Choosing a Super Fund

Discussion in 'Superannuation, SMSF & Personal Insurance' started by Lam Thieu, 7th Sep, 2007.

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  1. Lam Thieu

    Lam Thieu Well-Known Member

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    Hello all,

    Just wondering if there's a Super Fund which is highly recommended in the marketplace.

    I've just started working and looking for a Super Fund which offers high value, growth oriented but not too volatile.

    I'm currently looking at the Macquarie Super R/O Plan (with a keen interest in the Small Companies option) and some other options from AMP and BT.

    Is anyone else also on the Macquarie Super plan? if so, what is your experience so far. If not, do people think this is a safe option.

    I've heard that the fees are pretty high on this one, but i've read around and some other supernnuation fees (such as MER fees) are about the same? Am i looking at the wrong place.

    Please help.

    Thanks.
     
  2. Rob G

    Rob G Well-Known Member

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    I would prefer low fee industry funds.

    Some of these funds will allow membership by the public if there is not one specifically for your sector (e.g. a Bernie fund).

    These funds don't usually give commissions to financial advisors so that is why you might not hear them mentioned much, but they just get on with managing your money frugally.

    This would be an important consideration when starting out with a small balance and the future is uncertain.

    My opinions only, and I run my own SMSF so I have not kept up to date with what is on offer.

    Cheers,

    Rob
     
  3. AsxBroker

    AsxBroker Well-Known Member

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    Super

    Hi Archangelsupreme,

    ChantWest is a good starting point, they compare apples with apples.
    (Chant West)

    There are many highly recommended super funds but it's all in the eye of the beholder.

    Good luck!

    Cheers,

    Dan

     
  4. Rod_WA

    Rod_WA Well-Known Member

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    I agree. I moved to an Industry Fund about 4 years ago (REST), and am very happy. I pay very low fees, my life insurance is about half what I was paying before, online access to daily balance and transactions, and I can change my asset allocation for free.

    I'm still about 2 years from my SMSF, but I'm very content until then.

    Ha ha.:D
     
  5. Lam Thieu

    Lam Thieu Well-Known Member

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    Thanks for the advice

    Though i'm torn at the momment. I don't know whether to stay with my current superfund or go into one of the following two funds which offers more variety and access to funds which offer much higher returns.

    * Perpetual SuperChoice
    * Macquarie RO Super Plan

    If I stay with my current industrial fund an upgrade to a high growth or agressive fund (paying MER of only 0.77 and minimal other fees), they annualised returns for last year is around 15-17%.

    Now, If I go for either of the Perpetual and Macquarie RO and select a fund like the Small Companies fund or Ethical SRI fund....i could possibly be getting around 20-30+% returns from an MER of ~2%.

    I'm not sure, while i'm attracted to the higher returns and weary about the fees and extra risk. Hence i'm thinking of missing up my super fund portfolio to include risky funds such as SmallCompanies/Ethical SRI and a generic balanced growth fund?

    Someone help me please...???
     
  6. AsxBroker

    AsxBroker Well-Known Member

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    Hi Archangelsupreme,

    Try focusing on the investment on the platform rather than the platform itself.
    You could try putting some in the small cos or ethical and the other bit in a multimanager fund?

    Cheers,

    Dan

    PS The above statement is not an inducement to invest in any managed funds or investment platforms. Speak to your FPA registered financial planner, accountant or tax adviser before making an investment decision.
     
  7. DaveA__

    DaveA__ Well-Known Member

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    Ive been thinking about this myself actually. I already have a REST account and im not sure if i want my new employer to continue to contribute to this or sign up into perpetual.

    Perpetual offer a Australian Geared fund which i thought wasnt allowed in super, if so in the long time to i get to 65 i would imagine the perpetual geared fund will out perform rest regardless of their lower fees...

    Is it as simple as filling out the application form, awaiting the details and then submitting the change of super fund form? It says that there are minimum contributions of 3k, so maybe at time of application i can get money sent from rest to the PPT super fund...

