Comments on: The Problem With a Managed Fund

By: cb

cb — Mon, 21 Sep 2009 15:10:08 +0000

You are right, PFT. The creep must have been quite massive, however, as they are collecting vastly more than before. Prices did adjust higher on a lot of things, and that was why there was such a scramble for people to buy and build before it took effect. And whatever escaped the GST (fresh food, etc.), will be captured by the Clean Energy taxes and targets and initiatives. This al-encompassing tax grab will dwarf even the GST. It will be a massive, inescapable vacuum that will suck us all dry and will enable our politicians to make Christmas an every day event for all of us who behave. Ah, too much to this, for this late in the night.

By: PFT

PFT — Sat, 19 Sep 2009 07:55:49 +0000

People seem to forget that the GST was NOT an additional tax (even though there may have been an incremental element in it) as most of the other tax rates in at the time WERE REPLACED by the GST. Now that the GST has settled down it has replaced most of the other taxes that were in place and is acceptable!

If anyone is interested in an LIC they might like to look at Sylvastate (SYL ) on the ASX that only charges around 0.3% fees that is far below nearly all other LIC’s.

By: etch

etch — Fri, 18 Sep 2009 04:56:06 +0000

“”"”"”"If you answered the nitwit politicians and bureaucrats who have dreamed up the scam “”"”"”"”

nah thats the “commonsense approach”

the trusty good ole taxpayer of course,,,,,,,,,,,,

By: cb

cb — Fri, 18 Sep 2009 02:00:15 +0000

If you answered the nitwit politicians and bureaucrats who have dreamed up the scam, I like your sense of humour.

By: cb

cb — Fri, 18 Sep 2009 00:40:31 +0000

and guess who is going to pay if some of the big Telstra shareholders sue the government over the whole debacle?

By: cb

cb — Fri, 18 Sep 2009 00:39:32 +0000

Thanks, etch. I almost forgot that “minor” event. That is indeed how it was. And guess what? There is still no end in sight for manipulation and meddling. The bigger the govt gets, the more bureaucrats there are, the more meddling there is going to be. It is just so hard to form a reliable expectation into the future, and with all the meddling and scheming going on in bureaucratic dungeons, it becomes almost hopeless. Just see the latest little clever plan they have come up with Telstra, after it was flogged off to the people. Enough to make you sick.

By: etch

etch — Thu, 17 Sep 2009 12:23:24 +0000

“”"”What changed in 1998? Why should house prices have taken off so quickly after being stagnant for nearly three decades?”"”

I’LL TELL YOU WHAT HAPPENED ,,i & many other people were sitting on the sidelines ummming & ahhhrrring ,after the 1990-94 recession,,, confidence knocked down ,,,to upgrade the 1950′s -60′s out of date house,,,,, when they (libs) were toying round with the GST 10% in 97-98
ONCE IT WAS SET IN place ,,the gst to be implemented in year 2000
well that was it,,
everyone bolted out of the gates to go & upgrade
to beat the 10% hike in the land & house prices,,,,,,,,,,say @ that time up to an extra 50K or more ,,alot of dough then & now ,,hard enough to save 50$ a week let alone 50K
& we had to run to beat the GST ,WHICH WAS A DECIDING FACTOR ,to push people over the line to beat impending price rises ,,,
needless to say house builders were absolutely INDUNUNNATED WITH BUILDING ORDERS
believe it or not ………………..

By: cb

cb — Thu, 17 Sep 2009 07:25:34 +0000

Yes, that’s right. They offer quite a good selection of asset classes and mixes, so you can choose between riskier and less risky asset mixes, and you can even sit 100% in cash, which some would consider being a sitting duck for inflation for any extended period. You can have, I think, at least one free change per year, between investment strategies.

By: Peter Fraser

Peter Fraser — Thu, 17 Sep 2009 07:19:08 +0000

CB I agree an industry super fund is probably a better option for most. Don’t forget that they can and should be involved in what market segment they choose, but actual shares, the manager looks after that I’m afraid.

For those who have taken a big hit though, don’t just pull your money out and not avail yourselves of the upswing. Shares have rallied by about 50% just in the last five months.

By: cb

cb — Thu, 17 Sep 2009 07:14:56 +0000

A thought about superfunds and what govt might do to our savings in super. I think that Kris’s warnings are well justified, and at this stage we simply don’t know whether govt will try using our savings in super with a carrot or a stick. Seeing the way they have just taken the stick to Telstra, I would not trust them as far as you could throw any of them.

But, insofar as the carrot approach will be present in any future legislation, at least if you have your savings in your own SMSF, you will have a choice and can resist being sucked into schemes and scams dreamed up by the Canberra pollies and their lackies. By contrast, if you have your savings in a fund, then the fund managers will make those decisions and will happily squander your money for you for the fees they take out of your savings year in, year out. So, I would say, the more self reliant you become, and the more control you can have over your own savings in super, probably the better it is going to be for you. Or at least you won’t have to whinge about anybody else, if you stuff up and wipe yourself out.