Australia's largest stock trading and investment forum Australia's #1 stock forum

If they HAD $10k in their super fund invested in shares, and...

First 10 Last

Share
Profile

Follow
WangChung

18,135 Posts.

251

05/04/20

15:46

Post #: 43889239
Share

Originally posted by MirCat ↑

I don't believe that's correct. Anyone withdrawing $10k from their Super will be selling down that amount from their own balance (at the worst possible time of course.

That would be true if they only were invested in cash!

In this hypothetical case they hold $10 grand in shares in the fund.
As their holding is in shares, the fund needs to convert these shares into cash to fulfil their request.

I might be wrong, but in this depressed market that could reduce the unit price of people whose super is invested in equities. They get their money and we suffer!

If their a rush for emergency funds it could spiral bigger losses for existing fund holders.

Expand

If they HAD $10k in their super fund invested in shares, and that investment has now sunk to $8k, all they could withdraw is $8k.

The govt might have added some fine print around who can qualify for these super withdrawals.
3 Upvote

Reply

There are more pages in this discussion • 51 more messages in this thread...

First 10 Last