Superannuation

I am a 65 year old man have all my Super in a Balanced fund should I take my losses now and move my money into cash untill this all settles down or leave in the Balance fund.? so far I have lost over 80k in 2 weeks..Thanks for your thoughts

8 comments

Look at the percentage lost not the amount for a start. 

Sharemarket down what 30% but some managed funds are down less than 10%. 

Ask your advisor for advice. 

 

Our fund recommends that the time to switch has passed and it's best to now ride out the storm. I defer to the experts but check with your super fund in case they have a different opinion.

Down and down it goes where it stops nobody knows.....

Ah yes, but once it stops, it starts to rise again.

Baz you are only losing money on paper.  If you cash in your super then you lose your funds.  Just sit tight.  Things went up today.  It is a crazy time.

Wall Street up 11% today.

You haven't lost anything unless you sell in a down (bear) market.

Our funds have lost about $60K between them, if we move them into cash funds we will never recover what was lost, we have decided to not crystalize the loss and ride it out.

When I say lost I am being a bit simplistic, the figures state that as an example, we had say a balance of $600K at the beginning of the year wecnow have a balance of $540K.  But we have to consider that we may have drawn say $40K out this year as a Pension Income, so the losses are not quite as bad as they first appear.

Many Industry  Super Funds offer free impartial general advice, if yours does you need to make an appointment.  Even if you have to pay, it may be worth two or three hundred dollars for some peace of mind.

Some good (informed) comments here. Good to see. May seem odd but consider the saving op. re the ability to withdraw $10,000 of your funds NOT taxed on the way out THIS financial year AND next financial year - as stated by S. Morrison recently. ALSO - He (S.M-P.M.) stated that there was to be a reduction of the Gov't enforced draw-down from super (to yourself), from 4% THIS fin. year to 2%. My draw-down is yearly in June, so mine should be an amount equal to 2% of the balance as at (around) the middle of June. This will be way less than what I had to be paid from my super balance in June 2019.    My wife has her draw-down split into twelve monthly payments per year so she has already been paid 4% (for 9 months). I am wondering if we will be 1). allowed to put some of that money BACK into her super (2% of it) (she is retired/not working and not registered to be able to deposit into super    and 2). whether her super fund will send the next 3 months payments as 2% only, automatically.    For me,  because I will withdraw the allowed $10,000 PLUS get the reduction to 2% of the (gov't-forced) draw-down payment , I will receive (from my super) THIS financial year, about the same amount as my 2019 yearly payment.       I will the saving the 16% out-going tax on the $10,000 (super withdrawal amount allowed) =$1600.  

The 10k you're talking about wouldn't have tax deducted anyway would it. You're getting a super pension, I guess you're over 60 so no tax payable on withdrawals?

Actually some of us retired at 55 so after the innitial from memory $180K tax excempt withdrawel, tax may be liable untill you reach the magic age of 60.

Red: 1) no you cannot put the money back in. 2) best to contact the fund if you want the monthly payments reduced to the minimum 2%. I doubt they would do it automatically.  The fund may have even contacted you by now as to what % you would like.

My super balance has dropped $100,000. I'm not changing anything. The stock market will eventually recover.

may be it will, may be it will stay on the bottom for years, how much time do you have ,?

Mine is in Term Deposits ... little return but the principal is intact for now.

Who knows what the future will bring.

Good luck with the stock market.

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