Australian Government is about to allow people to withdraw $10,000 this financial year (up to 30th of Junes 2020) and next year another $10,000 (1st of July 2020 to 30th June 2021) from their super account untaxed This potentially means many tens of billions withdrawn from stock market over year period regardless of share price going forward. Some here might buy more metals who knows. Ie vast majority of Australians keep their money in portfolios like Balanced or Growth and when a member withdraws $10,000 a variety of shares will be sold within 24 hours. If the portfolio managers were doing their job a lot of the money would have been in more defensive shares like supermarkets, medical and banks.... and will be liquidated, which could affect stock pickers
https://www.ato.gov.au/Individuals/...uper/#Access_due_to_severe_financial_hardship The only difference is that 66 is saying it will be tax free
Individuals struggling as a result of the COVID-19 outbreak will also be able to access some of their super early. Eligible Aussies will be able to access up to $10,000 in 2019-20, and a further $10,000 in 2020-21. To take advantage of the offer, you will need to apply online through myGov before July 1. You won’t need to pay tax on released super, and the money withdrawn will not affect Centrelink or Veterans’ Affairs payments. The government is also temporarily reducing superannuation minimum drawdown requirements for account based pensions and similar products by 50 per cent for 2019-20 and 2020-21. Link: https://www.news.com.au/finance/eco...s/news-story/a687cd23980821cf2b6964c4a9a0be59
Very lax, ie lost your job/partner, stood down, reduced hours or own a small business to keep it a float etc. I doubt if you and/or partner are fully employed, you can access it
Pretty much spot on. I’m in hospitality, and ScoMo basically sent the hospitality industry into a tailspin with the press conference tonight. At my particular establishment, we’ve already cut all casual front of house staff, chefs and kitchen hands, which makes up 60% of our total staff. Most other places, that percentage is higher. I’m a senior sous chef, and the only way I’m losing my job is if the entire business goes down. And my owners will sell a kidney and their houses before they let the business go they love it so much. Anyway, there’s more panic and despair from tens of thousands of people in the industry tonight who are scrambling to figure out how to get their hands on that super money ASAP, since they’ve lived beyond their means and don’t even have money for their car loan after this weeks pay cheque for what will probably be months. $10000 per financial year isn’t going far with these people. Grim times ahead. I’m fortunate because of my position in the company and that we can still do takeaway service legally. And I always have gold and silver to rely on in a absolute worst case scenario. Hospo is the first domino to fall in what will be a very, very nasty recession. Strap yourselves in, folks!
Still not too late to go all cash expecting another 20% drop in Australian shares index and 30% in global shares index in general. unless you are a guru in stocks picks if my sources are correct... don’t pick any coal miners for an up tick
Over the next four days, the biggest EVER rebalancing of Hedge, ETF, Sovereign, Pensions and Super funds will occur. Hold on to your nerves as $200 billion to $1 trillion moves from "X" ETF/Stocks/Cash/Gold to "Y" ETF/Stocks/Cash/Gold This occurs every month end and end of the Quarter because many funds have rules that at the end of month or end of every quarter at close of market (Quarter ends 31st March) must keep 75% of their funds in Stocks but could be holding 50% cash at the moment others might have to hold minimum A+ corporate bonds but some bonds are now B or below Come 1st April many of the same Hedge, ETF, Sovereign, Pensions and Super funds might want to get back into maximum cash again ASAP if they believe Covid-19 Peak will tank the markets more
you would have tobe an F'n moron to take that offer of $10k allowance and remove money from your super right now, the hit you would be taking would be insane long term. The ship has sailed weeks ago on exiting the stock market if you hadnt bailed already, There is really only one option now which is to hold long term. People who cashed their super to late during the GFC came out worse than those who just stayed put and rode it out. If you cashed before the crash fine, but if you cashed it now your on drugs especially if you arent old. It is Such short term thinking You would only raid your super if you were 5 seconds away from being on the streets, there are ways to make money besides your regular job and raiding your super. If the best thing you can think of is to raid your super when the stock market has dived like this then you have no hope even with the $10k you raided. If some one who doesn't need the money but thinks this is just a good opportunity to get some extra cash by raiding their super and robbing their future, Well then that person is even more stupid.
two kinds of people will morons, plenty around those that have no choice, sadly plenty are in this situation too
I mean what @Jason1 said is generally correct but: If youre young (<30) and fit for work, I would argue raiding your super to buy gold would give you far greater returns regardless of any stock market losses. Most people I know only lost a couple grand out of their super anyway. By the time you retire it would be barely noticeable and if youve held on to your 10K (3 or so ounces) of gold until then, it would be worth plenty more than sitting in super. In my opinion, super is just a stupid scam anyway. You could die before hitting retirement age and then youre investment is for naught. If i was allowed to keep that super money it would be ten times more beneficial to me immediately, and i could choose to invest it in smarter ways than an average returning super fund.
There would be more merit if the stock market was high, not when its virtually tanked. the ratio is shit house todo a swap right now. I think the ship has sailed weeks ago to be messing around with your super and swapping it into something else. But in saying that, Ive never liked the idea of having PM investments in both super and as a side investment. Typically you want various investments IMO, not putting all your eggs in one basket. but every one may have different opinions on that. But you can control your super your self if you wish. Lots of people do that.
I know a few people on here, including myself, who converted into cash within the first week. Honestly I hope I'm not placed into the position where I can access it ( meet requirements ) , but I would do so in a heartbeat. I'm now looking at when to return.
as I mentioned my comment is in reference to right now when the stocks have tanked, not a few weeks ago when it was much higher and still in record territory. Every one else would likely have to ride it out.
