Which Super Fund are you in or recommend? Just General Talk not Financial Advice

[woodland]

I'm keen to move from an under-performing and expensive super fund to something better.

[BearOrigin]

I'm with Rest super as I was with the retail industry years ago but many say Australian Super is the best with higher returns and lower fees.

[The Sampler]

Australian Super and Hostplus

[woodland]

yeah seems like one of the industry super funds is the way to go.

[Nautilus]

Message originally posted by Nautilus on 13-02-2024 at 08:55 PM

[woodland]

There’s the RnT investment fund, it’s paying 12% I’ve read. Plus benefits it seems.

no one is "paying 12%". its not a bond with fixed coupons. you don't know how investments work.

[BearOrigin]

Those working in government jobs are often approached by companies offering salary sacrifice arrangements to buy a new car etc. Don't fall for that. Of course it sounds like you're paying less taxes because your sacrificed salary percentage is used to buy a new car but often the price of the new car from that company is inflated from market price and even if the car is totalled you have no way of escaping the repayment.

Most supers have personal contribution options but I won't go crazy with it. Even with a lowered payable tax on income you still get taxed pretty high on your super balance. Best to save your extra cash in a high interest savings account or convert them to precious metals to beat future inflation.

[Springwaterr]

Australian Super, Hostplus or Australian Retirement Trust is pretty good just depends on what you are after.

General rule of thumb, if you have sufficient cashflow for your day to day expenses. Salary sac is a good strategy assuming your marginal tax rate is higher than 15% which most people would be. Your salary sacrificed amount is taxes at 15%. The returns flucuate from dif providers/options. Downside is you will not be able to access these funds until you meet a conditional of release.

Putting money into super is a fairly tax efficient way to 'invest' your money if you are lazy and you always ask your HR to salary sacrifice a small amount of money and that will help you pay less tax.

[Funandfun]

Any low cost indexed fund or balanced index fund should be good. Have a look of last 10 years performance of these funds.

[Nautilus]

Message originally posted by Nautilus on 13-02-2024 at 08:55 PM

[Soccerfan]

Those working in government jobs are often approached by companies offering salary sacrifice arrangements to buy a new car etc. Don't fall for that. Of course it sounds like you're paying less taxes because your sacrificed salary percentage is used to buy a new car but often the price of the new car from that company is inflated from market price and even if the car is totalled you have no way of escaping the repayment.

Most supers have personal contribution options but I won't go crazy with it. Even with a lowered payable tax on income you still get taxed pretty high on your super balance. Best to save your extra cash in a high interest savings account or convert them to precious metals to beat future inflation.

I have a novated lease through work and it’s okay, GST was not included and in a couple of years I can buy it out for 1/4 of the sale price (non GST). It’ll be worth double that, so I’ll sell it and make some quick coin and go again. But I agree, I wouldn’t want to have a serious accident in it. There would be dramas lol.

[BearOrigin]

I have a novated lease through work and it’s okay, GST was not included and in a couple of years I can buy it out for 1/4 of the sale price (non GST). It’ll be worth double that, so I’ll sell it and make some quick coin and go again. But I agree, I wouldn’t want to have a serious accident in it. There would be dramas lol.

That's very normal with fleet cars. If you're the only driver since brand new and you really like the car you can probably keep the car to yourself. It's a win-win situation. I'd do it if it's a ute.

[dotcumdotinyou]

I've always had a self managed super fund, its the best way to go.

[CarpetJam]

I've always had a self managed super fund, its the best way to go.

No it's not. For people trading out of their own commercial property maybe.

Everyone else no. All others will normally buy one resi property and have concentration risk or are misguided and think they can beat the market with equities and similar.

[BearOrigin]

SMSF is very complicated for many when comes tax time. If you miss your monthly contribution or didn't contribute the right amount you can get penalised for it which I find is not worth the hassle. Best to hire an accountant who will look after your monthly or quarterly BAS reports and advice you on how much to contribute based on your reported income.

If you're an employee let your employer do all the contributions. And I do advice checking your super balance monthly, my employer at my first job didn't pay a single cent to my superannuation fund for almost a year. Emailed HR, no reply. I decided to go straight to the ATO, and voíla - they retrieved almost $7k in super for me and the company got slapped with a big fine.

[tkicks]

Those working in government jobs are often approached by companies offering salary sacrifice arrangements to buy a new car etc. Don't fall for that. Of course it sounds like you're paying less taxes because your sacrificed salary percentage is used to buy a new car but often the price of the new car from that company is inflated from market price and even if the car is totalled you have no way of escaping the repayment.

