Auto-investing and auto-withdrawal 101

Financial planning Written by 2268, Feb 12 2018

Whether you're a newbie or a seasoned investor, if you've ever wondered how you can get your Squirrel Money investment working harder and smarter, read on.

Just a reminder that we can’t offer financial advice on how you should structure your investments, however we can provide some facts on how the platform works:

Auto-bid

Auto-bidding is designed to automatically re-invest funds you’ve received into your on-call account, to get your money working as hard as possible.

Auto-bidding saves you the hassle of creating regular investment orders, essentially creating it for you once your on-call account reaches the amount and term you specify. As mentioned, this is designed to work with repayments coming back into your on-call account.

Setting up an auto-bid:

When you go through the steps of creating an investment order, you will have the option to create a one-off order or create an auto-bid.

Auto-bid will take the available funds from your on-call account and place an automatic order that runs once a day each morning, provided you have sufficient funds available.

Things to note:

  • The minimum $500 investment limit still applies to auto-bids.
  • If you make a manual deposit, this will cancel any auto-bid currently in place.
  • If you wish to have a bid created the day your deposit shows up in your on-call account, it will be quicker to create a one-off bid rather than an auto-bid as an auto-bid will not be created until the next day.
  • When you have an order in place and the remaining order is less than $500, don’t worry. Leave it as is and the rest will be matched in due course. However, if you cancel the order and re-create a new one, the $500 minimum order amount will apply.

Auto-withdrawal:

Auto-withdrawal allows you to set up an automatic and regular withdrawal of funds from your on-call account to your registered bank account. Essentially setting up an income stream from your Squirrel Money investments.

Setting up an auto-withdrawal:

Follow the steps for making a withdrawal from your on-call account. You’ll notice next to the amount you wish to withdraw, there’s a drop-down box called ‘Set frequency’ with options for either weekly, fortnightly, or monthly.

Select the amount you wish to withdraw on a regular basis and the frequency. This will then automatically withdraw the same amount at these intervals from the date you make the initial withdrawal.

Things to note:

  • To work out the appropriate amount and frequency, check what repayment amounts are coming into your on-call account and at what frequencies, then select the appropriate option when setting up your withdrawal.
  • If you wish to check you have set your auto-withdrawal up correctly, go back to your on-call account tab, where you will see a ‘pending withdrawal’ line for the day you set up the withdrawal, and on the next line there will be a ‘recurring weekly withdrawal’ and the next date specified.

We can help. Have a chat to one of our advisers.