Superannuation Advice Australia - heard of them/are they any good?

[Quickstatus]

frequent flyer forum has transformed to include advice on super, health diagnosis etc.

Because DSC only comes around once in a while, Classic rewards and OpUps are unobtanium and Platinum is the new Bronze.

What else is there to talk about while we are wait for VH to further simplify and enhance the Qantas brand and maybe the frequent flyer program......

 

[TheRealTMA]

But again that is different to your previous posts. "Balanced Options" as you posted in Post 7 itself is a term that has many different meanings & interpretations. It is good that you are happy with your super situation but I really wonder why a frequent flyer forum has transformed to include advice on super, health diagnosis etc.

No, I said Balanced. And no idea why you are taking offence. People are just responding to questions.

 

[Freq Flier 2013]

There are a few self managed platforms for SMSF such as esuper. Very cheap to setup and very low ongoing costs.
For everyone who says it’s a lot of admin for a SMSF - this is your money and future so why not devote time and effort to grow your super via education and a more hands on approach.
End of the day no one will care about your money like you do.

 

[Gremlin]

End of the day no one will care about your money like you do.

I disagree. I think there's plenty of people that care about your money... and how they can make it their money.

Long term substantial outperformance is possible. But generally only very rarely. But if a business could generate significant outperformance, they'd be exploiting it themselves. They'd be leveraging options and making a fortune investing for themselves. If they could genuinely and consistently outperform by several percent, they'd make far more doing this than taking a small clip of your funds under management. But they're not doing that. Is that because they don't actually believe in their own spiel or are they simply incredibly altruistic? You be the judge...

 

[UP4014]

As Brissy1 and bam71 note, any investment (management) business on the Gold Coast is not for me, perhaps they have an office in Runaway Bay as well.

 

[andye]

I would definitely avoid anyone who says they can outperform on the sharemarket. Evidence suggests they can't
It may be possible to improve returns by leveraging or exploting tax quirks via an SMSF but leveraging incurs risk
What I find quite interesting is that there is a lot of criticism of industry funds for their union ties but they regularly outperform the commercially-available funds
Big funds do have the ability to invest outside the traditional shares/property/bonds, in particular infrastructure which seems to have served them well

 

[Quickstatus]

If they could genuinely and consistently outperform by several percent, they'd make far more doing this than taking a small clip of your funds under management

It's a simple question to answer. If they are so good with making money, why is their business model taking a clip./% of your money?. Maybe the money making IS just about taking a clip.

 

[Flyfrequently]

@Ade
My industry super fund last financial year charged me $300 fees while averaging 7-10% pa.

I work less than 20 hours per month and would be happy to be only charged $300 fees @Quickstatus

 

[Ade]

A huge thank you to everyone who responded to this thread. I'm halfway thru reading through all the comments offered. I have learnt quite a lot from what was commented so far.

Some of the comments felt like "damn! that is so obvious, how come I did not think or know that" and surely reflects on what I really knew about super. Also reinforces that fact that I'm a little slow with numbers

I will respond again in this thread once I have finished reading & digesting the comments.

 

[CaptJCool]

If the philosophy is about the financial returns then sadly unless you hit the jackpot it’s about Risk v Reward

The long term Superfund average is 7-8% pa but there have been years of -14% and in some funds during GFC losses of 50% of capital in aggressive funds

High Risk High Reward
A good explanation here

How we invest

Our investment purpose is to provide comfortable retirement outcomes for you and your family.

www.csc.gov.au

Reducing exposure to significant losses​

Our strategy is to aim for fewer or smaller losses when markets are falling, but still capture a large proportion of the gains when markets are rising strongly. We focus on avoiding significant market downturns because losses can have greater impact on your long term wealth when compared to gains. The larger the loss, the greater the subsequent gain required to restore value.

So there’s a variety of investment options. This is the 4 choices in the current APS fund

https://www.csc.gov.au/Members/Investment/Investment-options?scheme=pssap

1. Balanced
2. Income Focussed
3. Aggressive
4. Cash

There’s some details on each investment option including

• Return objective: CPI +x% per year after fees and tax, over 10 years.
• Investment horizon (i.e. anticipated time to retirement):
• Life stage (general guidelines):
• Estimated number of negative annual returns over a 20-year period:

 

[RB]

A huge thank you to everyone who responded to this thread. I'm halfway thru reading through all the comments offered. I have learnt quite a lot from what was commented so far.

