I’m with commbank essential super. And when I check my balance every time, it goes up, then it goes down dramatically. Like on 13 September my balance was $40,400 and today 25 October it is down to $39,500. That’s almost $1000 gone. I get paid about $120 into my super every week from my employer. Can someone tell me what’s happening?
My Super Balance Is Going down, Why?
LCinziaanoushka on 25/10/2018 - 13:57
Comments
Because since you've joined the market has crashed lol
picked the wrong investment mix and has been underperforming, or
you looked at a specific reporting period and it's showing negatives, or TBC
You joined ATM now its tanking bruh. Chinese new year, wall street bonuses and so on.
You're giving us a pretty narrow range to look at the returns.
In any case - market has dropped in the last month like others have stated.
It is up year on year though. It might be worth looking at the performance over the last 12 -36 months. If your dissatisfied with that, consider switching funds.
Fair enough but this has been happening since I joined
The stock market going up and down isn't really a new thing…
Your superannuation account is an investment account not a savings account. So its value will rise and fall with the value of its underlying investments. This is called risk. But for taking on that risk you are rewarded with the prospect of higher returns in the long-run than a savings account. Over a long time frame (10+ years) the risk should even out and the returns should be much better than for a savings account.
That is the kind of BS they are feeding all "investors". You need to compare to the Index itself, and if you do that you'll realize that the Management Fees and Fund fees and whatever other fees eat heavily into your return. And the fund is not doing anything better than the index itself. Worst funds are the one that are "Actively" managed. It just means much more fees to pay.
I was looking at exiting from growth to cash only fund, and the transfer is about 3% and 3% to buy in again. A rort of 6% where there are no expenses on the Funds side.@cameldownunder: Superannuation accounts go through changes, just like your Bank account or Phone accounts charge fees.
If you are being charged entry and exit fees, that could be either your investment platform (eg. AMP Wealth), or the available investment options (eg. AMP Cash or AMP Fixed Rate Return).
Most superannuation funds, including AMP & bank owned funds don't charge entry/exit fees anymore.
Could be worth looking at a new superannuation provider or account?
@cameldownunder: I totally agree. I set up a smsf, and am still going backwards atm, but at least I'm not paying fees to go backwards.
Are you with AMP?
Commonwealth bank essential super
No fund isn't going down right now but you should probably switch to a better fund in general. That fund is somewhat conservative and moderately expensive.
And what is your suggestion for a better fund?
@serpserpserp: I recommend doing your own research and picking something suitable for you:
https://www.moneysmart.gov.au/superannuation-and-retirement/…
https://www.moneysmart.gov.au/superannuation-and-retirement/…
I'm with HostPlus and use the option to go with self apportioned ETF/LICs.
@DonWilson. How do you determine "moderately expensive"?
CBA Essential Super (platform) has an annual fee of $70.56 and a 0.80% investment fee pa on the balance of funds held.
HostPlus (platform) has an annual fee of $78 and a 0.71% investment fee pa on the balance of funds held.
Not all investment options are "going down", (CBA Balanced / CBA Australian Share / CBA Cash), as the Cash Deposit Option in AUD would maintain it's cash value. There are literally thousands of investment options, not all move in the same direction.
Summary
- Not all investments are going down in value. Yes, cash is an investment.
- Cinziaanoushka's decreased superannuation balance is likely due to a combination of; investment loss, insurance and fees.
- CBA Essential is not "moderately expensive" compared to HostPlus (per your post).
moderately
/ˈmɒd(ə)rətli/
adverb: moderately
to a certain extent; quite; fairly.Yeah, the HostPlus is cheaper for a more customisable product. Making CBA Essential a moderately expensive option. Not expensive, not ludicrously expensive, moderately expensive. It costs more for a simpler product.
You've got me on the Cash Deposit Option. What a fool I was to not consider someone 100% in a cash only fund. Nailed me.
@Mango Madness: OPs base insurance should be free. Given he seems to know nothing about his super plan, doubt he would have opted for more.
Maybe insurance premium, tax of 15% and currently share market is down.
With my one, tax is calculated end of month so for the balance graph, it shows the pay coming in each fortnight then a negative end of month for the tax (and admin fee). My balance is only $15k with all insurance turned off so hardly any profit/loss each month.
