When to Transfer Super out of Cash Option?

tomlikesbeetroot on 08/04/2020 - 11:24
Last edited 08/04/2020 - 11:29

So I just logged into my super account for the first time this year to assess the damage done recently, and discovered that I have 20% of my balance held in cash. The remaining is in the high-growth option as I am in my mid 30's, I thought the entire balance was in high-growth so not sure how I ended up with 20% in cash.

As I still have plenty of working years ahead before retirement I still plan to keep the entire balance in high-growth.
Do people think I would be best to transfer it all now, drip feed it over the next few months, or wait and see?

Edit: My working hours have also been reduced by more than 20% so I would be eligible to withdraw, I still make enough to cover bills and living expenses but I could withdraw and pay off credit card debt.

Poll Options

  • 7
    Wait
  • 9
    Transfer balance to high-growth now
  • 6
    Drip feed from cash to high growth over the next 6 months
Financial

Comments

  • kingsville on 08/04/2020 - 11:26
    +1

    you'll never know the 'right' time.

    how about 5% each month for next 4 months?
    or 10% today, 10% later?

  • bobbified on 08/04/2020 - 11:27
    +2

    Let me get back to you after I consult my crystal ball….

    • kahn on 08/04/2020 - 14:05
      +1

      Do you mean Krystal Ball?

      • bobbified on 08/04/2020 - 14:48
        +1

        I would like to check her out too! haha

  • CyberMurning on 08/04/2020 - 11:42

    let me ask some random forum….. oh you already done that! apologies

  • kahn on 08/04/2020 - 11:47

    If you're not an active participant in the markets then trying to time anything during this volatility will likely end badly. If you've remained passive this long, then it's probably wise to leave things as they are. Randoms on the internet will only give you conflicting information and cause more confusion.

    • theHMASfriendship on 08/04/2020 - 12:26
      +2

      That is generally the case, but they posted this on OzBargain. We are professionals.

    • tomlikesbeetroot on 08/04/2020 - 13:48

      I'm not currently an active participant. The ~20% of my super balance that is currently in cash was actually what I used to have in individual shares, but I pulled out as I didn't think I was able to do any better than the market average so thought it would be better in high-growth, but somehow sold shares and left it as cash and forgot to transfer it over to the high-growth.

  • iDroid on 08/04/2020 - 12:14

    I'm interested in a good cash to shares/etc entry point for my super, I'd like to some ideas also.

    I like the idea of moving portions over bit-by-bit as mentioned by kingsville above.

    • [Deactivated] on 08/04/2020 - 13:06

      how old r u

      • iDroid on 08/04/2020 - 13:12

        45

    • dcep on 08/04/2020 - 13:09

      that would be 23 March 2020

      • iDroid on 08/04/2020 - 13:12

        Well played!

  • toniyellow on 08/04/2020 - 12:22

    I would vote

    drip feed it over the next few months

    But what's the interest on your credit card debt?

    Mostly I think withdrawing is going to do a lot of people more harm than good in the long term. But if you have a portion that is allocated to cash, and you have a credit card debt with a high interest rate, then you may be one of the few that should look into it further, withdrawing just enough to wipe out that debt.

    • tomlikesbeetroot on 08/04/2020 - 13:45

      Yep, I think this is my best option. Withdraw super to pay off credit card debt, then increase my voluntary super contributions to repay the money over the next 12 months or so.

  • QuickdraW on 08/04/2020 - 13:24

    buy low, sell high. market down = good time to invest. don't borrow money via credit card, they have high interest rates.

  • brendanm on 08/04/2020 - 13:32

    Step 1 - Withdraw the 10k
    Step 2 - Put it on black
    Step 3 - Put the 10k back into super
    Step 4 - Waste the other 10k

    • Mad Max on 08/04/2020 - 23:54

      Came out RED!!!
      Wait…casinos are closed…just as well!

  • Pimpiticians 4 Life on 08/04/2020 - 22:16

    Dont give financial advise - thats more serious than robbery.
    Myself SMSF physical silver and platinum.

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