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Superannuation and other investments

Discussion in 'The Pub' at netrider.net.au started by es, Aug 8, 2007.

  1. Im going to start proper employment soon and am looking at ways to make my money work for me!
    To start with, im looking for a new Superannuation fund. The one i am with now is absolutely shocking as far as customer service goes, ive sent in numerous statements telling them they have my name, address (have moved... almost a year ago), benefactors (they say they haven’t got any on record), and date of birth wrong (off by 6 days..) all wrong. :roll:
    anyway, Im in the market for a new super fund. What should I be looking for in selecting one? Im 20.
    Can anyone recommend one?


    I’m also looking at setting up some kind of small short term investment ($1000 - $7000 initial amount for 2-5 years). I have no idea where to start looking to find out info or what to look for. I guess i am looking at managed funds?
    I will probably talk to a financial consultant, but want to know a little bit about it all before going in.
    Ive applied for some booklets from the government but they wont arrive for a few days/weeks...

    any advice apreciated.


     
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  2. My super's with AMP because my company has a sweet deal with them on a national level, so I don't cop any account keeping fees.

    No fees makes them the best in my instance.

    ARF get good write-ups - I used to be with MLC and they were retards who had my birthday wrong and couldn't fix it ^_^

    As far as term deposits go: good one's are for investments of amounts from $25,000 - $50,000.
    $7,000? Just stick it in an ING savings account - the interest rate is a bee's d1ck of a % below a small amount term deposit anyway. There's no risk or hassles, and you can transact online to get your money back in your Spendings account whenever you like.

    It also means you can direct transfer a portion of your income on a regular [weekly?] basis to grow the account. Best way to save IMO. There are no penalties or transfer fees on ING's end [your bank may be a different story... prix].
    I only wish I'd started mine earlier in my working life :eek:

    Term deposits are a waste of time for poor people like us :grin: Save it in an account with a good rate and flexible options [like ING... although Commonwealth do a competitor savings account now that's pretty decent too] - so if you have a bike stack or a financial emergency you can get at it no worries. Wait til you've saved $25k to give it to the government for 8 years and reap some significant rewards later.

    /just personal advice!
    //I'm not a financial planner.
     
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  3. Sorry, here's a link to the ING savings vs term deposit calculators.

    http://www.ingdirect.com.au/calc.htm

    6% vs 6.85% for $7k, the difference isn't that much over 2 years. May as well stick your cash in the normal savings account and that way you have access to it, if you need it.
     
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  4. I have an ING account already, but wanted to explore other options :)
     
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  5. What type of fulltime work will you be doing and is there an industry superannuation fund for it??

    If so, you would nearly be better off putting it into one of those as they generally have no/small fee structure.

    When planning which investment strategy to use for your Super fund, go for an aggressive plan. Even though the immediate gains/losses may be high, the long term future of these investments are better than choosing any other form of strategy (i.e. conservative, etc). Remember that Super is a long, long, long term investment (i.e. 40+ years) and over the life of the investments, the more aggressive the stragety, the better off you will be in the long term.

    You may want to look at putting the additional savings amount into Super as well as the Govt at times will match your contribution.
     
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  6. ING gets my vote.

    I have no products with them at all though :rofl:

    They do however sponsor the Renault F1 team :p:p:p:p

    I have more super funds than kg's I need to seriously get my shit together and consolidate it all.
     
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  7. Hi Es,
    I am a financial planner.
    Most of what has been said above is close to the mark.
    If you want an "off the record" chat, pm me.
    Cheers, Stephen
     
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  8. i would personally recomend waiting till you have about 8500 big ones then go and see a company like ABN amro or any financial planing sort of place that deals in stocks. if you have 8500 look at getting a margin loan somewhere in the area of 20-30k, that will give you 40k ish to play with. just let it sit there and grow. buy some blue chips stocks and minning stocks and you will be looking at min 15% growth per annum. plus having shares is a good way to off set some of you tax with franking credits
     
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  9. This is what i would recommend.

    Superannuation.
    Industry based funds seems to be the shiz these days, but then it varies among industries. Noramlly you get options what u want to put ur money in. for example : cash-------low risk------low return
    Shares(mix between international/aus) more risk--------- more return generally
    For a 20 yrs old, would use choose risk. Cause risk doesnt really affect you with super, cause it will be another 35+yrs before u get the benifits.

