Not my cup of tea, but I am not totally against people who want to put some money on it. But kiwisaver is no place for it. This is just wrong.
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I don't support it either justakiwi.
The previous comments were regarding sharesies offering the option to pick individual shares of for half the kiwisaver balance. My post regarding crypto was simply to highlight the fact picking crypto for your KS is already an option and in my opinion just wrong. Regarding picking individual shares for KS, I haven't looked into to much. But it can potentially can open a can of worms and not recommended for individuals who don't or can't do the due diligence.
I think we have reached a point with kiwisaver that we got comfortable with the rules therefore complacency sneaks in.
Yeah I did realise that. I'm just really surprised it is even possible. I know crypto probably wasn't much of a thing when KiwiSaver first came out, but surely the powers that be added a clause to exclude it as an option? If not, they need to urgently address it now, before this cat gets out of the bag. It's a recipe for disaster.
From Koura's website:
Theoretically, a 3-4% allocation of your growth assets to Bitcoin is sufficient to optimise the risk and return characteristics of your KiwiSaver. With kōura, if you tell us that you would like to invest in cryptocurrencies, we will suggest you allocate 3% of your growth assets to the kōura Carbon Neutral Cryptocurrency Fund. If you do not ask to invest in cryptocurrency, we will not allocate any of your KiwiSaver plan to this fund.
You are able to allocate a maximum of 10% of your KiwiSaver to the Carbon Neutral Cryptocurrency Fund, if you do this, 10% of your current funds will be invested in the fund and 10% of your ongoing contributions will also be invested in the fund, though due to market movements, the actual percentage of your KiwiSaver may grow above this 10% level. You will be rebalanced back to your chosen allocation every 6 months.
Importantly, you need to remember that the more you allocate to our Carbon Neutral Cryptocurrency Fund the riskier your KiwiSaver will be. If you go all the way to the maximum amount of 10% you need to be prepared for a significant amount of volatility in your KiwiSaver. Remember this asset class is expected to fall by over 50% at least every 2 years.
Plenty of stock investing falls into the speculative realm, i wouldn't pass too much value judgement on adding crypto provided that it's appropriately risk managed.
Perhaps you are right we all have different ideas what constitutes an investment and whether it has a place in a kiwisaver fund.
Yep it is hard to argue that some companies do perform the same or if not worst than crypto.
My thought process is that when a person is signing up to kiwisaver, hopefully the person has a long runaway so to speak therefore can take advantage of time. Therefore in my mind there isn't really a need to take excessive risk. Even if the allocation is restricted to 10%. But hey I get, people have different ideas. As you have listed the above, the important disclosure info so that the ks members know what they are signing up for.
Personally, I couldn't care less what other people choose to do with their KiwiSaver, but I am not ok with tax payer funded government contributions going to Kiwisavers that have a crypto component.
I see absolutely no reason for it. If people wish to invest in crypto they can do it outside of KiwiSaver.
Does cryptocurrency actually become less risky overtime? I would rather own tulips for a week than for decades during the dutch tulip mania time-period. Or any sort of speculative bubble for that matter.
That's not to say I don't think people should be able to have crypto as apart of their kiwi saver. In the same way I think free people should be allowed to gamble their savings in a casino, but I'll still pass judgement onto those people
Just to clarify I didn't say crypto becomes less risky overtime. I don't know the nature of it, but I suspect not.
Everyone has a right to use their money in whatever way that they wish. I don't pass judgement either. TBH I don't really give a toot what the next person does or do. Each to their own.
This is my opinion only. The concern or risk is when people get a false sense of security when they see other people doing it and the rules become more laxed. To me that's the real danger.