Most supers have personal contribution options but I won't go crazy with it. Even with a lowered payable tax on income you still get taxed pretty high on your super balance. Best to save your extra cash in a high interest savings account or convert them to precious metals to beat future inflation.

Sorry my friend but with all due respect you are talking total Bollox. Salary sacrifice is free money its a total no brainer to max it out for anyone earning over 45 grand a year. If your marginal rate of tax is 30% then the tax set off means you instantly make 15% gain by paying into super. Then once it's in there it attracts 15% tax rate on either interest or capital gains, compared with at least 30%/25% respectively outside super. After tax the bank account you are extolling pays 3.15%. And if you want to buy gold many super funds can accommodate that within their fund....my fund legal super certainly can

[BearOrigin]

but with all due respect you are talking total Bollox.

And if you want to buy gold many super funds can accommodate that within their fund....my fund legal super certainly can

Back at you. Just looked at legal super's 11 investment options + DIO in their PDS, none specified gold or any commodity as an investment option.

If you want to invest in gold and other commodities you have to do it through an SMSF, and there's many legal red tapes in using super to invest in gold.

[L_Kun]

I went SMSF two years ago and went all in on bitcoin. Bought throughout the bear and now it’s doing well. Find hard assets.

[BearOrigin]

A reminder to those dabbling in SMSF - it's your retirement plan. Invest in the wrong platform and you can lose your retirement in seconds.

Most people working for themselves will have no choice but to go into SMSF compared to people who are employed.

Investing is like punting - you're willing to risk losing all that money if things go south. Most superannuation companies will have investment options that minimises risk and are actively monitored by staff whereas SMSF is mostly monitored by yourself which runs the risk of failing to pull out when market suddenly go bearish. Imagine using your super to invest in FTX years ago, you would've committed suicide as soon as the scandal unfolded knowing you lost between thousands to millions of your retirement.

If you really want safe investment using your super I'd suggest using your super as a deposit for investment properties. Gold & commodity investment is mostly as a hedge for inflation which doesn't give much returns unless a sudden demand for it arises.

Choose wisely. I stuck with Rest only because they haven't failed me for the past 7 years with steady returns.

[priapus1966]

tkicks knows what he is talking about. You have amply illustrated over 3 posts that you haven't a clue.

[BearOrigin]

tkicks knows what he is talking about. You have amply illustrated over 3 posts that you haven't a clue.

Okay smart pants. You win. IYKYK

[kingqxxx]

Hands up those who have a AFS licence to give financial advice? It a jailable offense if case you don't know.

I hear so much non-sense here, financial illiterate tell others how to invest and all.

To the owner of this post. If you log in to the ATO portal > Super > Information > YourSuper Comparison. It will give the answer to the exact question which you have asked. You are welcome :-)

[Jackk]

Okay smart pants. You win. IYKYK
Www3 may crash super

[tkicks]

Back at you. Just looked at legal super's 11 investment options + DIO in their PDS, none specified gold or any commodity as an investment option.

If you want to invest in gold and other commodities you have to do it through an SMSF, and there's many legal red tapes in using super to invest in gold.

Re legal super....select the DIO option which leaves you able to do your own asset allocation from a menu of ASX listed stocks and ETFs....there is a gold bullion tracker ETF listed on ASX the ticker code is NUGG. Or just buy shares in a gold mining company ike Newcrest to get the exposure you seek

[BearOrigin]

Hands up those who have a AFS licence to give financial advice? It a jailable offense if case you don't know.

It's a jailable offence if you pose as a licenced financial adviser selling financial management products that handles clients money directly and causing monetary losses as a result of your advice. I've done the diploma in financial planning years ago but dropped out just before taking the final exam because I finally got a job in the profession I studied for before that, and I didn't like FP career because most FPs in Australia are dodgy anyways.

[BearOrigin]

Re legal super....select the DIO option which leaves you able to do your own asset allocation from a menu of ASX listed stocks and ETFs....there is a gold bullion tracker ETF listed on ASX the ticker code is NUGG. Or just buy shares in a gold mining company ike Newcrest to get the exposure you seek

Good for newbies in commodities, but you can't convert your holdings into physical gold on demand. If you invest through bullion trading companies like ABC Bullion or Perth Mint you can have it on paper and transfer it to physical gold bullions for a fee.

[AHLUNGOR]

I have a simple question :

The share market at the moment is quite high, so is the interest rates while the property market /including rental is also bullish. So why is the Super Not doing better ?

[Double_Adapter]

Hands up those who have a AFS licence to give financial advice? It a jailable offense if case you don't know.

I hear so much non-sense here, financial illiterate tell others how to invest and all.