So I think Opp might have something similar happening.
Do you guys think I should change super funds. I was doing some research and apparently “Australian Super” has a good return or something like that compared to the one I’m on
Ask around your local contacts for a good broker and go ask them for advice. There is so much fine details BS in that industry that you need someone trustworthy to guide your through it.
Your return depends on the investment choices you have made within your fund, as well as they fund you are in.
Try this to compare your current fund with AustralianSuper https://applecheck.chantwest.com.au/welcome?ProductCode=AC3S…
Consider a couple of industry funds, not just AustralianSuper.
Past performance is not a reliable indicator of future performance and should never be the sole factor considered when selecting a fund.
You should look at the underlying investments of the super fund and only consider those which align with your outlook. Of these you should choose one with low fees.
This is your money which is being invested, so it is worthwhile educating yourself. Generally, if you won't need funds until a long time in the future, it is beneficial to invest them in high risk/high return assets such as shares.
You need to go with a "member owned" super fund where the profits go back to the members and not the board members and CEO's.
I'm with first state super, I stopped working about 3 years ago to look after the kids, so I haven't been contributing, plus I am paying a little extra for a higher life insurance policy. And my Super fund has increased by $10,000 since I left work.
Not professional advise, ask a qualified individual.
However, I would not change super funds right now, they're all doing bad as each other right now. By selling and changing, you are solidifying your losses.
i.e. While you lost say $1000 from your initial $10,000, you still have the same amount of stocks. When/If the market bounces back up again, or dividends pay, the amount of stocks is a big factor.
However, if you sell right now, you solidify your $9,000.
I know nothing of your circumstances or situation but I can pretty confidently say Australian super will be better than any Commonwealth Bank ripoff product. Has the royal commission findings not been enough to wake people up.
Geez your lucky mine went down 3000 super is a long term investment it will probably go back up soon!!!
Refunding customers what exactly? Your super statement shows you exactly why changes occurred. If you can't even read that…
I don’t need to explain myself.
You need to know what you're talking about.
HighAndDry's question is meant to challenge you to think about something you haven't considered, seeking an answer from you is not the ultimate aim.
Good god…
It scares me that people don't have at least a basic understanding of simple money financial matters.
If you don't understand it, pay a financial advisor. their fee will probably save you or make you money over the long term.
Look at it this way - could you build your own house? Some people can, and they will, others cannot - you pay someone to look after that for you.
Super Balance = Cash from you + cash from your employer +/- investment returns - fees - life insurance policies etc.
At the moment, the return is a big fat negative (6% or something this month alone). I'd imagine most funds are down, some more, some less depending on their investment mix.
At the end of the day, if you're stressing over $1000 blip every now and again, move your super into a defensive fund (ie mostly cash/bonds) which won't give you much in the way of growth, but won't drop as much when the market goes down.
My investment account dropped 5% this month, and it is diversified across so many different ETF's - when that happens, you know the world just took a hit… but alas, i hold on and hope it goes up later on
Well you're beating me, You're beating me, I'm down 6.4% with mine :)
Essential Super has a choice of Investment:
Balanced option
Australian Shares option
Cash Deposit optionI'd guess your Balance change reflects the change in the
Value of the Underlying Investments.
Have you taken into account fees and charges?
Yes. Monthly charge is $5
You left out the 0.8% fee. What's that … $300,000 lost over a lifetime?'
I don't think you care though given that you allowed a bank to control your super in the first place.
You'll never lose $300,000 with a 0.8% fee! LOL
Find yourself an industry super fund and change ASAP.
Combank super is set up to make profits for them not you.
Well, first:
cash-only investment options and balanced options with a cash component.
Is your super under one of these options? Also, the stuff in the lawsuit means people weren't getting as much in interest as they could've. Not that anyone was "stealing" super.
I really want to stick up for the little guys, like you, but com'on now. Basic literacy isn't too hard is it?
I really want to stick up for the little guys
Really? Based on your posts you seem like a person who cheers on the establishment while they make your life worse.
Then you should read closer. It's an unfortunate but unavoidable consequence of the fact that the reason the 'establishment' is able to do this is also partly because they're also just smarter and more often than not, know what they're talking about.
