What are you doing with your superannuation?

[Uncle Festivus]

What are you doing with your superannuation? Interested in getting a feel for peoples outlook for superannuation now that it appears a lot of funds will show a negative return for this financial year.

Is cash looking good for you right now?

What impact on the share market will converting your portfolio to cash have?

Or are you happy to ride this one out too?

 

[Trembling Hand]

Nothing. I have hardly ever been in the PAYE system so most of my super has been personal contributions. But I don't care how "tax effective" super is I have come to the realization that money put into my SMSF is the least effect use of my cash. And cannot see myself ever putting money in there again.

So maybe I shouldn't be even commenting but as for whats in there now. Let it ride. cashing out should be done at the top. For now thats gone.

 

[So_Cynical]

I was under the impression that doing anything with your super investment choices was useless after the fact.

Switching to cash anytime after December was pretty much locking in the losses. :dunno:

 

[hangseng]

What are you doing with your superannuation? Interested in getting a feel for peoples outlook for superannuation now that it appears a lot of funds will show a negative return for this financial year.

Is cash looking good for you right now?

What impact on the share market will converting your portfolio to cash have?

Or are you happy to ride this one out too?

If you would have added "Dumped your managed fund and entered an SMSF and are more satisfied with your returns".

Then I would have checked that box. As it is their is no appropriate box to check for me.

Even with a downturn I am outperforming my old managed fund without effort. They have gone down another $4,000 on the closing account balance since I closed the account and I have increased the closing account balance by just over $12,000. That makes me now $16,000 in front of where I would have been with the "Fund Managers", of which I now believe is an oxymoron. They were doing me no favours along with the high fees they received for watching my fund go down.

I should have done this 5 years ago.

 

[2020hindsight]

If you would have added "Dumped your managed fund and entered an SMSF and are more satisfied with your returns".

Then I would have checked that box. As it is their is no appropriate box to check for me.

Even with a downturn I am outperforming my old managed fund without effort. They have gone down another $4,000 on the closing account balance since I closed the account and I have increased the closing account balance by just over $12,000. That makes me now $16,000 in front of where I would have been with the "Fund Managers", of which I now believe is an oxymoron. They were doing me no favours along with the high fees they received for watching my fund go down.

I should have done this 5 years ago.

:iagree:
except that I should have done it 30 years ago

 

[hangseng]

:iagree:
except that I should have done it 30 years ago

Excellent point! I should have also but didn't have the financial nouse to do so, let alone the means

 

[stock nub]

seeing as im 20 im spending it on BONGS AND BEER...






and maybe a bit of shares lol

 

[2020hindsight]

Excellent point! I should have also but didn't have the financial nouse to do so, let alone the means

excellent point
didn't have the "nouse" as you call it - probably thought along the lines of stocknub lol - at least as far as the beer goes. (I'm paying for it now though )

would we do the same again ?
ahh that's one for another day.

PS these days most of my salary goes into my SMSF (salary sacrifice), and 15% tax is (significantly)less than my marginal rate.

PS do i wish that my SMSF was in cash at the moment ? hell yes , Dow down etc - but, lol .... as usual , with the benefit of hindsight

 

[hangseng]

excellent point
didn't have the "nouse" as you call it - probably thought along the lines of stocknub lol - at least as far as the beer goes. (I'm paying for it now though )

would we do the same again ?
ahh that's one for another day.

PS these days most of my salary goes into my SMSF (salary sacrifice), and 15% tax is (significantly)less than my marginal rate.

PS do i wish that my SMSF was in cash at the moment ? hell yes , Dow down etc - but, lol .... as usual , with the benefit of hindsight

I have kept mine quite liquid and can move quickly. I will be taking advantage of any downturn, should to opportunity arise. I am actually doubting there will be though, except in a few stocks I have been watching at the blue chip end. This may be the last chance for an excellent entry into some quality blue chips for the long term.

 

[2020hindsight]

I have kept mine quite liquid and can move quickly. I will be taking advantage of any downturn, should to opportunity arise. I am actually doubting there will be though, except in a few stocks I have been watching at the blue chip end. This may be the last chance for an excellent entry into some quality blue chips for the long term.

Don't talk to me about excellent "entries" m8, I'm already "inside" lol.

my problem is I listened to my neighbour at the fence
"to buy on bad news, sell on good" and win
whereas in fact , it should be the reversed-about-sequence
to "sell on good news, THEN on bad buy IN"

 

[mfp]

My work super is a defined benefit super, the eventual payout figure will mainly be determined by my years of service, average contribution rate and final average salary. The stock market has very little impact on it. It only affects the returns on my personal contributions, not my employer's, and the more I contribute the more my employer does. I don't have the option of choosing the asset/risk class anyway for my contributions. I also have a private super which has been in cash for over a year.

 

[explod]

If you would have added "Dumped your managed fund and entered an SMSF and are more satisfied with your returns".

Then I would have checked that box. As it is their is no appropriate box to check for me.