    Investment.
    Although ING and Netsaver accounts are good (6% variable) there is alot more out there that will offer you more. Remember more interest=more risk.
    I would seriously look into Managed funds, depending on your willingness for risk, choose an account accordingly. conservative, balanced, high risk.
    You are looking at 10%+ on a balanced fund, with minimal risk, market Dependant though.
    A regular investment plan will make your money grow without trying. automatically deduct $XXX a week, and it will compound and grow.
    Funds- (colonial first state(reccomended) Comm funds, BT, MLC etc
     
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  10. Eswen, if you do use a Financial Planner, make sure you completely understand their fee structure, both fixed and variable, as it can add up to a good portion of your income from investments such as managed funds if you are not careful.

    Either that or learn what you need in an off the record discussion with Tail end charlie. :cool:
     
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  11. My workplace went through a major super provider investigation a few years ago and settled on a mob called equipsuper.

    They're tops in the customer service department and come to site every four months just to chew the fat and share any developments in the super industry. Always cordial and informative on the phone, and a good website too. They're also doing alright on the benchmarking between funds.



    As to margin lending - The idea is that you put in some of your money, and some bank/finance mob puts in some of theres, and now you buy a whole lot more shares/units than you could have otherwise done on your own, so you get to reap all the dividends and all the growth - minus the charges - on the whole lot. You can do it in monthly installments or one off in bulk, or both.

    Margin lending is a wealth building tool (all the usual stock market warnings go >here<) with some tax benefits because the interest charged to service the loan is tax deductable. Most margin lenders have predetermined managed funds or stocks that they'll let you buy. At some point in the future, you sell and entirely pay off the loan. You cannot freely access you money - but you can within several days.


    If you have a short term goal in mind - then there's always the bank's term deposits.

    Or if you want to park money aside for some time in the future, a managed investment fund is good for lazy folks (like me! I have an AMP managed fund that grew 23% in the first 12months... but has taken a hit right now) - fee structures can be a killer though. www.morningstar.com.au rate managed funds.

    One thing about financial planners, they almost exclusively advise on share/stock based financial instruments for which they will pick up a trailing commission. Just keep that in mind.


    Good luck Es!
     
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  12. :WStupid:

    Anyone who moves around a bit probably does. And I have some serious kilos!

    Nb: PM Ms DJ. She could probably point you to some advice...
     
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  13. Heya - the ING is a good place to start. No fees etc and you do see the interest actually accumulate. When you build up a bit more cashola then you can think about doing something with it. And I'll agree with the statement as above: more returns=higher risk. You could always invest in a company that has fairly consistent stock prices and then reinvest the dividends back into your portfolio. It's a nice way to have money tick over.

    As for superannuation - what industry are you in? is there a fund that is specifically geared to people in your work scenario? I'm with a superannuation fund that takes this into account and the service is pretty good too.
     
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  14. Just in regards to the ING accounts, don't they need to be attached to a bank account you already have??

    Sure you get the 6%pa or whatever, but what about all the unjustifiable bend over and take it up the *rse !@#$!@#$@% bank fees charged by the blood sucking banks ??

    Depending on your fee structure, you may cop fees for having a low balance and there goes all your ING interest!

    :tantrum: Next to tailgaters, unjustified banks fees get me boiling! :tantrum:
     
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  15. es - i've got a quality deposit I'd like to make ;)
     
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  16. Es,
    I guess it would help that you choose someone who is a member of this: http://www.fpa.asn.au/.
    In the price bracket you're thinking about managed funds are a viable and meaningful option for exposure to the market.
     
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  17. Hey Eswen,

    I work in the super industry. If you've got any queries, PM me.
     
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  18. Since you are going to be working in the IT industry this would be a good place to start for a Professional Organisations/union

    http://www.apesma.asn.au/

    The can give you discounted Financial advice as well as some decent deals on private health insurance (probably not an issue unless you jump up over $50k a year).
     
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  19. Thanks for all your advice guys, im going to follow up with the site Matt232 posted and ill be putting my annual leave etc payouts into my ING account untill i work out what to do with it all!
     
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