which superannuation fund?
 

i need help/advice in choosing a superannuation fund. i am in the I.T industry and am 35.
cheers

Re: which superannuation fund?
 

They invest a huge chunk in shares, last 3/4 years most have given huge returns, say 16% plus, prior to that many returned a nice loss due to the share market going the other way. In other words you cant predict returns and can be quite nasty if the market turns the other way for a few years.

Look at the fees and charges, that bit you can predict. Industry funds are the cheapest usually and obviously pretty big. Were in 3 different industry funds all have done well since the share market boom, of course that monies not locked in if the shares go backwards so do your retirement funds:eek:

Most funds have a cash type option too, less volatile. You can also set up your own fund, fees and lots of regs, probably more for those with large amounts to invest.

Re: which superannuation fund?
 

I cant help feel that the Industry super funds would be a lot better still if they didn't spend quite as much on Advertising. I'm with Asset Supper.

Re: which superannuation fund?
 

If transferring your fund from the uk, then it needs to be on the qrops list from the inland revenue.

http://www.hmrc.gov.uk/pensionschemes/qrops-list.htm

Australia Super is on it, but not sure about any other industry ones.

Re: which superannuation fund?
 

I have 2 funds:
Colonial First State (owned by Commonwealth bank) which is a bit higher risk,
MLC which is medium risk.

Both have relatively low fees and are performing well. I'm happy with both. The tax breaks on super in Australia are good - probably too good, so future governments (Rudd?) might cut back on them. Pension system here is far, far superior to UK system.

Re: which superannuation fund?
 

I have MLC and choose the risk level according to how jittery I am feeling. FIngers crossed it has done very well for me for the past couple of years. Nothing compares to an older government super scheme though - I have retired laughing!

Re: which superannuation fund?
 

I was told Cbus at work here in Tassie. But nothing is really gfuaranteed is it.

Re: which superannuation fund?
 

Industry funds offer the best returns as they have the cheapest fees.

They all invest in exactly the same things so it is down to fees.your money in the OZ market will go into an index weighted fund,Cba makes up around 6% of index weighting so 6% of your money goes there,BHP is around 8 or 9% so same.that %age of your money goes there.There is very little diversification as the banks and financials make up around 44% of the index.

most of your money will depend on how the top 10 companies perform,as an example BHP is worth around 154 billion,largest company in OZ,CBA,second ,.
around 81 billion.

With around $1.1 trillion under management,and 50% ish of it in the ASX ,what happens when they can no longer buy stocks without forcing prices up high to get people like me to sell.

Super funds own around 60% on an average of all the companies I own.

MTAA has the best returns over the long term,but it is a bit like saying Man Utd have won the league a lot of times so they will win it every year.

Totally pointless having more than one fund,you are just paying 2 lots of fees to buy the same stocks.Unless you are picking boutique funds that may only buy japanese stocks,or US or MSCI world index.

You will be far better off investing for yourself using leverage and the imputation credits.Your money going into the super fund is taxed at 15%,money kept outside of super is not taxed if using leverage.

The imputation credits mean the earnings are tax free (dividends),the interest is a tax deduction,so you have a good head start.

At 35 you need to get off to a good start,your total ingoing will be around 2.3 yrs wages (9% x 30yrs -15% tax),compound it and you may retire with 3 to 5 yrs wages,depending on future returns.

I've been in it for 20 yrs and have the magnificent sum of 73K,which I can draw out tax free ,whoopee,what a waste of time.

Industry funds as I say give the best returns,no commission to planners so they wil never recommend them,fees of around $60,against a %age charge.

For my 2 cents worth it is all a big con trick,the industry gets their hands on around 1% of $1 trillion and increasing every year,it is a nice little earner.

Any of the fund web sites wil give you more info.The big banks own the funds that are advertised heavily,colonial is owned by CBA,ING is owned by ANZ,MLC is owned by NAB and BT is owned by westpac.

Good Luck.

Re: which superannuation fund?
 

Nothing compares to an older government super scheme though - I have retired laughing![/QUOTE]

You're spot on there,and the future fund (telstra stock) to hopefully meet ongoing unfunded liabilities.A defined benefit fund will allways be better than a defined contribution fund.

The risk is taken by the govt,rather than the super fund .

Re: which superannuation fund?
 

Did a quick check,I was well out on BHP,forgot how much it has gone up.BHP is 11.5% of the market and the big 4 banks are 20% of the market,so 31.5% of your money goes into 5 companies,probably 60% of your money goes into the top10.

Re: which superannuation fund?
 

You can currently use your own fund to purchase investment property. The only downside is currently that fund may not purchase with any leveraged borrowing. There is however legislation currently going through parliament which will change this. Although you cannot live in the investment property it does not stop individuals living in each others investment properties:sneaky: