Should You Switch Your Super Investments to Cash? What You Must Consider

[@SuperGuyAu]

Hey everyone, thanks for watching! Ready to take control of your retirement? Download our FREE 6-Step Superannuation Check today: www.torowealth.com.au/6-step-super-check/

[@donr62]

I’ve been retired for 7 years and my super account is higher now than when I stopped contributions. I’ve left it in a growth investment option forever.

[@benjaminfox7105]

A well sounded video - As a couple in our early / mid-50's - we're still high-growth. Dollar Cost Averaging is king!

[@robsalvv5853]

I’ve predominantly been in a high growth fund option for the majority of my super years and rode the cyclical waves. But with 6yrs to go to 60, I switched to a balanced growth option very recently. I thought about a more moderate setting but that just seems too conservative. A friend of mine has gone totally to cash (with >15yrs to go to their retirement), based purely on expecting a crash. That surprised me. Time will tell who will fair better.

[@andrewdean7917]

Your friend should buy gold !

[@Rick-kj9dd]

15 years in cash is a disastrous move. He or she needs financial advice.

[@robsalvv5853]

@@Rick-kj9dd they aren’t intending to stay in cash for 15yrs. Because they believe a market crash is imminent, they’ve moved their super balance into cash but are fully intending to move their balance back into a growth or similar option on the other side.

[@robsalvv5853]

@@andrewdean7917 lol, I’ll suggest it.

[@Chris-qj4bq]

@@robsalvv5853this can be a smart move. Just try to avoid the biggest blow. 😉

[@Rick-kj9dd]

The voice of reason. Thanks Chris good stuff.🤔

[@SuperGuyAu]

Thanks! Glad you like it.

[@richardguthrie3422]

Balanced funds are often around 70% in equities which may surprise many people.

[@low-profile-dude]

Scammers in the comments. Never take investment advice from you tube comments.

[@nww6982]

Had most of mine in a geared shared super fund last 20 years and just dont look at it in down turns , done very well , way better than other fund options.

[@AndrewMorrisinOz]

Love the funny comment about "overated break dancers", well done, so true!

[@SuperGuyAu]

haha

[@petkuscinta9797]

8% annual performance I assume does not include 3% inflation. So it would in fact be 5% performance. If people have $1mil AUD in super 5% is $50k. Now ask ask question how many people do have $1mil in their super and/or how many can retire (or what quality of retirement it would be) on $50k annual ($4100 monthly).

[@Handleyman]

Wow! This is an incredibly well timed video for me to be looking at. All my super was rolled into a My North retirement fund. Early on it was returning about 4% but lately it’s down to 1 or 2%. I have been very concerned and did consider moving it over to short term investment in a bank for 4-5%. But. . . . I haven’t yet because well, for many of the reasons you outlined. It’s scary stuff!

[@cabbagepatch8947]

Should not be scary. Look at My Super and switch to a fund that does better than 1 or 2 %. You will see there are quite a few to choose from. Look at 3 and 5 year returns.

[@Handleyman]

@@cabbagepatch8947 Thanks. I will.

[@Woodland26]

I did nothing during GFC or 2020. In fact tried to buy more on the fall but timed it too early before it hit bottom. Despite all the mistakes early in the crash, managed to double my portfolio by now from regular buying during the low period.

[@benjaminfox7105]

Nice work mate!!! My wife and I are in our 50's and this advice is great. Lots of choices ahead. My wife and I have had a high-growth portfolio for the last 20 years. We dont plant to change it for another 10 years. When we hit 60 then we'll start toning done. Keep in investing mate!

[@Rumpole1000]

That was the advice from our Financial Advisor if/when the next crash occurs. Do nothing. Leave your Super as is. The market always recovers.

