With no further context can’t say. But likely not!
An allocated pension is how most people entering retirement phase draw down I think. Long way away still for me. It would be a tax question I assume.
My blitz advice might be take the lump sum and blow it on a fast car and fast women 
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Whoops, “allocated” pension is basically the obsolete name of “account-based” pensions – i.e. the standard tax-free super account.
Sorry, I’m used to conspiracy nuffies suggesting random “get it out of super!” advice.
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If you want the tax benefits, particularly tax free, keep it inside the superannuation environment.
If you take it outside the environment, your investment return and income will need to compensate for the extra tax.
And mine is in what used to be called an allocated pension. I suppose they standardised the name to account-based to include transition to retirement pensions.
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Just don’t die while the funds are still in the super environment, the fund will then cop a 15% tax. it’s a fine art to die just after you fully draw down your private pension.
… if you don’t have dependents, who would get it tax-free.
Good point
Im into momentum funds at the moment.(researching and may start investing in them)
I like the idea - trading out the worst and accumulating the best recent performers- but just think they may have high fees due to the transaction costs of automated trading regularly.
Anyone into these as well invested and can relay thoughts on performance?
I’ve looked into Momentum a little bit.
My rough thoughts:
- A Momentum portfolio tends to be carried up into high-PE levels overall…in my mind, it’s kind of at the opposite end of the scale to Value investing (buying low PE stocks that are out of favour, and their share price has probably been lagging/declining).
- A Momentum portfolio will probably outpace the overall market in a rising environment…of course, these are hot stocks!
- But in a sell-off, these Momentum stocks tend to sell off harder than the market. That’s because it’s a high PE portfolio…(conversely, the Value stocks finally show some defensiveness during a sell off).
- I don’t think it’s a good idea to try to construct a Momentum portfolio yourself. The transaction costs are too high. And it’s too hard to get diversification, to protect yourself from that horrible day when a company makes a shock announcement and its Momentum disappears in a flash.
- Overall, at an index scale, through an ETF, the factor works…I think it magnifies the gradient on the escalator upwards…but the elevator shaft bear market falls are also magnified. Perhaps eyeball this:
https://www.msci.com/documents/10199/6ec17913-229f-4f4a-84a4-b0a81f038350
Yeah its only a market. And finding one too be narrow enough.
Anything to pick up on boom stocks and ride the next wave.
I value invest when picking shares.
Dependents is the most common misspelling in superannuation.
Followed by foregone benefits.
Should be dependants and forgone.
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Has anyone used Stake for ASX shares?
It’s cheap, so I’m just wondering whether it’s a smooth user experience.
(I’d actually be using their SMSF product, and paying for immediate turnaround of sale proceeds)
The Australian education department needs you to teach grammar.
Get the ■■■■■ to learn another language, preferably a Romance language or German.
That’ll teach you a bit about grammar, even English grammar.
But FFS don’t just chuck in an apostrophe if there’s an s on the horizon.
Apostrophes are for contractions or possessions, and only in very, very rare cases for plurals.
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IMO, this is the best 90 second summary of whats happening on sharemarket here in Australia.
Even better, Kohler supplies charts to back it all up.
Fantastic.
Also, it’s the best thing (and only thing I watch) on the ABC.
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I dont know if this is investment advice?(its a question)
Can you make investments on a credit card? Buy shares etc?
Reason being. I just got an email from Westpac. They are offering balance transfers to their credit card on existing debt from other cards.
What’s very enticing? 1.99% p/a interest on the balance in the first 24 months.
Im thinking……max another card out on something which promises better returns than 2%(not that hard to find) - then transfer the debt to westpac.
1.99% is incredibly cheap debt.
Maybe do it a few times. Am I missing something?
2 years of 1.99% interest.
(They have some other offer of a 0% transfer to a different card i dont hold as well)
Sorry, not going to be too helpful but I’d be wary as to whether the CC company would class it as a regular purchase or a cash advance. Cash Advances have some pretty heavy fees.
I think there are some even better balance transfer deals out there (St George charges 1% of the balance transfer amount in return for 28months at 0% for example, but does have a yearly fee). Plenty of options out there.
Personally I don’t think I’d be comfortable using debt to invest, but you’d know your financial situation far better than I.
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Well theres term deposits offering over 4.5% pa.
So it seems almost arbitrage. But again i must have missed the catch because bankers would know this and not miss a trick.
Remember the debt is cleared and card closed from the source of the funds to invest.
I can only see a downside where your credit rating takes a hit?
1.99%(or 0 with a small annual fee) seems below the risk free rate of return.
CC’s these days charge an upfront Cash Advance fee (often 2-3%) so the balance transfer doesn’t save you from that. I know they classify gambling/etc as cash advance - Not sure for deposits into trading accounts though it wouldn’t surprise me.
There’s no real catch to low interest balance transfers though, they just rely on enough people not paying them off on time/transferring them out again so that they can start charging full interest on what’s left.
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Yeah right.
Couldnt i buy something like gold on the credit card.
Sell it immediately for cash then lock it in a term deposit? Or just hold the gold?
Not sure if you can actually trade with a credit card?