Even with a downturn I am outperforming my old managed fund without effort. They have gone down another $4,000 on the closing account balance since I closed the account and I have increased the closing account balance by just over $12,000. That makes me now $16,000 in front of where I would have been with the "Fund Managers", of which I now believe is an oxymoron. They were doing me no favours along with the high fees they received for watching my fund go down.

I should have done this 5 years ago.

I am in the same boat. I trade within my DIY with the maximum tax on capital gains being 15% I hold physical bullion within my Super Fund also and the last 6 months apart from some specs have been light on shares.

A well set up super fund becomes a money tree once you reach 60 years.

After some bad experiences, becoming my own adviser was one of the great turning points in my life.

 

[nizar]

I'll start thinking about super once I'm >30.
For now the money I have is what I will need over the next 5 or so years to buy a house, business, etc.

Age 60 seems way too far away for me right now.

 

[explod]

I'll start thinking about super once I'm >30.
For now the money I have is what I will need over the next 5 or so years to buy a house, business, etc.

Age 60 seems way too far away for me right now.

Absolutely. But all those little bits of super that you can pick up from employers, keep tabs on them and consolidate as you go along. 60 comes round very fast, unfortunately.

However if I had been interested in share trading and financials at 30 I would have had no concern for super either. If you can aim for the wisdom of a 60plus by the time you are 40 you will have it made. Not inferring by that, that I am wise, just an old codgers take.

 

[prawn_86]

I'll start thinking about super once I'm >30.
For now the money I have is what I will need over the next 5 or so years to buy a house, business, etc.

Age 60 seems way too far away for me right now.

Same here Nizar,

I dont trust something that is 40+ years away, who knoiws what will happen by then

Absolutely. But all those little bits of super that you can pick up from employers, keep tabs on them and consolidate as you go along. 60 comes round very fast, unfortunately.

However if I had been interested in share trading and financials at 30 I would have had no concern for super either. If you can aim for the wisdom of a 60plus by the time you are 40 you will have it made. Not inferring by that, that I am wise, just an old codgers take.

Also agree here Explod.

I have consolidated all my bits and pieces, but it still gets eaten up in fees as there simply isnt enough. Once i graduate i will seriously look at the right fund etc

The part i have bolded is my aim. I have learnt so much now and im not 21 yet, so im am already ahead of the vast majority of people. Now i just need to continue to build my knowledge and my portfolio will follow (hopefully )

 

[robots]

hello,

the big issue is the tax free environment of super and one which I am grappling with at the moment coming up to 1 july

if you look at super as the "ultimate" life savings account ie. only 15% when goes in and no tax when in then, it must seriously be considered above keeping money in shares/whatever outside of super acc.

but the lock away factor is a concern!

thankyou

robots

 

[Uncle Festivus]

To clarify a bit, I was interested in the money flows within the managed fund accounts as most of them allow you to choose between growth, income, real estate or cash etc. So any swaps between the asset classes going on, mainly to cash??

Also, those that will put more in (top up), what are your reasons? If returns are going negative why would you do this, apart form the tax implications?

 

[2020hindsight]

Also, those that will put more in (top up), what are your reasons? If returns are going negative why would you do this, apart form the tax implications?

Unc
Think I proposed / discussed that one as well - you're right , what is right for one agegroup is not necessarily right for others. "Talking bout my generation" as the song goes... I should have explained that I'm also explod's age, and after 60 you'd be crazy not to put most of your salary into your superfund - especially if it's self-managed - since you can draw on it pretty much at will.

And I agree with the 20-30-40-50 year olds, putting money directly into a mortgage is (obviously sheesh) one hell of an investment as well - always assuming you bought a house where things are appreciating etc - i.e. anywhere other than Oodnagalarby

 

[explod]

- always assuming you bought a house where things are appreciating etc - i.e. anywhere other than Oodnagalarby

Well; if its got good dirt and a creek with some water running through it Oodnagalarby will soon go through the roof.

For the 50 year plusses do some reading on DIY Super. Some good books, one I got recently via ASF bookshop. Some fianacial planning services can help with the setting up. Once you understand it and set up, you just need the right accountant to ensure full compliance with legals on it and an independant annual audit. Total fees I now pay is less than a grand p/a, but in the beginning you need to pay for the right people.

Plenty of research before you embark will put you on the right track.

 

[Julia]

I'm not suggesting this is happening on this thread, but there is still widespread confusion about "Super". Many people express disappointment with Super as an entity, failing to understand that Super is simply a vehicle to carry various choices of investment in a favourable tax environment.

I was talking to a couple recently who complained that their Super had hardly grown at all, despite several years of a bull market. Why? Turns out they had chosen the very conservative option and it was mostly in cash, returns from which had been eaten up by the fees!

Personally I much prefer the SMSF option - returns have been far better, I like making my own decisions, and don't have the resentment about the ongoing fees. (Just have to contend with shonky accountants!)

I'm about 80% in cash at present.