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

[Bigfish]

I,m in retirement and have lost $32,000 in 5 weeks. About 8%.  Not panicking as I have a diverse portfolio.  I also have a figure that if I hit then a switch of some monies to a cash fund.  I believe we will bounce back and even now we are picking up quite well..

[tryagain]

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.

No, it's about the government providing a safety net that allows you to survive, this is the same amount for everyone.

[rockrat]

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.

Since July last year - I guess my point is more that it will go back up again and I reckon timing the market could be pretty tricky under the circumstances.

[prodigyrf]

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.

You don't really believe 'cash' as you call it is capital guaranteed do you? It's actually interest bearing and it can be in a host of financial instruments like mortgages business loans short term money market etc and if they default to a large extent then guess what?

[gronk]

You don't really believe 'cash' as you call it is capital guaranteed do you? It's actually interest bearing and it can be in a host of financial instruments like mortgages business loans short term money market etc and if they default to a large extent then guess what?

ATM, it's about as stable as you can get......apart from cash in a bank, but I'm not about to withdraw all my super and put it in a bank and lock it into a lifetime of a max 3% interest ( currently a term deposit is around 1.5% )!  If the whole world goes down the gurgler, shares will be worse off.

[CTL]

Since July last year - I guess my point is more that it will go back up again and I reckon timing the market could be pretty tricky under the circumstances.

Right, how much did your super increase from 01/07/18 to 30/06/19?

You could, before this pandemic, have expected a similar increase, or perhaps a bit more, until 30/06/20.

So add that increase, which has now gone, to your 10% to get the true amount of your loss.  Bit sad isn’t it?

It will take a few years to recover that sort of lose and I don’t think we have hit bottom by any means.

[MB TD42]

Just got this in the mailbox...thought I'd share...hope yall taking care...



Dear all, 

Volunteering WA are sending an urgent call out for people who can lend a hand, to register their details to become an emergency volunteer and assist those affected by the COVID-19 public health emergency.

Urgent help is needed to carry out simple but vital tasks to support vulnerable people in our communities. We encourage members of the community who are able to volunteer and community organisations and Local Government Authorities who are in urgent need of volunteers to deliver essential services to register now at https://emergency.volunteer.org.au/

Please note: this is not coordinated by DBCA and any enquiries should go to Volunteering WA via https://emergency.volunteer.org.au/contact

Regards

Lee Hollingsworth
Volunteer Program Coordinator

Volunteer Coordination Unit | Parks and Wildlife Service
Department of Biodiversity, Conservation and Attractions
Locked Bag 104, Bentley Delivery Centre WA 6983

T: 9219 8582




We're all ere coz we ain't all there.
   

[Bigfish]

Right, how much did your super increase from 01/07/18 to 30/06/19?

You could, before this pandemic, have expected a similar increase, or perhaps a bit more, until 30/06/20.

So add that increase, which has now gone, to your 10% to get the true amount of your loss.  Bit sad isn’t it?

It will take a few years to recover that sort of lose and I don’t think we have hit bottom by any means.

so 1/7/18 to 30/6/2019  my super went up 3.5%      30/6/19 to 30/6/2020  my super went up  5% (as at 1/4/2020)    So why is this a bit sad??  Sure, I,ve taken a hit in the last 6 weeks but it is bouncing back.    Cash over the last 2 years would yield 2.5% tops.  The secret is a balanced and diverse portfolio and riding out the peaks and troughs.  Dont forget that even during a recession/downturn stocks are swooped on by savvy investors and bounce back after a recession/downturn.  If the carona virus hadn't struck the a return of 11% was coming my way....and if I had a magic ball I could tell you this weeks lotto numbers as well.

[GeoffA]

The problem with trying to pick the bounce off the bottom is if you blink, you may miss it.....

 

[Bigfish]

The problem with trying to pick the bounce off the bottom is if you blink, you may miss it.....

 

Exactly...that is why you dont panic and change your portfolio unless things are really going pear which they are not at the moment...

Once this pandemic settles down or is controlled/wiped out we will see changes emerge to the world and countries within it. Business,s will alter, investments in foreign countries/ownership will change, huge money playing sports will change, the way people think about the future will also change....I reckon for the best as well..

[#jonesy]

Or sell on the way down and buy them back for less.

[Bigfish]

Or sell on the way down and buy them back for less.

And that is what a good superannuation company does for you... They never put all their eggs in the one basket (unless you ask them too) .

[CTL]

so 1/7/18 to 30/6/2019  my super went up 3.5%      30/6/19 to 30/6/2020  my super went up  5% (as at 1/4/2020)    So why is this a bit sad??  Sure, I,ve taken a hit in the last 6 weeks but it is bouncing back.    Cash over the last 2 years would yield 2.5% tops.  The secret is a balanced and diverse portfolio and riding out the peaks and troughs.  Dont forget that even during a recession/downturn stocks are swooped on by savvy investors and bounce back after a recession/downturn.  If the carona virus hadn't struck the a return of 11% was coming my way....and if I had a magic ball I could tell you this weeks lotto numbers as well.