    Id be interested in something similar to this from CFS but no way id go near macquarie (just personal opinion)

    Regardless, thank you for bring up the thread as it has actually made me go and look at it, its been on my to do list for a long time...

    **Does anyone know if you can use a discount advisor to avoid the contribution fees like you can with normal managed funds??**
     
    Last edited by a moderator: 14th Sep, 2007
  8. crc_error

    crc_error The Rule of 72

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    Check out the colonial first state super platform.

    Plus if you have over $100k, you can get into their wholesale version which has lower fees.

    They have a few good geared fund options.. Australian Shares, International Shares, international property (but there isn't a australian geared property? don't know why!)

    As someone mentioned before, select a platform depending on the funds they have on offer.. I would imagine fees would be similar across the platforms? Maybe not with Macbank fee factory though! lol
     
  9. Lam Thieu

    Lam Thieu Well-Known Member

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    I've just received the yearly report from my industry super Fund....RecruitmentSuper with last year's returns being around 14% for a balanced growth-style trustee portfolio. Their fees are pretty low and on par with REST (this fund was thrown around in some posts).

    I still don't know what to do, as soon as a start to think that I should go for a retail fund, i find reasons they lead me back to the industry super fund. And vice versa. Me hates it. LOL

    I've narrowed down my retail super fund choices to the following:

    * Perpetual WealthFocus
    * Colonial FirstState

    Both of these platforms are pretty even, with Colonial charging slightly higher fees but offers a slightly better range of fund options. Perpetual to me is pretty solid across the board and If I was to join them I would invest a portion in the Ethical SRI fund, Geared Austrlian Share fund and the basic Australian Share Fund.

    Though while I was reading SmartInvestor today, i saw them listing some Optimum (Asteron) superfunds which give access to over 90 major retail superfunds and an extremely low MER of just 0.5-1.5% pa.....compared against over 1.5% for most funds in Colonial/Perpetual.

    What gives? I'm very intrigued....perhaps Optimum may well offer that unique balance between low Management Fees while still giving access to a diverse and some very higher performing funds.
     
  10. shandsaker

    shandsaker New Member

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    Choosing a fund

    Like many of the replies here, I would lean towards an Industry Super Fund. MTAA Super is an industry super fund, and pays no commissions to advisors. Their super performance over the last 10 years (always got to think long term!) has been pretty good.
     
  11. remus

    remus New Member

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    I asking the samething.Im with Auspost.they have defined benefit.The reutrn on my money is poor.Any idea about Macquarie Super and IOOF Global one.Im thinking of rolling over about $20000 into one of them fom the lndustry fund.All against the current thinking of consolidation .
     
  12. BillV

    BillV Well-Known Member

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    IMO they are all in the same boat plus there is no point in swithing now.
    If you didn't want to lose money you should have switched to cash earlier.

    Considering that a large % of your money is invested in shares and property the low returns and turbulant times will be around for another year or even longer.

    There has been a comeback though since 2008 so you should have recovered some of your losses but you probably won't see this till you get your next report.
     
  13. Intellikev

    Intellikev Active Member

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    Defined Benefit

    Hi Remus, I would suggest you speak with a professional before you do anything with your Defined Benefit Scheme. The defined benefit scheme is totally different to an accumulation style scheme. The Defined Benefit is calculated using a formula based on service, average income generally over a three year period and certain percentage factors. A defined benefit scheme is good if you plan to make a career out of Australia Post. Should you transfer out of the scheme you will not receive the benefit as shown on your statement. The Accumulation schemes you are looking at are volitile and are subject to market fluctuations. I reiterate before you do anything speak to a professional and have them show you the difference in performance over the past five years. You will notice that your Defined Scheme has been increasing whilst the accumulation scheme lost anywhere between 20 to 40% in the 2008/2009 financial year.

    Compare before you act.