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Superannuation investment choices

Discussion in 'Other Asset Classes' started by Tim & Chrissy, 24th Mar, 2016.

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  1. Tim & Chrissy

    Tim & Chrissy Well-Known Member

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    We have generally used the diversified/balanced investment options in our industry Super fund, especially post GFC.

    A friends wife who is a similar age (30's) has always invested her entire balance in the high risk option. She now has roughly double the super we do.

    We are considering going down the same path and shifting to a safer investment option a few years prior to retirement (most likely in our 50's or 60's). Any thoughts?
     
  2. bob shovel

    bob shovel Well-Known Member

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    I think I have mine at to a "50% gamble option"

    I'll be waiting till I set up a smsf, although cbus does allow you to play with your own over a certain amount
     
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  3. Scott No Mates

    Scott No Mates Well-Known Member

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    Yes, no and maybe. (depends upon your circumstances).

    I had shifted a % across to the higher growth option as well as all new contributions. The balance has remained in the growth portfolio.

    By shifting all $ into high growth, you lock in the losses from the current period of instability and returns may look pretty poor. If you shift all new contributions to high growth then you will be exposing a smaller proportion of your $ to the bear market and transfer across more when the market starts to stabilise.
     
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  4. bashworth

    bashworth Well-Known Member

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    At your age I had most of my super in Shares/Growth.

    Now I am semi retired I aim for around 3-4 years pension in conservative and the remainder in growth. This allows me to ride out the dips but I want to get plenty of growth as I am planning to live for another 20 years plus!

    The share market is pretty much down now although it has gained from the low of mid Feb so I am moving a recent windfall across to growth. I am moving $10,000 a month to even out the risk of a sudden fall.
     
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  5. beachgurl

    beachgurl Well-Known Member

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    Mine's in high risk. I don't see super being my major income source so I'm fine to be riskier with it
     
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  6. The Falcon

    The Falcon Well-Known Member

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    High Volatility is a better descriptor than High risk. Yes, growth exposire is what you want if you have a long runway. Then closer to retirement more fixed income/cash. The balanced option as a default for young people is a total dud
     
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  7. Hodor

    Hodor Well-Known Member

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    I was comparing cbus, Australian super and ING pseudo SMSF (my own term) for shares. I feel ING is the best value. $300pa admin is the only fee apart from brokerage and good range of ETFs and LICs along with all ASX300 companies.

    Getting ready to switch, any LIC should beat the pants off what all the super funds I've seen advertise. Especially taking out their management fee. Also get back half the imputation credits as super only has a 15% tax rate from my reading.
     
  8. JDP1

    JDP1 Well-Known Member

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    Generally, the younger you qre the more growth is advised. Conversely, the older you are the more conservative is suggested.
     
  9. Blacky

    Blacky Well-Known Member

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    What does 'balanced' even mean? I'm guessing high in cash/bonds. It allows the fund mgr to charge fees on the balance without having to touch it. Easy coin for them.

    I don't trust superannuation as a vehicle for investment. I'm similar age to you, and we are so far away from accessing it that the rules will have changed so much by the time we get there, we won't recognize it.
    In saying that you have super, so may as well make the most of it. High growth all the way.

    I have two funds with very low balances. Over the last 10years they haven't moved. The only reason I hold them is they both came with a life policy giving my family about $500k on my death. For me they are basically a cheap life insurance cover.

    Blacky

    P.s not a financial advisor. So seek professional advice and don't make investment decisions on what some random dude on the internet says is a good idea.
     
  10. Scott No Mates

    Scott No Mates Well-Known Member

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    It may provide cheap life cover but if you do not have a current binding death benefit, the fund may ultimately decide who it will pay upon your death.

    As for your funds not having moved much in 10 years - you're in the wrong fund if this is the case. Look after your super the same as your other investments - lots of attention. If the return is unsatisfactory, check out superratings for a guide as to the better performing funds. Long term average return of many industry funds is over 8% which can't be too bad.


    Disclaimer: I have NFI.
     
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