Cash & Bonds Super and Term Deposits

Looking at my super and wondering if I can be creative with it. Anyone ever invested their super in term deposits and is it possible?

Cheers

 

Yes but TD rates are pretty pathetic - recently rolled over $X00,000 @ around 2.5% for 6 months with one bank. These have been fluctuating between 2.0% & 2.6% for the period (or possibly for 5 months).

If it's in pension mode, it's not great but at least it's not taxed but less than your compulsory draw down rate of 4% minimum so you'd be chewing into the capital.

 

That’s why a lot of retirees have been focussed on shares that pay good dividends (4% to 5%).

Far better than TDs .

 

I know a few who got screwed with the GFC, sold out of equities (at the bottom) and won't recover.

 

Yep, I have one in my immediate family .

 

Yeah i'm young, only 28. I just see my super sitting there doing nothing and thinking of putting it to use. Term deposit seemed a safe bet to increase it a little

 

Yep, VERY little.

 

Any other recommendations? Property seemed to difficult to get into because you lose too much

 

@Bean27 - you've got a long time in super.

Check out super ratings and jump onto one of the low fee industry funds which are highly rated and suit your risk profile.

 

But it’s not just “sitting there doing nothing”, it’s invested in something. Do you know what that is?

Does your particular super fund give you the option of moving to TDs? It’s a very conservative investment option, so low risk but low return. For someone your age, that’s an unusual choice.

 

Not a clue, I don’t really know a lot about Super so i’m asking about the options. I’m with Tasplan, what would you recommend

 

(Sorry, on ph & hit “post” by mistake...)

I don’t know Tasplan and I’m definitely in no position to speak knowledgeably about investment options.

But a quick look at their website shows they aim for an investment return of 3.9% in what seems to be their default investment? Tasplan OnTrack » Tasplan

I think I read there that their rolling 6yr return was 6%, so they have generally achieved the target they set. What are the returns in a Term Deposit? (Genuine question, haven’t looked at them for many years).

You can probably get a fair bit of info from logging in and checking your account? Or looking at your last statement. That will tell you how your money is invested currently. Then you can look at what other options are available within Tasplan, and compare them to what else is a available elsewhere.

 

6% is a very conservative return.

Just plucking another industry fund from their front page.

 

If I was Tasplan's fund managers, I'd be embarrassed.

 

Most Super funds run information sessions for their members. Phone your fund and see if they have any sessions you can attend. (If nearby)
Marg

 

Well, certainly not what one would call amazing returns.

 

Just shows how much I know about super lol. didn’t even know your money got invested at all. Just thought it sat there.

 

Plenty of people out there (and many, many are much older than you) who haven’t even worked that out yet. You’re at least on the right track! Keep reading.

 

Thats one thing I do know that mine does do life insurance which I have no problem with