The more I see these things happen, the more I realise society is kind of like a giant Ponzi-scheme symposium. The smart ones rip others off, the dumb ones get ripped off, but they're all there to try and make money no matter what, so I very often don't feel any sympathy for either side. The "little guy" is more usually the one being ripped off but that's much more often because they're dumb, not because they're better people.
Are they deducting money for insurances? Lots of people have expensive insurance sold to them through Super without even knowing about it.
Nah I haven’t opted for the insurance.
Just to be doubly sure, have you opted-out of insurance though? A lot of super packages comes with insurance already included and you have to specifically tell them to piss off with that BS.
I did check my statement and I’m not opted in for insurance
@Cinziaanoushka: Ok. If you checked your statement - it tells you why there are changes to your balance though. What does the statement say?
@HighAndDry: It’s funny coz my statesment doesnt show any interest the bank is taking out except the $5 monthly fee.
Do you have an example of insurance cheaper outside?
I got NobleOak quote (supposedly one of cheapest) and was still dearer than through industry super fund.@Gandalf the Thrifty: I mean, for most people in the prime of their life, the insurances that come with super (income-protection and life insurance) aren't always necessary or cost-effective to insure to begin with.
Ask the world's greatest treasurer who invented this mess and also said if the world had an arsehole Australia would be it.Nice comment from someone who is still collecting over a million dollars P.A from it's arseholes.
https://1v1d1e1lmiki1lgcvx32p49h8fe-wpengine.netdna-ssl.com/…
https://www.independent.co.uk/news/world/keatings-rear-view-…Bob Hawke aka Hawkeye… I see what your doing here mr negative propogandist
ASX is down 2% today alone. What do you expect?
This should help you understand:
https://www.smh.com.au/business/markets-live-asx-braces-for-…Whatever it is, your current "loss" is only on paper until you decide to "realise" the loss by pulling your money out of that option.
What you should be checking is the number of units you have in each investment option you're invested in.
Sorry I don’t understand but I appreciate your reply
try this:
https://www.macquarie.com/au/personal/investments/expertise/…
I didnt have a long read but the first paragraph seemed fairly accurate in explaining how your super is related to the stock market.
Thank you I appreciate your help .
1980s Lifestage option
Units: 26,770.6611
Unit price: $1.4694
Value: $39,336.81
Cash: 4.80% $1,888.17
Australian fixes interest rate: 8.90% $3,500.98
Global fixed interest rate: 5.90% $2,320.87
Property: 13.70% $5,389.14
Australian shares: 32.70% $12,863.14
Global shares: 34.00% $13,374.51Opening balance as at 31 December 2017
$34,040.92
Your investments
Contributions and rollovers
Employer
3,322.39
Your withdrawals
Government taxes
Contributions taxes
-498.36
Fees
Account Administration fee
-30.00
Change in investment value
999.72
Closing balance as at 30 June 2018
37,834.67Opening balance as at 31 December 2017
$34,040.92
Your investments
Contributions and rollovers
Employer
3,322.39
Your withdrawals
Government taxes
Contributions taxes
-498.36
Fees
Account Administration fee
-30.00
Change in investment value
999.72
Closing balance as at 30 June 2018
37,834.67That doesn't seem that extreme. The biggest negative is govt taxes so go blame Canberra. The $999.72 increase in investment value is probably the reason for your month-on-month decrease because that seems like fairly low returns on stocks for half a year, but again, stock market hasn't exactly been doing that well lately.
Oh and also, your cash component is 4.8%, so you're probably not eligible to join in the class-action lawsuit you mentioned before.
should've invested in coal
I don’t think dumb people know how to do that 😝
You gave a bank control of your super.
Seriously, you need to know if you have got your money in equities which comprises of over 2/3rds of your portfolio then you're going to be exposed to market movements hence why you are losing money. If you don't know this then put your money into the cash option and go read stuff on the Internet before asking anymore questions.
Connbank.
Opening balance $34k (12/17)
Closing balance $38k (06/18)= $4K/11% profit/growth/increase over 6 month period (23% p.a.)
Mainly due to super contributions.Current balance $39.5k (10/18) = +16% (+19% p.a.)
