What Should I Do With My Super?

[Olly]

Genuine Plea for Help!

I don't have much super and haven't recovered from the big hits we took about 5 years ago. I'm at the wrong end of life to be playing dangerous according to the experts, but I've been putting it in high growth to help the recovery process and it's been working. However, for this last year in a moment of insecurity I moved it to conservative and according to my recent statement I've lost another $4k.

My super is 'parked' in an ex employees fund where they have A-E choices with A being the most conservative. They don't contribute to the super and neither do I. The super I've had from other jobs I've had since working for this company gets rolled into it when I lose/leave the job.

Last year I did a 5 month contract with a company that joined me in their super and they have about 60 choices! I want to roll my 'parked super' into this fund but don't know which option to choose. Conservative? High Growth? In what? Property? Shares? Here? There? Everywhere? Spread it over a few choices? I'm bamboozled!

The more I try to educate myself to help make a choice the more confused I'm getting. Inflation, Aussie Dollar rising, interest rates, Euro problems, etc. - I can't keep up with it all and make sense of it.

For those with a REAL opinion - would you mind helping me to decide.

Obviously the decision still comes down to me - I won't just take your advice willy nilly, but I'd be really interested to hear what everyone predicts for the future and where they think I should put my super and why.

TIA.

 

[wylie]

I am in the process of moving some of hubby's super to mine to keep his under $500K. During my "homework" I asked our super whether I should look at changing from "aggressive" to a more balanced choice. We are both with the same super company.

Hubbies whole fund is "aggressive" and mine is half "aggressive" and half in another choice. I thought mine was all in the "aggressive" basket too and I asked her if I should change it all to "aggressive".

The lady said that whilst she cannot give me financial advice, if I change my fund I am locking in a $4K loss this since July last year. I would effectively be "selling" my shares in the less aggressive fund, turning a paper loss into a real loss and buying into the "aggressive" fund. It would then have to grow $4K even to make up the loss I would be locking in.

Instead, I chose to sign a form saying that any money going into my super fund from now (including hubby's transfer to me) will go into the "aggressive" portion of my fund.

I don't like losing money, but our super is only part of what we have in place to get us through our retirement, so I'm happy to continue with the "aggressive" gamble. We won't be cashing in his super when he turns 55. If we were relying on doing that I would be more wary.

I don't know if that helps you Olly and I think that if your super fund offers a free advice session it would be worthwhile going, or at least finding out the pitfalls of moving anything around in the fund.

 

[Ocean Architect]

with the rampant money printing we're seeing these days, I'm a fan of physical gold and silver. Apart from that, with the food crises we're seeing all over the place, agriculture/agricultural land isn't terrible either.

Just my 2c

 

[JIT]

Olly, some are predicting a crash in the next few months.

I'm 100% cash in my super fund since Dec, and will wait 2-3 months to see how events unfold.

 

[Macca]

My "stock market" money is in cash waiting for the crash, may come, may not but by being in cash the past year I did better than the market so I continue to wait.

We have a "very" nasty set of world problems right now, absolutely anything could happen. It is impossible to know what will happen as can be seen by the conflicting opinions of commentators and advisers.

Personally I am happy in Term Deposits for now, I consider I have missed the boat on Gold as I believe they will change the rules if it gets too much higher, just like they did on silver.

 

[Ocean Architect]

My "stock market" money is in cash waiting for the crash, may come, may not but by being in cash the past year I did better than the market so I continue to wait.

Watch out you don't get "MF Global"ed

 

[MIW]

Genuine Plea for Help!

I don't have much super and haven't recovered from the big hits we took about 5 years ago. I'm at the wrong end of life to be playing dangerous according to the experts, but I've been putting it in high growth to help the recovery process and it's been working. However, for this last year in a moment of insecurity I moved it to conservative and according to my recent statement I've lost another $4k.

My super is 'parked' in an ex employees fund where they have A-E choices with A being the most conservative. They don't contribute to the super and neither do I. The super I've had from other jobs I've had since working for this company gets rolled into it when I lose/leave the job.

Last year I did a 5 month contract with a company that joined me in their super and they have about 60 choices! I want to roll my 'parked super' into this fund but don't know which option to choose. Conservative? High Growth? In what? Property? Shares? Here? There? Everywhere? Spread it over a few choices? I'm bamboozled!

The more I try to educate myself to help make a choice the more confused I'm getting. Inflation, Aussie Dollar rising, interest rates, Euro problems, etc. - I can't keep up with it all and make sense of it.

For those with a REAL opinion - would you mind helping me to decide.

Obviously the decision still comes down to me - I won't just take your advice willy nilly, but I'd be really interested to hear what everyone predicts for the future and where they think I should put my super and why.

TIA.

It's hard to know how to advice since you don't mention how long you have to access it, how much, what's you risk threshold, the startegy - wether for growth or just for protection.
I spread the risk around by running own SMSF not through managed funds. So I have total 100%.
Perhaps companies who will feed the world or emerging markets are predicted for growth, companies servicing resource sectors. It has to link with our current economy.
To be honest, in these turbulent times, I don't think even any advisors know where to invest.
At the end of the day, it's what you feel is comfortable for you.
I often ask myself this question, if I invest into 'X' when will I feel worse? For example, would you feel worse if the 'X' grew by 10% and you missed out because you were conservative or if the fund dropped by 10%?
If you can answer those questions as you invest then you should know which strategies you may take.

