How much super have you lost?

[topcropper]

I haven't looked at my super. Don't want to, and not interested.

I haven't even looked at my shares for months now. Lost all interest. With the outperformance of BHP compared to everything else though, I would expect over half my share holding would now be BHP.

Been debt free in shares since Nov 07 thankfully. I was basically letting the profits run.

See ya's.

 

[kum yin lau]

Hi, my thoughts same as you, Bill.

Started SMSF in May last year. Before that, refused to participate in managed Super cos of personal circumstances. No advantages such as co contributions etc.

I looked at the dividends [payable early April] vs the share price. Around 4%

I would buy shares any day than to hold cash except for insurance purposes such as medical or accidental expense.

If we choose our timing, we get a lot of tax advantages too. I had to begin smsf after selling some properties. Had I chosen to place $100000 cash in smsf, I'd have saved close to $30K

We can choose to do one lot in May [allow a bit of time] and one lot in July. Then we claim deducted contributions for 2 financial years.

From what I can see, the benefits are greatest for the 45-50+ age group.

My idiot proof method of saving money.

KY

 

[keithj]

It took 23 years for the stock market to climb back to the before crash level in 1929 (in nominal term).

As Bill.L. mentioned we're not talking about US market.

Secondly... if you include reinvested dividends in that period, then the US market rose by 375% in those 23 years - ie roughly doubling every 12 years.

But don't let the facts get in the way of a great D&G soundbite....

 

[keithj]

I haven't looked at my super. Don't want to, and not interested.

Probably to early to look at it anyway if the IMF is anything to go by... IMF urges hike in retirement age

KEVIN Rudd and Wayne Swan should immediately consider lifting the retirement age and cutting healthcare entitlements to combat rising welfare costs because of the global financial crisis, the International Monetary Fund has warned.

 

[Harriet]

So are you saying it has dropped 42%?

No, it dropped a little over 30% from Dec 07 to Dec 08. Then, in the past two months, it has dropped 12% from the Dec 2008 figure.

I have read all the gumph about not panicking. I guess that's what I am trying to do, given I have 25 years until retirement.

I know that might sound irrational, but I am kinda worried the balance will seep away to zero - which will mean there's nothing to work with when the market rebounds.

Anyways . . .

Harriet

 

[Sunfish]

I know that might sound irrational, but I am kinda worried the balance will seep away to zero - which will mean there's nothing to work with when the market rebounds.

Anyways . . .

Harriet

Super funds don't buy just one stock so they can't go to zero. You're safe there.

If you have concerns about the bleeding (and I think you should) look at the different fund options available and choose a conservative one (for me that would have staples but no finance/banking) or even a "cash" type fund. You can allocate percentages to different funds so you could spread the risk to something like "Asia without Japan", a long/short (or hedged) fund or "International equities"

This is strictly a summation of the crystal-ball gazers I read (ie. a punt!) but don't go to cash just yet. We are about to have a sizable bear market rally, 10-20% possible.

Forgot to remind you that this post is for entertainment purposes only. I am not a licenced financial advisor.

 

[Kenster]

My super is with an industry fund, having approximately 8 investment options, eg. Growth, Conservative, Australian shares, International shares, Cash etc.

It grew 5% in 2008, in Cash.

My view of market direction in the next 12 months is:

- Sharemarket continues to shrink & bottom by 9-10/09, rebound in 2010, can tank again mid or late 2010

- Cash rate will continue to drop until 6/09. Possibly shoot up slightly in early 2010

Going back to super, I plan to keep the super in Cash until 6/09 then gradually switch it over to Shares (25% each time), complete by Xmas 2009. Will pull out of Shares, back to Cash by mid 2010. Very likely to set up an SMSF to buy properties in late 2010.

PS. This is a personal opinion, no advice

 

[crc_error]

Mines gone up by 20% in the past 12 months

you must be in the black rock asset allocation fund?

I'm kicking goals with this fund!

 

[TheAnalyst]

I hate those fund managers

My tiny amount ($44k) made just 7% last year because I could not get the fund managers to play according my rule, then I had to put all the money in 100% fixed interest.

I am with government super. They have different options to choose and you can change your plan on the internet. I asked them if I change today, whether the units I buy/sell will be today's price ---- they advised me "NO" and could be any day of the following 5 days. I asked all these changes happened overnight by computers, why my plan was not based on the daily rate. They told me super was not like share market. I have no idea these idiots are talking about. The units they calculated are based on the daily rates on the market but the CUSTOMERs can not use that. You can choose their plan, but you can not select the shares you wanted to buy. I just do not just these young kids who selecting shares for me..... Out of angry, I put all money in the fixed rate. I made 7%. What a shame.

I wish all the super fund go down the drain by the end of year.

 

[auror]

You can choose their plan, but you can not select the shares you wanted to buy. I just do not just these young kids who selecting shares for me..... Out of angry, I put all money in the fixed rate. I made 7%. What a shame.

I wish all the super fund go down the drain by the end of year.

