Whats happening with your super fund

Hi @wylie, please don't take my post the wrong way, but I feel it is important to illustrate our discussions with a real world example.

This post is a case study for the Sequence of Return Risk thread as well as the ubiquitous investor psychology threads: nearing retirement risk, market fall, hard to watch and then selling.

As previously discussed, no-one can predict the market. In my humble opinion the OP (original poster) has done the right thing to reduce risk through increasing cash allocation, not because of the market conditions but because of the proximity to retirement. 7 weeks out may have been a little late for reallocation but at least OP has ridden the lengthy bull market wave, notwithstanding the loss of a little foam off the top.

Regardless of market fluctuations OP can reallocate cash back into equities over time to manage the sequence of return risk present in his situation. If market crashes 90%, I would pull the trigger on all the cash, if not, a gradual reallocation into equities.

Not advice.

 

Good call Sage @sash although I still believe no-one can predict the market with confidence.

I'm still 0% cash/bonds in super and last time I checked awhile back I'd lost ~20k. I reallocated a small chunk into REITs but I haven't felt the urge to check the balance since because I know it's not good news.

At least my yearly 25k top up can be timed in at a low / resistance level.

Since I can't get to my super for such a long time I'm not going to reallocate to cash yet - sticking to my convictions on this one. Once I get closer to the date I can access super I will accumulate a bond/cash tent through inflows and some reallocation.

Not advice.

 

We did very nicely from Sydney boom and sold our two properties in Manly . Currently four properties . We’ve paid three off and have the rest of the money in an offset against the other . Leaving that there at the moment so we have the option to withdraw that and use it to buy another property . Happy to watch from the sidelines and bide our time .

Like to have a couple more properties and then start diversifying into more liquid assets .

Cliff

 

Mine’s self managed. Apart from a portion I put in a hedge fund, the balance has returned around 60% in 2018, through a few high conviction investments.

My best one was probably Blackham where I subunderwrote the 4c rights issue and got free options. In a few months the shares ended up beingworth around 8c, and the options 2-3c. AGO was good too, I picked it up around 1.8c start of year ended up selling near 4c. PAR was good too. I got in at 52c. The peak was last month at around $2.

 

I have a certain number of units. My unit price dropped quite a lot so I started buying up units at a discount. But already the unit price is almost back to record highs. I'm not sure what is going on but I was enjoying those units at a discount.

 

Irony is here we are 3 week of Jan and if you left it alone....probably would be back to the same amount, instead you missed out on the pop.

 

The real Irony after paying tax on the profits she will probably be worse off, and will now have a tax liability as well as missed recent capital gains , and future compounding capital gains, on the donation to the ATO..

 

Super is a long term play regardless of life stage - unless you're going to run out or planning to die in the next few years. Losses should be considered sad coming from your long term funds even If they're in the one pool of investments.

I've just looked at a couple of funds, they're essentially back to where they were pre-correction .

 

Timing the market can help you make alpha. Had a hedge fund friend who saw the peak and shorted the market heavily in October, closed his positions out in December

 

Rest super has the same unit prices at this time last year.