Anything and Everything about Superannuation

Discussion in 'Superannuation, SMSF & Personal Insurance' started by trinity168, 15th Feb, 2017.

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  1. trinity168

    trinity168 Well-Known Member

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  2. trinity168

    trinity168 Well-Known Member

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    As posted by @ErYan on Peter Thornhill #438


    The ING living super direct shares option wouldn't work buying fortnightly parcels due to brokerage costs - 15K is where brokerage is minimised as a percentage. A better strategy could be to accumulate your parcel size before buying, keeping cash in term deposits that all mature at about the time you need them.

    Limitations / considerations around ING living super:
    - The less you have in ING super the more large parcel sizes will mess with your asset allocation and ING's constraints (maximum 80% in direct shares and maximum 20% in a single share). In one year using a 15K per parcel you can only buy two parcels based on the 30K legislated limit. I don't focus on keeping my asset allocation exactly aligned to strategy, instead preferring to buy what I perceive to be the best value offering when the money is ready. There are plenty of options for Australian and International large cap LICs and ETFs. However, because more care should be placed on the mid/small caps area due to the potential for crap (see @The Falcon and @austing posts in the LIC thread) I personally see only a few options in ING with MIR and WAM.
     
  3. Redwing

    Redwing Well-Known Member

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    Super fund members still paying too much

    Your 90 second guide to super changes
     
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  4. Redwing

    Redwing Well-Known Member

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  5. Redwing

    Redwing Well-Known Member

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  6. Perthguy

    Perthguy Well-Known Member

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  7. Nodrog

    Nodrog Well-Known Member

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  8. Zenith Chaos

    Zenith Chaos Well-Known Member

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    El Cheapo super funds:
    Super fees: Top 10 cheapest funds in Australia
    Table 1: Top 10 lowest super fund fees as at 30 September 2016
    Rank Fund name Fees based on $50,000 account balance In percentage terms (%)*
    1 Bendigo SmartStart Super $313 0.63%
    2 ANZ Smart Choice Super $320 0.64%
    3 Energy Industries Superannuation Scheme Super $320 0.64%
    4 Sunsuper $368 0.74%
    5 Club Plus Superannuation $374 0.75%
    6 ING DIRECT Living Super $375 0.75%
    7 AMIST Super $378 0.76%
    8 brightday Complete Super $395 0.79%
    9 First State Super $397 0.79%
    10 AustralianSuper $398 0.8%
     
  9. ACMH16

    ACMH16 Well-Known Member

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    Useless list - compares default options only.

    Doesn't include Hostplus ($78+0.02% for indexed balanced with fixed asset split), Aussuper can be much lower than they've calculated ($78+0.31% for pure actively managed aus shares), First state and sunsuper are much lower for indexed versions with adjustable asset split ($58+0.15%+~0.10% and $78+0.10%+~0.10% respectively) than they've calculated etc
     
  10. Nodrog

    Nodrog Well-Known Member

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  11. Zenith Chaos

    Zenith Chaos Well-Known Member

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    My accountant questions superannuation because of those reasons. I am not obligated to contribute to super but I do it for tax reasons and that my family gets it if something happens to me.
     
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  12. Redwing

    Redwing Well-Known Member

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    Changes are coming to ING Living Super on 1 June 2017

    Link
     
  13. Scott No Mates

    Scott No Mates Well-Known Member

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    How did the same funds fare based on returns? I wasn't happy with the headline returns on my secondary fund though it ranks highly in the list.
     
  14. Zenith Chaos

    Zenith Chaos Well-Known Member

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  15. Redwing

    Redwing Well-Known Member

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    Aussie super funds are 'massively more expensive': NZ disruptor

    Kiwi retirement savings disruptor Sam Stubbs has an offer Australia's 11 million superannuation savers should find too good to refuse.

    He wants to save them "billions of dollars a year - literally" by slashing bloated super fund fees, which he said were maintained by our "globally worst practice" super administration.

    All it would take would be for the government to pick up a suggestion from the Productivity Commission that we turn super account administration over to a centralised clearing house run by the Australian Tax Office.

    The idea was floated by the commission in its draft report into default super, in which it recommended changes to take away the industry funds' advantage in the race for the $474 billion default super market and allocate default accounts by one of four competitive models.

    The clearing house is a topic for further discussion rather than a draft recommendation but commission deputy chair Karen Chester said it would attract new entrants by lowering super administration costs - which financial system inquiry chief David Murray found are much higher than in comparable foreign markets.

    'Globally worst practice'
    Mr Stubbs, founder of Simplicity, a non-profit online provider of KiwiSaver retirement funds which charge $NZ30 membership plus 0.3 per cent of account balance in annual fees, said the Australian market was crying out for no-frills, low-cost competition. The lowest Australian super fees are twice that amount and the highest are six to seven times that amount.

    He said the need for Australian super funds to run their own back office operation to process contributions and administer accounts kept low-cost foreign competitors out of the market and allowed the incumbents to keep their costs high.

    "It's massively more expensive and globally worst practice," Mr Stubbs said. Simplicity is a minnow with $NZ100 million under management but Mr Stubbs has a track record in finance, most recently as chief executive of Tower, a KiwiSaver default fund.
     
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  16. JDP1

    JDP1 Well-Known Member

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    Why limit to Australian funds.. When you can just as easily go intl. A lot probably had higher returns as well. They might be a bit more expensive than their Australian counterparts.. But they also give exposure to markets you probably want and higher growth potential even over the long term.
     
  17. Redwing

    Redwing Well-Known Member

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    Singapore's CPF is an interesting read

    As MoneySmart puts it: “CPF is a system that, like it or not, is there to help you with the three biggest financial situations you’ll ever face – healthcare, retirement, and property.
     
  18. Anne11

    Anne11 Well-Known Member

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  19. hash_investor

    hash_investor Well-Known Member

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    Hi, with ING changes coming into effect soon, what is the consensus on the alternatives? I have all my super in a high performance living super product. How can I continue to enjoy high performance management with low fee?
     
  20. Zenith Chaos

    Zenith Chaos Well-Known Member

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    Weighing up between Sunsuper or another low fee industry fund or SMSF. All I want is index funds and SunSuper seems to have that at a low cost. The expense to get cute and buy LICs or other shares is expensive. I can diversify by buying LICs in the trust and letting super follow the fully passive index path.

    What my research has shown is that we are getting ripped off in Australia in the super industry. It's criminal really.
     
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