Australian Super And Growth/risk Strategies

Hey Everyone.

I have an account with Australia super does any one really rate them or are there bette rones out there? I usually have my investment strategy split 50/50.

50% High Growth
50% Australian Sustainable shares.

Its been like this for years and I haven had to many issues but lately I lost about $2,500 in one day so thats basically 3 months worth of super for me down the gurgler. Just wondering if its now time to change my investment strategy and what to Ive run pretty aggressive as I can since I started working im 35 yrs of age now and my income has never been the best hence my reason to grow it best I can using riskier strategies.

I read an interesting article on Friday titled Economic Armeggedon and then another article yesterday with someone harping on about 10 yrs later we could be heading for another GFC. Surely a recession has to hit Australia soon? Interestingly the stock market has been predicted to drop significantly in 2020. Are we on a slow donward spiral.....

 

Super is currently a hot topic here, perhaps do a search and you should find some answers.

 

From what I hear Aus Super is a good Fund.

Some would suggest as a young-un depressed markets are just what you need. Think of your favourite thing on sale, heavily discounted. How would you react? The sharemarket’s no different. During the accumulation years the more bargains the better! Sets you up for the drawdown years in retirement. It’s the long term that matters not what happens in the next couple of years.

Not advice.

 

I am with Aus super and all in high growth atm.

 

I'm with Aus Super too. 80% high growth, 20% balanced.
How have you 'lost' $2500? Did you change investments?

 

Add how much the high growth has made you to that negative $2500.

You are going to have to work out some strategies to deal with crashes, there will be plenty of bigger drawdowns over the next 30years.

 

People that lost a lot of money during the GFC did this, ie. cemented their losses. Turns out if they'd just left it alone, they'd be in a far better financial position today.

 

Aus Super here too. 100% Balanced. Performs reasonably well compared to High Growth with less risk.

Edit: just checked balance & yes the latest stockmarket circus has had an impact on calculated value.... bit it's a blip in the grand scheme of things.

 

When I mean lost what happened is a few days back my balance was showing $94K then I had my super transferred in which was $2100 approx but my balance when down to about 93.8K. I know in the scheme of things if the market skyrocketed it wouldnt really make much difference. But its annoying watching $2100 go in after 3 months of waiting to watch your balance drop. Therefore a couple of bad days on the stock market has in effect lost me $2500 Its a trend I dont want to continue for to much longer if I can help it.

I also have 50% socially aware ( not balanced which I originally quoted )
50% high growth

I havent changed investments for years probably at least 8 or so years. Cant remeber what I was doing when the last gfc hit I was to young and uninterested to pay to much attention but think i had my super tied up in propery and maybe balanced. I remember I didnt seem to fair to bad but then again my balance was very poor so not much to loose anyway.

 

I haven't followed superannuation of this nature but if I were I could understand the concern.

How do these actually operate? I know my SMSF goes up, down and sideways but at least I get to keep the dividends the companies pay. Does that happen with industry/retail funds or are they unitised and just a big mixture?

 

Out of interest how much do most people estimate you would need in retirement in the year 2049. This would make me 67 an age I hope I would be able to draw on my funds but who knows what rules/regs will come into super from now till then. If for some reason I was unable to work from now how would I fare? I have checked out some compounding interest calculations and with a super balance now of $100,000 in 31 years time If I made zilch zip zero contributions it should grow to approx $453,000 at a very conservative 5% p.a as I like to make estimates at low worst case scenarios Im positive that it would more likely be an average of say 10%pa if super history is anything to go by. I plan on owning my own home in the next 5 years and never plan on going into debt for another house or anything for that matter. When I retire also I wouldnt plan on taking the amount as a lump sum I would just draw on what I need to live generally so the remaining amount will keep compounding annually.


What would $453,000 be worth in 2050? Off course this would be my worst case scenario im hoping to have much much more than this when I retire.

 

Just subtract what you think inflation will be from your investment return rate and plug that number in to your growth formula and that will give you what $453K will be in today's dollars. eg. If you think inflation will be 3%, your net real growth pa. is 2% so after 31 years your $100K will be worth approx $185K. If you use the 4% rule to work out what income, in today's dollars, that will give, you get $7400 pa. 2% inflation gives you $250K and $10K pa respectively.

 

Wow so realistically I would be banking on its worth $185K which is dismall no wonder everyone always bang on about having 1.5million or more in super for retirement. I remember in the 80's 1 million was so much money now the average joe can acheive more than this just in super plus all the other assets they will have in retirement. I would hate to think what the cost of living will be in 2050.

 

Inflation isnt that simple. For example, over the last 20 years: housing high, food and petrol medium, cars zero and clothing and electronics negative.