[@benjaminfox7105]

@@Rumpole1000 it sure does mate. People get so scared when the market crashes. I see it as buying opportunity! Hahahaha. We’ve got $50k set aside ready to pounce when the time is right. My wife and I have caught up on all our voluntary concessionals and we invest the rest in VAS and IVV. Super simple, no fear. Just $3k a week invested. Without fail. Zero fear! How’s your own investing journey going? I wish I could have started sooner. Hahaha. Do you think my kids listen to their dad’s advice. Of course not. I keep trying and encourage them to invest in basic ETFs in their 20’s. $200 a week or even a month. But, nope. I know nothing. Hahaha.

[@nickwythe7128]

Thanks top shelf, very timely advise.

[@SuperGuyAu]

Glad it was helpful!

[@dilligaf2818]

Thanks you explain these this thinks real well.

[@SuperGuyAu]

You're very welcome

[@Bobbydazzlla]

Make sure you invest in a diversified fund and go with the median line on that investments index. Never worry about corrections. I worry more when there isn't, the fall will only end up being greater. It's like stacking gold and silver - you'll only come undone when you panic. Invest for the long term, not the short.

[@lisinbondi1240]

very balanced (pun intended) thanks Chris. As Warren Buffet commented, don't confuse skill with a bull market. Many people I knew lost alot during the tech wreck and the GFC due to thinking they were more clever. Most people (even the professionals) are not able to time the market. Portfolio theory is the way to go. if there is volatility (like even now) just look away knowing that long term you will be fine

[@jamesmuller4232]

This video was made for me. I have most of my Super in term deposits at 5% because I have been worried about the market going to crash. The term deposits will mature soon and I think I need to be back into Balanced. Do it a bit at a time or just get into it? Thanks for the video Chris, it’s great.

[@deemad2180]

Throw cash in during the correction

[@flamingcoop]

Personally, after much consideration, I have done it as someone in my early 20s, with a fair bit in the First Home Saver Scheme. I would be gutted if I was unable to access that overnight after years of diligent saving. I'm hoping to use the FHSS in the next 2 years then will switch back to high growth.

[@yr6178]

Thank you

[@SuperGuyAu]

You're welcome.

[@bentriefus5961]

with 5% cash returns at very low risk in cash - the question is more about risk in the market, perhaps have a bollus of cash that generates the income you need and invest the rest in more risky modules.

[@MrNormie1]

Ride the waves and when it drops 30% - 40% contribute as much of your own cash possible or viable to your situation into your super.

[@JonNewell]

If it’s in a super balanced portfolio, do nothing. It will go up and down. Timing the market is futile. Zoom out on the market and you will see many dips and crashes but the market always continues up over time.

[@david7550]

I have switched my Super to cash. Having said that my super is only 25% of my net worth. In the current environment, I'm ok with a 75/25 cash split.

[@p1xma4]

Hmm that's exactly why super is 25% of your net worth, you missed out big time and the one which would have had the best growth

[@david7550]

@@p1xma4 I'm very comfortable with 25% in cash in these current times. Switched about 2 months ago.

[@adachou]

This is a very hard decision in any investment, ie when to sell, and I haven’t found any solution yet.

[@SuperGuyAu]

it doesn't have to be

[@franciscoyap5906]

Big no coz free tax on super while Interest on bank you get tax.

[@Alecmcq]

Converting to cash is reliant on timing the market. If you can time the market, you don’t need super, you will already be very very rich. In reality, timing the market is very very difficult. Nobody is good at it.

[@ratnoinamaew7822]

I had 66% of my super in AU and International shares for a while which had the best return, so I have taken the plunge and put 100% into international shares, its about 5.5 years before I can get my hands on this money so market should rise over that time and once it hits my sweet $ spot, I will move it all to cash and get out of this bloody thing and put it all in a term deposit!!! Don't have time to spend my bloody retirement constantly watching the market and getting stressed!!!

[@lennyshirty]

what international shares?

[@ovp3664marooned]

Your'e still essentially trying to time the market. Bad move.

