Superannuation

 Hey all

im thinking of changing my super fund from colonial mutual to and industry super fund to save on annual fees can any gurus recommend a fund or funds I should take a look at. I'm 49 so still have a few years to retire yet, but just want to have a look around to see what is the best out there and to minimise annual fees going to the companies.  cheers.

Darryl

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"If we all fish for the future now there will be fish in the future"


sunshine's picture

Posts: 1683

Date Joined: 03/03/09

Australian Super

Sat, 2018-06-02 13:27

 Set me up perfectly for my retirement .....performs real well long term too

Marineboy's picture

Posts: 626

Date Joined: 14/03/14

Industry fund

Sat, 2018-06-02 13:29

 i think you need to go with an industry super fund that relates to the job or profession you are in (correct me if I’m wrong) so if you are in the building industry you would go with cbus so you prob need to state your profession to get good industry super fund advice. 

Cheers

mark

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 My spots are so secret even the fish don't know about them !

dakka's picture

Posts: 229

Date Joined: 05/03/06

 Ok cheers marine boy I'm a

Sat, 2018-06-02 14:18

 Ok cheers marine boy I'm a machine operator for a company in caningvale producing polystyrene products.

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"If we all fish for the future now there will be fish in the future"

bradz's picture

Posts: 585

Date Joined: 29/10/07

Any fund

Sat, 2018-06-02 17:06

 You don't need to be in a particular industry to join an industry fund. 

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I did then the best that I knew how. When I knew better, I did better.

D_d_001's picture

Posts: 1379

Date Joined: 09/03/13

 to save on annual and mngt

Sat, 2018-06-02 17:46

 

to save on annual and mngt fees have a look at Hostplus, specifically the indexed ballanced.   good to have some in there but Im not a huge fan of super myself.  

 

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Money doesn't buy happiness but it pays for my fishing so ...I may be wrong there.

ricey's picture

Posts: 602

Date Joined: 24/12/09

Super tip

Sat, 2018-06-02 18:45

 the best fund is just contributing early and regularly. 

*DISCLAIMER - I am a Math guy, not a financial investment professional, so talk to one of these guys.... BUT...

 

most of us work on paying off our houses as quick as we can and then want to sink $$$ into super in our 50s, but it is capped at amount you can contribute.

 

my mortgage rate is only about 4% so what’s the big deal paying it off?

 

But if you contribute to super (to a point) you are taxed at only 15%, compared to day 37% if you earn over 87,000 or 32.5% if you earn less.

 

That means you are instantly making 22% or 17.5% on your money (plus what it makes should be at least equal to the 4 or 5% you are paying interest on your mortgage.

 

heaps better than any major fund! So contribute an extra $50 or $100 a week now and laugh at how much you made when you retire (and take me fishing on the awesome boat you can afford).

 

if it goes pear shaped you can withdraw from your super anyway (but have to pay the tax back you would have paid but saved).

 

my 2c worth... actually 22% worth...

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Wise man says - first take the plank out of your own eye before trying to take the speck out of somebody else's.

Tom M's picture

Posts: 356

Date Joined: 22/09/15

 Currently i have 3 funds on

Sat, 2018-06-02 18:46

 Currently i have 3 funds on the go and have been tracking them weekly for 5 years on performance and will consolodate into 1 fund next year. That will be Australian Super outperformed GESB and Mercer. My experience.

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Tom M

Dale's picture

Posts: 6757

Date Joined: 13/09/05

Sat, 2018-06-02 19:21

 I was a bit of a late starter, so I’m salary sacrificing another 13% these days, can’t go more since at $25k they tax you now.

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Rob H's picture

Posts: 4808

Date Joined: 18/01/12

 The one good change the Libs

Sat, 2018-06-02 19:21

 The one good change the Libs made was removing the penalty for over contributing.
Now if you overshoot $25K, you can have it added instead to your income and the balance returned minus marginal rate.

The shit part is the $25K cap whatever your age. I just dont get the point of that besides skimming extra tax

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 Give a man a mask, and he'll show you his true face...

 

 

The older you get the more you realize that no one has a f++king clue what they're doing.

Everyone's just winging it.

 

Lastchance's picture

Posts: 1104

Date Joined: 02/02/09

Its still a penalty though.

Sat, 2018-06-02 19:33

Its still a penalty though. Different bucket, but Malcolm is still getting his hands on it. Thankfully he's just about got himself and his mates a 5% tax cut which is heartening when the rest of us are taxed into oblivion. I had more money when I was an apprentice!

Posts: 89

Date Joined: 10/05/10

 Not a bad rig must have

Sat, 2018-06-02 20:15

 Not a bad rig must have bought that when you were a apprentice on the big money

Lastchance's picture

Posts: 1104

Date Joined: 02/02/09

Yeah mate, must have.

Sat, 2018-06-02 21:33

Yeah mate, must have.

Posts: 3561

Date Joined: 01/02/10

 Spewin you had to sell it.

Sun, 2018-06-03 08:05

 Spewin you had to sell it. Weapon of a rig. 

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Lastchance's picture

Posts: 1104

Date Joined: 02/02/09

Me too mate just wasn't

Sun, 2018-06-03 18:55

Me too mate just wasn't getting the use up here. Started getting a few 'lack of use' signs so I moved it on - definitely for the best as its gone to a great owner in Dampier so its back home now.

