How Much Super Have You Lost .

[gtfpv]

:
I NEVER CHECK MY SUPERANNUATION . BECAUSE I AM WAY OFF RETIREMENT , however i hear people talking about huge losses all the time , and i know people who have left work to retire within the last 6 months and suddenly re appeared on the work scene
this is not a thread to see how much people are worth . figures need not be quoted . its all irrelavent anyway , as age and asset wealth and income doesnt come into the equation .
however i checked my super yesterday . and found out . that in the year june 2007 to june 2008 , i lost 9.8% on my superannuation .
what the big shock was is that since then i have lost another 17.5% !!!!!!

holy crap thats 1/3 of my money gone !!!! . if the market doesnt come back / recover . then my retirement in 20 years could be 30% less than anticipated . which is somewhere near 300k down . !!!!
i suddenly feel very sorry for retiring people and people approaching that age .

[Mr Hardware]

You're thinking the wrong way round. You haven't lost a thing in reality, as the market will trend up over the next 20 years.

Think of it more this way. It is awesome to be in super at the moment, as what you can buy for a dollar is huge compared to a year ago. Best time to be contributing to super ever.

Oh but yes, i do feel sorry for anyone who is retiring now or soon, but that's just the super way. Anything that tracks the index gets both the positives and the negatives.

if the market doesnt come back / recover

not gonna happen. it will go back up.

[Whitey-AMG]

Ditto that........

My SUPER statement came in with a nett loss over last financial year.........lucky I'm also way off retirement and there is ample time for recovery. For those retiring this year or in the next 2-3.......they will definitely experience losses and not get as much as they thought they would.

On the + side........anyone that was thinking of buying a new car will find some super bargains.........fuel is much cheaper than it was in the last 2 -3 years........and any outstanding loans are subject to low interest rates. You just need to be that much wiser with any SUPER payout to mitigate the losses.

[Gobes32]

I am only 25 so it's theoretical to me. I find it best to not get worked up what my worth on paper is. Just think of all the up's and downs I will endure over the next 40 years of my working life.

On the plus side, if this really is a once in a lifetime global financial crisis, then I should think myself lucky that I endured it at such a young age............

[Mr Hardware]

I'm in the same boat as Gobes32, and i don't even think this current 'global finanical crisis' is as bad as 1987, and 1987 makes 5/8ths difference to anything today.

I mean we haven't even got to the point of a recession yet.

[mr smith]

Against all advice put my super into cash about 8 months ago when this began to unfold. Will sit on that untill the market moves and moves a fair bit, better to miss the first gains and be safe. I love how people think that cheap stocks mean buy now, not all companies will survive the credit crunch. Yes your money can go to zero.
I feel sorry for those who have bought the crap that has become gospel ie. house prices never drop, shares will always come up.

[gtfpv]

Originally Posted by Mr Hardware

I'm in the same boat as Gobes32, and i don't even think this current 'global finanical crisis' is as bad as 1987, and 1987 makes 5/8ths difference to anything today.

I mean we haven't even got to the point of a recession yet.

ohhh yeah right . because you say so ????
give me a break . in 1986 tradesman earnings were around the 30k mark ( inc OT) HOUSES WERE AVERAGE 50K. a young couple starting out with a 20 k dep back then would of owned the house in 5 years .
the 1987 crash where houses doubled over night and wages went up about 30% , and then the flow on affects from that make no differance today right ??? :
apoligies for going off topic . but . lets stick to the thread from now on .

[irlewy86]

10% so far and I'm expecting to lose 25% this financial year. However 14% growth for the the last 4 pretty much means I'm back to square 1.

Note to self 10 years before retirement pour super into cash. I would hate to have to work an extra 5 years becuse of a mis-timed market correction.

