I sit down with Mary Delahunty, CEO of the Association of Superannuation Funds of Australia (ASFA), to unpack what’s really going on with your superannuation in the downturn.
Historically, I would not normally panic during a downturn and would buy more equities at lower than average prices. However, due to the orange buffoon and his nasty side kick being in charge, we are not living in normal times and I suspect unpredictability will continue to reign.
Down turns like this have happened previously and will happen again. That is just the way of the world. So in pension phase make sure to keep sufficient cash available to pay your pension and also some invested in term deposits just in case the downturn persists for a while. Then your pension will continue with no dramas and you will not be forced to access your stockmarket investments when you will just be locking in the poor sell price you will get. And in accumulation (and pension phase) don’t panic and make your paper loss a real loss by moving into cash. Our financial advisor has us set up so that no rushed decisions need to be made during a downturn. Sure it is not good to see Stockmarket down but we can sit back and not be overly concerned. Even if you can’t access paid advice, everyone should be able to get some free advice thru your superfund so please, please talk to them before taking any hurried actions now!!
I feel we are headed into unprecedented territory and thus I feel more nervous than ever before. I come from a migrant family that left post war Europe to find a more stable, secure future here in Australia. Now heading into retirement I am very wary of the orange terror that is so reckless causing upheaval in the world. I am more aware now that the terror, starvation and persecution my parents witnessed first hand is embedded in my DNA . At the moment I still have the opportunity to work, Im finding it hard to let go of the gravy train even tho I have lost the love for my work.
Thanks Bec. this was an informative episode. My Super has been well planned for an epic reset/retirement and I will not ride a rollercoaster watching my returns on a daily/weekly basis. Super is for the long term.
I am also exploring converting a portion to an Annuity, post leaving the paid workforce (in case with ageing I become a little stressed with market fluctuations) .
Hi Bec. Love your podcasts. As a single male who turns pension age in four weeks (but has retired) I feel it would be advantageous to leave my super in accumulation phase during this downturn. The 15% tax on my earnings (if any) would be minimal, also as I can easily live on the aged pension. When markets respond I can change to pension phase & not lose withdrawing super in a downturn. Agree?
Historically, I would not normally panic during a downturn and would buy more equities at lower than average prices. However, due to the orange buffoon and his nasty side kick being in charge, we are not living in normal times and I suspect unpredictability will continue to reign.
Down turns like this have happened previously and will happen again. That is just the way of the world. So in pension phase make sure to keep sufficient cash available to pay your pension and also some invested in term deposits just in case the downturn persists for a while. Then your pension will continue with no dramas and you will not be forced to access your stockmarket investments when you will just be locking in the poor sell price you will get. And in accumulation (and pension phase) don’t panic and make your paper loss a real loss by moving into cash. Our financial advisor has us set up so that no rushed decisions need to be made during a downturn. Sure it is not good to see Stockmarket down but we can sit back and not be overly concerned. Even if you can’t access paid advice, everyone should be able to get some free advice thru your superfund so please, please talk to them before taking any hurried actions now!!
I feel we are headed into unprecedented territory and thus I feel more nervous than ever before. I come from a migrant family that left post war Europe to find a more stable, secure future here in Australia. Now heading into retirement I am very wary of the orange terror that is so reckless causing upheaval in the world. I am more aware now that the terror, starvation and persecution my parents witnessed first hand is embedded in my DNA . At the moment I still have the opportunity to work, Im finding it hard to let go of the gravy train even tho I have lost the love for my work.
Thanks Bec. this was an informative episode. My Super has been well planned for an epic reset/retirement and I will not ride a rollercoaster watching my returns on a daily/weekly basis. Super is for the long term.
I am also exploring converting a portion to an Annuity, post leaving the paid workforce (in case with ageing I become a little stressed with market fluctuations) .
Hi Bec. Love your podcasts. As a single male who turns pension age in four weeks (but has retired) I feel it would be advantageous to leave my super in accumulation phase during this downturn. The 15% tax on my earnings (if any) would be minimal, also as I can easily live on the aged pension. When markets respond I can change to pension phase & not lose withdrawing super in a downturn. Agree?
Thanks for this most informative podcast
Some very good points
However we at entering a very uncertain age and a different set of circumstances
Will continue to think about options
The other big factor that was not mentioned is the rising cost of living and how your super is linked to this