Small capital for the future

tom82 · 10 September 2013

I worked for about a year to a year and half and money was set aside in a super account (about a $1000. I only worked a couple days a week), Since I have stopped working for the company and no other contributions were being made to the fund I have requested to withdraw my funds, which have been returned to me.
Seeing as this money is meant for my future what can / should I do with it?
I have been looking into LIC's and ETF's such as ARG and STW for example.
The 1000 is a starting point with further savings to be made and possible additions to holdings or other stock, I can save pretty well.
I am learning to trade the forex market, I have a couple of thousand available in trading accounts, I have a strict trading plan and money management criteria, which allows me to trade technical signals and only looking at signals that potentially can achieve at least 2:1 or more.
I know you cant give specific advise, but any thoughts and comments on this would be appreciated.
What would you do, suggestions?

Thank you

tech/a · 10 September 2013

tom82 said:
I worked for about a year to a year and half and money was set aside in a super account (about a $1000. I only worked a couple days a week), Since I have stopped working for the company and no other contributions were being made to the fund I have requested to withdraw my funds, which have been returned to me.
Seeing as this money is meant for my future what can / should I do with it?
I have been looking into LIC's and ETF's such as ARG and STW for example.
The 1000 is a starting point with further savings to be made and possible additions to holdings or other stock, I can save pretty well.
I am learning to trade the forex market, I have a couple of thousand available in trading accounts, I have a strict trading plan and money management criteria, which allows me to trade technical signals and only looking at signals that potentially can achieve at least 2:1 or more.
I know you cant give specific advise, but any thoughts and comments on this would be appreciated.
What would you do, suggestions?

Thank you

Find a super fund you think is fine.

Deposit with them
Every time you get a job stipulate the Superfund and have funds paid into it.
Once you have over 100K in it you'll have enough streetwise knowledge to investigate a SMSF.

The safest place for it is out of your hands!

tom82 · 10 September 2013

tech/a said:
Find a super fund you think is fine.

Deposit with them
Every time you get a job stipulate the Superfund and have funds paid into it.
Once you have over 100K in it you'll have enough streetwise knowledge to investigate a SMSF.

The safest place for it is out of your hands!

Oops, I forgot the important part of the post.

The reason I have withdrawn it from the super fund is because it would get eaten away by fees and after five years of inactivity would be transferred to the ATO even if the member is contactable also that accounts of 1000 or less will will be forced to be consolidated where contributions are not being made.
One is not always in contact with their super fund if there is no reason to be, usually you only contact them to update your details address etc, so if you dont move for several years your not updating your address because you have not moved, generally you only contact them if you need to.
These are thanks to the government we just removed.

tom82 · 10 September 2013

I did look into SMSF but its not worth the effort or trouble with this small amount, the managing and administration of it would cost more than its worth, fees, accountants, solicitors and auditors.

stewiejp · 11 September 2013

Tom,

Sure you could buy some LIC's or such, so long as the temptation to sell/buy something else isn't there, nor will you need the cash in the medium term - as brokerage would more severe than super fees on a balance of $1000.

As far as consolidation of super funds go, do you not have any other super accounts? Or do you not plan to work/have super accounts in the next 5 years? You mentioned you save fairly well.... which would imply you are working?

Good on you for taking control - enjoy.

tom82 · 12 September 2013

stewiejp said:
Tom,

Sure you could buy some LIC's or such, so long as the temptation to sell/buy something else isn't there, nor will you need the cash in the medium term - as brokerage would more severe than super fees on a balance of $1000.

As far as consolidation of super funds go, do you not have any other super accounts? Or do you not plan to work/have super accounts in the next 5 years? You mentioned you save fairly well.... which would imply you are working?

Good on you for taking control - enjoy.

I am on a DSP and work occasionally, its not completely out of the question, but anything is possible. I'm not currently working but I can still save.
Brokerage with Belldirect is $15 and NABTrade is $14.95, the NABTrade has a high interest account you can have attached to your trading account.
I have accounts with both of the above.
What brokers are people with, why do you like them etc?

davistev · 22 September 2013

I hear you. My son worked part time and had $400 in his super account. After one year, the management fees took $65 from him. Surely one could just designate a simple account from any bank and have it locked for retirement and then pay no management fees.

It looks like an insane system designed to take 9% of income away from all low income workers.

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