Letters: Alternatives to SMSFs & Qantas conundrum

Alternatives to self-managed super funds

My wife and I are both 32 and have a combined $150,000 in superannuation, with contributions of approximately $2,000 per month. We're interested in taking more control over our super but aren't ready to fully commit to setting up a self-managed super fund. I'd like to know some of the differences between SMSFs and other options like wraps and the pros and cons of each.

Name withheld

Editor’s response: Thanks for your letter. A very informative article that you may find of interest is A ‘third way’ for super, that looked at the growth of the SMSF sector and the alternative options available for people looking to take a more active role in their superannuation without setting up an SMSF.

Time to let Qantas go

I hold a number of Qantas shares, but I think it may be time to cut my losses and sell. I’ve been thinking about reinvesting the funds in one of the big four banks or Telstra to take advantage of the dividend yield. If I sell now I will make a capital loss, but I can offset this against capital gains I have made on the sale of some other shares.

Joanne Hilliard

Editor’s response: Roger Montgomery’s recent article on the headwinds facing airlines may be of interest. (See: Airlines turbulence should unnerve investors). Eureka Report contributors have also written a number of very informative articles on the banks in recent weeks. (See: Banks not cheap, but no hold-up imminent, and Five reasons to hang on to the banks among others).

RHG Mortgage Corp

Earlier this year, Tom Elliott recommended buying RHG Mortgage Corp, but I haven’t seen much written on it since. Could Tom please give an update on RHG and whether it’s time to sell the shares?

IK

Editor’s response: Tom has just included an update on RHG in his latest column (see: The Trust Company bidding war).

Waiting for Dr Copper

I brought Rex Metals after reading a column in Eureka Report a few months ago (Dr Copper makes a comeback) and it has simply gone down, down, down. Does it have any future or should I just accept that I have made a loss on this?

PM

Tim’s response: Rex is a stock to stick with, despite being sold off during a period of relatively low copper prices and difficulty in securing capital to fund new mines in high-cost Australia. The Hillside project is in a prime location. Any sustained recovery in the copper price, or fall in the Australian dollar (or both) should help Rex with its development plans which envisage a start on construction next year and first copper in 2015. It would be a shame to take a loss now and miss the recovery.