I was having a conversation with rockrat and discussing his scenerio 

However, in relation to your reply above, if you only got a 3.5% return to 30/06/2019 you are in a Shit super fund.  Mine achieved 9.74% for the same period and was doing better so far this financial year.

[GeoffA]

Or sell on the way down and buy them back for less.

....or perhaps.... sell at the bottom and buy them back for more....

[Fizzie]

Our Super had gone down ~14% from 28/2 - 26/3, but back up ~4% over the three days!

[Bigfish]

I was having a conversation with rockrat and discussing his scenerio 

However, in relation to your reply above, if you only got a 3.5% return to 30/06/2019 you are in a Shit super fund.  Mine achieved 9.74% for the same period and was doing better so far this financial year.

My mistake I forgot I took out a large lump sum...That would put the 3.5% closer to 9.5%...my bad..

[tryagain]

I think the US will soon be the reference point for comparisons in regard to how bad it could get.

A week on and I think we are there, the death toll still trails Italy but not for long, the White House estimates from 100,000 to 240,000 deaths in the next two weeks we haven't seen anything yet. Expect to see piles of bodies in the news.

https://www.news.com.au/lifestyle/health/health-problems/coronavirus-us-white-houses-grim-death-prediction/news-story/9772306528e88480bcab825f297d14d5

[glenm64]

6.45am Covid 19 crisis. 

long queue of seniors waiting for Coles  to open the door.   Along comes this 20 something young guy charging towards the front trying to get to the front of the queue.....  A grey hair lady on a walking frame watched him comes towards her She gets out the walking stick and wack him over the head and knocks him out....   the crowd cheers the little old lady and the noise wakes this young guy up.  He gets back up and powers through the crowd....  A short bloke then puts his legs out and makes him trip and fall,  the mob then get what they can to retrain him.....  The police arrive and puts him in cuffs.   

The officer saids “ it’s not your turn this morning, bit disappointed that someone like you do this, you should have more respect for the elders”. 

The young man then replies; “ if I don’t get to the front door and open it, no one gets in”. 



Cheers Glen

[Bigfish]

6.45am Covid 19 crisis.

long queue of seniors waiting for Coles  to open the door.   Along comes this 20 something young guy charging towards the front trying to get to the front of the queue.....  A grey hair lady on a walking frame watched him comes towards her She gets out the walking stick and wack him over the head and knocks him out....   the crowd cheers the little old lady and the noise wakes this young guy up.  He gets back up and powers through the crowd....  A short bloke then puts his legs out and makes him trip and fall,  the mob then get what they can to retrain him.....  The police arrive and puts him in cuffs.   

The officer saids “ it’s not your turn this morning, bit disappointed that someone like you do this, you should have more respect for the elders”.

The young man then replies; “ if I don’t get to the front door and open it, no one gets in”.



Cheers Glen

     Started reading and thought...Shit this is just not on....however...

[gronk]

Since July last year - I guess my point is more that it will go back up again and I reckon timing the market could be pretty tricky under the circumstances.

I converted to cash just before the worst of the crashes, but timing of the market to convert back is not a great problem. What I "lose" on the market bouncing back is miniscule compared to what I may have lost if I did nothing.
I have found during the last 6 years since really following my super, it doesn't bounce back anywhere near as fast as it loses .

Say you lose 5% of your super in one hit....I have never seen it recover that 5% in any short time frame. The last time I took a hit, it took a full year to recover back to the original figure.

[rockrat]

I have a modest portfolio of pretty diversified shares (mining, engineering, infrastructure, insurance, retail), most of which I either bought many years ago, got 'given' when the company listed (eg IAG/NRMA), or got through work (either salary sacrifice or bonuses).  While collectively they are still 30% down on where they were on 31 December, they have increased 25% since 23 March when they were at their lowest. Another week or two like that and they will be back where they were. I'm sure it won't happen that quickly but it probably will before the end of the year.

In the meantime, my super contributions are buying more units per $.

[austastar]

In the meantime, my super contributions are buying more units per $.

Hi,
    And that is very important!
Cheers



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[Pete79]

All of this investment advise and superannuation talk is absolutely riveting stuff......
I’m sure if I was 30 years older I’d be all over this retirement thread.

As far as the coronavirus goes, there’s some shocking statistics on this site.
It’s pretty much live and you can filter by the different columns.

https://www.worldometers.info/coronavirus/#countries

The graphs are pretty much as the models had been forecasting this thing to play out.

[Bigfish]

Just listening to an Historian who has written a book about the 1918 influenza pandemic. He says about 20,000 Australians died..  The govt of the day said very little about the pandemic as they focused on the glory of young Australians dying nobly in WW1...

[prodigyrf]

Yes Bigfish and it was called the Spanish Flu because unlike the WWI countries hiding their true death stats at home and in the trenches for war propaganda the Spanish reported their true deaths and consequently copped the naming. Well it's not a good look with the recruiting posters- 'Your country needs you to feed the flu pandemic'.

Meanwhile it seems we need the checkout chicks down at the Brissie wharves because the poor little petals in the wharfies union are afraid of the big bad virus-
https://www.msn.com/en-au/news/australia/melbourne-wharfies-stood-down-after-refusing-to-unload-chinese-ship/ar-BB11ZhdR