To the owner of this post. If you log in to the ATO protal > Super > Information > YourSuper Comparison. It will give the answer to the exact question which you have ask. You are welcome :-)


Chill out bro, I get all my financial, health, medical, relationship, legal, political, and technological advice and expertise from this place and it costs me nothing! Without it I'm fucked!

[Climax598]

I have a simple question :

The share market at the moment is quite high, so is the interest rates while the property market /including rental is also bullish. So why is the Super Not doing better ?
Partly because Hong-Kong and shanghai stock are dropping especially if your super are exposed to international investment. Exposed to commercial property.

[Climax598]

We all fucker here are all expert in every things that fine with me. Good to see how others pussy fucker thinks. Some are good info and some bad so buyer beware just like any other thing especially in this sex forum.

[BearOrigin]

Well, experience alone can sometimes translate into good advice. Like a newlywed bride learning how to be a good wife, she either has to learn from other seasoned housewives or through trial and error. If learning through trial and error she has to be open minded and not stubborn otherwise the marriage will not last.

But with both education and experience combined, your choices are much more informed rather than just relying on words of advice alone. Again like that newlywed bride simile, if she wants to keep her husband she has to be open minded towards making the husband want to go home first thing after work - warm meals, clean clothes and naked funtime in exchange for the hubby doing the dishes and giving the wifey a backrub (and his income).

[kingqxxx]

Chill out bro, I get all my financial, health, medical, relationship, legal, political, and technological advice and expertise from this place and it costs me nothing! Without it I'm fucked!

Yea i know right. haha

[Westie_0ne]

SMSF - Commerical properties in NSW, VIC, SA and WA.

[xboyx]

If you all read about Warren Buffett and other value investors, you'd know this: Over 95% of fund managers fail to beat the market over the long run

They're all marketing gimmicks, screaming over high-performing funds that won over the short term and 5 star Canstar rated. When a fund underperforms over the long run, it's replaced by a new fund.
Yet fund managers charge 1% for their fee + buy/sell spread costs + other fees. Fund managers get paid regardless while you lose money.

1% sound tiny? It'll compound and cost you 60-70% of your return.

Look for low-cost index fund, eg HostPlus Balanced Index Fund, 0.04% fee with no other fee (now your 1% fee + other fees sounds expensive).

Or Vanguard Lifestyle super is ok, it's 0.58% fee if I remember correctly.

[Nautilus]

Fugazi






https://youtu.be/wM6exo00T5I?si=u9_02jAjEKfauF0e

[dotcumdotinyou]

Not giving advise at all, just stating what works for me and that's SMSF. I do my homework and decide what I need to buy and sell.
I've split my portfolio into shares, capitol notes, health, aviation, technology, gold, building and cash. And it works for me.

And if WW3 comes along like Jackk eluded to above then my robotics, batteries and semi conductors stock should skyrocket.

[BearOrigin]

Going slightly off topic, I find using Zip pay or After pay while you're earning interest in your savings account the smartest thing to do.

I started using Zip to pay for bulk laser hair removal sessions initially. Zip charges $9.95 monthly regardless of balance owed. I didn't use Zip because I had zero money in savings, I use Zip because I didn't want to spend a chunk of my savings.

My savings is kept in a 4.9% p.a. interest rate account. With the amount I have right now I'm making roughly $100 per month. $10 is all I need to pay Zip for their servicing fee, and minimum repayments is $40 monthly. So instead of using my capital to pay off my debt, I use my interest earnings to repay it. On top of that I keep topping up my savings so that my interest earnings increases which allows me to buy more stuff using Zip in the future.

[User1234]

Salary sacrifice for super or novated leasing is a no brainer. Cash purchases will always be king but most people don't have cash sitting around to buy a vehicle outright and if I had that money sitting around, I'd put it in a mortgage where the return over the life of the loan is far greater.

Novated leasing is a finance product BUT to the earlier comment where the price is inflated, this is BS and you were sold on BS add-ons. Have those removed or provide your own negotiated quote. You then finance the vehicle ex GST and pay off over 1-5 years with a balloon payment at lease end that includes GST. The ATO determine the balloon and they use conservative rates.

Find a good car upfront (Demo is usually best value), lease for the shortest term possible and then sell. Make sure the car holds its value, don't buy a shitty brand. When you sell, any profit above the balloon is yours to keep tax free.

If you can afford to lease a 1-2 cars every 12 months and flip the cars, you can make an extra 15-20k income tax free per annum.

All of the running costs and finance payments come out pre-tax. The more you drive, the more you save. Those running costs are washed up at the end so you only pay for what you have consumed during the lease.

Where this product is not beneficial is when you buy a very expensive vehicle and don't drive it. Less travel = less running costs = less pre-tax deduction. Because the vehicle is expensive, the FBT you have to pay out of post-tax contributions is skewed when compared to the pre-tax deduction.

