Great content, tbh I don’t think a professional financial adviser would add much more value than yourself (it’s essentially a sales role and might be beneficial to people with limited financial knowledge), but I like the way you covered yourself at the beginning haha
In superannuation, unless you're over sixty and retired on an Account Based pension, by moving to cash you trigger a Capital Gains Tax event. This creates a Capital Gains Tax bill of 10% - 15% of your profits and you will have a lower super balance as a result. If you stay invested, the value of the investments will most likely recover in the ling term, but if you move the cash, the government will take their cut permanently.
If you know something big is about to happen, like when we shut off to china at start of pandemic its a good idea. I wish i did it when sooner, but got in just before the crash, cashed out. Put back into high gains before it went up again, when things were looking optimistic.
"Giving my money, unwillingly, by law, to enrich 'hedge funds' who have no allegiance to the faceless ATM" VS "taking responsibility for the management of my own money" The answer is God damned evident.
Does it make more sense to move to cash or debt when the market is high and protect the gains? I believe that it is better to get in when the market is at a discount now.
All the current fears about recessions have been priced in the value of stocks already, so a lot of unpredictable events would have to happen to make them drop further. It COULD happen, but your just as likely to miss out on the gains that happen every 3 out of 4 years. Either way by moving to cash you’re locking in a loss of 5-7% due to inflation. Hence a bold move!
Great content Sanjee. You explain the investment side of Superannuation very well.
Great content, tbh I don’t think a professional financial adviser would add much more value than yourself (it’s essentially a sales role and might be beneficial to people with limited financial knowledge), but I like the way you covered yourself at the beginning haha
Moved $500K super to cash, a few weeks before the covid crash. Rode the way up too.
Thats a double win.
Sometimes it works well.
In superannuation, unless you're over sixty and retired on an Account Based pension, by moving to cash you trigger a Capital Gains Tax event. This creates a Capital Gains Tax bill of 10% - 15% of your profits and you will have a lower super balance as a result. If you stay invested, the value of the investments will most likely recover in the ling term, but if you move the cash, the government will take their cut permanently.
If you know something big is about to happen, like when we shut off to china at start of pandemic its a good idea. I wish i did it when sooner, but got in just before the crash, cashed out. Put back into high gains before it went up again, when things were looking optimistic.
"Giving my money, unwillingly, by law, to enrich 'hedge funds' who have no allegiance to the faceless ATM" VS "taking responsibility for the management of my own money"
The answer is God damned evident.
Does it make more sense to move to cash or debt when the market is high and protect the gains? I believe that it is better to get in when the market is at a discount now.
nice background music, but still too distracting.
I moved to 100% cash :)
Bold move, Sam! ;)
@@Brosa190 I would argue that it's bold to have 100% exposure to risk assets in the face of the largest global recession seen in generations!
All the current fears about recessions have been priced in the value of stocks already, so a lot of unpredictable events would have to happen to make them drop further. It COULD happen, but your just as likely to miss out on the gains that happen every 3 out of 4 years. Either way by moving to cash you’re locking in a loss of 5-7% due to inflation. Hence a bold move!