5 investment tools that I can't live without

Posted by Andrew Main 29 July 2016 @ 11:00am

There are plenty of new investing tools that are out there for the DIY investor. So I'll run you through the 5 investment tools that personally I can't live without.

Paul Keating memorably incurred the ire of the majority of this country’s population by announcing a couple of decades ago that “In Australia, if you’re not living in Sydney, you’re camping out.’’
There’s a similar concept taking shape when it comes to using technology to help retail investors make decisions: if you’re a retail investor in Australia and you’re not using technology to help you out, you are probably missing out.

Whether it’s using an online broker to execute your trades rather than going via a full service stockbroker, or using one of the many portfolio management tools to help you work out your position on a daily basis, it’s becoming easier and easier to manage your affairs and what’s more, it’s getting cheaper.

Given that you’re reading this article online you’re probably one of the converted. But it wasn’t so very long ago that the only way to find out an intraday share price was calling your broker. It’s a miracle any retail investor made any money back then when you think about it.

Empowerment of the retail investor

So much control over the whole investment process is now passing from the intermediary to the investor, and we know which one has the higher level of personal engagement.

And that’s a good thing. Certainly it’s important to get well thought out advice, and I challenge any technology to explain the pros and cons of our two main parties’ superannuation taxation policies, but what’s clear is that if you are an engaged investor and you are possessed of even moderate ability to use technology, it’s an absolute smorgasbord out there.

Some are free but if they’re not and they relate to your saving for retirement, they are probably tax deductible.

5 investment tools you should not live without

Here are just a few but there are many more to choose from….

Sharesight: online portfolio management software that lets you keep track of all of your stock market portfolios – even if you use a number of brokers. It runs sophisticated analytics on your holdings, and best of all – it integrates with your accountant’s software, enabling streamlined reporting at tax time. That’s one regular nightmare avoided. The charge is between zero (if you hold less than ten stocks) and $39 a month for more demanding portfolios.

Stockspot: offers a completely online and automated investment advice and funds management service. It exploits the “robo” element of robo advice, having asked you to fill in the relevant profile, and gets you into Exchange Traded Funds (ETFs) for which the annual costs are among the lowest of any financial product. They don’t charge brokerage.

Livewire: says it’s Australia’s first social media platform for experienced investors and market professionals, delivering advice and research from around 100 contributors. Daily newsletter is a must read. Clearly there’s an advertising element involved but that shouldn’t diminish the value of the contributions.

Stocklight: an app developed by software engineer Jason Kotchoff with help from the people at Intelligent Investor (now there’s another service!). It rates ASX listed shares with the traffic light system. “It’s not a stock picking tool: it’s a launching pad for further research” is what they say. It charges just under $14 a month for its basic service.

OnMarket: It used to be that placements and IPOs were the exclusive property of a select few. The OnMarket service puts all investors on an equal footing. OnMarket curates independent IPO research and CEO interviews, ensuring that investors have sufficient information to make informed decisions about which IPO offers to participate in. It’s another free service also.