In short, it's a great tool for additional income if you pick the right cars, can afford to do so and don't buy above your means.

[1inchguy]

I went from rest super to Hesta.
I notice rest wasn't doing anything for me.

[BearOrigin]

I went from rest super to Hesta.
I notice rest wasn't doing anything for me.

Unless you have the app, the default option for Rest is "core strategy" which is minimal risk but with minimal returns as well. You can change your investment option with the app to get better returns when market is bullish and change back to core strategy when market is bearish.

[birch]

SMSF for the last 20 years - trading shares via Rivkin - consistently solid, market beating returns, less than 0.2% fees and I get to choose which markets / portfolios I wish to trade in.

[birch]

I have a simple question :

The share market at the moment is quite high, so is the interest rates while the property market /including rental is also bullish. So why is the Super Not doing better ?

It really depends on what your super fund is locked into... The Australian share market has lagged the US market for much of the last year or two, so there's some relativity there. Also the commercial property markets in many regions are lagging the residential markets. Many super funds carry significant fees so that causes them to lag raw market performance also.

[gamer2]

Seems to be more advice than general here... Im with Rest

[ColesBag]

Ok general advice.

ESG is being shown as the bullshit that it is so I wouldn't bother with "ethical" investing or take it out & put it somewhere else in the next 12 months.

[Putter]

If ur looking for a super fund, avoid those run by the banks. They are the worst performers. Choose a proper fund manager. Plenty out there.

If ur into self managed super, you have to be very disciplined. I’ve seen many friends take too much risk and lose. Take risk using non super savings.

Diversifying your portfolio is key for a retirement fund. You don’t want to lose everything and be working at bunnings when ur 70. And you definitely want to have money to punt as an old timer lol.

Most importantly, find three good financial advisors. Never trust the advice of a single advisor. Get advice from a few. May cost more, but the benefits are priceless.

[BearOrigin]

If ur looking for a super fund, avoid those run by the banks. They are the worst performers. Choose a proper fund manager. Plenty out there.

If ur into self managed super, you have to be very disciplined. I’ve seen many friends take too much risk and lose. Take risk using non super savings.

Diversifying your portfolio is key for a retirement fund. You don’t want to lose everything and be working at bunnings when ur 70. And you definitely want to have money to punt as an old timer lol.

Most importantly, find three good financial advisors. Never trust the advice of a single advisor. Get advice from a few. May cost more, but the benefits are priceless.

Every financial advisor in Sydney charge money for financial advice. It's not a free service like verifying your documents with a JP.

Critical thinking and effort is what our society lacks. We always trust that someone isn't out there to scam us or steal our money in broad daylight. If we really want to be financially savvy we need to have the necessary critical thinking skills in order to know what is good vs bad investment.

When I did the TAFE Diploma in Financial Planning (and dropped out before the final exam) I find that most of the information can be found online. What the diploma course is trying to instill in us is financial prudence towards clients - they're hoping that we don't go out as licenced financial planners and steal money right under their noses like FTX or Bernie Madoff did. The only problem is, anyone regardless of having a licence or not can be a crook.

People really need to be less lazy these days and be more educated on daily happenings.

[pupha69]

Manage your own SMSF - much easier to invest in stuff yourself

[priapus1966]

Unisuper has been one of the most successful industry funds.Top of performance charts several times, and these days you do not have to be employed by that industry to join.

[BearOrigin]

A question I'm curious about - WGs in the industry, do they bother setting up an SMSF for themselves just in case they want to stay indefinitely with a PR or do they stash all their cash in the bank (if they do their BAS report regularly) or find a safe deposit box to stash all that cash?

I find many people who work for cash in hand especially those in the construction business have very poor financial managing skills. They spend all their take home pay after paying rent & bills on gambling, brothels and the pub and never save anything. Some of them are citizens of this country receiving Centrelink and not planning on being financially independent until the day they die.

I do know that many WGs tend to store their cash by converting it to expensive luxury items that they may resell in the future. The problem is that not all second hand luxury are desirable unless the quality is almost brand new, and not every buyer will be duped into buying a second hand item priced at RRP - in that case, most luxury items get devalued and end up getting sold as emergency money in desperate times. If they don't report their 100% income through BAS it's going to be difficult for them to go through the right channel of putting down a deposit for home loan etc. At least if they report most of their income through BAS and put more than 12% into SMSF they can pay a much lower tax rate, have money for retirement and not worry about being questioned where their money came from.

[ColesBag]

Good thing this thread is general as I'm genuinely giggling at some of the nonsense being spouted.