Which Superannuation?

• 

  CyberMurning on 08/06/2017 - 23:58

  +4

  You need to understand the whole thing properly.
  Superannuation company is just a platform or "store front"
  They have few own products but mostly 3rd parties ie fund managers who put their products.

  So you go from superannuation a to be, maybe you will see the same products.

  Just pick one with low fees, and many choices.

  Switch from default balance investment choices if you can, according to your own risk profile , and then rebalance every half or one year.

  • 

    mskeggs on 09/06/2017 - 09:25

    +3

    This thread will also benefit the entire OZB community as I'm sure I'm not the only one that at some point in their life asked themselves the same question.

    This isn't really true, it isn't like choosing the best value brand of white sugar, where the item is identical and people's needs for it are all similar.
    You haven't really talked about your own priorities ("fees" & "features" are a bit like saying I want a car with good features for a good price - it doesn't do anything to narrow down the choice), and while people can talk about their own choices, it isn't very useful.

    CANSTAR do reports of fund performance, you can decide if past performance is relevant to your decision. Fees are the thing most in your control, so choose that wisely.
    Otherwise, as the dragon says, you can select some asset classes.

    The other alternative is an SMSF when you have a balance suitable to support the minimum costs to run one.

    • 

      CyberMurning on 09/06/2017 - 09:34

      "Otherwise, as the dragon says, "

      i like that phrase! might make it my trademark :D

      smsf, just do it if you have balance of 150k in super otherwise the headache will overweight the benefit

• 

  [Deactivated] on 09/06/2017 - 00:03

  -8

  I signed up with Spaceship. You should check them out.

  • 

    swimmingtoad on 09/06/2017 - 00:05

    +6

    Very high fund management fees though
    Up to double most of the others

    • 

      simgue on 09/06/2017 - 00:11

      Agreed, high fees. I too however have signed up in the hope that the tech boom will continue and more exposure to those stocks will help offset the higher fee. Will be interesting to see how it goes. For a fintech, ironically their website to view your portfolio and transactions still sucks. I can only guess they're still working on it behind the scenes.

      • 

        swimmingtoad on 09/06/2017 - 00:16

        +2

        They have had about 9 months, you would think that was enough for a team with a tech background to get a decent website lol.
        There was a good review of the fun in the AFR in March:

        "The sum conclusion is that Spaceship, in its current form, is not as compelling as its marketing suggests. The fees, the one variable that funds can control, are high given Spaceship's current asset allocation makes what amounts to a conviction bet on equities.

        Even though the message is that this is a technology play, it has invested in index and exchange traded funds that are easily available on the ASX." - Most people aren't aware of this. They actually arent directly investing in the tech stocks - they are investing in everyday funds like every other super.

        http://www.afr.com/business/banking-and-finance/financial-se…

        Will be interesting to see how they evolve their fund in the coming 12 months.

  • 

    redfox1200 on 09/06/2017 - 07:45

    i signed up to spaceship last week, i had a look at their asset allocation, it mentioned that Google will be your biggest tech holdings, which amounted to about 2%, most of the stuff they hold wasn't even tech, so i don't think the higher management fee's are justified.

  • 

    [Deactivated] on 09/06/2017 - 07:56

    +1

    Also not clear that their team has any expertise is funds management or portfolio construction …

• 

  potm on 09/06/2017 - 00:03

  +4

  Australian Super is one of the best ones out there.

  Just avoid the high fee ones.

• 

  swimmingtoad on 09/06/2017 - 00:09

  For someone who has a low to moderate knowledge of super and investments, Australian Super is good.
  It's relatively low cost and is a large fund.
  They don't have many investment options, but that will shouldn't impact you.

• 

  [Deactivated] on 09/06/2017 - 01:15

  I might get a lot of bad feedback from this but since ur so young get rid of ur total disability and death fees, they don't pay back very much anyway and the savings will work out a lot over the next 40 years. Will save u a lot, everything in life is risk but make sure it's a calculated risk.

  • 

    dw121212 on 09/06/2017 - 08:33

    It becomes much more important when you have a family and a house, you don't want to leave them with debt.

  • 

    swimmingtoad on 09/06/2017 - 13:33

    +1

    By far the Dumbest comment on this thread.

    • 

      [Deactivated] on 09/06/2017 - 15:28

      +1

      Agreed. Cancel your home and car insurance too. Always fly your kite in a storm.

  • 

    mrtin on 12/06/2017 - 21:56

    Good comment! Just make sure you have money for OP if he she does suffer a tpd or die!

