Hi SilverDJ, I think you keep confusing the above hardship withdrawal option with the "new and temporary" covid19 withdrawal option. For eg: I have been stood down indefinitely from my PAYG job. As most here have done I have put myself in a position whereas I am ineligible for unemployment benifits or for hardship withdrawal of super. Should my company be successful in being approved for jobseeker I will receive that payment and I am also eligible to recieve the $10k x2 super withdrawal as my income, as far as ATO is concerned, was reduced to $0 and this withdrawal is not means tested under any other metric.
If you have not had your work hours reduced by 20% or more, you will not be eligible for either. Fyi - covid19 eligibility https://www.ato.gov.au/Individuals/...g-your-super/COVID-19-early-release-of-super/ COVID-19 early release of super If you have been financially affected by COVID-19 you can access up to $10,000 of your superannuation in 2019–20 and a further $10,000 in 2020–21. You will not need to pay tax on amounts released and the money withdrawn will not be taken into account for any income or means tests. From 20 April 2020, you can apply online through myGov to access up to $10,000 of your superannuation by 30 June 2020 a further $10,000 between 1 July 2020 and 24 September 2020. The government has also announced that eligible temporary residents will be able to apply to access up to $10,000 of their super before 1 July 2020. On this page: Eligibility Implications of accessing your super early Get ready to apply Submitting an application After you apply Be aware of scams and schemes Need support See also: COVID-19 Early access to your super Citizens and permanent residents of Australia and New Zealand Temporary residents Assessing your eligibility Citizens and permanent residents of Australia and New Zealand To be eligible for early release of super, a citizen or permanent resident of Australia and New Zealand must be in one of the following circumstances: You are unemployed. You are eligible to receive one of the following jobseeker payment youth allowance for jobseekers (unless you are undertaking full-time study or are a new apprentice) parenting payment (which includes the single and partnered payments) special benefit farm household allowance. 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.
I’ve been made redundant by the Virus upheaval and my Super is not great. I believe I would be better off with more gold than Super investments. We’re heading for a world wide depression. Gold will outperform stocks by far, IMHO.
I'm no longer sure about the civilisation ending Depression that is being touted. Recession - and a big one at that - but the central bankers have learned a lot and have the magic of printing presses with no connection to asset reality. Mind you, if ever there was a case of a debt jubilee, then this virus is a good justification.
Taking $10 or $20K from your super also means you have lost the accumulation effect for the next number of years until you retire. Could be a lot of money lost.
What if you take the 10k out sit on it, if we see the dead cat bounce & all the signs that inflation or hyper inflation heading our way buy metals with it. If things magically turn around and no bank runs etc just put it back into your super account. If you buy metals when or if it hits the fan sell it back at the right time & drop it back into super when safe again. Yes it takes discipline not to spend it if your that way inclined & a big decider would be how close to retirement you are. Don't really see a huge downside with that just flexibility but i could be 100% wrong as well, just putting it out their.
Dross, not a bad idea really. The fact of the matter is that Super funds are only returning a measly .25 to 1% interest for your cash right now and shares are also on a roller coaster ride. If I was young I would probably pull it out and do what you suggest. And yes, as you say you can pull it out as back up but if it all ends up miraculously good with the economy you could simply put it back in again. I personally don't have much trust in Super Funds but they are part of our life whether we like it or not. The way some funds are altering their PDS to restrict cash withdrawals rings alarm bells to me. A lot of people don't realise this but our cash holdings held by Super Funds are NOT guaranteed by the Governments "Authorised Deposit - Taking Institutions" (ADI's) Financial Claims Scheme. I had a Super Fund where I could make Direct Term Deposits. I sent this Super Fund this question once: Am I covered by the ADI Financial Claims Scheme? The answer came back as not directly. They said all members cash funds are pooled as one and as such the 250K is payable to that one pooled account. So my interpretation of that meant that if there was $100 Million in the Fund and it went bust then all it would receive back from the Financial Claims Scheme would be 250K. That shared among thousands of investors won't give you much back. More on the ADI Financial Claims Scheme here: https://www.apra.gov.au/list-of-aut...tutions-covered-under-financial-claims-scheme
Silverling i hear you, I honestly haven't been of the belief that I'll see my super for many yrs, too tempting pot of gold for broke Govt s, little to no security if things go real bad, hence why its not optional. Forcing money into these financial potholes just seems a ploy, yes I'm not all that trusting i guess.
Exactly my train of thought, I made a similar comment a few days ago on another stackers forum. I’m lucky in that I’m still quite young (early 30’s), qualify for the super withdraw scheme, but still easily covering all expenses despite my hours and salary dropping +30% thanks to Covid-19. The only questions I need to ask myself, are whether to take out 10 or 20K, and over what time frame I’ll put the money back into super when things turn around on the stock market. If I end up pulling the trigger, I’m going all in on gold.
This is not directed at you personally but I just wanted to mention to members that might not know, that as far as I know you can pull out 10K before or on 30th June 2020. On the 1st of July 2020 you can pull out another 10K. If the 30th of June 2020 passes by and you do not pull out the first 10K then you can't get it out later. At that point only the 10K from 1st July can be pulled out. Here are the cut off dates: Eligible Australian and New Zealand citizens and permanent residents will be able to apply to access up to: $10,000 of their super before 1 July 2020 a further $10,000 from 1 July 2020 until 24 September 2020. https://www.ato.gov.au/individuals/...-using-your-super/early-access-to-your-super/
Good idea for you to bring up that point! I was already aware of the date cutoff, but as you said other members may not be. Also, if other members are thinking about accessing their super, it’s a good idea to fill out your registration of intent form, so you can be notified once the process is open to the public. You can do so via the MyGov app.
Mongrelmaple as every experts says its better to have a mixed or balanced portfolio Going "all in gold" may not be ideal but its a personal choice, homework pays dividends as does going with what you know. Personally with the markets going backwards & super dropping in the short term I'm thinking the smaller the balance the lesser the their is to loose atm. Hind sight will tell if we are making a good move but i feel for me that taking it out has more upside than downside with the option of putting it back later
Totally agree with your comments. My main reason for going all in on gold with these super funds is because I’m so heavy on silver in my stack as of now, and want the gold to both balance the stack more evenly, and because I’m more bullish gold than silver in the short-medium term.
moral of the story- you have complete control of YOUR $20k. go all gold and if super become a more attractive investment later put it back in super like dross said. the choice is YOURS.
To put that in perspective a financial advisor painting a rosy picture noted a 50year old if pulling $20k out would lose the opportunity of turning that into 28k...for the sake of gambling that everything runs smoothly for near 2 decades to get an extra $8k....... I will take the money now.
then you have to ask yourself, "will i be allowed to access the $28k when it comes time?, what will the tax rate on withdrawals be then?, will the govt change the rules 100 times again or taken it to 'help the nation in this time of crisis' before then?"
Making investment decisions based on poor information clouds judgment and prevents the investor from seeing the reality. If people make a decision to withdraw part of their super savings, or only invest the bare minimum, or not start their own SMSF because they believe broke governments will raid superannuation schemes then they're making investment decisions based upon a poor understanding of how the monetary framework operates. Now if someone has another reason why they wish to minimise their exposure to the superannuation market and it is rational and justifiable then that's a sound basis for making a decision. Doesn't mean it'll be the right one, it's just rational. Thinking governments will raid super schemes is not a rational basis for making investment decisions.
My beliefs are my beliefs, I've asked no one else to follow my decisions or beliefs. Neither did i ask YOU Shiney for your opinion since you look for any & ever excuse to attacked anything i say since our last disagreement. Don't start this sht fight again in yet another thread.
