How to cope with the corona virus ..facts- not fiction.

[Fizzie]

If there is more panic selling then putting a good percentage of your super into cash will be a good thing. 

But if you do, that forces the Super fund to sell shares on a depressed market, so they can pay you out, which then pushes the market down further, so more people panic & want to get their Super out, which ...

[Spada]

What worries me is how many scumbag employers will say "Thanks, very much - that gives me the chance to upgrade last year's BMW to this year's model, pay off the mortgage on my holiday house & so on Employee's pay Phht, who cares about them!"

That's a fair concern, and scum will always be scum.
But without understanding the full and final package, I believe the employees will need to continue to be paid before the employer will receive any rebate. So no cash out equals no cash in? I'd suspect businesses will need to apply for the wage supplement, and I believe they will be required to demonstrate that they have suffered a minimum %'age of revenue losses, and I'd imagine that there would be some sort of TFN matching to payroll amounts during the period claimed (that's just a guess though). I've no doubt that like every form of government assistance there will be rorters seeking a way to benefit though.

[Bird]

What worries me is how many scumbag employers will say "Thanks, very much - that gives me the chance to upgrade last year's BMW to this year's model, pay off the mortgage on my holiday house & so on Employee's pay Phht, who cares about them!"

absolutely the first thing I said/thought of too..

[Fizzie]

& it looks like it could get really bad

https://www.abc.net.au/news/2020-03-31/coronavirus-countries-infection-rates-most-vulnerable/12085816

[plusnq]

& it looks like it could get really bad

https://www.abc.net.au/news/2020-03-31/coronavirus-countries-infection-rates-most-vulnerable/12085816

It's going to decimate third world countries. As if they don't have it bad enough already.

[Pete79]

Don't tell me you think people might actually have to start to budget for items like we did 30 or 40 years ago ?   

Ahh, yes the good old days....

All of those ungrateful kids of today that can’t afford to buy a house that’s worth 6 times their annual wage.
If only they could be like those good old timers that scrimped and saved to buy a house for twice their annual wage....

[tryagain]

What worries me is how many scumbag employers will say "Thanks, very much - that gives me the chance to upgrade last year's BMW to this year's model, pay off the mortgage on my holiday house & so on Employee's pay Phht, who cares about them!"

It's the ATO who are tasked to enforce it, they have pretty full-on powers when you look into it, also access to the businesses financials as well. There will always be some who try (and some of those might succeed) to rort it, but seems pretty robust, and if people know about businesses trying to rort it, they should call it out.

[tryagain]

Even if they had chosen cash and bonds it would have gone down.  You have to take out a minimum of 5% if on an income stream. Say you have $100,000..thats $5000 you must take out. Cash you might have made $2000  Bonds..$2500.  If you invest in superannuation and only invested in cash and govt bonds then your a fool and missing out on what a balanced portfolio will produce. Interest on many well managed  super funds was around 10% last financial year.  Cash and bonds was about 3-4%. Like many I have taken a decent hit (around 10% currently)..but I have also got a well balanced super scheme and know that over the years my super has risen significantly due to good % rises overall.

This is why it is extremely important for people to follow their super schemes and check on its performance.  If there is more panic selling then putting a good percentage of your super into cash will be a good thing.  Things will get better and what you lose on the swings you make up on the slides!!   

That's only going down because you have drawn on it, you haven't lost any money. But yes, you are better traditionally off over the long term with a more balanced approach, my point was there is a risk vs reward, some seem to want compensation because there is a downturn in their net worth at the moment, but that is part of the risk they signed up for.

[tryagain]

Ahh, yes the good old days....

All of those ungrateful kids of today that can’t afford to buy a house that’s worth 6 times their annual wage.
If only they could be like those good old timers that scrimped and saved to buy a house for twice their annual wage....

I agree housing is mental and the exception, especially in some places like Syd and Melb, but I think there is a broader point that is justified. If people only bought what they could pay for (excluding housing) then most people who are crying foul wouldn't be in anywhere near the issues they are at the moment, but that migh mean not having a shiny new car.

[Steffo1]

It isn't that hard.
Home delivery.
Adapt, deal wirh it, overcome it.

Nice drop, that. I have this stashed in my wardrobe, waiting for a special occasion. Must be getting close, surely?

[Fizzie]

but that migh mean not having a shiny new car

or 2, every couple of years, new iThings every year, 4k TV, Netflix, holidays o'seas ... 

[alnjan]

and now they are saying the Coronavirus may not 'peak' until November.   

 https://www.sbs.com.au/news/coronavirus-may-not-peak-until-november-in-nsw-new-modelling-shows

If social isolation measures are stepped up, the peak of the coronavirus epidemic in NSW would be less severe and delayed until November, a COVID-19 model suggests.


The advantage and disadvantage

[Bird]

and now they are saying the Coronavirus may not 'peak' until November.   

 https://www.sbs.com.au/news/coronavirus-may-not-peak-until-november-in-nsw-new-modelling-shows

If social isolation measures are stepped up, the peak of the coronavirus epidemic in NSW would be less severe and delayed until November, a COVID-19 model suggests.


The advantage and disadvantage

It also may not peak until 2050.... Nobody knows.