[@leroyybrown]

Drawdown- how many people can tolerate 20% drawdown on a $1M balance? Many of the so-called balanced funds are actually quite aggressive with over 70% in growth assets. Even the conservative funds are over 50% growth. Could be some sleepless nights in the not too distant future.

[@btothec4650]

“Over-rated Olympic break dancers”! 😂

[@SuperGuyAu]

haha

[@sebastianfinocchiaro870]

Don’t do anything, the market goes up and down

[@gatewayz75]

I noticed my super balance showing a loss of thousands each week a few years ago and it didn’t seem to stop declining so I changed half of my portfolio to cash , the losses ceased instantly and I let it sit until I noticed the balance starting to increase again and then swapped it back to balanced, I’m no expert but felt it was a wise move at the time , I’ve only ever done this once

[@Rick-kj9dd]

You still initially crystallised a loss on the 50% of your portfolio you switched to cash even though you switched back later.

[@natecv8]

The problem with your logic here is that you never had realised losses, until you converted to cash. What you had was x units of price y, with y decreasing due to market swings. Once the market recovers, y would have returned to previous or higher value and your balance would be equal to or higher than before the crash. Instead, you converted your x units to cash at the low point, you literally bought high and sold low. I am not here to give you a hard time but for others reading this, I would not recommend it, it is possibly the worst thing you could do. You will not only lock in your equity at the lower price, it will sit in an asset class with low growth and as a result little to no prospect of benefiting from market recovery.

[@Chris-qj4bq]

You did a right thing. 👍

[@goodyearspokane]

I have $1.5 m in US stocks and 300k crypto am around 60% up but thinking of moving my 750k super into cash as a hedge so many folk predicting a USA recession

[@CallsignEskimo-l3o]

Remember that, unless you're in the pension phase, selling shares and moving to cash will also trigger Capital Gains Tax. You could be up for 10%-15% tax on any gain you have made before the impact of any market movement.

[@brianrose5971]

Rubbish. you don't know what your talking about !

[@Bobbydazzlla]

You've got a scammer here in the comments mate

[@SuperGuyAu]

Thanks. They're rife!

[@deemad2180]

Olympic breakdancer😅

[@SuperGuyAu]

It's a consideration!

[@OziBlokeTimG]

Leave it in balanced. I'm not that smart and no money guru. So don't listen to me.

[@bigwaidave4865]

Good call. You must’ve lost a fortune in these last two weeks . Armageddon, it’s just around the corner as it always is with Prima bears

[@punkybrewster7667]

Surely most people would look at super as a long-term investment. Therefore, market corrections are just part of that. Unfortunately, as history shows it's not always up. Everyone should consider a negative return, isn't the general consensus about one every 7 yrs.

[@halitosis75]

Some people are approaching the tail end of that long term investment so moving across to cash atm is a good idea.

[@lennyshirty]

@@halitosis75cash loses its purchasing power to quikly these days, better off holding oz's

[@Desmondo]

Let's be honest, your Superannuation fund and or your financial advisor are never going to advise you to cash out. Your money is feeding them. Important to factor this into your decisions

[@robsalvv5853]

The main fee your super fund charges is a % of the balance. They won’t care what the balance is in. Also, most funds can’t give bespoke financial advice.

[@lennyshirty]

@@robsalvv5853ahh yeah they care what the balance is in, thats the whole point of taking 12% of your wage.......just imagine if no super funds held a share like say; cba.... or to prove my point what if every superfund that held cba shares in whatever form sold on monday morning?

[@Mmm-y5w8o]

Yer if you want to see your super in action go visit you fund manager at work and watch him drive his Ferrari to lunch Why wait till you 65 to spend your super when you can spend someone else’s supper right now

[@chrisiieeg]

over-rated Olympic break-dancers ! 😂😂

[@halitosis75]

The market will crap itself in the next week with escalation between Israel and the ME.

[@slowboat6021]

all shares are a con IMO