Swompa's picture

Posts: 2172

Date Joined: 14/10/12

 Barefoot investor (great

Sat, 2018-06-02 19:38

 Barefoot investor (great book) recommends Host Plus thogh a lot of barefooters set up with Australian Super

Meeuwissen's picture

Posts: 528

Date Joined: 29/03/13

ive just changed to

Sat, 2018-06-02 21:47

 australian super not impressed so far. i set up a member direct account to trade in the asx 300. havent been able to log in once have tried many devices been incontact with them 3 times to no help. also they sold my shares at a loss when i asked to get everything into cash. i look forward to the day when i can self manage

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sunshine's picture

Posts: 1683

Date Joined: 03/03/09

Unbelievable.....you direct them to sell then complain

Sun, 2018-06-03 09:14

You can't have it both ways and bluntly at your age you MUST be patient and not chop and change, long term strategies are the key and, as mentioned by another member, Aussi Super has consistently outperformed others.  When I hit sixty I very begrudgingly sought advice from an Aussi Super financial adviser, sure it cost me a little over two grand and I really questioned its "worth" ......how wrong was I, he saved me well over ten times the cost and his advice added a big chunk of cash allowing me to retire early.  

 

Rob H's picture

Posts: 4808

Date Joined: 18/01/12

 Was thinking that myself, if

Sun, 2018-06-03 10:18

 Was thinking that myself, if you have instructed them they will not wait for it to bounce back-who will pay if it goes further the wrong way?

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 Give a man a mask, and he'll show you his true face...

 

 

The older you get the more you realize that no one has a f++king clue what they're doing.

Everyone's just winging it.

 

lastcast's picture

Posts: 207

Date Joined: 04/04/13

Super - another option

Sun, 2018-06-03 08:37

 If you have an active interest in the markets but don' want to go down the self managed road you can consider a wrap type account. This involves a third party (such as AMG for example) acting as trustee.

See a professional and get written advice not verbal. The law now requires that they demonstrate to you how their advice, if implemented, would put you in better position. There are many things to be wary of. For example you may have cheap insurance, or access to same, in your existing fund, and risk losing this if you close it completely.

Rob H's picture

Posts: 4808

Date Joined: 18/01/12

 That is very good advice

Sun, 2018-06-03 13:21

 That is very good advice regarding insurance.
If you are in an industry that is regarded as hazardous (anything away from the office in Collins St that the underwriters work from) it is difficult and expensive for income protection and life etc.

When you apply, I reckon they look out their 20th floor window and if they cant see your workplace its a dangerous occupation and gets bumped up 3 fold with exclusions.

Industry Super funds often (not always) have an insurance supplier who provides it in bulk to the fund specifically for the occupation.

Do your homework, nut out the figures.

____________________________________________________________________________

 Give a man a mask, and he'll show you his true face...

 

 

The older you get the more you realize that no one has a f++king clue what they're doing.

Everyone's just winging it.

 

Posts: 527

Date Joined: 30/12/09

 Ive currently got two on the

Sun, 2018-06-03 12:23

 Ive currently got two on the go and one is iOOF and the other is Australian Super. I haven’t put anything in them in the last 5 years and The Australian super fund has been increasing by 9% without me adding a cent. I currently have someone looking into my super to get me the best deal

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 Get busy living, or get busy dying!

Posts: 195

Date Joined: 30/12/08

 dakka, changing funds just

Sun, 2018-06-03 19:22

 dakka, changing funds just to save on fees is not a good reason to do so. I have super in both retail and industry funds and this is how I see. The higher fees charged by retail funds are not a problem if their earning rates are substantially higher and more than enough to compensate. So generally retail funds charge about 4% on entry and none on exit. They also charge ongoing management fees but what you are looking for in a retail fund is that their earning rates are on average more to cover their higher fees. Just because industry fund's fees are low doesn't correlate with their earning power. All of that depends on the team that is looking after your fund, retail or industry. IMO, Colonial has not been performing but there are some retail funds which are great performers. If you want to switch, big question is when do you do it? How much time have you got before retiring? If you have lots then go aggressive, take some risk. Just saw a performance table for past few years comparing funds and they can only do so by using each's balanced one and Aust Super features in the top 10. 

I also don't understand the complaint above by Meeuwissen. You cant wait to self manage but it seems to me that from your instructions to your fund your decisions have not been great. That's not the fault of the fund. You picked the timing not them. A super fund isn't the same as the stock market. Sure you've provided only one eg but if that is anything to go by it doesnt show that you will do any better. Personally, self manage isn't for most as most of you cant manage your own income. I speaking generally so don't take offence as it's the truth. It's a lot of work and no guarantee that you'll do any better.

Ricey, you're talking about deductible contributions which not everyone can make or even in a position to make. If you can afford to salary sacrifice sure go ahead but don't forget super money is locked up until retirement. Are you prepared to wait up to 40 years? There are other investments. Dont forget where the Super Funds themselves put our money. That's right in the share market. You can do that yourself if you're prepared to risk it.

This is one of my favourite subjects but what's it got to do with fishing?

Rob H's picture

Posts: 4808

Date Joined: 18/01/12

 Its in the General

Sun, 2018-06-03 21:17

 Its in the General Discussion section, and got more to do with Fishing than Football has
Cant fish on a boat without either

  • money
  • being someone elses bitch 
____________________________________________________________________________

 Give a man a mask, and he'll show you his true face...

 

 

The older you get the more you realize that no one has a f++king clue what they're doing.

Everyone's just winging it.

 

Meeuwissen's picture

Posts: 528

Date Joined: 29/03/13

I didnt chop and change

Mon, 2018-06-04 06:44

 i researched and switched over from rest to australian super i requested everything go into cash as i dont think the economy is at its lowest point yet. They put it into australian shares ( i didnt ask them to do that)  to open a member direct account you have to have a min 5000 in another product of theres. I opened a member direct account $395 a year so i can trade into the asx 300 which they use ubs for the problem is i havent once been able to login on any device. 

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Stay salty