I'm not quite sure where you're coming from. If you want to choose your own shares, why don't you start a SMSF? (although your super balance indicates that this might not be a worthwhile path for you, you seem like you would rather have fine-tuned control over your super)

How do you know "young kids" pick the shares that a multimillion dollar super vehicle invests in? Did you make that judgement based on the call centre staff you spoke to?

Shouldn't you be happy that your super didn't take a hit by switching to fixed interest at the right time?

And why would you want to see people's life savings go down the drain? For some people nearing the end of their retirement, super does consist of the bulk of their life savings that they hope to live on.

 

[Pushka]

I wish all the super fund go down the drain by the end of year.

Pleasant comment, thanks for the good wishes!

 

[TheAnalyst]

I'm not quite sure where you're coming from. If you want to choose your own shares, why don't you start a SMSF? (although your super balance indicates that this might not be a worthwhile path for you, you seem like you would rather have fine-tuned control over your super)
I have been thinking in the past years and was put off by advices that it was not worthwhile because of the amount

How do you know "young kids" pick the shares that a multimillion dollar super vehicle invests in? Did you make that judgement based on the call centre staff you spoke to?

otherwise, the funds would not have lost 30-60%

Shouldn't you be happy that your super didn't take a hit by switching to fixed interest at the right time?
no because I had no other choice
And why would you want to see people's life savings go down the drain? For some people nearing the end of their retirement, super does consist of the bulk of their life savings that they hope to live on.because these fund managers

my comments as above

 

[TheAnalyst]

Pleasant comment, thanks for the good wishes!

The reasons are:

1) I believe superanuation is wrongly set up based on false "imagination" - people can live on it when they retire.

2) the large amount of super funds have distorted the financial market --- money is "abundant" as the rich dad claims. It has led to today's crash of the market.

3) the fund managers play other people's money by "gambling" the sharemarket, property market and commodity market --- they distorted the market and created bubbles. Eventually, they burnt the underling people but not themselves. I guess Less than 10% of people who working in the broking firm (such as etrade or commsec) actually trade/play themselves by their own money.

4) until it totally burnt out, people would not realise the potential problem by creating a large amount of money there.

5) I remebmer 1/2 years ago, when the government sold T2 and collected $4b as future fund invested in the financial market now probably all in the drain.

 

[Pushka]

So lets bury everyone's retirement possibilities (that were forced on them) because you dont like the way the funds managers operate. What is false about it? People have to live on it when they retire because the pension wont be there. These funds didnt lead to today's crash, that started in the US and beyond which dont have the same Super rules. Bad loans on bad assets caused the current problems.

 

[see_change]

We went up , havn't worked out exact figures but between 5-10 % .

Reason . We were , and still are in cash . For last 18 months .

We will be looking at gearing into property in the next 1-2 years , and maybe some shares.

Cliff

 

[redwing]

Hi All,

Just thought it would be interesting - albeit a little depressing - to see if others' super funds are bleeding as badly as mine. I can't believe how much money my fund has lost in the past 14 months. Between December 07 and December 08, my balance dropped over 30%. And in in the past 2 months alone, it has dropped another 12%!

Silly question - but could my super actually drop to zero??

Meanwhile, how are y'all faring?

Harriet

mmmmm.....about -30% all up

Mixture of cash, managed funds, individual shares etc

Not sure where the bottom is but betting there are some great opportunities about.

Interestingly we looked at the portfolio the other day thinking.....................

"If we sold now, or were forced to, would we hold these same positions?"

"How can we best take advantage of the current market?"

 

[Nathan]

i lost about 80% of my trading money... about 60k in real terms...

+ opportunity costs....

Thats not super, was my trading loss, il stick to my property

 

[jaycee]

Hope there is money in the fund when the time comes to withdraw.

Probably OK with Govt schemes, but some smaller private employer defined benefit funds have been on very long contribution holidays during the previous prolonged high growth phase and won't have a hope of catching up now.

Your "entitlement" is only as good as the fund's asset backing !!!

Cheers,

Rob

I wasn't gloating I was reporting as asked. Nor was I suggesting it was any better/worse than any other scheme... as if I would know that !

It is actually a Commonwealth Govt scheme that got stopped for employees where I work the year after I joined the company. Thanks for caring though

 

[Pushka]

I read yesterday that unless something happens in the next couple of months, retail funds this year are down around 20 - 30%. Couple that with a 6%ish lost last year and the laymans super just got a lot worse.

 

[Sunfish]

As an exercise in maths, I was thinking about a "notional" fund which had a 7% gain for three years (close to 25% cumulative) and then suffered a 25% reversal in the fourth. Is the unit holder merely back where he/she started?

I think it is worse than that. The gains were on smaller amounts but as new contributions and profits are added back the "at risk" pool gets larger so the dollar amount of the fourth year loss will be greater than the dollar amount gains in the previous three. This would be more pronounced for 20 somethings who would have had little on the table for year one but promotion etc would mean greater contributions in year four.

It would also be bad for 60 somethings who thought they were close to retiring and "topped up" as suggested by the Gov.

You should also look a the historical results of managed funds in this way. They can make big percentage gains in their early years (not so big in dollar amounts) but it becomes harder as the amount under management rises (as it does with winning funds) but a bad year can wipe out all the profits even though the percentages may still be +ve.