[Mr Hardware]

house prices never drop, shares will always come up

Ok, so the first statement is pretty false, but the median never usually shrinks by more than a handful of percent.
The second one is a bit different. Shares can go up or down at the drop of a hat! The index, however, will always come up. By as much as you'd like or need? Well that's another story.

once in a lifetime global financial crisis

Don't bet on it buddy. Most people who are at retirement age will have this as at least their third recession/crash/financial crisis. 1973-1974 stock market crash, 1987 recession, 2008 global financial crisis. Just remember these are the same people whose parents would have gone on and on about the great depression too...

[Mr Hardware]

gtfpv, i see what you're saying about investors taking their money out of the stock market in post-'87 and putting it in the 'safer' housing market - but i think you'll find that most of the reason for the past 10-15 years of inflated house pricing is due to more people with disposable income due to dual incomes, and the howard government being leanient towards investors.

[mcnews]

None, because I haven't got any, lol. The joy of being self employed and building up a business.

[TheSneakiness]

I lost 8.43% til 30 June 2008. Not bad I reckon... Can't wait to see the new statement coming...

[GT0132]

Originally Posted by Mr Hardware

I'm in the same boat as Gobes32, and i don't even think this current 'global finanical crisis' is as bad as 1987, and 1987 makes 5/8ths difference to anything today.

I mean we haven't even got to the point of a recession yet.

Can I correct you on a couple of things.

With 7 hours remaining of calendar year 2008 share market investors are forecasting losses of around 45%. This compares to the 1987 crash (a 35% loss in one day in October 1987) and a 43% fall in the 1930 great depression. So the 2008 global financial crisis is real and quite significant

In the 1987 crash, stocks bounced back to record highs again by the end of 1989. It was after that that Australia went into recession which it didn't recover from until early 1992. There is no correlation between a decline in share prices and negative GDP growth, which is the indicator by which a recession is determined (2 consecutive quarters of negative economic growth)

A recession may/will occur if big business fails to take advantage of low interest rates and invest in major capital projects and instead winds down activity and lay off a percentage of its workforce, or if individuals don't borrow to kick start the property market. The extent of this activity/non activity wont be known until June 2009 quarter GDP and unemployment figures are released. We're certainly in for an interesting year ahead and although the RB are expected to lower interest rates again in February who knows whether it will have the desired effect, that being to encourage organisations and individuals to spend and invest. A recession has nothing to do with the state of the sharemarket. The sharemarket is simply a financial representation of how the market perceives the value of the companies so listed at any given point in time

One thing in our favour though is that retail spending for December was at record highs primarily due to people spending their Rudd handout.

Soi who knows what will happen.

Back on topic, my super went back by 25% for the year ended 30 June 2008 and also went back in the year ended 30 June 2007 by around 10% but I'm not gonna panic (yet) as I'm 46 and plan to work for at least another 14 years

[gtfpv]

Originally Posted by ozmale42

Can I correct you on a couple of things.

With 7 hours remaining of calendar year 2008 share market investors are forecasting losses of around 45%. This compares to the 1987 crash (a 35% loss in one day in October 1987) and a 43% fall in the 1930 great depression. So the 2008 global financial crisis is real and quite significant

In the 1987 crash, stocks bounced back to record highs again by the end of 1989. It was after that that Australia went into recession which it didn't recover from until early 1992. There is no correlation between a decline in share prices and negative GDP growth, which is the indicator by which a recession is determined (2 consecutive quarters of negative economic growth)

A recession may/will occur if big business fails to take advantage of low interest rates and invest in major capital projects and instead winds down activity and lay off a percentage of its workforce, or if individuals don't borrow to kick start the property market. The extent of this activity/non activity wont be known until June 2009 quarter GDP and unemployment figures are released. We're certainly in for an interesting year ahead and although the RB are expected to lower interest rates again in February who knows whether it will have the desired effect, that being to encourage organisations and individuals to spend and invest. A recession has nothing to do with the state of the sharemarket. The sharemarket is simply a financial representation of how the market perceives the value of the companies so listed at any given point in time

One thing in our favour though is that retail spending for December was at record highs primarily due to people spending their Rudd handout.

Soi who knows what will happen.