 

[Macca]

Watch out you don't get "MF Global"ed

Hi OA,

Sorry mate, don't quite get where you are heading with this, my cash is currently in Oz in govt backed instos so I am good

MF Global was primarily providing CFD and leveraged investments as I understand it. I did consider buying the ASX index (ASX 200) back after the crash but was scared off when they let Bear Sterns collapse.

Did you read where Bear Sterns was the only bank to refuse to contribute to the LTCM rescue package and the only bank allowed to collapse

 

[lizzie]

We're currently looking at moving the super out of an industry fund into our own SMSF ... so thanks for the prompt to call the acct and arrange ... primarily because the losses have been ridiculous considering the super in a conservative fund considering term deposit rates.

With the help of this forum, we've nutted out about 10 shares we want to concentrate on - but also the method in which to buy them.

Hubby - who is trusting and not money savvy - argued that the fund managers get paid big money to make the right calls, so why do I think I could do better.

My answer was that the fund managers get paid 4% of your super every year regardless of whether they make a profit of loss - in the end, they really don't care about your super, they still get their massive wages paid to them regardless.

And looking at the results of the top performing super funds over the last 10 years ... would've been better off having them in term deposits for that entire time.

 

[Sunfish]

Olly, some are predicting a crash in the next few months.

I'm 100% cash in my super fund since Dec, and will wait 2-3 months to see how events unfold.

Disclaimer: I have no super.

I have a mate who is already retiring age and ready to pull the pin in a couple of years. I suggested to him a few years ago that he go to cash which he did but a couple of weeks ago I said he should check just what form his cash is being held in. Internationally, cash is getting such poor returns that the fund managers have to take risks, just to pay themselves. I don't know how much Aussie money is in Greek [and others] bonds but someone is going to take a bath when the house of cards collapses.

I looked at the SunSuper options and there weren't too many. The Cap Guaranteed Cash should be safe but Unhedged International Shares could give good returns. Those big, household names on the DOW should continue to power ahead. If you have the option, precious metals funds and resource funds sound good too.

In a SMSF you could buy some of these directly and some of the convertible notes being issued by the banks and others. These certainly are difficult times where nothing can be taken for granted.

 

[hobo-jo]

with the rampant money printing we're seeing these days, I'm a fan of physical gold and silver.

+1

There are options for Gold/Silver exposure even without an SMSF. For example some super funds (Spectrum Super is who I use) will allow you to invest directly into ASX200/300 companies which include Gold/Silver miners. Of course the miners are not the same as physical Gold, but Spectrum does allow purchase of PMGOLD which is an AUD Gold Proxy (tracks the local price of Gold).

More here: http://www.bullionbaron.com/2011/12/superannuation-exposure-to-precious.html

I've held the majority of my Super in bluechip Gold stocks for the past 20 months and currently the account is +72% over that time period.

Most purchased the day after the flash crash in 2010 (buy when there is blood on the street):

Bought IGR at .255, now .58 (Bought May 2010)
Bought SLR at 1.145, now 3.55 (Bought May 2010)
Bought PRU at 1.84, now 2.87 (Bought May 2010)
Bought TRY at 3.93, now 4.70 (Bought Jan 2011)
Bought KCN at 6.55, now 7.75 (Bought Dec 2011)

I hold a little cash (enough to cover fees, etc).

My only dud purchase was NCM which I bought in May 2010 and sold around break even in December 2011 to buy more KCN.

 

[MIW]

+1

There are options for Gold/Silver exposure even without an SMSF. For example some super funds (Spectrum Super is who I use) will allow you to invest directly into ASX200/300 companies which include Gold/Silver miners. Of course the miners are not the same as physical Gold, but Spectrum does allow purchase of PMGOLD which is an AUD Gold Proxy (tracks the local price of Gold).

More here: http://www.bullionbaron.com/2011/12/superannuation-exposure-to-precious.html

I've held the majority of my Super in bluechip Gold stocks for the past 20 months and currently the account is +72% over that time period.

Most purchased the day after the flash crash in 2010 (buy when there is blood on the street):

Bought IGR at .255, now .58 (Bought May 2010)
Bought SLR at 1.145, now 3.55 (Bought May 2010)
Bought PRU at 1.84, now 2.87 (Bought May 2010)
Bought TRY at 3.93, now 4.70 (Bought Jan 2011)
Bought KCN at 6.55, now 7.75 (Bought Dec 2011)

I hold a little cash (enough to cover fees, etc).

My only dud purchase was NCM which I bought in May 2010 and sold around break even in December 2011 to buy more KCN.

Yes, I mainly hold physical gold but I have some small exposure in gold stocks at these times. Like with any investment, in times of monetary uncertainity, gold has always performed well, so has oil by the way....Look what's happening to oil since the fighting in those countries......
I suppose investing involves looking at economy at present to decide on some exposures to different assets at times.
By the way what's your stop loss % strategy to get out or are you in for the long term?

 

[hobo-jo]

By the way what's your stop loss % strategy to get out or are you in for the long term?

No stops. Medium term, suspect I will be out within the next 2-3 years.

Watching for Gold's overvaluation vs other assets/wages/money supply for exit.

 

[MIW]

No stops. Medium term, suspect I will be out within the next 2-3 years.

Watching for Gold's overvaluation vs other assets/wages/money supply for exit.

Good startegy, me too.
I like Michael Malony's "Guide to Investing in Gold & Silver", where he points out exactly similar approach. He measures and illustrates true values as opposed to prices of assets in relation to gold.
So you too understand that all asset classes become overvalued, revert to their mean and thus become undervalued, so if one can really understand how to measure that to past history and be able to switch or to invest in these classes than real wealth can be made.
We are experiencing great wealth transfers in current times, so Good Luck....