The Problem with Retirement Savings Plans



#386: The Problem with Retirement Savings Plans

In this video:
00:27 – Kiwisaver and the hidden costs
02:20 – Why would you invest in this?
03:28 – Retirement and the Forex market
05:15 – You need to understand the FX market before trading funds
05:58 – A week of retirement related emails this week
06:16 – Webinars for traders, both new and experienced

Why do people pay massive fees to money managers, only for the money managers to lose their funds? Let’s talk about that and more right now.

Hey, traders, Andrew Mitchem here at the Forex Trading Coach with video and podcast number 386.

Kiwisaver and the hidden costs

Now I’ve just heard on the news today about here in New Zealand, the KiwiSaver. So KiwiSaver’s a bit like a retirement fund that people contribute and employers contribute into in the States, they call it a 401k. So it’s basically a national kind of retirement fund where you choose the company that you want to invest with. And anyway, so results here. This is coming today, Friday, the 2nd of October, and this is saying that KiwiSaver members here in New Zealand, and bear in mind, we’re a very small country of under 5 million people, total people. KiwiSaver members paid $538.9 million to the managers handling their money over the year to March.

So here we are in October, this report’s only up until March 2020. But they lost a combined $820.9 million in the first quarter, up until the end of the first quarter of this year. And of course they’re blaming it on the stock market plummeting and the United States market recorded its fastest 30% drop on record. They’re going… Talking about that and they’re basically blaming COVID, but this was up until the end of March. Now COVID didn’t really hardly take effect until then. It may have for the first month or few weeks, but imagine what it’s going to be for April to March 2020 into 2021, the year that we’re currently in right now. So they lost 800 and almost $821 million combined, but they charged their members nearly 540 million in management fees.

Why would you invest in this?

And that just got me thinking, it’s like, well, that is just ludicrous. Why are people doing things like that?

You know, I realise that the traditional ways of investing or putting your money into term deposits and into banks and things like that, and obviously with interest rates being so low around the world, things like this KiwiSaver, where they encourage all basically people in employment to go and do. And encourage young people to go and do it. And now, in some ways it has some merit, I suppose, because it gets people thinking about what they should do with their funds and retirement, et cetera, like that where I’m just wasting it all, especially for younger people. So I’m not knocking the idea, but the reality is, is these people are losing money and paying a fortune in fees for the privilege of getting nowhere. And like I said, this is only up until the end of March 2020. So you can’t blame coronavirus and you can’t blame plummeting stock markets and things like that because that’s all going to come in this year.

So what’s this figure going to be like this time next year?

Retirement and the Forex market

So it got me thinking, well, I’ve talked about retirement before. This week, when you get to watch this video, I’m going to be sending out a series of emails regarding how I look at the Forex market and how I believe that you can use that correctly with low risk to aid you with retirement. So it doesn’t matter whether you’re 20 years old and retirement’s just this distant thing, because when we’re all 20 years old, no one really cares about retirement. You know, you just think it’s this… For old people. You’re not interested. I mean, I thought exactly the same. Just don’t really care about stuff like that. I’m worried about what I’m doing at 20 years old. But as you get older and you get to my age of 47, it’s starting to become something that I need to start to think about. And of course, if you’re 57, 67, then you definitely need to be on it or it’s too late.

And so that got me thinking about how I can help you if you think that trading the Forex market is something that you’d like to do. Even if it’s a passive income, it doesn’t have to be your complete 100% retirement fund in that, of course. But it’s something to seriously consider because otherwise you’re going to end up finding that like this KiwiSaver fund, and it’s probably the same throughout the world, to be honest, right now, you’re going to pay a fortune in fees to get losing money in your account. And that’s not a good situation obviously to be in. And if you start looking at other things, depending on what age you are and where you are in the world, property may be a good idea. It may not be, but of course, it’s generally slow and it’s… You need more debt to take on. And you’ve got the issue of tenants and all those type things as well.

You need to understand the FX market before trading funds

And it comes back to trading the Forex market and why, once you understand what you’re doing, it can be so good.

Just as an example, the last month just finished. September, on our pattern trader completely automated software that we have. It’s got nothing to do with the course. It’s completely different. It’s for everybody to take advantage of, even if you’re not wanting to become a manual trader yourself. On our live account, we made 16.24% in the month of September. So why wouldn’t you want to at least put something into that, as opposed to these retirement funds?

So I hope that helps. It’s just to get you thinking about this.

A week of retirement related emails this week

As I mentioned, I’m going to be running a series of emails this week when you get to watch this video regarding retirement. And I think it’s really important that you give it some time and some thought, regardless of your age or your situation.

Webinars for traders, both new and experienced

The other thing is also is that each week I hold webinars for new traders. And so they’re really good sessions to get you introduced to the world of Forex market. If you’re new, or if you’ve been trading and you’re frustrated and it’s not working for you, then there’s another type of webinar for you there. They’re like high-impact power sessions, one hour sessions. Give you everything you need to know to make an informed decision to go further if you wish to. And I encourage you if you’ve not been on one of those sessions to get on one. If you can’t make the times when the sessions are on, then you can watch the previous day’s recording on demand at any time of the day or night that suits you.

So hope that helps. Keep a look out for my emails for guarding retirement that are coming this week when you get to watch this video and listen to this podcast. And I’ll see this time next week. This is Andrew Mitchem here at the Forex Trading Coach. Bye for now.

Episode Title: #386: The Problem with Retirement Savings Plans

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