Welcome to Netrider ... Connecting Riders!

Interested in talking motorbikes with a terrific community of riders?
Signup (it's quick and free) to join the discussions and access the full suite of tools and information that Netrider has to offer.


Discussion in 'The Pub' started by 99sydrd, Oct 10, 2008.

  1. Hey, I just recieved my super statement and it says i have lost -$9,870 since june this year.

    With the current crisis with the stocks ect this means i could stand to loose the lot.

    I pity those who are about to retire.Luckly i've still got a few years to go.

    How did you guys fare.

  2. mine has been crap too, between admin and stock losses and three different super funds from different jobs.... I need to work till I'm very very old :(
  3. I've been paying into private super for 20 years, and into compulsory super since it was made so, but I doubt if that's going to mean much in 6 year's time :(.
  4. Sit tight Paul. The current situation wont last forever.
  5. Why don't you consolidate all of your super into the one fund?
    That way you only pay fees for one fund. :idea:
  6. Yeah I know, had done it with a couple but every job I have had wants to use their own super so I need to do it again just need to sort out which is the best one to go with
  7. I've got PS146 compliance in super and did a stint in a Financial Planners office, so I can provide people with general super advice.

    Firstly, consolidate. You get charged crazy fee's by funds which are just charitable donations on your part. $1 lost now is $30 in about 30 years time, assuming moderate returns.

    Don't worry too much about your fund statements. It's time in the market, not timing. Although now's the best time to make contributions, although the market may fall a little further.

    As for those about to retire. I'd advise anyone over 55 to switch to a conservative option rather than a risky share fund. As would any financial planner worth their salt.

    My super's worth crap all now, but I couldn't care less.
  8. You'll never lose the lot, provided you haven't invested all your super in a handful of shares. The market fluctuates, but the share market index is the safest thing you can ever buy in the long run.

    Safer than property or cash anyday.
  9. Ummm -how exactly do you explain that one? I decided to pump about 12 grand into my super this year. My statement tells me I'm down just over 5 grand. Would I not have been better just to just p!ss it up, go for a reasonable holiday and at least enjoyed watching the money disappear :? :?
  10. You've experienced a % loss on an amount greater than what you would have if you hadn't put the money in. When you get a % gain (which you certainly will in the longterm) it will again be on an amount greater than what it would've been if you hadn't put the money in.

  11. Can't have it both ways devo. Those large gains from whats remaining in years to come are still pretty well consumed by whats disappeared in one hit. Who knows what next years statement will look like 'cause if I'm not mistaken this one came out before the shit really hit the fan.
  12. Well, before I had $470 or so, and now I have about $300. Goddamn fees. How the hell does it cost $100 to invest $400?

    My mum's managed to lose 1/6 of hers :(
  13. There are many easy ways to cut your fee's to close to zero. And no, it doesn't involve industry funds, the slimiest unprofessional pricks ever.
  14. No. Granted, you would've been better putting the 12 grand in about now, but neither of us have a crystal ball.

    In 10 years time, your 12 grand will be worth a crap load more than if you put it in an ING account or any other macro scale investment. 12 grand invested now will definitely be a lot bigger than if you piss it away.

    If you buy a bike for $10grand and the next year it devalues to $5grand. You'd only lose $5g if you sold it. If you planned on keeping the thing for a while, you're not affected at all. Especially if you knew 100% that it would go up in value in the future.

    So in the short term, yes you'd probably be better off doing something else with it (investment wise). But in the long run, you can't go wrong.

    The other thing is that your money is being very favourably taxed in super. But that's another topic altogether, favourable tax avoidance.
  15. If you need the money year by year, you should never have been in shares.

    Different people have different risk profiles, ie. volatility. My personal super and managed investments are in geared shares. I couldn't care less what the day to day prices are because they're long term investments.

    My liquid managed funds are in wholesale debt which only grow, not as much as my shares (in the long run), but I want them to be stable, not high returns.

    Risk/return are positively related.

    How old are you mate and how soon do you need your money? If you're late 50's, you've got a financial planner to fire. These strategies were adopted by myopic FP's and resulted in a lot of disgruntled clients.
  16. Yeah, the point is, the shares you're buying now with your super are cheap, and will go up. The 5 grand you lost in that example was not 40% of the 12 grand you contributed, it was some much smaller percentage of your balance.

    For those of us with a long time until retirement, it will all come out in the wash - historically the market always gets back where it was, even if it takesa few years to get there, and in the mean time percentage rises per year, compounding, will be faster.

    But it would suck mightily to have been thinking you were going to retire this year...
  17. The law was changed a few years back. An employer cannot force you to use their super scheme. You have the choice as to which one you want to use.

    Might I suggest that you find a suitable industry scheme such as Vicsuper or Equipsuper? They charge bugger all fees compared to the retail funds whose primary focus is profit for them and the shareholders. Their members are merely incidental to that. And they're as bad as the banks with their gouging fees, charges, etc.
  18. Sorry mate, but just untrue. Those industry funds charge massive fee's. You'd be absolutely amazed if you realised just how much.

    Plus, greed is good. They're paid on commission so they're paid to maximise returns. Whereas industry super just don't have the same incentives, hence they don't perform nearly as well (other than the odd good result for the odd super fund in the odd investment choice).

    There are very simple ways to get out of the fees of private companies who maximise returns.

    So my best advice is stay away from industry funds and definitely go retail. I only pay 0.3% in trailing commision a year and I've got a leading fund.
  19. Nakkas my work recommended super fund publishes a bench marking report from time to time as do the trustees who oversee it. It clearly performs pretty well in the general market place and it's an industry super fund to boot. It's fees are a lot less than some of the personal super mobs I considered when the choice legislation came through, AND I can tap into other financial services as a member at low to zero costs. To me, that's a good product.

    NSAG, I've lost a bunch too... but I've actually upped my super contris. I'm wholly in a growth type fund and the unit price has dropped. Since I'm reasonably confident about staying employed, I figure it's time to buy more units now while they're cheap coz I'm betting that in the long term they will recover all their losses and them some.
  20. Of course they'll publish a benchmarking report looking at them favourably. What are you comparing them to?

    If you came to me for a Financial Plan, I'd be willing to bet my own money that I'd fund you a much better deal using a private super fund.

    Like I said before, those fees are easily wiped to almost zero and all your left with is an awesome return.

    If you're happy with your industry fund, stick to it. But as someone with real life personal and professional and extensive academic experience with super funds, you can almost always find a much better deal than an industry fund. The insurance plans are usually their only saving grace.

    I'm not telling you what to do with your money, just giving my opinion and experience on industry funds.