Superannuation Discussion + market volatility

[QF WP]

Nothing like ongoing professional development and catching up with other AFF'ers in the field. - isn't that right GPH

 

[JohnK]

I could have done all the conveyancing and title searching on my property purchases. But I make more money by spending my time elsewhere.

Not quite sure that is the same thing.

I researched and chose the properties to invest. I didn't run to a financial adviser/planner to seek their advice of how/where I should invest my money.

This is not about rubishing financial advisers/planners. I would like to do it myself. I get satisfaction out of doing it myself. Oh well.

 

[cove]

For industrial buildings I have used Landmark White for Brisbane and Sydney and Bawdens for Sydney as well.Both have provided good advice to an "out of towner ".

 

[JohnK]

Better seek and pay for professional advise than ask random internet strangers that havent a clue about your actual financial position.

I didn't ask for financial advice so my financial position is irrelevant. Superannuation is a very small part of my investment portfolio.

I asked for opinions on annuities and allocated pensions. Boy did I get more than I bargained for. I will go and ask my friends who have these products and care to share their opinion on these products.

 

[lovetravellingoz]

. Superannuation is a very small part of my investment portfolio.

.

Are you 50+ ?

If so, for an Australian resident having superannuation as a very small part of your total investment portfolio is an interesting strategy, but one I personally would not recommend for most people that wish to maximise their retirement income.

At 56 I am converting more and more of my investment % into super. But each to their own.

 

[RooFlyer]

This really needs to stop now. what kind of fool thinks that a cookie cutter approach to something as individual and unique and critical as personal circumstances with retirement planning advice is satisfied by a straw poll on a frequent flyer web site?
<snip>.

What type of fool? Indeed.

There's another old saying "Better to remain silent and be thought a fool than to speak up and remove all doubt." Funny how those old sayings are so often shown to have merit.

While JohnK is groping around internet forums and trying to come to grips with the ins and out of superannuation and investing for retirement, I'm enjoying my time, travelling and writing Trip Reports, having listened to a financial planner some time ago and now have my assets working hard, on a measurable basis. I'm not retired yet but have no concerns about that time due to some professional advice taken a few years back.

Employing a professional in financial planning is sort of like employing a professional to look after my small business IT. I could probably figure it out, if I spent all my waking hours studying the topics, but then I'd never know if it was the best solution, or even cost effective or reliable in the long term. So I pay someone to do it for me, so I can keep working efficiently and I can do things I enjoy in my spare time. Easy really.

 

[cove]

JohnK the fact is most folks who get annuities do not have the math skills to figure out that the underlying investment basis is about 1% net income. Many do not ask as the product is "easy to buy".
It may suit many but the cost of living in Australia is not really under control as we have 3 levels of Government spending faster than they receive it. The only thing that has changed is wage increases have pretty much slowed to almost zero.
Governments think your money is their money so don't put a lot of trust in them.

 

[lovetravellingoz]

Not quite sure that is the same thing.

.

Why?

Professional advice is beneficial from many different disciplines.
My time is always a factor whether pursuing FF points, making investment or running my business.

And yes for things that I enjoy I might do things that financial logic alone cannot justify. But again you have to know where to draw the line and if your actual goal is to maximize financial return then at least some professional advice is likely achieve a better overall return. This does not mean abandoning all financial research and decision making. Though some do prefer minimal involvement, and taking no involvement is to me also a high risk strategy! But seeking no professional advice on anything would to me be a high risk strategy.

 

[Pushka]

We paid one financial planner from JB Were a few years ago. Not only did he suggest taking out loans to buy a significant share portfolio but he also said we could use funds in our SMSF as collateral against the loans.

18 months later - GFC. We would have been in so much debt - probably bankrupt and illegally used our SMSF.

Probably getting word of mouth recommendations of good financial planners is better than assuming they are all top notch.

 

[Quickstatus]

Same here I saw a financial advisor. He ended up giving me some advice - essentially taking a leveraged approach. I declined. Then GFC hit. I was not caught up in it.

Question: if financial planners/advisers are so good with money why are they financial planners/advisers working for a fee for service /commission basis?.

 

[Deleted member]

I'm guessing that as a SMSF Trustee, you realized straight away that you couldn't use your super funds as collateral unless the investments were inside your fund?
too many people who have a SMSF , don't understand the first thing about being a trustee, these people should NOT be allowed to be a trustee.
in fact I reckon there should be an exam, and if you don't pass , you cant be a super trustee. (like that will; ever happen) financial planners need to pass an exam top advise on SMSF's .....

