Is it a good idea to take out the 10k super and put it towards property?

Anyone who has received that cash, how many days did it take from application to receipt?

 

5 days

 

Not if you put it all back into the market like some of us did. You would have done quite nicely if you put your $10k into the airlines, banks, REITs, or if you researched a bit further and picked APT, EML, NXV etc you would have turned your $10k into $30-$50k in 2 months. I know a couple that did.

 

This has been previously mentioned but my agent told me yesterday that anyone who has accessed their Super is unable to get a loan atm because they are deemed as being in financial difficulty. So just be aware.

Also if the ATO find out you're not in financial difficulty I would have thought that could be considered as breaching the conditions of the scheme?

 

Come on, what would an agent know about giving credit advice!?

This is not the case

 

No, that's not the purpose of that policy. It's only for those who can't put food on the table.

 

Sure, you can do that with a business loan, or even just save 10k. But that is not the intended use of your super.

 

Yet the process is such that you do not have to show proof that you have had a reduction in income or "cannot put food on the table" so there are lots of people taking it out even if they don't technically qualify for it. Bound to happen when it's a self declared process, basically like an honor system.

 

This is not the case at all.

Here are some of the eligibility criteria:
On or after 1 January 2020 either

• you were made redundant
• your working hours were reduced by 20% or more (including to zero)
• you were a sole trader and your business was suspended or there was a reduction in turnover of 20% or more.

 

How do you think the ATO/Supers will approach false claims when the dust settles? I have heard of a few questionable claims. I'm sure there is a stack of blatantly false ones.

 

I never mentioned anything about false claims. Where did you get that from?

 

Both good ideas in normal times

These are not normal times

If you are eligible to redraw your super it means you have had a sudden negative change in your employment or turnover and have a sudden need to find another source of income asap

How long could you live off 10K without doing anything to replace your lost income?

How long could you live off income that is created by using your 10K wisely?

How long could other small businesses and jobs survive if more people became producers and actively supported other small businesses in their own pursuit of starting a small business selling a product or service?

 

I've always tried to keep superannuation separate from my property investments. But I've heard stories where people leverage their super to buy more properties. I'm open to exploring this, but keeping the super completely separate does provide some peace of mind.

 

Sorry not accusing, just curious. Lots of questions earlier in thread about eligibility and such.

 

That is very much the case. The intended purpose for the super redraw policy is to cover hardship and survival. It is most definitely not for investment. If you are thinking of 'taking advantage' of the program, you don't need it and you shouldn't do it.

 

But where does it mention about survival? Are you sure you didn't assume this from the listed criteria that Terry mentioned? I would never withdraw my super if I can help it but I don't see anything wrong with someone legit meeting that criteria and then investing it etc, they may even have a 50k emergency fund in their back pocket and want a an extra 10k to play with. I'm not sure if there is anything about savings amount in the requirements for withdrawal?

 

If you meet the criteria you can legally withdraw super. Whether you survive with it or invest it is up to each individual.

no doubt the intention with the scheme was not to help people invest - but still lawful if they do.

 

With the $10,000 early withdrawal you could request your Superannuation provider to set up a defined benefit offset account to reflect the amount released to you.
The balance of the defined benefit offset account can then be subtracted from the total benefit at retirement.
This approach means that the balance should grow over time to be more than the initial $10,000 that was released.
I have been able to do this with my Superannuation provider at no extra charge or ongoing fees.
DYOR

 

Do you need to already have a Defined Benefit product to do this? I thought Most Superannuation companies had stopped offering defined benefit schemes, or is that incorrect?

 

Yes correct. If your Superannuation company offers the defined benefit product