Those who switched their superannuation to a more conservative plan or cash before the stock market crashed, what’s your plan for switching back? Obviously no one can predict the future, but some sort of plan other than just FOMO is good… When restrictions are relaxed? When businesses reopen? When the whole crisis is over? What are people’s thoughts?
Plan for Switching Back Super to Growth
M0RGAN on 01/05/2020 - 12:42
Comments
Too hard, holed up in cash option getting stuff all, though. Most of the stockmarket activity is temporary artificial stimulus and oil manipulation.
Hostplus Balanced option hasn't recovered from the market low despite the stockmarket bounce.
The cash investment option hasn't increased for more than a week now. I'm not sure how other people dumping their super is hurting fixed interest cash but it seems to due to unit prices. They are definitiely flattening the interest curve.
Will wait a bit longer to move it back it’s still volatile out there !
Perfect plan was to switch to cash in February
then, switch back to growth on 23rd March 2020
since then, market already up 30% from the low, you just lost heaps staying on cash until now
if you're trying to act like pro to time the market, and only switch back to growth now after market has already up 30% , what if it crash again tomorrow ?
Is now a good time to make extra voluntary contributions? I’m thinking it’s not a bad time with a balanced option.
I’m taking the contrary position…I’m switching to cash sometime this this month..this is the biggest dead cat bounce ever…Market is trading on the emotions of the corona virus and paying no notice to the economic issues .
They are saying our economy is going to be worse than the Great Depression and we are on of the better countries economically.I disagree with the great depression angle - this situation is very different to the 1920s-30s. While I don't think the recovery that is inevitable will be V-shaped, it will come back fairly strongly as the economic fundamentals for Australia remain pretty sound.
I switched out to 100% cash in February and just caught the beginning of the crash - lost just under 2%. When to get back in? Ideally, it would have been sometime in late March as the market has risen quite a bit from its low. In reality, there's no straight answer. Personally and rightly or wrongly, I'm waiting a bit longer. Maybe when more restrictions have been lifted and the economy starts to pick up again. I'll play it by ear. I did take the $10k out though as I want to use it for some other investment options - and I'll do the same after 1 July. The other thing you could do is take the $10k out now tax free and pay it back in by 31 June. You'd pay 15% tax on it but now you have a big deduction on your tax return - which would be worth in the region of $1500-2500 for most working people. I can't see anything wrong with doing this - it's basically just tax arbitrage
31 June might be a day too late ;-)
Doh!
I've done extremely conservative move - cashed out, changed to USD, and bought safer assets,(bonds, gold, USD) in the US market.
Before making any decisions, I'd wait for the second quarter financial growth reports in July and Jackson Hole meeting in August.
Then still, I won't be back until I get answers:
- when will be the huge gap between the financial economy and the real economy converged?
- how many banks can make profits in this situation? Can they survive?
- what's the economy impact of the unusual unemployment rate?
- what will happen to zombie companies?
- when will be crude oil back to over $40?
Switched back 2 weeks ago.