I recently moved my Kiwisaver fund to my own bank so I can see it in my online banking. It had been with the bank of a former employer as that was where they had established it when the scheme came in. I had no visibility of it there...and effectively no control.
It's been my feeling for a while that we are in for another step down in the on-going neo-lilberal economic disaster that began in the 1980s as the effects of these policies continue to deplete wealth reserves of the middle classes of the developed world. That trend hasn't changed since the global financial crash in 2008....and if anything, has accelerated as wages flat-line while prices continue to rise.
So....what to do with my super funds? Go all out for shares? Avoid shares?
The Royal Bank of Scotland (RBS) recently advised people avoid shares completely in the coming year. It isn't about maximising returns on capital....it's now about preserving the capital itself (paraphrasing what they said).
OK.... Are they right? My sense is that they will be at least partly right. That "partly" means my share-based super funds will go down some....at least.
Those funds have only *just* returned to their 2008 values over the past year. I would have been better to put cash in a box under the bed up until mid-2015....compared to the returns I was seeing on my super funds.
I got online this morning and changed my Kiwisaver "investment direction" to cash and bonds. Avoid all shares. I've seen my super funds utterly trashed twice over the past 30 years. Not this time.
Anyone else thinking about this?