Back on topic, my super went back by 25% for the year ended 30 June 2008 and also went back in the year ended 30 June 2007 by around 10% but I'm not gonna panic (yet) as I'm 46 and plan to work for at least another 14 years

PHEEEEWW . IF IT CAN happen to you knowing finance . i'm in good company . hahahah .

[Trevor 57]

I have lost $9,000 off one of my super's, I am not sure about the other one.

[Mr Hardware]

ozmale42, i can see what you're saying, however let me clarify. Yes there have been some major losses similar to that of the aforementioned stockmarket downturns of yesteryear, however i am commenting mainly on social impact rather than percentage downturn. ie the great depression had a huge social impact, the 1987 downturn lesser so and the current one even less so.

Yes I am aware that a recession is measured by at least two consecutive periods of negative growth of national GDP, and that a dive of the index does not cause this to happen, but it certainly damn well influences it, or what has influenced the stock market index downturn also influences industry, consumer spending etc.

To say that a recession has nothing to do with the state of the sharemarket is being rather short-sighted and not looking at the influencing factors.

[4Vman]

Havent lost anything because i havent/cant touch my super yet. The only people affected are those who have to cash in now.. if you can wait things will recover and some...

[galaxy xr8]

Another reason why I keep telling myself "that's why I don't contribute extra into my super"
Never have and never will, I prefer to put my money else where and save for my own retirement.

[GT0132]

Originally Posted by Mr Hardware

ozmale42, i can see what you're saying, however let me clarify. Yes there have been some major losses similar to that of the aforementioned stockmarket downturns of yesteryear, however i am commenting mainly on social impact rather than percentage downturn. ie the great depression had a huge social impact, the 1987 downturn lesser so and the current one even less so.



Yes I am aware that a recession is measured by at least two consecutive periods of negative growth of national GDP, and that a dive of the index does not cause this to happen, but it certainly damn well influences it, or what has influenced the stock market index downturn also influences industry, consumer spending etc.

To say that a recession has nothing to do with the state of the sharemarket is being rather short-sighted and not looking at the influencing factors.

OK I can't respond to this without detracting from the topic. However just quickly , it's way too early to determine what the social impact will be on the events that have taken place to date and are likely to continue throughout 2009.

In my organisation I've virtually thrown my 2008/2009 budget out the window as it's no longer relevant. I've given my Board revised projections on a worse case scenario that revenues will drop by 25% in each of the last two quarters of FY2009 - many of my peers in my industry are doing the same...That obviously translates to idle capacity and a flow on effect to unemployment. If what we're doing is typical of most corporates out there then you can bet the social impact will then be sizable but yet undeterminable.

I agree with what you say about the stock market is influenced by the current factors to a point, but those organisations that have been operating a strong balance sheet in recent times will come through relatively unscathed with little or no detriment to their share price. Additionally those that take the hard decisions now will actually enhance their share price as they become more leaner and more profitable. I don't think I'm being short sighted and I'm sure you weren't inferring that I was.
_2:

[TimSBR04]

I'm Superannuation BA - have been in the industry for over 8 years. The simple fact is, Employers were exposed to too much of a liability under Defined Benefit schemes (i.e. they wore the investment risk). Hence the introduction of Accumulation Benefit schemes - where the Member bares the investment risk (just like bank account).

If you choose to invest your Super in a High Risk investment option, then you need to be prepared to accept significant losses in times of investment losses, just as you gain when the financial markets are booming.

If you don't wish to whinge about your losses, then invest your super in a lower risk investment option..... that way you can still have a whinge when the stocks are rocketing upwards and you're missing out.... everyone gets to whinge in the super game - either about losses you made, or gains you missed out on.

[xdclevo]

Drink up. Another year to begin so don't frett.

[BPXR6T]

Too much, glad I'm only 31. Lots of time for it to recover. Although I think only a mug would put all there eggs in one basket and rely solely on super for retirement. Diversity is a good thing...