We paid one financial planner from JB Were a few years ago. Not only did he suggest taking out loans to buy a significant share portfolio but he also said we could use funds in our SMSF as collateral against the loans.

18 months later - GFC. We would have been in so much debt - probably bankrupt and illegally used our SMSF.

Probably getting word of mouth recommendations of good financial planners is better than assuming they are all top notch.

 

[RooFlyer]

We paid one financial planner from JB Were a few years ago. Not only did he suggest taking out loans to buy a significant share portfolio but he also said we could use funds in our SMSF as collateral against the loans.

18 months later - GFC. We would have been in so much debt - probably bankrupt and illegally used our SMSF.

Probably getting word of mouth recommendations of good financial planners is better than assuming they are all top notch.

That ... and being wary of a financial planner linked to a major stockbroker who recommends going long in shares (wary - ie as you seemed to have been).

 

[Pushka]

I'm guessing that as a SMSF Trustee, you realized straight away that you couldn't use your super funds as collateral unless the investments were inside your fund?
too many people who have a SMSF , don't understand the first thing about being a trustee, these people should NOT be allowed to be a trustee.
in fact I reckon there should be an exam, and if you don't pass , you cant be a super trustee. (like that will; ever happen) financial planners need to pass an exam top advise on SMSF's .....

Correct. We flagged it immediately - our accountant had taught us well being trustees, about the law regarding SMSF funds. We've had one now for over 20 years before they became everyone's darling.

And then concluded if he didn't know this basic premis he was useless as an advisor.

Interesting this happened with you too Quickstatus. Must have been the 'go to' strategy before the GFC never expecting it to happen. Clearly poor students of history or exceptionally bad memory.

That ... and being wary of a financial planner linked to a major stockbroker who recommends going long in shares (wary - ie as you seemed to have been).

Yes. Indeed. That's another a good point.

 

[Deleted member]

I have a philosophy (yes another one) where borrowing to buy direct equities is concerned. Only borrow an amount you would be comfortable losing. ! It's amazing how little that is .

 

[JohnK]

Are you 50+ ?

If so, for an Australian resident having superannuation as a very small part of your total investment portfolio is an interesting strategy, but one I personally would not recommend for most people that wish to maximise their retirement income.

At 56 I am converting more and more of my investment % into super. But each to their own.

I'm 53. I'm not giving anyone advice. I've asked for opinions on annuities and allocated pensions from the perspective of someone who uses the products and I'm getting the third degree.

It is possible to have more investments than superannuation. I didn't ask for financial advice. I don't need financial advice. The more I control the safer I feel.

I'll just do some more research on my own in my spare time.

 

[Deleted member]

I'm 53. I'm not giving anyone advice. I've asked for opinions on annuities and allocated pensions from the perspective of someone who uses the products and I'm getting the third degree.

It is possible to have more investments than superannuation. I didn't ask for financial advice. I don't need financial advice. The more I control the safer I feel.

I'll just do some more research on my own in my spare time.

Who said anything about losing control?
You haven't listened to anything.
It's not about product, it's about strategy and individual circumstances.
But hey, what would I know?

 

[amaroo]

I'm less than <50 and have had SMSF > half my life.... have spent money on advisors (well/wasted) and have come to the conclusion that good advice is as common as common-sense.

Plan, review and invest.

 

[cove]

Let's not get too serious on this subject as it's only money. Just don't get caught short if you want to live long and prosper.
Maintaining your friends and your health are probably more important.
The leading annuity provider in Australia has recently issued a hybrid security CGFPB that gives an investor 4.4% on top of the bank bill rate of about 1.75%. Now if you think that is too risky your annuity would sit ahead of this security in the event of a failure.

 

[RB]

Interesting this happened with you too Quickstatus. Must have been the 'go to' strategy before the GFC never expecting it to happen. Clearly poor students of history or exceptionally bad memory.

Not defending the industry, but two people on this forum are hardly a basis to say something was a 'go to' strategy

I'll just do some more research on my own in my spare time.

I think that is probably a wise move. Your posts 71 & 74 in this thread are vastly different and I think that may be why people have posted as they have.

 

[Pushka]

Not defending the industry, but two people on this forum are hardly a basis to say something was a 'go to' strategy

Two out of two for that era. Besides. This is an opinion forum. Nothing more nothing less. Just our observations.