Superannuation Investment Choice

Not that I know.

Fees looked good when compared to the others.

Not many ETFs perhaps sufficient as I didn't see a 20% maximum investment in any single investment like the others mentioned.
They don't offer LICs at all from what I can see, which is a big one for me.

 

For living super, 20% max investment in a single investment. Is there any limit for total direct equity and ETF investment amount? Where I find ING doc about these?

 

Hostplus super also offers similar direct investments

 

Yep. 80% max in direct investment. Unsure if this will change, it was 50% years ago so it does get reviewed.

Similar, both asx300. ING has many more ETFs and it includes LICs - big selling point for me.

 

It means 20% must be in growth or cash investment options.

 

Correct.

 

Wondering whether Aust super will eventually include lic's in their product menu/offerings?

 

I'd just tick the Australiansuper Oz shares option and be done with it, cheap and good long term performance. Actually, it's what I did recently.....

 

+1 for Australian Super. Low fees compared to many retail funds, good long term performance.

 

Hostplus also offers Choiceplus

 

This is how I have approached my investments.

I really enjoy reading the threads under 'other asset classes ', especially the great contributions relating to LICs. I totally agree with the advantages of good quality LICs, reinvest dividends and SPP when appropriate - good long term strategy IMO. Something that I will encourage my son to initiate from an early age.

However, for me, I have made some big decisions recently in relation to my share related investments after many years of investing in direct shares and LICs..These investments (in the main) have been good to me, especially some of the purchases I made during the scary days of the GFC. The capital made after that time allowed us to buy an investment property in Sydney in late 2009 that has done pretty well since then.

Fairly recently I sold my 2 LICs and my remaining direct share holding (AWC - a nice little play at the time).

For me it is now about simplicity in my share investments and to reduce the research into shares that I have spent doing in the last few decades. A great ride but now time to focus my energies into other things in life rather than sitting on a computer reading research notes, reports, etc. Tax time will be a bit easier too.

For me now my share investments are entirely in super. Specifically, Australian Super which I agree is a reasonably low cost option with reasonable performance.

I invest in the DIY mix of 50% Australian Shares and $50% International Shares.

Another fund we use (for my spouse) is pretty good is 1st State Super (50% High Growth, 25% Australian Shares & 25% International Shares). Again, low cost and reasonable performance IMO.

Have been tempted with the 'Member Direct 'option in Aus Super but tend to agree with the Falcon and I am making my move from researching the market clean .

Will read LIC thread religiously but only temptation with Direct Shares may be to start long term investment in MLT on behalf of my son for him to continue when old enough.

all the best

 

Great post @Bunlee, I remember enjoying your posts on Somersoft.

An interesting point you bring up about "simplicity". It's hard for younger folk at times to understand how one's view can change with age. Whether it's shares or property we start out accumulating more and more of these with many convinced that they will hold the assets forever, always be enthusiastic about investing, never pay CGT etc.

But as life progresses and priorities change many of us start desiring simplicity in our investments so we can focus on more important aspects of life. Taking it a step further I wish I had started out with simplicity in mind rather than having to rearrange our affairs later in life to achieve same and incurring CGT etc.

 

Took me a long time to get this. A lightbulb moment. Such good info here for younger investors

 

I am (rather my hubby) also in Australian Super...quite happy with it esp. compared to AMP ...in relation to fees...my aim is not to touch this super and let it compound for my kids.

I am also trying to convert my investing to a simpler "leave it forget it" basis....still deciding whether LICs, Vanguard is the way to go...may split half half...here i am talking about my SMSF..

at retirement i hope not to look at share prices all day long but just go and lie on the beach somewhere in the world and let those dividends roll in...anyone doing that atm?)

To me share market is damn boring!

 

Out of interest, why MLT over any of the others?

 

A few reasons. Firstly Mlt's investments include a large range of Australian industrial coys that will provide my son an opportunity to practically see how his investment is applied. A learning and bonding to investment exercise. When he sees a WOW store he can feel a sense of ownership.

Also, low fees, been around a long time and very conservative.

Also had ARG for many years so happy to move into another LIC. Was tempted to look at AFI for him and take SPP rather than DRP given they will be held long term. We will see on this one.

All the best

 

Very interesting post. I'm actually quite interested in the thoughts of everyone on ETFs/LICs buy and hold versus the simple Australian Super (for example).

We've discussed LICs extensively and my conclusion is that they, combined with index ETFs, are the best balance of risk, reward and not spending time on researching / trading.

@The Falcon mentioned using a simple option while @Bunlee implied something similar. I guess I am trying to understand the potential benefits. The reason I got out of my super fund was the exorbitant fees I was paying. Is this not true for Australian super?

 

@ErYan please see below from a email convo the other day with a mate of mine ;

I’ve set future investments in Australiansuper for 80% Australian shares (love the franking) and 20% international shares. Now, I’ve done this under “member select” option or some such, and the total MER works out are a mere 0.35%. Pretty good I thought. Heres the thing though….if I selected “high growth” strategy, the MER is almost 0.70%! ………..traps for young players!!

 

I thought in the DIY option aust shares are.30% and .01% performance fee and Int shares are .45% management fee and.05 performance fee. Therefore .81% total in contrast to premixed option of.73% high growth??

Or am i all over the shop?!

 

Yep, you've lost your mind. back to maths class