What if I withdraw $10,000?
The Government is allowing the withdrawal of two lots of $10,000 during Covid19.
How would that affect my super?
We can give some indication by simulating a withdrawal during the GFC.
The table below gives two scenarios.
First scenario:
We amend the investment by taking out $10,000 just before the GFC in 2008.
The result is that there will be $22,251 less money following Covid 19.
Note that just before Covid19, the loss was $24,287.
Second scenario:
We amend the investment by taking out $10,000 during the GFC in 2009.
The result is that there will be $27,038 less money following Covid 19.
Note that just before Covid19, the loss was $29.511.
The point here is that money taken out at the bottom of the market has a much
bigger effect compared to a withdrawal at the bottom of the market.
Date Actual 10k out before GFC 10K out during GFC
Amount New Amt Loss New Amt Loss
May-08 $100,000 $ 90,000 $10,000 $100,000 $0
Jun-08 $ 94,686 $ 85,218 $ 9,468 $ 94,687 $0
Aug-08 $ 99,371 $ 89,434 $ 9,937 $ 99,371 $0
Oct-08 $ 91,772 $ 82,595 $ 9,177 $ 91,772 $0
Jan-09 $ 85,023 $ 76,521 $ 8,502 $ 85,024 $0
Mar-09 $ 82,298 $ 74,068 $ 8,229 $ 72,298 $10,000
May-09 $ 98,760 $ 88,885 $ 9,876 $ 86,760 $12,000
Jan-10 $ 98,960 $ 89,064 $ 9,896 $ 86,936 $12,024
Dec-11 $106,361 $ 95,726 $10,636 $ 93,438 $12,923
Jan-12 $103,534 $ 93,181 $10,353 $ 90,954 $12,580
Jan-13 $115,373 $103,836 $11,537 $101,354 $14,018
Jan-14 $136,678 $123,011 $13,667 $120,071 $16,607
Jan-15 $147,436 $132,693 $14,743 $129,522 $17,914
Jan-16 $154,041 $138,637 $15,403 $135,324 $18,717
Jan-17 $175,093 $157,585 $17,509 $153,819 $21,275
Jan-18 $201,245 $181,121 $20,124 $176,793 $24,452
Jan-19 $204,421 $183,979 $20,441 $179,582 $24,838
Jan-20 $239,117 $215,206 $23,911 $210,063 $29,054
Feb-20 $242,881 $218,594 $24,287 $213,370 $29,511
Mar-20 $204,033 $183,630 $20,402 $179,242 $24,791
Apr-20 $211,589 $190,431 $21,158 $185,880 $25,709
May-20 $215,495 $193,946 $21,549 $189,311 $26,184
Jun-20 $222,521 $200,270 $22,251 $195,484 $27,038
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dan.dwyer@cwunion.net
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