Decision on Super

[bubblegoose]

Hi, with all the activity on the stock market expected in the coming days, I was wondering if there was a general school of thought on what I should do with my super. I currently have 100% super in the Aus shares 'stream' - should I move it into something that will remain stable while the aus shares stream heads south & move it all back into Aus shares when they start heading back up?

 

[Lakey91]

How old are you = key question.

By the time you decide the market is 'moving back up', most of the best gains will have been missed. Thats called buying high (waiting till the market is going and seems perfect without any bad news) and selling low.

 

[bubblegoose]

How old are you = key question.

By the time you decide the market is 'moving back up', most of the best gains will have been missed. Thats called buying high (waiting till the market is going and seems perfect without any bad news) and selling low.

Thanks for your response Lakey. I'm 30+ & I just don't have the knowledge in super for how it works properly. I'm gunna get onto that.

I don't know if there's an easy answer, or even if I was asking it properly. I'll put it this way, in case it makes any difference.

Which choice would you choose:

A. 100% super in invested in growth assets, at point 1 move 100% into invested in stable assets, at point 3 -4 move 100% of super back into growth

B. 100% super in growth, at point 2 move 100% into stable, at point 3 - 4 move 100% of super back into growth

C. 100% super in growth, at point 1 spilt 50% & move it into stable, move back to 100% into growth from point 4 - 5

D. Stay in growth & ride it out for next 30 years

 

[buddy23]

If you are not going to access your super in the next 10 years, you should probably leave it where it is and ride the cycle.

If you are worried about your portfolio in the short term, consider getting exposure to gold (either directly via investing in bullion or indirectly eg. buy Newcrest). You should ensure that your shares are diversified (though I'm guessing you are in some sort of managed fund / retail super fund)?

Note - this is just my opinion and you should seek advice from a financial planner.

 

[Ghostwriter]

I moved all mine into cash 12 months ago, now that Hedge funds have worked out how to access superannuation the gig is up, be prepared to get cleaned out if you leave it in shares.

 

[Pornstar]

I moved all my super out of shares in April this year and into cash. There's nothing else to trust right now, shares, property and bonds are all too risky. I will start moving my money back into shares when the index falls below 4000.

The main thing to remember is that when markets crash the subsequent recovery is usually quite strong. When our market fell to 3200 it rebounded back to 4800 (50%) in 12 months. So just make sure that you take full advantage of that when the time comes. When i buy back into shares, half of it will go in geared share funds to cash in big time on the recovery wave.

 

[Lakey91]

If you dont feel confident in your knowledge in super, the best thing I can say is don't post this on an internet forum - go and find a financial planner who can walk you through the options. Most of them are reasonably priced (first visit often free) and will provide you with a good outline and plenty of information to give you peace of find, and make a more informed decision.

Everyone has opinions about the risks and upsides of the market. He will be able to give you a clearer indication of what it means for someone on your timeline, what similar clients of him in your situation have done and so forth.

 

[Black Diamond]

Switched mine to shares today. I'm early 20's and only have a tick over a grand so I'm not taking as big a risk as some.

 

[Scratcher Gillespie]

I moved all mine into cash 12 months ago, now that Hedge funds have worked out how to access superannuation the gig is up, be prepared to get cleaned out if you leave it in shares.

Sorry jozeph, but can you please explain what you mean here? Hedge funds haven't 'worked out how to access super' at all - super is simply a tax structure... You can (and always could have) own just about anything within super (including hedge funds) that you can in your own name.

 

[Ghostwriter]

Its common knowledge too many Australians have their super too heavily weighted in 'shares', hedge funds are very good at shorting these markets whereas the everyday investor rarely does, peoples employers consistently contribute to super funds and whilst the people who own these accounts are heavily invested, when the market goes down that money goes to the hedge funds who are shorting the market. I hope that explains it.

 

[Villie88]

Even though we went through the GFC in 2008, shares have still proven to have received the highest percentage of growth and return over the past 20+ years since the last recession in Australia.

This is in comparision to property, cash, bonds and superannuation.

I sugget considering your in your 30's to take advantage of the market, the Australian economy is very strong but the only bad thing is, it is the most flucuating economy in the world.

As another person stated earlier, go see a financial planner for the best advice, it might cost you a little bit, but im sure they are the most suitable people to see considering the situation your considering.

 

[Beamdogg]

Put it all in Aussie Shares.
The market wont sky rocket over next few years but I think we have felt the brunt of the GFC and recent instability sent it down again but I would ride it out as your are in your 30's. Im tipping you'll make a fair amount of return over the next 20 yrs.