The Meeting Place > Let's Talk Retirement > Superannuation Funds - worth investing in or not?

Superannuation Funds - worth investing in or not?

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Rosret
7 yrs ago

I would like to start a discussion on the best methods of self funded superannuation.

I just received my annual statement from a superfund that claimed to be award winning.

I understand that I need to choose what I need to invest in, be it property, international shares, domestic shares, cash etc. So naturally one diversifies.

And there sits my statement for 2016. Negative! 

My son has been playing with a few thousand dollars on the stock exchange and has done better than my financial super investors.

My bank can offer more than than the puny 1.95% cash investment the super fund returned on the cash portion of my superannuation.

How does the property portion investment only return only 8% when there has been a massive percentage increase in the Australian property market in the last 12 months?

What is going on? This super fund is one of the big guys with a claim to be receiving awards for their high achievement. 

Maybe Malcolm Turnbull is doing us a favour by forcing us to take care of our own money. He certainly isn't going to have anything to tax this year. Why he is bothering with the changes to legislation.

I wonder how everyone else's superfunds are going? I feel as though its time to pull out bulk amounts and take care of my own money. Does anyone have any comment? 

3 comments
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Abby
7 yrs ago

Have you thought about a self managed super fund ?

Perhaps your son could give you a hand with it ?

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Rosret
7 yrs ago

So Abby, you recommend I replace someone with no experience to manage my investments rather than the so called power brokers?

I spoke with a person from the private super fund today and they explained that they can't offer the same interest rates the banks offer. They need to get their fees and taxes and the banks won't offer the super funds the same deal they offer their own customers. So what that means it is unwise to have your excess funds in the Cash and Term Deposits option with your super funds. While the super fund can offer a tax free incentive you are unlikely to even have any need for a tax concession on a 1.95% p.a. interest payout.

Time for some serious reevaluation of the super portfolio.

Well you know what they say about chickens?

Looking after your super is a bit risky unless you are really savvy and have the time to do a lot of research. Get a bit of expert advice from someone in a face to face meeting, and then see how it goes. No use asking for advice here, too complicated.

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Rosret
7 yrs ago

Micha, I am with a Private Super Fund using their advice and professional expertise. That is what I am so angry about. There was nothing in the upfront print to say "Cash and Term Deposits" is actually still investment and not what its title says it is. There is nothing in the print to say terms are "bought" from the bank but at a lesser rate than the banks offer their own customers and then the super fund will charge their fees and apply government taxes.

Its because I am not investment savvy that I have put my faith in the Private Super Funds. My mistake. I wanted to sit back and enjoy retirement, not have to watch the stock market and property trends.

I am not asking for advice here, per say, however someone might be able to share their Private Super Fund performance results or show me where I can find a listing of fund performance. 

That professional advice you are referring too costs $300 per hour and their is no guarantee they have their finger on the pulse either. Ask a few of the Commonwealth bank patrons who got stung. There is absolutely no doubt in my mind that the old superannuation funds that paid out a guaranteed salary for life indexed with inflation was a much better, more satifactory, and less stressful way to live in retirement.

I am communicating on this forum because there are a lot of very intelligent people who read the articles with the view to keeping abreast of what is going on. Its those people I wish to hear. Its time for me to step up and learn.

3 comments



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