There are no fees on a lot of options and the performance seems OK. Does anyone use them or can anyone comment on the pros/cons of this fund.
http://www.ingdirect.com.au/superannuation/living-super.html
http://www.ingdirect.com.au/pdf/LivingSuperMonthlyPerformanc…
That's just the sort of info I was after and thanks so much for your thoughts too.
Standard cash option : 2.75%
Cash hub: 1.9%
For simplicity, if we assume one holds at least $50k so that the required holding amount is 1% of balance at any given point.
Under the cash hub, you are missing out on a risk free return of 0.85% (2.75 - 1.9); multiply that by 1% and you're effectively paying an admin fee of 0.0085% on your account. Even if you compare it with the opportunity cost of market returns instead, say 12% (should the bull last that is), the admin fee works out to be around 0.101% per annum.
The account is fee free*, this is just another way of looking at it
Then again, 1.9% isn't bad for a proper cash holding, especially if $500 isn't a big proportion of your super. I'm sitting on $60-70k and want to use their direct shares option once I get to $100k. The $180pa fee is much cheaper than running a Self-Managed Fund. However, if you're young and only have a low balance, I'd recommend taking TheAviator's advice and comparing some of your other options.
For a new worker or young person, industry funds often offer a very good deal as they are non-profit. Just google the one you are interested in tho - I have seen suggestions that some pay high commissions to union officials on their boards, although that may be the exceptions rather than the rule.
I've just opened my account with them. But I've got a low balance and haven't worked for 8 years, so it was being eaten away by fees. Now it can grow (slowly), until I re enter the workforce and start putting away extra contributions on top of the paltry amount I've been paying in for the last year ($40 per week, it's not much, but it's something).
I considered using this, but decided against it for a number of reasons. Firstly, the requirement of 1% ($500 minimum) of your holding being kept in a cash hub earning only 1.9%.
Furthermore, the only fee-free option is the smart option which targets a 50-50 split between cash and shares. This is not a great option for young people, who have a much higher appetite for risk given the long working life ahead of them and should be looking to have far, far less in cash. ING does provide the "Select" option, but the choices within that seem limited and if you do take it, then there are fees involved.
I ultimately went with ANZ Smart Choice Super. It also has low fees, but what I liked most about them were their "Lifestage Investments". The asset allocation is based on when you were born, starting with high growth, higher risk investments when you're young and transitioning fairly smoothly through your life to more defensive assets as you get older. Very easy "set and forget" option and I've been very happy with it.
You can get more info about the Lifestyle Investments and the Smart Choice super here https://www.wealth.anz.com/superannuation/lifestage-investme…