(Just retired for two years, newbie really :)) For the current situation of Ukraine war, the tension with China and the ongoing sanctions… Is it better to convert Super to cash? Or, to put the question more directly, have you done anything to your Super for the situation?
/WT
depends where/what you have invested in
If its locally I dont think we will be hit as hard as the rest of the world
Probably the dumbest thing to do switching to cash.
I was a professional public accountant and currently hold a number of shares for my present retirement.It is hard to advise you without knowing much of you e.g. your financial endurance, your family circumstances. Anyway the present Ukraine and Russia fight will certainly cause wobbling in
share equities and it tends to going south. However as history tell it usually bounds back soon after the war is over and peace achieved. If you are so scare why not realise a small part only ( honestly I am quite against this idea, as I believe this war won’t last very long).
If you are so worried…. why not take it all out and spend it on yourself NOW.
Concerting to cash… you may as well take it all out.
There will always be conflicts… My super rose 50k… because I converted all to "high Gain"… whilst all others pulled out to cash… I converted all to High Gain… the market went up and up and up.
If I panicked I would be down 50k
So we can take out our super and spend it? Really? I didn’t know. I thought it was stuck on there till my pension age.
I think the OP means 'Income Stream' not Super; but I could be wrong.
Others here say 'pulled out' when really they just changed investment options within their Super fund or Income Stream.
Generally, you can't get your super until your preservation age which is 60 for most people (but who knows what it will be in 5-10 years time).
Old age pension is probably 67 for most ppl here; maybe a little earlier for some. (Either way in 5-10 years time it too may well be higher)
There's absolutely nothing wrong converting to cash
I have been holding most of my super as cash for 3-4mths now
It was previously all in equities / aggressive assets
Just dont carry the expectation that one can always perfectly time the peaks and troughs
no idea - probably best to seek financial advice
but if you want me to give my opinion i'd need a lot more information
etc
Gold!
Or Gold miners on the ASX. RRL train 🚀🚀🚀
No better time than to convert your holdings into the Russian Ruble. What could go wrong - buying at a recent low, can only go up right?
What drugs are you taking that make you think switching to cash is a smart move?
Where is the share market headed in the next few months?
I'll ask my wife. She knows everything and it was obvious it was going to happen, but only after the event occurred…
or ask an economist -
"An economist is an expert who will know tomorrow why the things he predicted yesterday didn't happen today''
- Laurence J. Peter
if you are retired then in theory shouldnt you be holding your super in more defensive assets?
i definitely wouldnt try to be speculative and grow your super balance right now, more so if you are new to investing
Read (or even better, listen to the Audible audio book) the Barefoot Investor.
You may live to 90 or older and inflation would mean you'll be paying $10 for a loaf of bread in a few decades. You need the stock market to help you keep up with inflation. You should have 3-5 years of living expenses in cash going into retirement to give you ease of mind when the markets are down and prevent you from panic selling.
Barefoot investor?? ROFL…… How are your Bonds undies and Dunlopillo and 150,000 buckets?
Don't forget to treat yourself to a very very expensive meal with expensive wine to get yourself in the mood to even think about talking about finance.
I'd rather get investment advice off WSB
I bought the Dunlopillo - that was a WOFTAM
Jeez that barefoot guy is such a smug bastard
Arnt they all smug? Its like those guys claiming 10 houses in 5 years, yet they bought remote country houses for 100k that are nearly impossible to rent and cost a fortune to fix because no tradie wants to drive 2 hours. now they want to charger 500 to be someones mentor for 3months.
yolo all in $doge coin, hedges against everything. Then when Rouble drops to 0.01 to US$1, move to Russia, live like an Oligarch
Yes, convert to cash, more specific to Russian Rubbles, #BuyTheDip
problem is, you don't know when the bottom will be..
I did not say buy the bottom but buy the dip. Trying to time the bottom impossible
"For the current situation of Ukraine war, the tension with China and the ongoing sanctions… Is it better to convert Super to cash?"
AFAIK sharemarkets move in anticipation, e.g. rise on advance rumours, then fall on the fact
once you have 1-2 years living expenses in cash, the rest I would leave in the market
professionals probably moved to cash a month or more ago
if you move to cash now you're probably crystallising losses you will lose twice if/when the market bounces back and your cash doesn't
The answer depends on how the money printers respond to any shocks.
We have the us who loooves to print money.
Brrrrrrr go the printing presses brrrrrrrr
$200B is on the card to fund the war effort.
That's OK, it's not like the US has any problem with inflation ATM!
Brrrrr sorry can't hear you brrrrrrrr too loud here brrrrrr
I SAID: IT'S OK, PEOPLE IN THE US CAN JUST GET THE EXTRA MONEY OUT OF THE ATM!
Does anybody know if the ING Living Super has a cash option? Does it have a similar rate to the ING Savings Maximiser Account? Since interest rates are set to rise and things are volatile it may be a safe haven short term.
