SA Footy

What are peoples thoughts on these two?

Do people have a preference?

pros and cons for both??

thanks peoples

I like to be in control of my investments so I set up a self-managed superannuation fund.

Psyber wrote:I like to be in control of my investments so I set up a self-managed superannuation fund.

Psyber, what is your experience with "Bonds"?
I have made a (long-term) decision to invest some money into the high risk-high return sector, through I guess what essentially is a Managed Fund.

Punk Rooster wrote:

Psyber wrote:I like to be in control of my investments so I set up a self-managed superannuation fund.

Psyber, what is your experience with "Bonds"?
I have made a (long-term) decision to invest some money into the high risk-high return sector, through I guess what essentially is a Managed Fund.

Limited..
My sister had a couple of small ones, along with annuities, but when she died I was advised that as executor I had to cash them in to transfer the residual.
I suspect they are vulnerable to the same vicissitudes as other forms of investment.
But I'm a control freak and prefer to make my own errors!

mighty_tiger_79 wrote:What are peoples thoughts on these two?

Do people have a preference?

pros and cons for both??

thanks peoples

It really depends on a persons comfort levels. No right or wrong way to go about it. A couple of basic pros/cons would be....

Super/Pension
Pros: - If the market goes up so does the value of your investment.
- You can access any of the capital at any time (provided you've reached preservation)
- If you die the money will be past on to your beneficiary/estate
- You can change your withdrawal amounts at any time

Cons - If the market goes down so does the value of your investment
- If you regularly draw lump sums you could extinguish the pension before you anticipated

Annuities
Pros - You are guaranteed to receive a payment for the term of the annuity. Therefore you won't be affected by market movements. Your payments will also increase by CPI.

Cons - You can't make any lump sum withdrawals if the unexpected expense arises.
- If you die the annuity dies with you. EG: It will NOT be passed on to your estate.