If I am in the dead zone, just missing pension, but poor: my strategy should be to switch as much Super to International equity from Oz equity? Thanks
A: Thanks for the question.
Some comments:
- Firstly, Mr Shorten needs to be elected first, and then legislate the change. If elected, it won’t come into effect until the start of the 19/20 financial year;
- If you are just missing out, your strategy might be to get access to a part pension by selling some of your shares and investing in the family home (see my article here http://www.switzer.com.au/the-experts/paul-rickard/shortens-naked-tax-grab-could-lead-to-a-building-boom20180504/
- I don’t quite get why you should necessarily switch to international equities. I agree that some Australian shares will be marginally less attractive, but that doesn’t mean you should switch. Further, the market has already/will probably adjust to this change by making those shares that are popular with retirees (such as the Banks and Telstra) cheaper.
