from Andrew Harris principal of Minerds Bell Consultancy Group
Hi, welcome to another update. In this bulletin, I’d like to:
- Bring you up to date on further changes we have made internally to how our team is working,
- Give you a summary of all the new Government support that may be available to you or a family member, and
- Share with you some concerns we have about potential liquidity issues facing some Industry Super Funds due to the initiative to allow some members to withdraw up to $20,000 each.
Finally, we also have a very recent article from AMP Chief Economist, Dr Shane Oliver titled “Light at the end of the corona virus tunnel – what does it mean?”
We are continuing to do the vast majority of our appointments via phone or video link which is a new experience for all of us.
Although the “curve is flattening” we have further reduced the number of staff in the office so that on any given day there is a maximum of 6 of us, including 1 Adviser plus their assistant.
Thanks for your continued understanding and patience as we respond to phone and email queries.
Government Support Initiatives
The COVID-19 “lock down” and social distancing has taken its toll on financially and psychologically. On the financial side, the Government has introduced a number of initiatives and packages. We have lifted these from “MoneySmart” and the Federal Government websites. They include:
- The JobKeeper Payment
- Financial payments and support
- Income support payments increasing The JobSeeker Payment
- Household support payments
- Free child care
- Early access to super
- Reduced Minimum drawdown rate for account-based pensions
- Reduced deeming rates for the Age Pension and income support
- Financial support for businesses
- Emergency, crisis and legal support
Please refer to the attached article for a more complete summary and where to get further information
Industry Super Funds
The “Early Access to Super” initiative has so far proven very popular with the ATO already approving over 500,000 applications worth in excess of $4b (Adelaide Advertiser 27/4 page 37.).
These payments need to be made in cash. Some Industry Super Funds invest in what are known as “unlisted assets” that can’t be readily liquidated. Some financial analysts and in fact, some Funds themselves, have expressed concerns about being able to meet the demand for cash withdrawals.
One option they have is to convert other assets to cash to meet withdrawal requirements. Assets sold in an untimely fashion can affect all members, even those not seeking to access their Super.
If you are part of an Industry Fund, it may be worth checking with them the type of investments you are holding and whether this might affect you.
Light at the end of the coronavirus tunnel – what does it mean for investors?
Shane Oliver, Head of Investment Strategy and Chief Economist looks at where we are in relation to the coronavirus crisis and its impact on the economy and share markets.
As always, we are here for you.
If you have any concerns about your Super, Investments or your current plans, please give your adviser a call or send them an email.
Take care and kind Regards,
Principal – Minerds Bell Consultancy Group