Join Australia's most dynamic and respected property investment community

Minimise lost when transfering superanuation into different company

Discussion in 'Other Asset Classes' started by melbourne171, 9th Oct, 2016.

  1. melbourne171

    melbourne171 Well-Known Member

    Joined:
    7th Sep, 2016
    Posts:
    197
    Location:
    Unknown
    I am planning to transfer superannuation into different fund manager. However, from my expeience, there is a big gap between transfer form lodgement date and the fund actually transferred. My super fund is in equity class (share) and high violation. I cannot control the exit price. If unfortunately, exit price is very low, I have a big loss.

    My idea is to switch super fund into cash/bond class when the share market is peak. Then lodge the transfer form to transfer into new company, also in cash class.

    The the approach above can minimise the risk of super fund violation.

    Any ideas?
     
  2. Marg4000

    Marg4000 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    920
    Location:
    Qld
    Check with your super fund as to how long they take to implement a change. This information will be freely available.

    And since you plan to cash in when the market peaks, please share the date with us.
    Marg
     
    Observer, Anne11 and wombat777 like this.
  3. melbourne171

    melbourne171 Well-Known Member

    Joined:
    7th Sep, 2016
    Posts:
    197
    Location:
    Unknown
    Based on my technical analysis, the next share market peak is around early or mid November. AORD is about 5900.
     
  4. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,558
    Location:
    Sydney or NSW or Australia
    Changing funds crystallises losses.

    Check with your fund what day they effect transfers as requests may be processed only once each week and you may miss out on a major movement.
     
  5. melbourne171

    melbourne171 Well-Known Member

    Joined:
    7th Sep, 2016
    Posts:
    197
    Location:
    Unknown
    in the past, I experienced lengthy time for the transfer process and unknown transfer date. fund manager could not tell me effective date.
     
  6. sydprop

    sydprop Active Member

    Joined:
    28th Jun, 2015
    Posts:
    41
    Location:
    NSW
    If you are looking for that level of control, perhaps an SMSF is the go.

    What is a super fund violation?
     
  7. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,558
    Location:
    Sydney or NSW or Australia
    CBus effect their transfers COB Tuesdays - get your request into the queue before their cutoff time.
     
  8. Marg4000

    Marg4000 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    920
    Location:
    Qld
    Our fund specifies within two working days.
    I know sunsuper says if you put in the request before 3pm it goes through at the next day's price.
    I would be very wary of a fund that did not have a specified process.
    Marg
     
    melbourne171 likes this.