I’m signed up with HESTA but have basically never examined it and don’t really know what this is all for. From what I gather and have researched, superannuation is money I am forced to save now to ensure I can have income when older (seems weird, why can’t I have the money now so I can use it to make more money or whatever?), but I don’t get this investment stuff at all.
There’s like some stock line graph looking thing that seems to go up and down depending on the year, and there’s an option to change my investments through an investment setting option or something with a bunch of options, but I have no idea how any of that works or why it’s important. I’m just on the default setting right now. Even before accessing the section where I can change stuff I am asked questions about wanting high or low volatility and I have no idea what any of it means.
I’ve been told it is important and I need to monitor this and change my investments every week or I lose money, but I don’t understand why and the person I’m trying to ask is incapable of explaining it to me without getting irrationally angry at me for not knowing the same things they did (despite the fact that they said superannuation had NOTHING to do with money, which I now know was nonsense).
Please help me as I have no general life skills and am a sad sad man.
Thank you.
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So, you save what we call a retirement fund in the U.S. or more commonly 401k plan if through an employer, pensions are becoming phased out. The idea is that your money in your hands is not gaining interest, if it is not gaining interest it will be spent or depreciate sitting there in your pocket. So Investment firm’s usually linked to financial institutions like a large bank handle things, these investment firms only worry about one thing, making money through stock investments. Because the market is relatively complicated for some unfamiliar with it, being most people. You are deciding to either allow these professional brokers to handle what stocks, bonds and/or ETF your account goes to for the next fiscal year. This is probably your best option if you do not understand the basics of market transactions, high and low risk investments, other types of retirement accounts. Now keep in mind these people won’t make you rich, but they will usually the portfolio out to keep a balance, and not much more. Now most firms allow you to transfer freely between different options with the fiscal year but will not effect future deposits. I would honestly just move all the high risk profiles to medium or low risk if you are worried, otherwise I would leave it to them and do some research. You can usually withdrawal from your account but will need to file appropriate income tax on it.
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