• 

  eclaw on 09/06/2017 - 09:41

  My 2 cents.

  AustralianSuper is considered one of the better funds out in the market right now.

  There is likely to be a cheaper fund elsewhere but the savings is unlikely to be huge since AusSuper is already a not-for-profit.

  In addition, any savings you do find (which I would imagine is the lesser of 0.1% p.a in admin fees) needs to be checked every year to ensure you're still getting the "cheapest" fund. Top that off with potential insurance that you'll need if you start a family later in life and the fact that transferring insurance can be difficult and in some cases not allowed between funds - the saving is just not worth the effort.(unless you like going through medical tests and procedures)

  Not that you shouldnt try though, especially if there is a significantly better deal, but bear in mind if the saving is minimal like 0.1% it might not be worth fussing about (unless the switch is easy and pain-free).

  Oh by the way, this is how I judge my super funds:

  1) Admin fee (lower the better)
  2) Investment fee (low is nice, but compare the after tax return between funds over a long period of time and you'll get an idea of what you're paying for)
  3) Insurance cost** (This is an often overlooked cost - you'll need to compare current costs and future premiums which is usually outlined in the PDS)

• 

  SharedSugar on 09/06/2017 - 11:35

  There are also significant differences in portfolio holdings disclosure. If you are concerned about monitoring what your money is being used for this can be a very important factor.

  It could mean the differences between investing in good companies making the world a better place or ruthless companies with practices you disagree with.

• 

  AlloAllo on 09/06/2017 - 13:03

  Australian Super was a finalist in the 2017 Chant West Super Fund of the Year Awards (yes, there is such a thing). The 2017 winner was Sunsuper.
  SuperRatings awarded QSuper their 2017 Fund of the year and the MySuper of the year Awards.
  Australian Super provides you with a facility to compare your existing fund (Australian Super) with more than 100 other funds (using the Chant West Apple Check) and I'd say it's worth a look:
  https://www.australiansuper.com/superannuation/compare-us.as…

  • 

    [Deactivated] on 09/06/2017 - 15:22

    +1

    QSuper is pathetic. They work for the ratings agencies, not their members.

    Living off a captive market of risk averse public servants who they no longer give a toss about, QSuper is a toxic organisation which is rotten to the core. AVOID.

• 

  [Deactivated] on 09/06/2017 - 15:35

  +2

  With 20 years experience in Super I can honestly say it makes sod all difference, unless you're stupid enough to go with a private company.

  Industry funds, higher risk investing while you're younger, slowly reduce the risk as you get older.

  DON'T cancel your insurance under any circumstances. Ramp it up to a couple of million while you're younger and don't have any pre-existing conditions. Stick with the same mob thereafter. they don't like paying out anything over a mill but that's what lawyers are for. Don't mess with your income protection either, one day you'll need it.

  Remember - paying for insurance with super is the cheapest way you'll ever do so.

  If you can afford it - make voluntary contributions in the amount of 5% of your salary. Once you do so, you won't miss it unless you're in hard times. And I know about hard times.

  • 

    dcep on 09/06/2017 - 21:40

    but the coverage is not great ?

    i mean the most common life unfortunate event is having cancer.

    does TPD pay out for cancer ?

    • 

      [Deactivated] on 10/06/2017 - 14:20

      +1

      The P stands for Permanent.

    • 

      swimmingtoad on 10/06/2017 - 20:10

      This is what Trauma or death insurance is for.

      • 

        dcep on 10/06/2017 - 22:46

        that's what i thought. not covered in super insurances.

        and death insurance only pay out on terminal stage which is too late.

      • 

        [Deactivated] on 12/06/2017 - 09:32

        @phunkydude:

        When do you want your death cover paid out? At age 21?

        You can get it 2 years "ahead" of your death if you have a Terminal Medical Condition. They tend not to pay it to people who don't die. I had a skin cancer removed recently, where's my death payment???

        Trauma insurance is available through the private sector. They don't provide car insurance through your super either. Best not to take out TPD cover then…

      • 

        [Deactivated] on 12/06/2017 - 09:48

        @phunkydude:

        Look, I'll cut you a break. I've worked in Super for a couple of decades. I've seen people cancel their cover then call in despair.

        The reason it's the best option IMO is:

        1. Your employer pays for it so you're not out of pocket
        2. The money is taxed at 15 cents in the dollar, not your marginal rate
        3. Check out the price in the private sector per annum
        4. Payout rates are generally fairer from Super insurance claims
        5. It defaults you to have cover so as you accrue medical conditions they are NOT excluded whereas if you seek cover when you need it you're (profanity).
  • 

    Oofy Doofy on 10/06/2017 - 19:16

    Let's be honest here though… how many of these insurance providers pay-out when the time comes? I've seen a lot of cases where they have got out of it, one way or another. Some people have resorted to killing themselves because they know they'll pay-out on death almost without question.

