Superannuation Discussion + market volatility

[get me outta here]

I think the wombat is safe. Perhaps those attempting an insincere grovel face.

I’m thinking .... Wombat

 

[tgh]

My call is to sit tight, we have plenty of cash.
It may be a seminal bellwether if loan defaults escalate sharply.
The knock on effect and resulting general media panic could cause a genuine recession or…..

The value of Hybrids should only tank if the issuer was unable to pay dividends and was seeking further saving.
That scenario is indeed a very long bow.. imnsho…..

 

[andye]

No it was totally random dumb luck. Which is why I understand JohnK when he speaks of the share market in terms of gambling.

Very difficult to time to market
I like to believe that broad-based funds (eg index and to some extent industry super) are like betting on the bookmaker, as the markets have always gone up if you wait long enough

 

[amaroo]

Always like this saying ... “don’t try and catch a falling knife”

Have at least another 12 years before we need to start worrying about knives.

 

[Buzzard]

I have told many friends that you need to have 2 or 3 years of living expenses in cash. It's those that don't have cash and need to sell in a down turn that will realise a loss. For the rest of us, in 2 or 3 years the market will probably recover.

 

[Pushka]

I think I’m like my dad. He had cash only. Of course not much of that. In my forties and fifties I was happy to see the roller coaster of shares and enjoyed quite a few rides to the top and some slides to the bottom as well, usually because of corporate decisions out of the blue.

A few years ago there was an infrastructure issue where you could buy ‘shares’ - maybe they were rights? for a few cents, but what many newbies didn’t realise was that in a couple of years time, unless you were able to sell those issues then depending on how many you bought you were then liable for in some cases, hundreds of thousands of dollars. I think it was in Queensland? Now that was a story to watch, and I found about it as I was on a share forum.

 

[tgh]

There are people who do not believe in banks, they have all their wordy wealth "buried in the backyard"

 

[andye]

There are people who do not believe in banks, they have all their wordy wealth "buried in the backyard"

Non-believers in the miracle of compound interest. Such people are usually very frugal so tends to balance out a bit

 

[Pushka]

Non-believers in the miracle of compound interest. Such people are usually very frugal so tends to balance out a bit

Compound interest these days? Ya dreamin!

 

[amaroo]

Compound interest these days? Ya dreamin!

OT, and maybe not that much, but my CBA business account pays up to 1.5% with no fees. Not bad for a business account.

 

[Pushka]

OT, and maybe not that much, but my CBA business account pays up to 1.5% with no fees. Not bad for a business account.

Sure. But wait until you retire and see how you feel about 1.5% if you are risk adverse. Our super fund has the same rate up to $250k. But if wanting to actually live off that when health funds, power, water etc are well above inflation then it’s not a great place to be. Thankfully we have some time to resurrect it but for those aged over 65 and fully retired it must be very stressful watching your life goals slip away.

 

[amaroo]

Sure. But wait until you retire and see how you feel about 1.5% if you are risk adverse. Our super fund has the same rate up to $250k. But if wanting to actually live off that when health funds, power, water etc are well above inflation then it’s not a great place to be. Thankfully we have some time to resurrect it but for those aged over 65 and fully retired it must be very stressful watching your life goals slip away.

Very true. The flip side to higher interest rates on deposits = higher interest rate for home loans and everything else. There is always some pain depending on what side of the line you're on. Can't see higher interest rates kicking in anytime soon...

 

[Pushka]

Very true. The flip side to higher interest rates on deposits = higher interest rate for home loans and everything else. There is always some pain depending on what side of the line you're on. Can't see higher interest rates kicking in anytime soon...

Yes that’s very true too. I think it’s going to be years.

Just wish the damn health funds would experience some pain.

 

[QF WP]

Scratching head……

IFL looks a raging red hot buy buy to me

Just got off the phone to the broker who was extremely negative and in the process confirmed my view that he is a goose……

otoh.. a fool and his money et al..

hmmmmmmmm

More information about IFL here: .IOOF splits super trustees from funds | Professional Planner

The short term view appears negative for IOOF whils the Chairman/CEO issue is resolved and February 2019 will see the Royal Commission Final Report handed down and IOOF will also star in it alongside the 4 Banks and AMP, et al. They were very aggressive in their purchases over the last 3 years in their quest to become a larger player, but they didn't turn over and consider all the rocks.

Then there is the likely unwinding of a deal that was to see IOOF buy the OnePath wealth management arm from ANZ. If it gets canned as expected, then both parties have expended a lot of time and money that will not be re-couped.
All eyes on ANZ deal as IOOF top brass face super ban | Professional Planner

 

[tgh]

IFL spiked 5% in the last hour

 

[Flying mermaid]

Sure. But wait until you retire and see how you feel about 1.5% if you are risk adverse. Our super fund has the same rate up to $250k. But if wanting to actually live off that when health funds, power, water etc are well above inflation then it’s not a great place to be. Thankfully we have some time to resurrect it but for those aged over 65 and fully retired it must be very stressful watching your life goals slip away.

the thing is not to panic. I am not enjoying the current value of my super fund and there is a possibility of reduced dividends, if share market drops translate into a recession, but you only lose if you sell. The actual value doesn’t worry me too much as it will go up again. You have to have shares that aren’t going to go bust and part of my strategy a few months ago, was to go through borrowings and make sure I didn’t have anything that had high debt - they tend to be the vulnerable companies.

 

[Pushka]

the thing is not to panic. I am not enjoying the current value of my super fund and there is a possibility of reduced dividends, if share market drops translate into a recession, but you only lose if you sell. The actual value doesn’t worry me too much as it will go up again. You have to have shares that aren’t going to go bust and part of my strategy a few months ago, was to go through borrowings and make sure I didn’t have anything that had high debt - they tend to be the vulnerable companies.

Yes, I hear that but my brain does not compute. Which is why I’m so pleased I’ve moved a lot of our funds into HESTA for diversification and they can juggle things better. The rest is in cash which is miserable earnings but at least I can’t see red. I’m hoping with the house sale we can top up super to the max as personal contributions. Thank god Adelaide never experienced the dizzy highs so for our market it’s just slow and steady. And I’m thinking I will look at getting an income by working back in the business post Christmas even if I put it all through as salary sacrifice.

 

[Flying mermaid]

Yes, I hear that but my brain does not compute. Which is why I’m so pleased I’ve moved a lot of our funds into HESTA for diversification and they can juggle things better. The rest is in cash which is miserable earnings but at least I can’t see red. I’m hoping with the house sale we can top up super to the max as personal contributions. Thank god Adelaide never experienced the dizzy highs so for our market it’s just slow and steady. And I’m thinking I will look at getting an income by working back in the business post Christmas even if I put it all through as salary sacrifice.

well I don’t like seeing red - no-one does unless they are a masochis_, but you have to just stay calm and remember it’s a cycle.

We do have some steady income from a property and I think Mr FM might continue with his 50 hours a month consultancy for a bit longer and maybe no extravagant trips planned for 2020. Might be time to spend a year decluttering the house instead!

 

[Buzzard]

@Pushka why are you accepting 1.5% when you can get 2.87% at call on a savings account?

 

[Pushka]

@Pushka why are you accepting 1.5% when you can get 2.87% at call on a savings account?

I think we’ve had this discussion before as it sounds familiar and I checked it and because it’s active Super and in a trust account it isn’t eligible. The money doesn’t ‘belong’ to us yet as one hasn’t permanently retired and won’t be taking it as a lump sum when he does.