Yesterday we told you about one of our upcoming reports. It's about a way to keep your savings safe from falling asset prices, like a stock market crash. But the real twist on this alternative safe and boring asset is that it's about to get a whole lot less boring.
The Australian government has decided it wants you to buy the asset. In fact, you probably won't even get a choice. But if you get in ahead of the tide, you'll have everybody else's buying wind in your sails.
If you think it's impossible for the Australian government to force you to invest in something, take a look at Superannuation. If they can force you to invest, they can force you to invest in something specific.
And here's Former Finance Minister Lindsay Tanner saying that, 'it needs to be understood by players in the market that it is not a given that there will be no government intervention on this issue.'
But why would the government bother making you invest in a safe and boring asset? Well, it wouldn't be a great look if the government forced you to invest in Super and then your savings disappeared the next time the stock market crashes. You'd have been better off with a term deposit than Super.
Hey, wait a minute. Didn't that happen in the last few years? Yep, over the last 5 and 10 years the top performing balanced Super Funds pulled off a worse performance than term deposits, by our count. So where are the protesters, the occupy movement, the financial institution revolution?
It won't happen until the Super savers begin running out of money. Then they'll go to the government for help. And it will be too late.
You, in the meantime, need to figure out how to build your wealth so you don't land on the government's doorstep. And profiting by getting ahead of their big asset reshuffle would be a good way to start.
The problem is that the Australian government's asset of choice is difficult to get your hands on. It's expensive, cumbersome and requires a high initial investment. Most Australians couldn't tell you how the investment works. But in some cultures it's actually the default investment over stocks.
All this will have to change if the government wants the average Aussie buying these assets. But there is a way around these barriers today, if you want to jump in early. And that's just the kind of opportunity we've been focusing on in our research over the last few years.
But the most important discovery we've made is what's wrong with the current way Australians think they can fund their retirement. They are on the wrong side of several powerful forces that determine who gets rich and who doesn't.
If you want to retire comfortably, it's time to get on the right side. We'll show you exactly how soon.
for The Daily Reckoning Australia
From the Archives...
China's GDP Growth Ponzi Scheme
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An Australian Property Boom and Bust all at Once
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The Fed's New Stooge
17-10-2012 - Bill Bonner
Discordian Religious Advice for the Investor
16-10-2012 - Nick Hubble
Electric Cars and Platinum Mines
15-10-2012 - Dan Denning
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About the Author
Nick Hubble is a feature Editor of The Daily Reckoning Australia. (You can subscribe to the Daily Reckoning for free here.) Nick has spent the last three years discovering lots of new, exciting and surprisingly simple ways to generate money for retirement. He’s put all these ideas into his investment publication The Money for Life Letter. If you're already a subscriber to these publications, or want to follow Nick's financial world view more closely, then we recommend you join him on Google+. It's where he shares investment research, commentary and ideas that he can't always fit into his regular Daily Reckoning emails.