Moneysmart Retirement Planner

I'm getting divorced, so I'm redesigning my financial strategy from the ground up. I'm using some of the free calculators on the Moneysmart website to see whether I'm heading in the right direction. I'd really appreciate advice on the settings I'm using in the Retirement Planner calculator.

My Super is with HostPlus ChoicePlus which allows me to invest in a range of index funds. According to the Vanguard site, I can anticipate annual returns around 9%.

In case it's of interest, here's my stats:

- early 30s, so can take some risks
- no dependants
- Super is invested in Au and US index tracking funds with ~20k in cash to take advantage of opportunities


This is the calendar in question: Retirement planner | ASIC's MoneySmart

And in case the Super fund is of interest to others, here's a link to that (I'm liking it so far and I know a few others use it): https://hostplus.com.au/-/media/Files/Hostplus/Documents/1192-9-Guide-Choiceplus.pdf?la=en

 

9% each and every year ?? Its likely to be unrealistic to expect to maintain only index funds that will always compound a positive return each and every year. Factor in a market crash etc ? Index funds arent well diversified and past performance of other HostPlus options could exceed that return. ie fixed interest, property etc. And what will happen with AU / USD rates ??

For example if the market crashed 20% then factor in a 20% fall. Making good the 20% will take a 25% market rise....Unrealistic ?

 

Thanks guys, that's exactly the sort of feedback I was hoping for.

Appreciate your help.

 

Is the super fund going to sell on a crash??

9% is conservative for the share market over the long term, but what the OP should focus on is the dividends which are much, much more stable than the silly old share price.

Questions on this would be better asked over in Other Asset Classes sub-forum imo.

 

Investment performance: 26 years of SG delivers 7.5% a year

Most good performing super funds over last 15 years returned around 4.7-7% per year, and that included the gfc. Over the last 26 years since introduction around 7.5% returns per year. I personally go by about 5% returns and hope for better.

 

Have a play with this calculator, I hear it's much better, but haven't used it myself
Superannuation Projection Calculator - Retirement Projector » Industry Super

 

Those calculators were always fun. Only possible issue I think is whether the assumptions underlying the results remain true.

 

No selling. It's SMSF lite so I'll only be buying, until I hit preservation age.

The LICs I've invested in through my super include dividends. Which I'll be using to purchase more stocks.

 

Too pessimistic imo, includes funds with high fees and uses silly default "balanced" allocation which has a high proportion in cash.

 

The best performers as mentioned had the lowest fees. Over the past 10 years most 'balanced' default settings outperformed high growth settings. Would be good to compare the top 10 industry funds of the past with smsf, bet most people that have smsf after all fees did not beat the industry funds.

 

Why do you think this is?

 

Mate you already know why. A better question to ask is how would one set up kats super today, for the next 30 plus years?

 

SMSF in Aus LICs, buy and hold.