That would be 25K
I don't think 'leverage' works in standard super. I don't have the SMSF yet. 11% return simply means 11K.
If it is the SMSF then I guess so. I guess that is the key attraction of SMSF.
Super Investment options
- Thread starter devank
- Start date
That is what I thought too. That is why I picked
Property - 40%
International Equities - 40%
Australian Equities - 20%
I thought lower AUD might also help the 'International Equities' portion. Not much intelligence went into this decision though
We have all our super in property , but that was from the gearing point of view . There have been rumors floating around they might limit the gearing and I wanted to maximize our exposure while we could.
We bought two 2-3 years ago and two mid last year .
Haven't got any spare equity at this stage but if we were putting more money in to the super at the moment, I don't think the share market is such a bad place . Probably Australian equities as the australian market has been under performing , though it hasn't had a great year so far this year again.
Cliff
We bought two 2-3 years ago and two mid last year .
Haven't got any spare equity at this stage but if we were putting more money in to the super at the moment, I don't think the share market is such a bad place . Probably Australian equities as the australian market has been under performing , though it hasn't had a great year so far this year again.
Cliff
Hey Devank,
By no means am I an expert and I would never suggest anyone take advice without first getting "professional" advice but working in finance and financial planning I'm not sure switching or trying to pick the "best" options is the most optimal way of looking at it.. Sure you've done okay with the retuns you've received, however since 10/11, the riskier (generally speaking) asset classes i.e. shares, property etc have all seen large growth and it's been a boom/bull market due to several factors..
What is probably a more sustainable longer term option IMO, would be to focus on your goals i.e. what are you actually looking to achieve whether that be a 12 - 15% return and why you want to achieve this.. Rather than trying to time the market, most of the time it's about "time in" the market.. It's then also about how much risk you are willing to accept/tolerate..
That's my 20 cents worth, feel free to disagree but not sure that switching options each year is the most effective choice i.e. what happens if you put it in shares one year and this tanks (losses) 20%, you switch to property the next and it losses 10%, while shares recover 30%.. Instead of gain 10% over 2 years you lose 30% a difference of 40%.. While this is a hypotheical example, it shows why diversification or at least having a consistent strategy usually comes out on top..
Interested in your thoughts
By no means am I an expert and I would never suggest anyone take advice without first getting "professional" advice but working in finance and financial planning I'm not sure switching or trying to pick the "best" options is the most optimal way of looking at it.. Sure you've done okay with the retuns you've received, however since 10/11, the riskier (generally speaking) asset classes i.e. shares, property etc have all seen large growth and it's been a boom/bull market due to several factors..
What is probably a more sustainable longer term option IMO, would be to focus on your goals i.e. what are you actually looking to achieve whether that be a 12 - 15% return and why you want to achieve this.. Rather than trying to time the market, most of the time it's about "time in" the market.. It's then also about how much risk you are willing to accept/tolerate..
That's my 20 cents worth, feel free to disagree but not sure that switching options each year is the most effective choice i.e. what happens if you put it in shares one year and this tanks (losses) 20%, you switch to property the next and it losses 10%, while shares recover 30%.. Instead of gain 10% over 2 years you lose 30% a difference of 40%.. While this is a hypotheical example, it shows why diversification or at least having a consistent strategy usually comes out on top..
Interested in your thoughts
Warren Buffet to his heirs:
My advice to the trustee couldn't be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. I believe the trust's long-term results from this policy will be superior to those attained by most investors ? whether pension funds, institutions or individuals ? who employ high-fee managers.
Further Buffet:
"Most investors, both institutional and individual, will find that the best way to own common stocks (shares') is through an index fund that charges minimal fees. Those following this path are sure to beat the net results (after fees and expenses) of the great majority of investment professionals."
My advice to the trustee couldn't be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. I believe the trust's long-term results from this policy will be superior to those attained by most investors ? whether pension funds, institutions or individuals ? who employ high-fee managers.
Further Buffet:
"Most investors, both institutional and individual, will find that the best way to own common stocks (shares') is through an index fund that charges minimal fees. Those following this path are sure to beat the net results (after fees and expenses) of the great majority of investment professionals."
This is in super. So it is going to be long term (39 yrs old now). My goal is to have the max possible balance in 25-30 years time.
You can argue the opposite as well. In that case, we will get better return than having a consistent strategy.
I was a bit clear about the market in previous 4 years. This year, I wasn't so sure. That is why I picked 'diversified' as you suggested.
Property - 40%
International Equities - 40%
Australian Equities - 20%
I guess my strategy in super is:
First check if 'Fixed term' or cash can give good return (Say above 7%).
If not, do I strongly believe in certain market. Go hard in that market.
If not, settle with a 'diversified' option.
Yes until next financial year.
I have the following options.
Australian Equities
Australian Socially Responsible Equities
International Equities
Property
Australian Fixed Interest
International Fixed Interest
Cash
I thought 'Property' would do better than others in the next one year period. Not that I know much in this area!
That was my assumption. Is it wrong?
Hi Devank
Not sure where things will be come EOFY but at the half way point Australian Listed Real Estate Investment Trusts (A-REITs) are outperforming the broader index, helped along by the falling Australian Dollar
From TDR
You are right. Looked at the statement. Here is the growth from First State Super in 6 months till 31 Dec 2014.
Australian Equities 2.4%
International Equities 10.0%
Property 7.7%
Australian Fixed Interest 4.2%
International Fixed Interest 4.1%
Cash 1.3%
Thankfully I have 40% in Property and 40% in International Equities.