Whats worse is, how can they really ever give the "all clear" to this?? Only takes 1 person infected, and away we go again...

[D4D]

Whats worse is, how can they really ever give the "all clear" to this?? Only takes 1 person infected, and away we go again...

Yep, only hope to getting back to normality is a vaccine. But what happens next year...

[Fizzie]

Whats worse is, how can they really ever give the "all clear" to this?? Only takes 1 person infected, and away we go again...

Because hopefully, by then, we've reached the level (60%?) of people that have antibodies so we've got "herd immunity"

[xcvator]

and now they are saying the Coronavirus may not 'peak' until November.   

 https://www.sbs.com.au/news/coronavirus-may-not-peak-until-november-in-nsw-new-modelling-shows

If social isolation measures are stepped up, the peak of the coronavirus epidemic in NSW would be less severe and delayed until November, a COVID-19 model suggests.


The advantage and disadvantage

Modelling is a joke, you work out the answer you want then keep playing around with the figures untill you get that answer, next week it won't peek for 5 years

[rockrat]

I agree housing is mental and the exception, especially in some places like Syd and Melb, but I think there is a broader point that is justified. If people only bought what they could pay for (excluding housing) then most people who are crying foul wouldn't be in anywhere near the issues they are at the moment, but that migh mean not having a shiny new car.

So based on some of the logic in this thread, people on low wages or on the Jobseeker allowance should easily be able to live on 20-50% less than they are getting now! Or is it more about levelling the playing field and socialism.

The vast majority of my non-discretionary spend (at least 90%) is on my own home, investment property and a business loan.  I will get through this crisis and will still own my home, as will many people who can put their loans on "hold".  But if you're a young (or not so young person) who has been trying to save to buy a home and suddenly find yourself unemployed but not entitled to government support and have to tap into those savings, you might never get the opportunity to buy a house again!

And let's not forget it is discretionary spending that keeps the cafes, pubs, cinemas, clothes shops, camping shops, accommodation providers, sporting organisations and many other parts of our economy running and people in jobs.  This crisis might just show people what they can live without!

To be honest, if I can't get work for 6 months, maybe I just put the home loans on hold (or better still pay the interest in advance on my investment loan so I get a big fat refund this year), take the government handout and spend 6 months adding value to my home. I'll probably be better off at the end of the day.

[Hairs]

NSW Government,
Urging people not to travel to regional areas, country health services can not cope with the numbers of people atm.
Plus, the messege is still the same, stay at home.
Don't be pricks about this Australia.

[Bad Scott]

I'm now getting letters from my clients with clarification for when the cops pull me over stating my work is essential services.

Sent from my Pixel 3 XL using Tapatalk

[prodigyrf]

I trust she wasn't stepping off the footpath to avoid an oncoming pedestrian in order to observe social distancing 
https://www.msn.com/en-au/news/australia/sydney-woman-dies-after-being-struck-by-garbage-truck/ar-BB11W3Zf
Some of you may be relieved to hear- 'The garbage truck driver, 55, was not injured in the crash'
The Premier will be making an announcement shortly that it's not all about having a good Covid day people.

[gronk]

But if you do, that forces the Super fund to sell shares on a depressed market, so they can pay you out, which then pushes the market down further, so more people panic & want to get their Super out, which ...

I put ALL my super into cash. Not getting paid out...it's still in the super fund...but merely riding the storm....when it's over the cash will be shifted straight back to a balanced option.

Different scenario to actually withdrawing your super, which is a stupid thing to do.

[rockrat]

I put ALL my super into cash. Not getting paid out...it's still in the super fund...but merely riding the storm....when it's over the cash will be shifted straight back to a balanced option.

Different scenario to actually withdrawing your super, which is a stupid thing to do.

I know shares have been hammered but my balanced super fund has lost less than 10% since July last year!
The risk of getting the market timing wrong isn't worth moving it all into cash.  Just my opinion but I know it will bounce back and when it does it will do so very quickly.  But also depends on how close you are to retirement.

[gronk]

I know shares have been hammered but my balanced super fund has lost less than 10% since July last year!
The risk of getting the market timing wrong isn't worth moving it all into cash.  Just my opinion but I know it will bounce back and when it does it will do so very quickly.  But also depends on how close you are to retirement.

I'm close to retirement and I don't want to lose any money.  I estimated my super would have lost approx 15% since the market went south. I lost $18,000 before I shifted to cash, but probably saved another $70,000 by doing so. That would take approx 2 yrs to recoup at "normal" interest rates, so in effect the fund would take 4 yrs to recover fully.

[CTL]

I know shares have been hammered but my balanced super fund has lost less than 10% since July last year!
The risk of getting the market timing wrong isn't worth moving it all into cash.  Just my opinion but I know it will bounce back and when it does it will do so very quickly.  But also depends on how close you are to retirement.

Is that 10% loss the difference between your balance in July last year and now?  Or is it between the balance in January this year and now?  Because I have lost way more than that.

[gronk]

Is that 10% loss the difference between your balance in July last year and now?  Or is it between the balance in January this year and now?  Because I have lost way more than that.

And I think my 15% was very conservative !!