Superannuation Discussion + market volatility

[CaptJCool]

My fund has lost 3.5% in March and April YTD




Doesn’t affect me as I’m in pension phase

 

[OATEK]

Market volatility is when the big wins and losses can occur, and my Crystal Ball got thrown out in a council clean up years ago. so I am just sitting tight.

My adviser proposed a year ago that owing to uncertainty with the US election that we should hold more in cash to be used to pay our income stream for a few years, leaving growth elements to do their thing. Seems very good advice in retrospect.

About to do my final withdraw/recontribute early in next financial year, and from there will just ride it out and see how it goes.

 

[CaptJCool]

Starts to look like Liz Truss
Trump tariff territory


Heard Island and Norfolk Island got tariffs = absurd
Todays AFR Fin

 

[QF WP]

I was just sent this in an investment report from Vanguard :

This article from Morningstar [mp.morningstar.com] may be useful to put the recent volatility into context.

“…we should be mindful not to become prisoners of the moment. April 3 was a bad day, but it barely cracked the top 20 worst single days for markets since 2002, coming in at number 19…”



Cautioning investors against tactical portfolio changes

Given potential tariff countermeasures and their effects, Vanguard believes it would be imprudent to attempt to identify specific investment implications immediately following the announcement. Financial markets may respond quickly to developments as they unfold in the near term, but we caution long-term investors against reacting with tactical or short-term changes to well-considered investment plans as it is proven to be challenging to add value on a consistent basis when utilising a TAA on a long-term basis.

 

[SydneySwan]

Noted, thanks!

I know I have missed today’s pending downturn, but if it continues even tomorrow then I should be in front.

This is only temporary as a one off, for a few days. Not particularly looking to switch back at the best time, just ‘a’ time after the market has gone down. If I miss one day of rebound i’ll habe to wear that too.

@MEL_Traveller - if you did move to cash then I hope you moved it back yesterday. Today is not the sort of 'up' day you want to miss. We are living in a period of absolutely unprecedented volatility.

 

[MEL_Traveller]

@MEL_Traveller - if you did move to cash then I hope you moved it back yesterday. Today is not the sort of 'up' day you want to miss. We are living in a period of absolutely unprecedented volatility.

Indeed. But I really can’t tell what impact, if anything, it’s had!

Balances seem to be displayed about three days behind. I seem to have ‘lost’ about 3%. But I don’t know what it would have been if I’d left it.

 

[MARTINE]

Hazmat suit on
Its times like these I am glad to be in PSS
Makes up for the tax +++ I pay although retired

 

[QF WP]

So for everyone worried about the market volatility, this chart shows that all of the US markets have almost fully recovered their losses. For those that rode the wave, very little impact.

Expect more of this type of activity but a great reminder why trying to time markets and ‘day trading’ is a mugs game.


Here's the ASX numbers. Look at the performance figures - going back 12 months. https://www.marketindex.com.au/asx200

​

 

[CaptJCool]

Hazmat suit on
Its times like these I am glad to be in PSS
Makes up for the tax +++ I pay although retired

CSS here
Tax is barely 10% of earnings

It’s amazing

how fortunate am I

 

[OZDUCK]

CSS here
Tax is barely 10% of earnings

It’s amazing

how fortunate am I

My feelings as well being in the same situation.

 

[CaptJCool]

My feelings as well being in the same situation.

That fund lost 3.75% in a month and a half ! Which doesn’t affect you and I

No doubt it’ll recover over time

 

[QF WP]

Came across this article when doing my daily reading of relevant articles:

Don’t let Trump derail your wealth creation plan. If you want to build wealth over the long-term, trying to guess the stock market’s next move is generally a bad idea.... Don’t let Trump derail your wealth creation plan

 

[cove]

The thought bubble of taxing superfund accounts over $2million or $3million on unrealized profits at 30% is something to pay attention to depending on the May 3rd result.

 

[CaptJCool]

A few days and we will know the result - I’m expecting it will end up law (hopefully without the unrealised tax grab) but time soon tells

 

[Quickstatus]

The thought bubble of taxing superfund accounts over $2million or $3million on unrealized profits

It's been supported mainly by the industry superfunds. It's aimed directly at SMSF

 

[SYD]

A few days and we will know the result - I’m expecting it will end up law (hopefully without the unrealised tax grab) but time soon tells

Even the Teals and Pocock have opposed the “unrealised CG” as well as lack of indexation.

It's been supported mainly by the industry superfunds.

When asked, they couldn’t give a coherent answer how they’d comply with the CG component….

 

[Quickstatus]

they’d comply with the CG component….

They like illiquid assets like infrastructure which may be relatively more difficult to value regularly. How it then reports the returns to super members I don't know.

 

[Quickstatus]

lack of indexation.

Won't take long without indexation for 10% or more super funds to be caught.

I suspect people holding these balances will just reduce the super balance to below threshold and Bam there goes the expected tax revenue (which by the way they have already spent).

 

[andye]

Won't take long without indexation for 10% or more super funds to be caught.

I suspect people holding these balances will just reduce the super balance to below threshold and Bam there goes the expected tax revenue (which by the way they have already spent).

I am probably being dopey, buy whetre willl they put the money that ends up not paying any tax (while achieving returns)?

 

[Quickstatus]

buy whetre willl they put the money that ends up not paying any tax

Assets outside of super like real estate - there is no tax on unrealised CG.
Except for land tax - interestingly enough it is actually a tax on unrealised capital gains but it is certainly not 15%.