    Is it almost pot luck? That seems to be the overall view from the organisations who help people in these dilemmas.

    • 

      swimmingtoad on 10/06/2017 - 20:08

      "I've seen a lot of cases" - where?
      The media always sensationalise insurance companies not paying.
      There is generally a reason for not paying, such as lying about chronic drinking, smoking or drug use, but the law forbids the insurance company from explaining so you only ever hear a one-sided story.

      • 

        Oofy Doofy on 10/06/2017 - 20:20

        +1

        It's more so been a clear case of finding any way out of paying up imo.

        Par for the course with insurance companies.

        Small bill insurance = not much trouble (usually not worth paying the excess for even when the time comes)

        Big bill insurance = trouble when the time comes.

        I would be cautious of being devils advocate for an insurance company who is clearly trying to get out of paying what they're meant to, when a claim is made and found legitimate, but are playing on fine print legalese.

      • 

        Oofy Doofy on 10/06/2017 - 23:28

        +1

        Just a follow up comment, the simplest way to explain a clear example, was in the form of:

        Your own Specialist Doctor says you have this condition and gives their opinion for insurance purposes

        Insurance company then sends you to their own Specialist doctor, who then stalemates your specialist report.

        Therein a good example of what's at hand when dealing with particular insurers.

      • 

        [Deactivated] on 12/06/2017 - 09:37

        @Bamboozle:

        I have significant industry evidence that this is the case.

      • 

        [Deactivated] on 12/06/2017 - 09:38

        @Mr Gradgrind:

        That's why you should take up the top cover, then get a lawyer if you ever need it.

• 

  citygal on 09/06/2017 - 18:36

  Anyone knows of a superannuation that doesn't charge maintenance fee? Doesn't mind if it's a self-managed fund

  • 

    swimmingtoad on 09/06/2017 - 21:59

    "Doesn't mind if it's a self-managed fund"
    If you don't know simple super info a SMSF is not for you.
    Also, maintenance fee doesn't make sense. Admin fee? Performance fee? Investment fee? Management fees?… and so on. What do you mean?

    • 

      citygal on 09/06/2017 - 22:45

      I mean SMSF fee…. I have ING for a while but apparently they are increasing their price…

      • 

        mrtin on 12/06/2017 - 21:58

        Is it pronounced "ing" or i.n.g.?

      • 

        citygal on 12/06/2017 - 22:37

        @mrtin:
        ING Direct

      • 

        kingmw on 13/06/2017 - 11:12

        Yes ING has significantly increased their fee and also added an asset-based fee.

• 

  gummibear on 10/06/2017 - 01:40

  +1

  http://mobile.abc.net.au/news/2017-06-09/superannuation-has-…

  We really get ripped off according to above article.

• 

  kingmw on 13/06/2017 - 11:15

  I would recommend Caresuper (2017 Money magazine Best Super Fund Manager).

  Just recently changed over from ING Living Super which have increased their fees.

  Reasons
  1) Low fees
  2) Capped and low asset based fee
  3) Capped price Direct investment option (into ASX 300, ETFs and LICs) so can manage like a SMSF but without the expense and paperwork.

  • 

    citygal on 13/06/2017 - 12:19

    What is the fee for Caresuper?

    • 

      kingmw on 13/06/2017 - 17:45

      +2

      Entry Fee
      $0

      Administration fee
      $78 per year ($1.50 per week) + 0.15% to 0.20% of your account balance per year (a cap of $500 per year applies)

      Exit fee
      $40

      Switching fee
      $0

      Direct Investment option administration fee
      $25 per month.

• 

  meumax on 22/11/2017 - 12:05

  Since you're 26, you have a long time to go and the biggest factor over a very long time frame is fees. So pick the fund with the lowest fees and you should be fine.

  Personally, I switched to First State Super because while the fees for their pre-mixed options are about low/average, they have single asset options which are way lower than any other funds single asset options. e.g. their "Australian equities" single asset fund has only 0.05% investment fee.

  So what I did is choose my own asset allocation using the building blocks of their single asset classes, Australian equities, international equities, property, Australian fixed interest and international fixed interest. If you don't know about asset allocation, you can just look at the allocations from their pre-mixed options and try to match those as close as possible.