Late 20s, $50k in Super - want to take control of my own super!

Hi all,

I'm a professional in my late 20s with around $55k in my superannuation account. Currently, it is managed by BT Super For Life, in an aggressive mix of Domestic/International shares, which make up around 70% of the portfolio. The rest is in Bonds/Infra/Property/Cash (yuck).

However, I want control of my own portfolio, as I would like to invest the balance in LICs. This is because I am quite heavily weighted to property as an investment class (I am on PC after all!).

How on earth do I go about getting control of my own super? Or even better, what funds would you suggest I invest my money into?

Any help is much appreciated.

 

Take a look at hostplus direct investment options

https://hostplus.com.au/~/media/files/hostplus/documents/1192-9-guide-choiceplus

 

Most advisors would tell you that you need $200K in your superannuation account to make it worthwhile to start your own SMSF. If I were wanting ultimate control I’d be heading in that direction.

 

Thanks Cadbury. Would it be a feasible option to move my whole super balance into investments of my choice in Hostplus?

I know that I need $200k to make the fees worthwhile. I guess the question that underlies my OP is "How do I get there quicker? How do I maximise the value of my super to the best of my abilities?

 

The PDS states what investments are permitted under ChoicePlus. LICs and ETFs fairly limited, haven't looked closely into the shares options.

 

Contribute up to your annual limit (SGC & salary sacrifice)

 

Make sure your company doesn't decrease their super contribution when you do salary sacrifice - less of an issue now that gov allows you to do post tax contribution and claim back tax.

 

I think ING have a product that might be a good compromise...I think @Gockie has been using it with success.

Living Super

 

Yes. Charges come out to be about 0.6% pa for me.

 

Thanks for the suggestion mate. I should have stated upfront, but I am currently in my accumulation phase of my property portfolio - I need all the cash flow I can have!

 

Yes Hostplus direct investment options are fairly limited, although the allowable shares are all of the ASX 300.
Legal Super has a much wider range of LICs and ETFs available.

 

A Corporate trustee can have up to 4 members (increasing to 6 in the future)... 4x members with a balance of $50k = $200k.

~$2k of compliance costs split between 4 members is a fixed cost that won't increase with the balance.

The increased investment flexibility is worth it alone - no need to be restricted to investing in the ASX300.

 

What @pwnitat0r said.

While your eventual goal is no doubt to have your very own SMSF with no other members, pooling into an SMSF with a few others for a while could be beneficial for you depending on the objectives you each have and which asset classes appeal to you.

 

Don't do it!!

This is a nightmare in terms of administration, compliance, making investment decisions, what happen if a member changes their mind etc. etc.

 

Also have a good look at how much insurance you are paying in your super acct. You may find you might be paying for something not require d

 

I used to be in same BT plan too, had similar issues with their fees being high. I wanted to stay simple with just investing in index funds. From advice from here I looked a few industry superfunds for low fees. I ended up going with Sunsuper and just splitting between Australia shares and international. Once it builds to $200K+ I will look into super again. I figured there were other things I could focus efforts for now - just have to be patient with super.

even with $200K, not sure I will go the SMSF path anymore. I find there is value in being agile and simplicity which isn't priced in

 

Hi @oneone , why did you choose SunSuper? Is there more benefits compared to hostplus or ING living super?

 

Low fees, highly regarded by superratings, consistency of good results.

 

Each to their own. It's only a nightmare if you want to make it one.

I outsource all the compliance and accounting despite the fact I will soon be a qualified accountant myself - touch wood. It's not something I deal with every day so it's not worth my time and effort to save $2k.

The money simply gets invested in two funds that both have a good track record of ~13% pa after fees.

I spend less than 5 hours on it every year (most of it is spent at year end when I collect a few statements and review the documents before signing). There's less than 4 years age difference between us in the fund - I'm the oldest and will be the first to access the funds in theory.

 

Do you need to agree on equal contributions, and also agree on a disbursement strategy? I can see it working with a spouse, but not sure how it would go with other parties...

cheers,
Inertia.