Some of the comments felt like "damn! that is so obvious, how come I did not think or know that" and surely reflects on what I really knew about super. Also reinforces that fact that I'm a little slow with numbers

I will respond again in this thread once I have finished reading & digesting the comments.

If you are still reading up, I think these articles are relevant to what I posted earlier. Not gospel but worthy of thought

Balanced Funds: Why It's Important to Look Beyond the Label - InvestSMART

What Is A Balanced Fund? – Forbes Advisor

Why comparing the ‘balanced’ option in super funds is no easy feat « ROGER MONTGOMERY

 

[Rnwillia]

Has anyone here heard of or dealt with Superannuation Advice Australia (SAA)? They seem to be a super-management company based out of Broadbeach, QLD.

In general, any one have experience dealing with companies that claim to manage your super for you and promise massive returns when you retire.

I have been hearing about this company (SAA) for a while now with mixed reviews. I was wondering, if it would be worth an idea to look into engaging their services to manage super.

I gather that *regular* super funds (the likes of Industry super, Australian Super etc) are good at managing super and give about 8% return each year, however, this company (and other super management companies) have been promising more returns that the regular super funds.

Is this legit? Can they be trusted. I googled about them and can see mixed review - some 5*, some 1*. The 1* seem to be more about how their lead generation unit/outsourcer approached people to sign up. I'm unable to find much review about their performance really. So unable to take a call based on google review alone.

ACK that when it comes to any matter financial, not everyone can provide advice and that any comments made are personal in nature and should not be taken as formal/actual advise.

Sidebar: I have posted this thread under "Open Discussion", however, if this needs to be someplace else, happy for it to be relocated accordingly.

EDIT: Just realised that there is a special place for superannuation related discussions. I'm unable to move this to that special place. Can someone move this please? Thank you.

Just read your message and I can absolutely recommend Calder Wealth Management of Adelaide as I have been with them for about 15 years now and their fees are low and their returns are consistently good. I have recently moved to the Gold Coast and their wonderful service continues there, albeit they don't yet have an office here. (that may change in the future). Look them up on the Internet and ask for Mr Ben Calder - you won't be disappointed. best wishes, Ray Williams.

 

[Ade]

There certainly seem to be some in the industry who will push you towards shifting to a SMSF and then investing in less liquid products like real estate.

Is going down the SMSF route and investing in RE a good idea? I spoke to someone over the weekend and they seem to think RE is the way to go and doing it via SMSF gives the flexibility, freedom to invest in what you like rather than give your hard earned $ to some company who may or may not be having your best interests in heart ...

 

[Ade]

We had an SMSF and did invest in land. It worked out extremely well for us very quickly but unique circumstances and perfect timing. A year later and it would have been too late. Also shares etc etc.

Now, we aren't keen to keep hands on control of this anymore, and sick of all the necessary regulatory and accountant fees and audit fees. It's all been moved into an Industry fund.

Thank you for this @Pushka - hopefully this post gets merged with my earlier response to @moa999 . I was just replying that I spoke to someone who suggested the SMSF route and invest in RE. In my instance, I was told it would be better (given age, income, 0 dependents etc) to invest in ready built homes and put them on the market for rent. I was also told that the super balance I have may not be sufficient to purchase a *good* property in a *profitable* suburb. So I wll have to invest my super and take a bank loan to cover the gap.

It was put it in such a way that 1. The rent covers the repayment to bank (for any loan taken to purchase the property) and some $ left (so positively geared) or 2. Make the property negatively geared and get some $ back on tax.

The logic seems air-tight, unless I'm missing something. Granted, what I was told is only the ever-so-rosy-story. I asked for what could go wrong and I was told not much ... #suspicious!

 

[Ade]

@Ade, they are just a Commercial Financial Advisor.

Anyone that promises they outperform?.....Yeah Nah...

Here is some advice: Industry super fund. The fund that looks after the little guy is worthy of my hard earned.....

MAkes sense ... I looked up my current fund and I don't think they are an industry fund .. google couldn't give me a straight answer. But I will read more into industry funds.

IMHO: Don't chase reports of higher returns not supposed advisors promoting such or influencers. . Pick a good industry super company, Australian Retirement Trust etc, which goive you 7-8% pa return in balanced options, regularly put in money. Live life.

