Superannuation Discussion + market volatility

Re: The totally off-topic thread

Bundy Bear said:
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.
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If I wasn't slack I would have saved more of my money and not needed to work in Brisbane away from my family. I really miss mum and dad and now is when they need me most. I am letting them down.

Soon my wife and daughter will be in Sydney and I will still be working in Brisbane missing most of my daughters moments.

You really need to take charge of your life in your 20's. It pays huge dividends later in life.
 
Re: The totally off-topic thread

blackcat20 said:
Actually they can, if its in your EBA. At my work we can only use one fund, no ifs, no buts. I tried.
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My husbands super, he is only allowed to change Sal Sac % and/or $ within a certain date period.

His employer also matches dollar for dollar what he Sal Sac AND, which I dont get, his employer super contribution % goes up per year so hes currently getting something like 17.5%

I dont get it but hes on a good wicket
 
Re: The totally off-topic thread

drron said:
And when I was working the office expenses continued so my leave unloading was >100%
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+1.
I have to add in locum fees and my practice income generally falls because I'm not there so I suffer a leave unloading >200% :shock::mad:........
 
Re: The totally off-topic thread

Denali said:
My husbands super, he is only allowed to change Sal Sac % and/or $ within a certain date period.

His employer also matches dollar for dollar what he Sal Sac AND, which I dont get, his employer super contribution % goes up per year so hes currently getting something like 17.5%

I dont get it but hes on a good wicket
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We get 17% if we are ongoing, 9.x% if we are fixed term, so that might explain it. We also have to make a decision about defined benefits within a certain time limit, and once you're out, you are out for good.
 
Re: The totally off-topic thread

JohnK said:
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.
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It depends. Generally you can choose your own fund. Certain union agreements , state and federal government schemes are unable to accommodate fund choice
 
Re: The totally off-topic thread

JohnK said:
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.
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You only need one fund. What you need is diversification within that fund. Easy if you know how.
 
Re: The totally off-topic thread

My advice (FWIW) JohnK is that as you don't have the time/desire at present to set up a SMSF, I would be looking at an industry fund that will generally offer lower fees. Depending on the employer (and conditions of employment) he can probably choose one and then get them to roll the other account/s into it.
I know there are financial advisors on AFF know the system inside out but for a novice this is a pretty straight forward way to go IMO.
 
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Re: The totally off-topic thread

Superannuation could easily have its own thread.

Whilst I could go on for days about the system, and how inept governments seem obsessed with changing it, that’s an argument for another day.


If you are a "normal" person working as a PAYG employee in most circumstances you can select your own fund (barring the examples listed up thread).
And in all cases you should "rollover" or consolidate your Super with one fund. I have never seen or heard a valid argument why you would have multiple accounts (as you essentially multiply your fees for no real tangible benefit, or reduction in risk).

I couldn't possibly advise you which fund to choose, but I do recommend you do your own research or engage a financial advisor. The Industry Super Funds body has run a very successful advertising campaign in recent years, however their core premise is a little misguided as what you actually want is the best return net of fees. This doesn’t always equate to the "lowest fees".

Most funds offer some choice in investment option. Whilst this is a blunt instrument, it can help you align your superannuation to your preferred investment type and/or risk profile.


SMSF is a different beast.

You (and perhaps your co-conspirators) want to have a reasonable sum in superannuation to justify a SMSF (given the compliance costs, plus any additional advice you may require). You also need an interest and commitment to manage your investments, as you essentially control your own destiny. I see the core premise of a SMSF is that you can manage your funds better than a professional fund manager, and/or with a more tailored investment mix and risk profile to suit your needs. Therefore an SMSF is not for everyone.

The benchmark I use is between $2K and $5K per year to run a moderate SMSF which may include some advice and accounting services. Naturally more complicated investments or more transactions may push these fees up. I’m aware of online operators offering compliance services for under $1K, but I have no experience with them.


And of course, this post is not financial advice and should not be construed as such. For financial advice you should contact a licenced financial advisor.
 
Re: The totally off-topic thread

GPH said:
BUT again I make the point, is cost your benchmark? or value?
I have had many people tell me over the years that an industry fund is much cheaper than a retail fund and the (sub) funds are rated very highly on returns. all of that is true, BUT when you design and maintain your own actively manged investment mix, the results are frequently better than the One size fits all approach of an industry fund.
but hey, at the end of teh day, it's horses for courses
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penegal said:
I couldn't possibly advise you which fund to choose, but I do recommend you do your own research or engage a financial advisor. The Industry Super Funds body has run a very successful advertising campaign in recent years, however their core premise is a little misguided as what you actually want is the best return net of fees. This doesn’t always equate to the "lowest fees".
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Same Same, articulated differently.


I was joking with a friend the other day that Super is an interesting social experiment. Force an uneducated populace to have retirement investments which they can exert limited control over. See what happens, who manages, and who ignores. And also watch the funds management industry which invents itself around it.

At the end of the day, it's up to people to make their own decisions ("Free Will" and all that)... But some good research and good advice will pay dividends for the wise (pardon the pun).
 
Re: The totally off-topic thread

straitman said:
From my experience JohnK I think you should be able to get about 10% return even in these tight times.
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That's what I would have expected. Actually more like 7%-8% would be acceptable.
 
Re: The totally off-topic thread

The treasurer is now proposing a superannuation success tax where once you are over 1.6 million dollars per member he will make it not worthwhile to keep your balance rising.
I was thinking that $1.6 million was a bit low unless they change the retirement age to 75.
 
It is now about 33 years since the Government introduced employer sponsored superannuation and we have the majority of the current bunch of about to be retirees thinking they can use these funds on a caravan, a 4wd and or finish off the mortgage.
That was not what the original plan was as the funds were meant to remove the pension from all other than the unemployables.
Maybe 2033 (50 years of the scheme) is the year that new retirees should be mostly ineligible for a new age pension from 75 onwards so our children and their successors are not burdened with huge taxes.
 
Re: The totally off-topic thread

TomVexille said:
They still exist in some places
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Not being an expert on all this, but I think joining a DB fund was ended in about 2000. Members of a DB scheme before this cut-off retain their DB.
And I think non-government DB schemes have rules about changing the formula for the DB if the fund pool falls below certain levels (so they are not really unfunded).
 
Re: The totally off-topic thread

Spongbob said:
Not being an expert on all this, but I think joining a DB fund was ended in about 2000. Members of a DB scheme before this cut-off retain their DB.
And I think non-government DB schemes have rules about changing the formula for the DB if the fund pool falls below certain levels (so they are not really unfunded).
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I know people that have joined DB funds after then, as recently as this year.
 
I guess $1,600,000 in investments should be returning enough to alleviate the need to fork over $435 each week to single pensioners ...
 
If the Government Plan A does not work the alternative is to have the pension as a loan secured against the retirees home. Not a popular idea at the moment but later generations might think that could be ok. In France they take 40% of the home sale value currently.
 

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