Invest in Murray Darling Water shares. Prices have doubled in 2 years. $4000/Ml now $8000/Ml
yeah the smart money is investing in water. everyone needs it and we have limited amounts. especially with cars of the future running on hydrogen made out of water. I started out buying two buckets full and putting in them in the boot of my car for long term investment.
Good tip, I might keep some on ice for the long term. Hopefully the market won't run out of steam.
from little things big things grow
They have concluded you've died and are now helping themselves to your $, since you won't be needing it anymore!
Both the international and Australian markets have crashed. Not a concern unless you are retiring soon
They are using it to buy fairy floss and popcorn.
Do you think fairy floss covered popcorn could be a thing? lol
Op doesn't seem to understand how super/ investment works. I would seek professional advice from a financial adviser in your case.
People are giving you negative votes because of your lack of understanding. Nothing against your personally.
All super invest in shares, you can choose to invest in cash, which is saver and not sensitive to stock market fluctuation. But the return for cash over a long term is low. Invest in stock is good for the long term, you get better return, may take some risk but I think it is worth it. If you plan to work for the next 20 or 30 years, choose an investment option that invests in stock is better.
It's because Pascal Boillat is the new chief information officer, seems like every bank this guy is at things just go kuput ketut.
Russian hackers. You need to pm me your TFN, bank details, user and password and I will sort this straight out for you.
It goes up and down all the time. If you dont need your super for many years leave it in all in equities.
You want aggressive portfolio as its been proven over 10-20-30 years leaving it alone youll end up way ahead rather then trying to time the market and moving it around all the time coping the buy and sell spreads too.
The first answer…a portion of your super is invested in stocks. They go up and down.
The more important question is…WHY THE HELL DO YOU HAVE YOUR SUPER WITH THE CBA!!!
Retail Super funds (like the CBA's) are:
1) The worst performers
2) Have the highest fees
3) Make sure THEY get paid first and put THEIR profit before even considering making any money for YOUR Super.Change Super funds as fast as possible.
My Super Balance Is Going down, Why?
Cos it's getting close to December, and the fellah in red has… been watchin :)
OP, can I ask your age?
Super is a long-term investment; it will move up and down with the market. These movements will be more apparent based on your asset allocation.
Both Wall Street and the ASX has taken a beating lately: https://www.smh.com.au/business/markets/a-lot-of-fear-out-th…
If you're say 35 or below, you still have another 25-30 years until retirement (either reach preservation age or have access to your super. Of course, this age may increase in the next few decades). You're young enough to absorb short-term volatility in return for long-term gains.
Go with an industry fund and set your portfolio to the most aggressive/high growth option and forget until you're around 50. From then consider moving to a balanced option, and then in the last few working years, consider going into conservative.
Nutshell: Donald
Here's how to see why:
- Go here: http://lmgtfy.com/?q=asx200
- On the results page, click 1 Month
That's why.
Edit: I just noticed this is one of those 1 day old accounts trolling the front page. Nobody is this financially illiterate.
Super is just a thing that happens for most people. They couldn't even tell you who their super was with let alone what super is or how it works. Most people are this financially illiterate.
You probably right. Then they we really shouldn't be negging him. It's a bit annoying when he blames cba and wants to sue them lol.
Check the details of your fund.
Most 'Balanced' options are actually more than 50% high risk investments. If you're looking at lowering your risk, move into 'Conservative' or similar option.
The market goes up and down every day … and your balance reflects that. The last month or two have not been good for Australian equities in particular.
I am not sure what is going on but i lost all most 2 grand over a month period they just disappeared. Just last night till this morning $800 gone down and i am with REST.
What i have noticed is if market goes down and super goes down even faster then market. Market rise up super never rise up only the contribution gets added.
Same is the Patrol prices, international prices rise prices rise here, international prices goes down here prices never goes down instead they even rise again.
your super has gone because the share markets have corrected around the world. stop worrying and take the good with the bad. if you want less risk switch to cash.
Move to Australian Super. Industry super fund.
Join an Industry Super scheme. They outperform bank and other non-industry Super schemes and they’re more honest (if you’ve been keeping up to date with the banking royal commission.)
your surname isn't Packer or Murdoch
You know the market is taking a dip at the moment?