Scott,
My husband is wanting to create a self-managed superannuation fund, and wants to put 80% of this into the stock market into high-risk assets that are US listed, with high volatility, mostly tech and crypto correlated. My husband and I have never put money into the stockmarket and do not know much about it, other than what my husband is learning from the people encouraging this. They are even suggesting which assets to invest in. They are promising that he will be able to create ‘intergenerational wealth’ through doing this, which has him excited. My husband and I have no savings, and have not put enough time and energy into planning our future financially. We are both in our late 40s. I am trying to convince my husband that we need to seek independent financial advice before we make a big mistake. I feel sick. Please help!
Zara
Zara,
You know that line, trust your gut?
Your gut is working perfectly.
The people “encouraging” your husband to invest your life savings, and “suggesting which assets to buy” are salespeople (at best) or scammers (at worst). Financial experts don’t promise “intergenerational wealth” to people with no savings and no investment experience. Spruikers do.
Here’s what’s actually being proposed: two people in their late 40s, no savings, no investment experience, hand their retirement money to a self-managed fund and punt most of it on high-volatility offshore crypto-correlated tech stocks. Based on the advice of weirdos on the internet.
Is your tummy rumbling?
Mine sure is!
Your husband isn’t stupid. He’s had his greed gland rubbed by people who are very good at making this sound exciting and easy.
So here’s what I want you to do. Show him this column. Then show him the ASIC MoneySmart website and look up the people who are “encouraging” him. If they’re not licensed to give financial advice in Australia, they cannot legally tell him what to buy. Full stop.
You are not trying to kill his dreams. You are trying to save his retirement.
So am I.
