Superannuation Discussion + market volatility

[Deleted member]

Re: The totally off-topic thread

So aside from complaining about the fund performance, what (in the last 10-15 years) have you actually done about taking care of the investment?
if you have no interest in how it performs, how do expect someone else to?

let me ask you this. If you owned a car for the same period, didn't top up the water and oil, never had it serviced, what kind of shape would you expect it to be in today?
stop focusing on cost and start looking at value, your posts on many subjects so often come down to cost. but never value.
you may save "some" money by NOT paying for advice, but you stand to gain a lot more if you do.
so stop whining and do something about it
there are a couple of good planners who are members of AFF, (i think you know who I mean) ask one of them (off line)

The fund is supposed to be moderate growth. At 0.28% for the year that's poor growth. And the fees are around $300-$400. Don't have them in front of me now.

In 2007 had ~$48,000 in MLC nest egg which has since change names. I have just gone over $60,000 9 years later. That's very poor and not going to fund any retirement.

What happens when the next financial crisis hits? We'll owe them money to pay the salaries?

This huge Ponzi scheme cannot keep going this way.

 

[JohnK]

Re: The totally off-topic thread

So aside from complaining about the fund performance, what (in the last 10-15 years) have you actually done about taking care of the investment?
if you have no interest in how it performs, how do expect someone else to?

Isn't that the whole idea of a super fund? Aren't they supposed to ensure the fund performs?

Cost and value is relative. Obviously we see them differently.

 

[andye]

Re: The totally off-topic thread

Isn't that the whole idea of a super fund? Aren't they supposed to ensure the fund performs?

Cost and value is relative. Obviously we see them differently.

Last year lots of super funds (including my industry one) did pretty poorly-a reflection of global economic performance. How did it go in the years before that (mine was making healthy returns)?

 

[Deleted member]

Re: The totally off-topic thread

No, the super fund is a "Bucket" in which a number of different investment types are loaded (usually in your desired mix) .
How it performs relates to a number of things, 1. market conditions. 2. your own "Risk Tolerance". 3. specific investment options (see point 2) 3. levels (and types) of contribution.
all of these things need to work together to deliver the outcome. A set and forget mentality is a recipe for disaster.

Superannuation "isn't" a product, it is a set of rules around an investment.
yes you're right , cost and value are relative , which has been my point all along, "low" cost usually delivers "low" value.....

A failure to plan, is just like planning to fail.

Isn't that the whole idea of a super fund? Aren't they supposed to ensure the fund performs?

Cost and value is relative. Obviously we see them differently.

 

[TomVexille]

Re: The totally off-topic thread

One of my major regrets is that I didn't move here and start working while defined benefits super was still a thing

They still exist in some places

 

[JohnK]

Re: The totally off-topic thread

Last year lots of super funds (including my industry one) did pretty poorly-a reflection of global economic performance. How did it go in the years before that (mine was making healthy returns)?

I need to check and not sure how I can check but think the growth is ~50% since 2006. I think that's poor. Others may not agree.

Superannuation contributions were 9% back in 2003-2005?

 

[serfty]

Of course, having investments in more than one superannuation fund means you are liable to be paying double the fees or more.

This is generally not a very good idea and is so easy to fix ...

 

[JohnK]

Re: The totally off-topic thread

Of course, having investments in more than one superannuation fund means you are liable to be paying double the fees or more.

This is generally not a very good idea and is so easy to fix ...

Time? Patience?

But agreed. Multiple funds erode poor earnings further. For now I will reduce it down to 2 funds. MLC and ANZ Smart Choice. Not sure if good idea to dump MLC for ANZ Smart Choice or decide on MLC instead.

Apparently every July we get a chance to nominate alternate super fund but only July and very narrow window.

 

[serfty]

Re: The totally off-topic thread

...

Apparently every July we get a chance to nominate alternate super fund but only July and very narrow window.

You can break your relationship with a super fund at any time.

Generally an employer cannot stop you nominating a different fund for contributions.

Just pick a new fund - something like ING Living Super would suit your circumstance - tell them about your other funds and they will take it from there.

 

[whatmeworry]

Re: The totally off-topic thread

Time? Patience?

But agreed. Multiple funds erode poor earnings further. For now I will reduce it down to 2 funds. MLC and ANZ Smart Choice. Not sure if good idea to dump MLC for ANZ Smart Choice or decide on MLC instead.

