Ho good is Super annulation. Times like these really highlight it's awesomeness and what a great system it is. I like that it's compulsory, that way all Australians get too experience its greatness together.

I most like the idea of some snotty nose punk on the other side of the globe using my hard-earned to gamble/ play the share market. However my favorite part is when he loses it all and goes "oh well" didn't foresee that happening,.,, really,.. blind Fredy saw it coming.

Meanwhile, half my money just disappears and no one cares/ is responsible. (money I worked for/ cold cash)

It also gives me great joy knowing that I have worked for 25 years and I currently don't even have the equivalent to one year's salary.

Epic, so happy right now.

Are you planning to sell out of your super in the current market?
NO SO
You don't lose a cent if you don't sell
Just relax, in time it will double again.
It's called patience

Pull yourself together Gazuki, you're no different to anyone else, sit tight and don't be like Michael Jackson's doctor ................... running out of patients

Your monthly Super contribution will be buying you more this month. Silver linings.

is it really that bad? I've lost 12.5% since the peak, nowhere near half. I did move into a more conservative strategy a couple of weeks ago, but even if I didn't, the losses would have been around 20%. The market was overcooked anyway, with the ripper returns from the last few years, a decent correction was overdue anyway. I made my annual top up this week to get maximum value from my concessional contribution limit.

I wonder if you are in a retail fund? That's the only way I can see you making contributions for 25 years and not have a year's salary saved up. If so, switch to an industry fund ASAP and stop losing half your earnings in fees.

My super has lost 13% as of today, not as bad as I thought but I'm expecting it to be halved by time we are out of this next year. The more I loose the more it make the decision of heading off to the bush and just living the simple life more plausible.

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Hardcarve1 said..
My super has lost 13% as of today, not as bad as I thought but I'm expecting it to be halved by time we are out of this next year. The more I loose the more it make the decision of heading off to the bush and just living the simple life more plausible.

If you truly believe that, then you'd be in cash and not being halved. Curious why you don't make the move?

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Gazuki said..
Ho good is Super annulation. Times like these really highlight it's awesomeness and what a great system it is. I like that it's compulsory, that way all Australians get too experience its greatness together.

I most like the idea of some snotty nose punk on the other side of the globe using my hard-earned to gamble/ play the share market. However my favorite part is when he loses it all and goes "oh well" didn't foresee that happening,.,, really,.. blind Fredy saw it coming.

Meanwhile, half my money just disappears and no one cares/ is responsible. (money I worked for/ cold cash)

It also gives me great joy knowing that I have worked for 25 years and I currently don't even have the equivalent to one year's salary.

Epic, so happy right now.

I just love the way the whole economy pivots on the whims of gamblers.

We need you to look after yourselves when you retire, but in the meantime let others play with your retirement fund.

one guy i know doesnt regard super as his money till its in his account. As such, he makes regular contributions to a high interest earning account, so he has an amount that others can't screw with.

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Subsonic said..
one guy i know doesnt regard super as his money till its in his account. As such, he makes regular contributions to a high interest earning account, so he has an amount that others can't screw with.

Yeah, agreed. Superannuation is great, but I'm wondering if they'll keep raising the age you can access it simply because they don't want people to run out and need the pension. Would be a raw deal for those who have worked hard to make sure they have enough to last 20+ years, only to be told that they can't have it until they are 70. I'm therefore doing the same to maintain control of my own destiny.

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Harrow said..

Hardcarve1 said..
My super has lost 13% as of today, not as bad as I thought but I'm expecting it to be halved by time we are out of this next year. The more I loose the more it make the decision of heading off to the bush and just living the simple life more plausible.

If you truly believe that, then you'd be in cash and not being halved. Curious why you don't make the move?

I have my real nest egg in my property with Super a forced back up. I just leave it and see what it does but not expecting to much when I retire as the governments rape and pillage from it.

I am rarely more than 50% shares. Currently 30%. Rest in fixed interest and other more defensive assets and now 20% cash.
However all new forthrightly purchases are in Growth assets .
A balanced fund to me seems to be the best in the long run

I got into this one just in time:

Gold State Super
Gold State Super is a defined benefit scheme. This means your Final Benefit is determined by applying a fixed, or 'defined', formula. Gold State Super is not market-linked, so your funds are not impacted by the performance of investment markets.Gold State Super was closed to new members on 29 December 1995. If you decide to voluntarily withdraw from the scheme, we can't reverse your decision and you won't be able to re-join1.

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hilly said..
I got into this one just in time:

Gold State Super
Gold State Super is a defined benefit scheme. This means your Final Benefit is determined by applying a fixed, or 'defined', formula. Gold State Super is not market-linked, so your funds are not impacted by the performance of investment markets.Gold State Super was closed to new members on 29 December 1995. If you decide to voluntarily withdraw from the scheme, we can't reverse your decision and you won't be able to re-join1.

Good work! That'd be the dream. Let the provider carry all the risk. Nice! ??

I don't get it. Surely these funds with all their genius's would have short positions and would have made a killing on the way down as well?

Yep, that's how they've limited their losses

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Harrow said..

Subsonic said..
one guy i know doesnt regard super as his money till its in his account. As such, he makes regular contributions to a high interest earning account, so he has an amount that others can't screw with.

