Share Packs are designed as a low maintenance, "set and forget" alternative to our actively managed stock portfolios. They use similar trading principles with sector diversification ensuring that, even with minimal trading activity, they will withstand the test of time.
Many people are intimidated by the stock market and for this reason, never get started. But guess what? It’s not as complicated as it sounds (but still not without risk). And better yet, we are here to guide and help you every step of the way. From setting up your account to purchasing your first stocks, the team here at Rivkin has your back.
Our aim is to simplify investing with our Share Packs and assist in creating an easy to understand and smooth transition into the investing realm. We encourage you to read the below guide to help you get started on your investment journey. Are you excited? We sure are!
Step 1: Setup your account
Before you can purchase any stocks, you need to set up a stockbroking account. A stockbroking account can be thought of as a bank account for your shares. Stocks are purchased within your broking account and are held in your name. Your stockbroking account acts as your portal into the markets and allows you to view, buy, and sell shares through it.
Nearly all stockbroking accounts are free to open and most do not have account-keeping fees, meaning you can open an account and not pay anything until you buy and sell stocks. When you start trading you start paying brokerage fees for each transaction, and it is important that you understand these fees as they will impact your overall returns. Here at Rivkin, we have partnered with one of the best brokerage firms in Australia, CMC Markets. Most of our members trade with our preferred stockbroking account, Rivkin Stockbroking which is powered by CMC Markets. The preferred brokerage rates of Rivkin Stockbroking are:
| Minimum Brokerage | After Minimum | |
| Australian Shares | $11.00 ( up to $10,000) | or 0.1% +GST whichever is higher |
| US Shares | $19.95 (up to $5000); $29.95 (up to $10,000) | or 0.31% +GST whichever is higher |
It is not mandatory to use a Rivkin Stockbroking Account in order to invest in your Share Pack stocks, and there are a variety of other fine stockbroking platforms on the market. It’s up to you to choose the platform that suits you.
If you’d like to learn more about stockbroking platforms or want to open a Rivkin Stockbroking account, please give us a call at 1300 748 556 or use the chatbox in the lower right corner to talk to a Rivkin representative.
Step 2: Choose your Share Pack
Once you’ve got your stockbroking account set up and have the ability to purchase stocks, it’s time to choose your Share Pack. Before you begin investing in one of our Share Packs, you should ask yourself the following questions:
- What are my investment time horizons?
- Before you start investing, you should have a firm grasp of your investment horizon. You probably are interested in investing in stocks because you heard that in the long term stocks are the highest returning asset class. Although this is technically correct, a high return also comes with a high level of volatility. At Rivkin, we suggest people have at least a 2-3-year investment horizon if they want to invest in shares. Most of our clients have an even longer investment time frame.
- What is my risk appetite?
- All investments involve some degree of risk. In finance, risk refers to the degree of uncertainty and/or potential financial loss inherent in an investment decision. In general, as investment risks rise, investors seek higher returns to compensate themselves for taking such risks. Every asset class or investment product has different risk and return profiles. Rivkin’s Share Packs work the same way; they all have different risk/return profiles. As a Rivkin member, you will always have access to all of our investment advice and our investment team. This will allow you to review your own financial situation, risk appetite, and investment horizon and make decisions to move in and out of different products when you feel the need without any complications or stress.
- What markets am I interested in?
- Rivkin’s Share Packs provide exposure to Australian or US markets. Australian markets have more names in financials, materials, industrials, and consumer staples while the US will provide exposure to technology, finance, health care, and consumer discretionary.
We have 5 stock and 10 stock portfolios for U.S. and Australian markets. Which option is more suitable for you is a decision you can take based on your personal circumstances. The most important two factors you should consider is your investment amount, e.g. how much are you investing today, and will you be putting more money in the coming months? The second question relates to your trading costs e.g. your brokerage. If you are using a Rivkin Stockbroking account your minimum brokerage will be $11.00 per trade (each time you buy and sell stock) but your broker might be charging a higher brokerage. So implementing a 5-stock portfolio will cost you a minimum of $110 (5 buys and 5 sells) and a 10-stock portfolio will cost you $220. As a rule of thumb if your investment amount is between $5k – $20k, our Starter Shared Packs (5-stock) might be more cost-efficient, and if you have more than $20k-$100k you might benefit from the better diversification (10-stock). The good news about investing in shares is that once purchased there are usually no other costs for holding them unlike, ETFs, managed funds, and LICs.
With Rivkin Share Packs you have 4 options:
- Australian Diversified Pack: 10 stock portfolio that picks best of breed stocks from the top 200 Australian Stocks
- US Diversified Pack: 10 stock portfolio that picks best-of-breed stocks from the S&P 500
Step 3: Purchase your shares
Now that you’ve selected the Share Pack you’d like to invest in, it’s time to make your move and become an investor! You’ll need to log in to your chosen stockbroking account to purchase your shares. If you are using Rivkin Stock Broking, one of our dealers will take you step by step through the entire process so that you can take your steps confidently. It is important to purchase the same (monetary) amount of each share to start with. For example, if you are investing $10,000 and you have selected a 5-stock Share Pack, you would invest $2,000 into each of the recommended shares. If you need any help with purchasing your shares, please do not hesitate to contact a member of our team on 1300 748 556 and we will happily walk you through this exciting process!
Do additional investments . . . and watch your investments grow.
Our advice will be available to you for 12 months. Each quarter we will review and update the stocks that are most suitable for set-and-forget investors and update our portfolios. If the stock you have purchased does not appear in the portfolio you do not need to sell it. However next time you are investing capital we advise you to purchase the current recommendation so that you can purchase the optimum stock at the time of purchase. This product is intended for investors who want to start investing in the market with limited capital and time. At the end of the year, do not hesitate to give us a call and learn about other products that might be suitable for your needs.
When the time comes to sell a portion of your portfolio, we advise you should always keep in mind the importance of a diversified portfolio.