[Spanrz]

Yeah lots of time to recover, but I've lost around $20,000 :/.
It started to dive around end of May. Take about 2 years to recoup that.
That wasn't a "eggs in one basket either", its spread all over the banquet of investments.
My boss lost over $100,000.

I put in the max allotted amount, then also voluntary contributions.

[uranium_death]

My father had a lot of super after working 43 years for a government business...considering his salary was never exactly massive (finished on around 60k when retired), he did very well to finish with that much...more than most people I assume - he salary-sacrificed too, for tax benefits as well as to plan for the future.

During this period, he has lost a fair bit of it...actually, a decent bit.

He also had more than half a mil in shares, and lost 40% of it.

He isn't bothered though. Since he doesn't need the cash now, he knows that it will eventually even out and he'll get a lot of his value back, if not all anytime soon.

The most important thing is not to panic. Just stay cool. Things will return eventually.

[uranium_death]

Originally Posted by uranium_death

My father had a lot of super after working 43 years for a government business...considering his salary was never exactly massive (finished on around 60k when retired), he did very well to finish with that much...more than most people I assume - he salary-sacrificed too, for tax benefits as well as to plan for the future.

During this period, he has lost a fair bit of it...actually, a decent bit.

He also had more than half a mil in shares, and lost 40% of it.

He isn't bothered though. Since he doesn't need the cash now, he knows that it will eventually even out and he'll get a lot of his value back, if not all anytime soon.

The most important thing is not to panic. Just stay cool. Things will return eventually.

Neither I or my father are financial advisers (clearly!), and should not be taken as sound advice.

Please see your financial adviser if you want official guidance.

(It's pointless suing me...I only have a copy of Mad Magazine and a jar of mustard).

[XA Sean]

Originally Posted by mr smith

Against all advice put my super into cash about 8 months ago when this began to unfold. Will sit on that untill the market moves and moves a fair bit, better to miss the first gains and be safe. I love how people think that cheap stocks mean buy now, not all companies will survive the credit crunch. Yes your money can go to zero.
I feel sorry for those who have bought the crap that has become gospel ie. house prices never drop, shares will always come up.

+1 Me too!!! : Put my super into a capital guaranteed 5% return regardless of whats going on. Just got to time re entering the market right.

Doesnt sound like much but some mates with same super $ are down $30 grand and worse. I told 'em what I was doing but they were happy to try riding the wave

[ebxr8240]

I have been in a super fund for nearly 30 years..
Yes its dropped but over the years I'm way ahead..
I havn't left all my retire funds in super ..
Just bought some shares..
Invested in real estate about 15 years ago..
I'm way ahead now and there is no way I could have saved...

[gtfpv]

Originally Posted by TimSBR04

I'm Superannuation BA - have been in the industry for over 8 years. The simple fact is, Employers were exposed to too much of a liability under Defined Benefit schemes (i.e. they wore the investment risk). Hence the introduction of Accumulation Benefit schemes - where the Member bares the investment risk (just like bank account).

If you choose to invest your Super in a High Risk investment option, then you need to be prepared to accept significant losses in times of investment losses, just as you gain when the financial markets are booming.

If you don't wish to whinge about your losses, then invest your super in a lower risk investment option..... that way you can still have a whinge when the stocks are rocketing upwards and you're missing out.... everyone gets to whinge in the super game - either about losses you made, or gains you missed out on.

ERRRRR !!! YEAH . CAN I WHINGE ABOUT THE FEES COMING OUT OF THE ACCOUNT THEN .

[snappy]

Like a few people here i never checked my super that was until a few years back anyway . This financial crisis has not affected my super one bit .
After 10 years of work with the same company a total of $17.53 has been paid to me

[gtfpv]

Originally Posted by snappy84

Like a few people here i never checked my super that was until a few years back anyway . This financial crisis has not affected my super one bit .
After 10 years of work with the same company a total of $17.53 has been paid to me

GO AND SEE A LAWYER . IF YOU DONT YOUR A FOOL . GOOD LUCK.