@Ade
My industry super fund last financial year charged me $300 fees while averaging 7-10% pa.

All profits belong to members.

The " little guy" is based on the theory that the average worker's super fund is often the only Nest egg they have on retirement. Therefore it needs to be managed carefully and not used as a plaything for commercial operators

WOW! okie, at the risk of sounding like a uninformed individual, I think I pay approx $3k per year in fees

ART 10.06% earnings last year. Fees roughly 0.7% No fuss.

10% is a good earn ... over the period of 30 years, averaging 10% each year is a good earn ...

 

[Pushka]

Thank you for this @Pushka - hopefully this post gets merged with my earlier response to @moa999 . I was just replying that I spoke to someone who suggested the SMSF route and invest in RE. In my instance, I was told it would be better (given age, income, 0 dependents etc) to invest in ready built homes and put them on the market for rent. I was also told that the super balance I have may not be sufficient to purchase a *good* property in a *profitable* suburb. So I wll have to invest my super and take a bank loan to cover the gap.

It was put it in such a way that 1. The rent covers the repayment to bank (for any loan taken to purchase the property) and some $ left (so positively geared) or 2. Make the property negatively geared and get some $ back on tax.

The logic seems air-tight, unless I'm missing something. Granted, what I was told is only the ever-so-rosy-story. I asked for what could go wrong and I was told not much ... #suspicious!

Rent has to also cover insurance, council rates, water rates, and any taxes the govt puts on to a property. It won't be straight tax back, but a deduction on taxable or assessable income. You can also claim depreciation and any required repair work. And if you sell, hopefully CGT on profit less costs.

 

[TheRealTMA]

MAkes sense ... I looked up my current fund and I don't think they are an industry fund .. google couldn't give me a straight answer. But I will read more into industry funds.




WOW! okie, at the risk of sounding like a uninformed individual, I think I pay approx $3k per year in fees

10% is a good earn ... over the period of 30 years, averaging 10% each year is a good earn ...

Not 10% over 30 years though. Not sure what the long term return actually is but I’m happy with the overall return with no effort on my part.

IMHO and from the banking royal commission, industry funds are the way to go.

 

[sam23]

Has anyone here heard of or dealt with Superannuation Advice Australia (SAA)? They seem to be a super-management company based out of Broadbeach, QLD.

In general, any one have experience dealing with companies that claim to manage your super for you and promise massive returns when you retire.

I have been hearing about this company (SAA) for a while now with mixed reviews. I was wondering, if it would be worth an idea to look into engaging their services to manage super.

I gather that *regular* super funds (the likes of Industry super, Australian Super etc) are good at managing super and give about 8% return each year, however, this company (and other super management companies) have been promising more returns that the regular super funds.

Is this legit? Can they be trusted. I googled about them and can see mixed review - some 5*, some 1*. The 1* seem to be more about how their lead generation unit/outsourcer approached people to sign up. I'm unable to find much review about their performance really. So unable to take a call based on google review alone.

ACK that when it comes to any matter financial, not everyone can provide advice and that any comments made are personal in nature and should not be taken as formal/actual advise.

Sidebar: I have posted this thread under "Open Discussion", however, if this needs to be someplace else, happy for it to be relocated accordingly.

EDIT: Just realised that there is a special place for superannuation related discussions. I'm unable to move this to that special place. Can someone move this please? Thank you.

These guys are a scam they lie to their clients promising high return and when they don't achieve it they blame other factors. They also charge a arm and a leg in fees for a fund that makes loses

Their excuse is always economic factors to deter you from the fact that they overly charge in fees.

 

[Ade]

Thank you to everyone who contributed to this thread. I had been reading (re-reading and re-reading once again) to make sense of some of the points discussed. I have made a decision to no longer be a client of SAA. I have moved on from them.

Once again, thank you so much for everyone's contributions.

 

[deebens]

There's a group of cold call/website scumbags who operate out of SE Qld, keep changing their name. A couple of them have previously been banned by ASIC.

IIRC they often pop up when people do searches for super advice or switching but I've heard of people being called too, basically they tell you they'll get you a better return, roll you over to a North platform and switch the super allocation to 100% growth (that's how they claim they'll achieve a better return, more risk). Sting you 3-4 grand, usually on a sub 100k account because it's young people they catch who have NFI, don't address your insurance, just leave your old super open for to run out of $$.