Superannuation Discussion + market volatility

[Buzzard]

I tend not to look at the value of my stocks daily. I buy stocks with the intention of holding for about 5 years at least. I do however subscribe to certain services and keep an eye on what's going on with the company's I'm invested in, you need to know if it's time to pull out.
I also hold cash to cover a few years of living expenses thus not needing to sell stocks, especially in a downturn.
I'm not a financial advisor but I would suggest a strategy that includes cash to cover say 3 years

 

[JohnK]

Though what becomes of you wife? What plans are you putting in place for her needs and activity levels when you are 76, or is she self-funding?

Activity levels? Wife is a full time mother. She does not have any hobbies/interests. Does not drink. Does not smoke. Doesn't work. When I'm 76 wife will be 67 and I'm hoping she'll still be at my side. I'm also hoping I'm not dead. We still have our investments and I won't be running around the world playing golf.

Don't forget, there is also a child to consider.

Child is fine. She is richer than her father and she'll need to learn about life first before she can have any of that money.

 

[RooFlyer]

Golds are up again today

 

[lovetravellingoz]

Activity levels? Wife is a full time mother. She does not have any hobbies/interests. Does not drink. Does not smoke. Doesn't work. When I'm 76 wife will be 67 and I'm hoping she'll still be at my side. I'm also hoping I'm not dead. We still have our investments and I won't be running around the world playing golf.
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Your post implied that you were looking to have your super last till you were 76. From that I assume that it will be gone then, and as you have now indicated that she will be 67 with no super, but with some shared investments.

So from what you have written, no super, no hobbies/interests (beyond family) and might live for another 30 years beyond 67.....

Each to their own, but that is not what I would wish my wife to have.

But may you have a super strategy for your wife beyond this that you have omitted.

 

[Quickstatus]

That’s the risk of making a judgement based on assumptions

 

[tgh]

Armageddon will truly be upon us before companies stop paying dividends; in the GFC the dividend stream barely dipped.
Stocks with strong earnings from stable enterprise will weather most storms , it's just the media hype that drives folks into cash.
Considerable wealth was trashed in the gfc by folks selling out at the bottom and lacking the courage to reinvest before it all took off again.

 

[JohnK]

Your post implied that you were looking to have your super last till you were 76. From that I assume that it will be gone then, and as you have now indicated that she will be 67 with no super, but with some shared investments.

So no super, no hobbies/interests (beyond family) and might live for another 30 years beyond 67.....

Each to their own, but that is not what I would wish my wife to have.

We are not talking about a Western woman with high tastes.

All I have is hers and is more than enough to last her a long time. But knowing my wife she won't waste it and will make sure that it all goes to our daughter.

People shouldn't assume that what applies to them applies to everyone else. I'm quite happy for the government to take care of me past 76. I'm not embarrassed to put out my hand. But that won't happen.

 

[Buzzard]

When everyone else is selling, that's the time to buy.

 

[JohnK]

To quote a sage comment above:

Your super value is changing every day....

And change it does. I think more than 2% gone this week and more to come I hear.

What I didn't realise is that my super funds defaulted to the 60's super fund. That is the default fund of those born in the 60's and is relatively high risk. Part of the breakdown is 32% international shares and 24% Australian shares.

Decisions, decisions.

 

[casanovawa]

Other will see this as a buying opportunity for specific stocks that are (still) under-valued regardless of what the broad market is doing.

Now i just need to figure out what these under valued stocks are...

 

[QF WP]

And change it does. I think more than 2% gone this week and more to come I hear.

What I didn't realise is that my super funds defaulted to the 60's super fund. That is the default fund of those born in the 60's and is relatively high risk. Part of the breakdown is 32% international shares and 24% Australian shares.

Decisions, decisions.

This change to the default fund was done under the auspices of the Stronger Super legislation, taking over the ability of employers to automatically enroll new staff in their own corporate super fund (and it's own default investment option). People generally were advised that if they failed to make a nomination within a specified time period, their existing investment option balances were transitioned into the default MySuper fund based on their decade of birth - and all future contributions designated to also be paid into that MySuper fund. All public offer super funds were required to set them up. You can opt out of that fund - but you must make your own choice of investment options.

 

[JohnM]

- but you must make your own choice of investment options.

Much the point I was previously trying to make to JohnK - except that I was saying he can make his own choice of investment mix and doesn't have to accept the default if he wishes to me more risk-averse.

 

[lovetravellingoz]

However I was speaking of life expectancy and what I was suggesting was that super should be based upon the life expectancy of both persons in a couple.

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Your as written strategy was all about you. Though perhaps you do not really mean it that way.

 

[JohnK]

You can opt out of that fund - but you must make your own choice of investment options.

That's opening a minefield and a headache I don't need.

Our company allows us to nominate our own Super fund once a year in July. I've been looking at Australian Super. Looks to be non profit and I'm assuming free of the fatcats and their guaranteed perks that I despise. They have been averaging ~8% returns the past 5 years. Need to see if they'll accept people still working not just retirees.

 

[JohnK]

Your as written strategy was all about you. Though perhaps you do not really mean it that way.

I can assure you all my plans are about us regardless of how it reads. I'm only selfish in that I continue to play golf for as long as my body lets me play and that may not be 76 years old.

My wife gets to go back to Thailand 3 times a year and at the moment I get 6 holidays. Once I stop working and daughter starts school that can reduce to twice a year with longer stints.

 

[JohnM]

That's opening a minefield and a headache I don't need.

Our company allows us to nominate our own Super fund once a year in July. I've been looking at Australian Super. Looks to be non profit and I'm assuming free of the fatcats and their guaranteed perks that I despise. They have been averaging ~8% returns the past 5 years. Need to see if they'll accept people still working not just retirees.

Of course they do - how can you have a super fund that has nobody in the contribution phase? Waky-waky, John .

 

[RooFlyer]

When everyone else is selling, that's the time to buy.

My investment property sale settles at the end of this month. Do you reckon the devaluation will last for another month or so?

 

[tgh]

My investment property sale settles at the end of this month. Do you reckon the devaluation will last for another month or so?

nope….

 

[JohnK]

Of course they do - how can you have a super fund that has nobody in the contribution phase? Waky-waky, John .

I am not sure they do John.

Australian Super has a Retirement Income account called Choice Income Account. They also have a Transition to Retirement but

To be eligible for transition to retirement (TTR), you must have reached the age at which you can access your super – known as your preservation age.

You'll need $30,000 in your super account to start a transition to retirement strategy. This is so you can move at least $25,000 to your Choice Income Account while leaving at least $5,000 in your super account ($10,000 if you have insurance cover)

So it would appear that I need to be at least 59 to join Transition to retirement. I could be wrong but I cannot see that they have a super fund for younger people still at work.

 

[JohnM]

Take it from my personal experience, John, they definitely have a normal contributory fund that you can have your employer direct SG and salary sacrifice to. And you can contribute extra to make up the annual $25K limit - and tax-deduct that, as previously discussed.