A meaningful cash rate rise is as likely as a war in the Taiwan Strait.
Liquidate the entire thing and YOLO it into crypto. Moon or bust babyyy!!!!!!111!
Elon is that you?
YOLO BABY !
a small problem with YOLO is when you've burned your cash, have none left, and you're still around and getting old, without a secure roof over your head, and end up sleeping under bridges to keep out of the rain, and have an increasing bunch of medical problems you can't afford to get fixed so are living in pain every hour of every day.
I could gamble at the casino too - but know the house always wins in the end - so I didn't
now old and retired with enough - happy, healthy, comfortable in our own home (paid-off 30 years ago) and well.
Our problem is we're still experiencing the 'L' part of YOLO.
I hear the ruble's at an all time low, a great time to convert your life savings to that and watch it rocket back up. What could go wrong?
/sarcasm.
Never a truer thing said in jest. Now higher than before the start of WW3
Convert to dogecoin
WCGW?
Call me crazy but I became more aggressive with super with recent events, changing more allocations to shares. In addition, started to DCA more contributions.
I think converting to cash probably would of been better a couple weeks ago.
Depending on who your super is with you probably better just to hold now.
I converted to cash a few weeks ago but will drop it into high risk in future.
This war will be drawn out for years to come. I will drop mine into high risk just before scomo gets voted out.
Diversify your portfolio, a bit of cash to help you sleep at night, gold and bitcoin :)
de ja vu? i thought we just had one of these threads a few weeks ago
For someone retired, converting to cash is probably still a good option for at least a large portion of the portfolio to hedge.
Even though I'm not, I converted some of mine in December as I saw the dip coming :)
If you are SMSF, you can also consider Futures/Options (e.g. buying a put option) to safeguard big falls (but risk losing the premium if it doesn't).
Anyone not retirement age, now its dipped - ride it out - time in the market, not timing the market.
[PS - this is not financial advice, make your own decisions!]
On balance given the uncertainty now and the hubris in the market last year I think it’s likely the market could continue to slide another 20% over the course of this year and possibly have a major fall. But it could also do a U turn and smash back up. Timing either bottom is a fools errand, if we knew when to do that everyone would be doing it.
My plan is to put all contributions this year into cash. If the market does continue sliding in the next six months I’ll reassess and put all my super currently allocated in cash into the market having avoided a good chunk of the fall. I’ve got the luxury of waiting 20 years for it to turn around, and over time markets go higher that’s a certainty.
In the mean time the rest of my super which is allocated to a range of shares can recover if the market does a U bolt tomorrow. Either way I’m not going to lock in a major loss.
Investing is about managing risk, not trying to time ups and downs that’s gambling, and how traders get burnt.
If you're worried about volatility you should adjust your portfolio to protect it (get advice if needed).
That does not mean switching everything to cash, just having enough defensive assets to reduce volatility while still being in the market to some extent to benefit from the upside when it happens. Cash will produce pretty much zero return at the moment.
Market timing is a mugs game. If it was easy, I wouldn't need to work.
Jerome Powell, the Federal Reserve chair, said the central bank still intended to lift interest rates, despite uncertainty caused by Russia’s invasion of Ukraine. https://t.co/4eOVp4YDuV
https://t.co/TA8UN3T6PN
Rona recovery priced in, inflation priced in, 🇺🇦 vs 🇷🇺 war priced in, +0.25% cash rate in two weeks priced in.
The market has now priced in all of those things. The probability that the bottom is in is higher now than it was 4d ago.
Pretty sure Australian super and the other major players now allow you to choose much like vanguard, you can even pick high risk if your income in high.
Buy gold
https://twitter.com/DylanLeClair_/status/1409878363355987969
Gold underperforming the CPI since 1980. https://t.co/mb5qFQTKe3
But WW3
WW3 is happening right now but it doesn't use bullets, guns, tanks or bombs.
It's a war fought in cyberspace using monetary sanctions, data hacking, misinformation and DDOS.
In hindsight, yes.
OP's question posted 28 March
Only problem would be which currency would you cash out to ?
USD would have been a great bet compared to AUD
I'm currently considering cashing out of US stocks at a capital loss and return funds home (forex gain) and buy back US stocks in SMSF.
10 years till retirement and should bounce back by then.
100% Capital loss to be used against a future capital gain (discounted 50% CGT) .
You need professional advice! You don’t have the luxury of decades to recover from a long bear market. It could be argued that the correction has baked in the drop in the markets just as easily as it could be argued that the markets were too expensive to begin with. Wars and pandemics only affect markets for a relatively short time so your financial planning should be based on your age which clearly puts you at the low risk sector of the market.
Personally I change my super based on the Volatility Index - the VIX. I changed to property in November because it was out of my comfort range and luckily now have my super at a record high. Having said that if you don’t know the market very well you should not be making emotional decisions about something as important as your super. It’s not for gambling with FWIW