quick question, posed, to anyone who has super and how they will effectively manager there super, if they were to do a DIY super fund.
you have $50 a week contributed, to your super, via your employer, plus you, contribute yourself $50, each week, ($100 total a week)
** how would you invest your super wisely over a 20 year period, so that you could build mounts of funds to retire.. you can use the added government incentive, how they give dollars, for the many dollars you contribute.. personal strategies, or even rolling or pooling other peoples superfund together…
(remember if your to be pooling other peopls money, they are also contribute the same figure of $100 a week also.. ** in our scenario, amount of people can be unlimited)
how would you manage your super fund, or whats your superfund strategy…???
Please also note, if you were to retire today on $500, in 20 years time and keeping up with inflation of roughly 2.5% a year annulised, that same $500 would roughly equal $924.35 cents in 20 years time, which would only be equilavent to $500 in todays money or again $924.35 in 20 years from now..
is there any strategy, you could think of that could come close or be near to that by then.. in the same amount of cashflow from a simple $100 a week contribution, into your super fund…
this is a serious question, many of us, are posed, in this same position right now, and we should be thinking of how, we will replace out income of today, with some form of income in the future… and if super is all we have in forced.. savings..
… how would we go abouts in making our super, grow and some what be able to replace our income by a future date, than still have to work into our old age retirement..???
There is no simple answer. You would invest the funds in assets which produce income and capital growth. I thought it was obvious.
I would look at property and/or shares/managed funds. They tend to be the most consistent and should continue to do so. You would definately need to use dividend reinvestment and dollar cost averaging when looking at shares though.
so far your, the only person, who has come up with a good solid quality answer..
ive been thinking for the last 24 hours.. my sister and my mate up here in Brissy, have posed me the question, in helping them think of strategy that might work..
ive thought it over and over again, and ive come to a simple strategy, that will meet more than there potential target.. it doesnt really work on capital growth, but thats a bonus, but heavily on cashflow, cause thats what it requires.. but also pooling peoples money together and rolling it over and over again…
keep thinking guys, there are plenty of ways to make your super grow.. sometimes it takes thinking outside the square.. but also, some of the most simple things.. can be high yeilding assets.. though, have very little capital growth..
The of the 3 investment strategies ive thought of is.
* Buy Writes (cover calls) but only on the following stocks. OST, LHG, SRP, QAN (reason being, is that they are under $3.50) and it does not require extensive capital as other stocks like BHP to purchase when doing Buy Writes paper assets, flutation to market movement, growth available, but also, your paper assets could be worth nothing over time, due to market crashes, or a company reportings or the company not being listed for many reasons in the future..) returns 10% a year from buy writes achieveable 3-5% from dividends = possible returns of 10 – 15% though realistically, after brokerage returns could be more like 8 – 12% a year, though do remember there is capital growth in the stock, and also some high appreciated capital gain, could be made over time as well (as well as capital losses
* Invest in carpark space, that yeilds 7% and above (purchase price around $35k) low growth, but yeild is set at about 7%, but prices, dont really fluctuate or index much..
* Invest in Storage space 7%+ (though purchase price around $50k) low growth, but yeild is set at about 7%, but prices, dont really fluctuate or index much..
*** property could be purchase, though due to the extensive capital that would need to be rasied to cover, legals stamp duties, and property prices can range from an easy $100k – to any high limit.. could be a long time, till a property could be purchased..) high growth, high cashflow returns overtime, though, property expenses could be high
****** will talk soon about basic structue.. but how the capital could be rasied quickly and effecively
as for structures, this would work well if the superfund, was created via a Unit Trust – being set up this way, people are entitle to how much they contribute to the fund, but its equally divided, into equals shares, at the end of the day, of how much your contibuted, and how much your Net Asset Value has increased (NAV)
** in my suggestion/opinion, the superfund unit trust could, be made up of family members or a few friends.. (but ideally, you would need roughly 5-10 people in this superfund trust) to really generate enough income, to purchase, quality assets, that could give returns over time, such as 1 person or individual trying to manage there own fund..
** back on track you can roughly see how im coming up with figures in raising capital 5-10 people all contributing $100 a week roughly would roughly equate to $26,000 – $52,000 a year in available funds to invest
how caculation is caculated:
($100 pw * 52 weeks) * number of people in superfund trust unit = desired amount to be available in super fund unit trust after 1 year
thats true.. though if you look from a buy write (cover call position) it can be quite expensive, if your under-capitalised (which is the problem with most superfunds)
to do a decent effective covercall on say a stock such as QAN, you would need roughly 10,000 units * $3.26 = $32,600, if you were to do BHP, you would need roughly around $168,800 the problem is, so many super funds, are under capitalised.. (sorry for offence to everyone) but thats why, ive kept it to the cheaper stocks, that allow cover calls.. (and that to do an effective buy write you need about 10,000 units to make it effective..)
though i would agree, to do it to much higher priced preffered stocks.. but it will be depend on an individual or its entity on how much funds they have available…
You should check out if you can do the covered calls on the US Stock Market with Aussie super funds. It is much easier and the blocks are smaller. There is also a wider diversity of stocks to select from and more movement. You can always do the covered puts as well!
You should check out if you can do the covered calls on the US Stock Market with Aussie super funds.
Yes, and also, is it allowable to do pure option strategies (I suspect not)
Cause if you can find the right volatility skew, you can put together some awesome diagonal spreads(similar concept to what QLD007 is proposing) that have a million times better risk/reward than any stinking covered call!