Apparently every July we get a chance to nominate alternate super fund but only July and very narrow window.

Combining funds via Mygov is easy.

 

[JohnK]

Re: The totally off-topic thread

You can break your relationship with a super fund at any time.

Generally an employer cannot stop you nominating a different fund for contributions.

Really? The email we get informs we can change once a year. I am not going to rock the boat.

Need to start thinking of my daughter but she's already got more than enough. I want her to work hard and help people not be slack through life like her dad.

 

[blackcat20]

Re: The totally off-topic thread

You can break your relationship with a super fund at any time.

Generally an employer cannot stop you nominating a different fund for contributions.

Just pick a new fund - something like ING Living Super would suit your circumstance - tell them about your other funds and they will take it from there.

Actually they can, if its in your EBA. At my work we can only use one fund, no ifs, no buts. I tried.

 

[straitman]

Re: The totally off-topic thread

Time? Patience?

But agreed. Multiple funds erode poor earnings further. For now I will reduce it down to 2 funds. MLC and ANZ Smart Choice. Not sure if good idea to dump MLC for ANZ Smart Choice or decide on MLC instead.

Apparently every July we get a chance to nominate alternate super fund but only July and very narrow window.

From my experience JohnK I think you should be able to get about 10% return even in these tight times.

 

[serfty]

Re: The totally off-topic thread

Really? The email we get informs we can change once a year. I am not going to rock the boat. ...

You can choose a fund at any time, but you cannot make your employer change your fund more than once a year.

Have you changed it in the last 12 months?

 

[serfty]

Re: The totally off-topic thread

Actually they can, if its in your EBA. At my work we can only use one fund, no ifs, no buts. I tried.

I doubt JohnK is working under an EBA ....

There are three circumstances where an employee cannot choose their own fund:

1. Employment is governed by an industrial instrument (e.g. a workplace agreement) which specifies the fund or funds into which payments must be made
2. The employee is a member of a ‘defined benefit fund’ that meets certain conditions
3. Some public sector employees of the state and federal governments

 

[JohnK]

Re: The totally off-topic thread

Combining funds via Mygov is easy.

Handy to know. I had a look at the form Colonial Mutual sent and it is complex.

I doubt JohnK is working under an EBA ...

I have never changed super funds but we have some sort of agreement in place. I have an employee's handbook with lots of don'ts and don'ts buried somewhere. Depressing. We don't get leave loading either.

I don't want to research super funds. I don't trust them. Lies, lies and more lies. They alter the figures to suit the financial conditions. 10 years ago all super funds were using comparison growth for 25 years because they looked good. Now many super funds are new and only growth shown for past 5 years.

 

[RooFlyer]

Re: The totally off-topic thread

<snip>
We don't get leave loading either.
<snip>.

:shock: When I worked for an employer, this got axed in about 1985, from addled memory. When I first started work I thought "How come I get paid more when I go on holidays? I like this!". Then I appreciated that for those like me who didn't get paid for overtime (and therefore didn't deserve the 'loading'), it was just a rort. In my favour, as it happened, but a rort nonetheless.

Now I work for myself, when I go on holidays, except for a retainer, I get a leave unloading of 100%

 

[Bundy Bear]

Re: The totally off-topic thread

Really? The email we get informs we can change once a year. I am not going to rock the boat.

Need to start thinking of my daughter but she's already got more than enough. I want her to work hard and help people not be slack through life like her dad.

John don't be so hard on yourself, you are the one that gets on a plane most Sunday afternoons to fly back to Brisbane.

Maybe you could have work somewhere different but we all take a path where we think it can give us the best return for the least effort.

This doesn't we don't put effort in just we could all do better.

 

[drron]

Re: The totally off-topic thread

:shock: When I worked for an employer, this got axed in about 1985, from addled memory. When I first started work I thought "How come I get paid more when I go on holidays? I like this!". Then I appreciated that for those like me who didn't get paid for overtime (and therefore didn't deserve the 'loading'), it was just a rort. In my favour, as it happened, but a rort nonetheless.

Now I work for myself, when I go on holidays, except for a retainer, I get a leave unloading of 100%

And when I was working the office expenses continued so my leave unloading was >100%

 

[serfty]

Re: The totally off-topic thread

Handy to know. I had a look at the form Colonial Mutual sent and it is complex.
...

They don't want to make it easy (they prefer to keep their mitts on your $$$) ... on the other hand, you new fund makes it really simple for you (they want the $$$).