I am with LUCRF Superannuation and have put 65% of my money into the "Balanced" and 35% into "high growth= high risk.
Just seeing your opinion on whether I should change it all to Conservative, cash or property during these unpredictable times.
Thanks in advance
Don’t need to do that in super, just chuck you wage on black at the casino for the same result
Cryptocurrency is an option for self-managed super funds.
Depends on way too many factors to provide advice.
Things like age would drastically change the advice for this. A 20 year old can afford to wait for an upturn whereas an older person should probably look at the conservative approach.
You'll have to determine the risk you're willing to take.
The governments will do anything to keep the economy afloat. I'd be more concerned about massive increase in taxation to pay off the deficit.
Peter Costello thinks that Australian government might end up with $1 trillion of borrowings. With any borrowing you need to pay interest then get a budget surplus to pay off the capital. Can the country pay it off without raising taxes? Most likely not.
Given record low interest rates + QE. Everyone is moving into any assets they can get their hands on (property, shares etc) because cash is getting inflated away through QE.
There is one saying on Wall St. Don't fight the Fed. They can create unlimited assets on their balance sheet.
If I was 25, I would be putting it in 100% high growth, as I would have decades to ride out any downturns.
If I was 55, I would puting it in X% high growth, Y% balanced, Z% cash. A nice cash buffer in case when I retire there is a downturn. Some balanced for the medium term, and some high growth because I expect to live to ~85, so I still have a few decades to ride out any downturns in that portion.
I would have figured out the X, Y and Z percentages and adjusted my portfolio to them slowly between age 25 and 55 after calculating my typically annual expenditure, how much I already had in super and estimating how much I expect to have saved by retirement, and how much I expect to spend in retirement (including inflation). The closer I got to retirement, the more precise my calculations would be and the more adjustments I might make. At that time I might be concerned about the current state of the economy. Decades before that ? I wouldn't even factor it in.
As others have mentioned, it depends on a range of factors. Ideally you should be thinking long-term with your investments, not just reacting to short-term issues. Market could be at the bottom now and by changing you're just losing out on all possible gains/making poor mistakes. Or hey, you are saving yourself some money as market has far further to fall. Long-term though the market should generally increase so if you do have those many years to go I'd also put my money into high-growth investment.
One thing to note is that by changing it all to cash/conservative now, you do have to bear any actual losses you've obtained so far. It may seem like splitting hairs (whether your loss is real or just on paper) but it does make a difference.
Instead of high growth you should look at the management fees on the International & Australian shares and put it there if you can live with the risk.
Much more information needed to give a proper opinion.
High risk investment drop fast and recover fast (generally). To move away from a high risk investment after it has dropped and put it into a more stable low risk investment that will recover less quickly doesn't really make sense (to me)
During gfc the all ords dropped from a high of 6,800 to 5,000 in the first year. In the second year of the gfc it hit a low of 3,100.
Before Covid-19 the all ords hit a high of 7,200 a low of 4,600 in March and right now at 6,000.
What happens next?
Polish up your crystal ball and let me know?
honestly you and NO ONE else has no idea how the economy is going to look in 12 months let alone 20 years - you essentially have ZERO control
Pick a fund with as low fees as possible ie Hostplus Balanced fund and hope that it does alright.
Superannuation is a mass scam in which the government has forced on the working class to stop them getting access to a pension they rightfully deserve at retirement and it gives the super rich another way of not paying tax. It also forces you to save money and have a reduced wage so the government doesnt do the one thing it is supposed to do that's look after the people that help build this country. - i've always hated the idea of super and the idea of a means tested pension the system hates people that work hard and it is why our country is going backwards
if only Bitcoin and the top 10 Crypto currency was an investment option. Ill put down 50%