Yeah, agreed. Superannuation is great, but I'm wondering if they'll keep raising the age you can access it simply because they don't want people to run out and need the pension. Would be a raw deal for those who have worked hard to make sure they have enough to last 20+ years, only to be told that they can't have it until they are 70. I'm therefore doing the same to maintain control of my own destiny.

Over 50 year olds are the biggest group on welfare , if the gov raises the age to access super then more on welfare .

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Subsonic said..As such, he makes regular contributions to a high interest earning account, so he has an amount that others can't screw with.

A high-interest account. Do these exist now? He will pay tax before contributing and on the interest.

The main advantage of super is I contribute before tax and only pay 15% when I take it out in a couple of years. Yes, I know they could increase that but it is way lower than my tax bracket. Smokes a high-interest account, what would that be now??

Compare popular term deposit interest rates

Product Interest rate Min. deposit
CUA term deposit 1.5% p.a. for 6 months $5,000
MyState bank online term deposit 1.8% p.a. for 6 months $5,000
Ubank term deposit 1.55% p.a. for 6 months $1,000
ME term deposit 1.75% p.a. for 6 months $5,000

Not that flash.

And if you look deeper Hilly, they actually penalise you for wanting to invest for longer than 6 months, they're not very confident right now and know that they can buy money from the RBA at a ridiculously low overnight rate

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bobajob said..
I don't get it. Surely these funds with all their genius's would have short positions and would have made a killing on the way down as well?

Most pension funds including aussie super funds are prohibited from short selling under their charters. Its too risky as losses are unlimited.

Instead they loan their long positions out to hedge funds in return for a small % fee - called stock lending.

The hedge funds then make the killing and pay the super fund some interest.

Super funds have wisely begun to stop this stock lending as in times like this it just increases volatility.

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bazz61 said..
Over 50 year olds are the biggest group on welfare , if the gov raises the age to access super then more on welfare .

Yeah, but they'd prefer you to work until you drop. If I hit 55, and have enough super to live on the interest alone, why should I live of meager welfare payments until I'm 65, or whenever they decide I can have my money.

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hilly said..
A high-interest account. Do these exist now? He will pay tax before contributing and on the interest.

The main advantage of super is I contribute before tax and only pay 15% when I take it out in a couple of years. Yes, I know they could increase that but it is way lower than my tax bracket. Smokes a high-interest account, what would that be now??

Compare popular term deposit interest rates

Product Interest rate Min. deposit
CUA term deposit 1.5% p.a. for 6 months $5,000
MyState bank online term deposit 1.8% p.a. for 6 months $5,000
Ubank term deposit 1.55% p.a. for 6 months $1,000
ME term deposit 1.75% p.a. for 6 months $5,000

Not that flash.

I'm getting around 7% on rate setter.

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Harrow said..I'm getting around 7% on rate setter.

So you paid 30% tax on the money before it went in and at least that on the interest. Just saying

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Harrow said..



I'm getting around 7% on rate setter.

Yeah but as you obviously know harrow personal loans are hell risky in a recession!

Risk spreads on investment grade bonds have doubled in 2 weeks so based on that you should be getting between 14% and 21% on personal loans according to mr market.

Yeh that yield curve is looking perilously inverted. Always the precursor to a recession.
super ... mmmm... but what else ?

Problem is retiring decently on super also depends highly on the timing of the market cycles. But i suppose one has to play the long game to ride this cycle through.


but to those who are nearing retired or just retired (as the bloke I was having a beer with last night) don't panic. Lands not involved yet (Infact the REIT index is looking remarkably healthy telling you credit is not an issue).


great excuse for big gov spending, deregulation of the banks ... (credit creation) look for the bottom in 2021 and good growth from 2022 on.


so don't get caught up in the here and now of the markets. Leave that for the media hysteria and the ignorant

The 10 year government bond yields have almost doubled in a week .......................

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hilly said..
So you paid 30% tax on the money before it went in and at least that on the interest. Just saying

Not sure your point on the 30% tax? I have to pay tax on my income whether I choose to put it in a high-interest savings account, or invest in RateSetter. We're talking about different investments outside of super, so comparison with super isn't valid.

As for paying tax on the investment interest....two words....discretionary trust.

Bara, not going to get involved with those payday loan firms....sure the returns are very good, but the practice is unforgivable.

Lots of people miss that point Harrow and isn't it only 15% .................................. and don't you still have to pay tax on the income of a discretionary trust? You just get to excercise "discretion" over who gets what.

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Paddles B'mere said..
Lots of people miss that point Harrow and isn't it only 15% ..................................

Yeah, 15% tax going into super, got to max out that $25K concessional contribution, but we were then talking about investment outside of super, since we don't trust the government lettings us near it before we're too old to do anything useful with it.

With regard to the discretionary trust, sure, it's no use unless you have someone in a low tax bracket to allocate the investment income to. Nothing like having 3 kids with evenly spread ages all taking their turn to go to uni who basically have 0% marginal tax rate since they have no decent income. That's a decade of tax-free investment.

The pollies are all into it, which is why it gets discussed every few years, but the rules never get changed. It's criminal, except it isn't.

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bazz61 said..
Over 50 year olds are the biggest group on welfare , if the gov raises the age to access super then more on welfare .

They've already done it, more than once. Originally I would have had access to my super at age 55, which sounded like a pretty good retirement age to me. Then it changed to 58, now it's 60. When they made the last change I realised it was time to start making investments outside of super, despite its tax advantages.