Thread: Superannuation???

Originally Posted by dobbo

Just talking to one of the guys from work today, his dropped by 20k.

Was talking to some retired folk a few weeks ago and theirs had dropped by $70k but can't remember the timeframe.

As he said though, it's only realised if you sell.

I would doubt that an organisation like HESTA would want to ruin their reputation by bein seen to be ripping anyone off.

As said before it is likely that your super is invested in an option that has a mix of shares and cash ( if you haven't elected a particular mix yourself it generally goes into this "balanced" fund. )

The sharemarket has fallen considerably since start of the year, so that will probably be the reason for the negative amount. However if you look over the past 3 years you'll probably find you have had reasonable growth.

You will have the option of "switching" into a lower risk mix that has a higher fixed interest component. However you will then miss out on making up your losses if the sharemarket rebounds. There'll also be a small cost of switching.

It's a matter of taking an active interest in where your super fund is investing YOUR money on your behalf. Unfortunately now the days of defined benefits are gone for most if us, its something we all need to do.

Originally Posted by garrycol

A minus interest rate of 3.5% in 6 months - I have lost about 10% in the last 6 months - maybe I should have had my money in Hesta.

-3.5% over the past few months is good - it will pick back up.

Garry

Hi Garry

I just looked at my account today and my strategy lost 3.3% it could have been worse the "High Growth" strategy lost 5.8% and the "International equity" lost 12% and even property lost 6.9%.

The result is that after 12 months and adding over $18,000 in contributions (personal and employer) the estimated value is $200 more than it was this time last year, in fact most of the losses seem to have arrived in the 2008 calendar year. Having gone backwards $11,200.00 since 31 December.

Oh well, lets hope it picks up?

Diana

Superannuation invest your funds in Property Trusts, Stockmarket both local and overseas, Government bonds and debentures, cash at bank, and so on, over the last ten years most industry funds been riding the market upwards and posting interest rate returns on your funds over 15% per annum, you wife loss is refelctive of the recent stock market correction caused by the USA sub prime mortage crisis.

they say you can expect a negative return on investment once in 7 years

In the long run your wife "losses" will be recovered by future growth in the markets.

It is a loss if she cashes out her superannuation now, same as if you sold your shares today at lower prices than what they were worth 6 months ago.

The old superannuation system of being guarannted 5 or 6 times your final year of salary have long gone as being uneconmically sustainable by anyone Govts included and now your superannuation on retirement is what you have saved what your employer has contribtuted each eyar currently 9% of salary and whatever the fund has earnt on your combined contributions less charges and losses.

With taxation at 15 cents per dollar contributed on voluntary superannuation its still one of the best investments you can decide to make tax wise even with current stock market devaluations.

Originally Posted by Lotz-A-Landies

Hi Garry

I just looked at my account today and my strategy lost 3.3% it could have been worse the "High Growth" strategy lost 5.8% and the "International equity" lost 12% and even property lost 6.9%.

The result is that after 12 months and adding over $18,000 in contributions (personal and employer) the estimated value is $200 more than it was this time last year, in fact most of the losses seem to have arrived in the 2008 calendar year. Having gone backwards $11,200.00 since 31 December. Oh well, lets hope it picks up?

Diana

Yep - and another yep - Dec/Jan were where the losses happened in a big way - Feb is already picking up though so the FY is likely to end in +ive territory.

Garry

Originally Posted by walker

Thanks Langy,
yes I guessed that it was due to whatever invetments they had the money in. It just seemed a large amount to loose. She only had $30k in the account and lost $2k in only 6 months.

The reason she found out was because she was rolling it over into another super scheme with her new employer.
And you are correct, there are no penalties for changing schemes.

Welcome to the stock market. Now when you see reports of the market collapsing you can know for whom the bell tolls, it tolls for thee. Good news is up until this year you were getting fantastic growth. I dread my next statement though, I would have lost the price of a new Defender since Christmas.

But remember you don't see any of it until your retire. There will be at least two more booms and busts before i see any of it so no point in whingeing now, even though I am.

You are never going to find anyone more motivated than you to make sure your money works for you, so do all you can to find out how it all works.
Although it will be peanuts to many, I have shoveled in all I could get my hands on in this downturn, actually since November.
The agency doing the paperwork thought I was crazy, but as others have said it only counts when you sell/withdraw and the buying is cheap now, it will get cheaper but it also will go up.
Retail slumped in Jan feb, so a slowdown is signaled.