone, you purchase shares in Apple instead. What if you could give the gift of shares in a company that you believe in, rather than just purchase the end product? Be a part of the success rather than just a contributor?
Open banking – this will happen, and if you haven’t heard of this yet don’t worry, you’ll hear a lot of it in upcoming shows soon. From retailers to Amazon, why does everyone benefit from my data, except me?
Confidence: Kiwi’s lack this when investing – they feel like if the experience of investing is difficult, there’s something wrong with them. Nothing could be further from the truth – yes, there’s some learning required and not all jargon can be removed but here’s the thing: The onus should be on the service providers, to make investing more accessible not just you. It’s not about you simply conforming, as fintech companies (like Hatch) centered around you, are now cropping up to make things easier for you to play the game.
Hatch Invest is arguably the most efficient way currently on the market for Kiwi’s to invest in the US sharemarket. It’s a low cost model that allows you to purchase fractions of US shares like Apple, Tesla, Amazon etc. Hatch isn’t the only one that will be operating in this space soon but they’re one of the first to help Kiwi’s hatch out of their apathy and gain a seat at the table of where the big players sit.
Thank you Hatch for your support of this episode and thanks also to Kristen and Natalie for coming on the show.
If you’ve enjoyed this episode and want to share some of your thoughts with the Hatch team around your perceptions with investing in shares, they’d love to hear from you – just email them on help@hatchinvest.nz
If you’re ready to get started and open a Hatch account please check out https://www.hatchinvest.nz/how-it-works/
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Where to find Darcy Ungaro:
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