How to Pick a Good Super?

LCricket on 23/04/2016 - 20:52

I just turned 40 and something got me thinking about Super. I have my super in two accounts which I'm looking to consolidate. At present one is with MLC and the another with Sunsuper. Not happy with either ..

What are some good Super Funds to consider? Which one would you recommend and why? There are quite a few comparison sites with lists which look very different. I am very confused and will really appreciate your inputs. At this point I'm thinking - I'd prefer something that is lightly skewed to the aggressive side in order to get better returns - but happy to listen to your thoughts on whats a good strategy and a good fund.

Financial

Comments

  • SydneySwan on 24/04/2016 - 08:32
    +2

    I would recommend an industry fund such as HostPlus, etc. They have low fees (usually between $1 and $1.50 per week) and allow you to be as aggressive or safety conscious as you like as they all generally have multiple investment strategies for you to choose from. Most of them are better performers and cheaper than commercial funds. At 40 you could choose a balanced fund or if you want to go a little more high risk choose a fund with more exposure to shares.

    • Cricket on 25/04/2016 - 01:15

      Thanks SydneySwan, I'll look into Hostplus. Of all the industry super funds what made you call out Hostplus, if I may ask?

      • SydneySwan on 25/04/2016 - 08:38

        At the time I transferred into them (around 2005) I felt they represented the best combination of performance and low fees. Generally I think they still do. Most of the industry funds are pretty good. The only one I would avoid is REST.

  • JIMB0 on 24/04/2016 - 10:18

    Industry super have lower fees. I'm in CBus as they are much more diversified than most superfunds which seem to invest only in shares.

    • Cricket on 25/04/2016 - 01:15

      Thanks Jimbo

  • tomlikesbeetroot on 24/04/2016 - 10:25

    Another vote for industry super funds.
    I'm currently with Australian super, however I believe Hostplus offers a better product just too lazy to move accross.
    When looking at comparison sites keep in mind they are a business as well and likely won't receive any commissions from industry funds. This doesn't automatically mean they will be biased, but some less than honest operators might be.

    • Cricket on 25/04/2016 - 01:18

      Thanks. What makes Hostplus better compared to Australian Super? Is it fees, returns or ease of switching strategy (online click of a button)?

  • spersephone on 24/04/2016 - 13:59

    I'm currently with ING, have looked into other funds relevant to my industry, and none of them seem to be any better, so I'm staying where I am at the moment.

    • Cricket on 25/04/2016 - 01:21

      I thought anyone could join any fund. Is that not the case? Why do you need to only join funds relevant to your industry? Not questioning, just curious… Wouldn't you go after best returns irrespective of whether the fund is classified as relevant to your industry.

      • spersephone on 25/04/2016 - 14:50

        I went for those relevant to my industry because usually that seems to align better with it, that's all. I don't go after best returns, because I'm a risk averse person. I look into ethical investments, low fees and other matters when thinking about this sort of stuff. As a result, the ones I am interested in are all fairly similar, and when it comes down to fees alone, ING wins for now.

  • ilsan0 on 25/04/2016 - 08:47

    Why not SMSF and do whatever you like with it?
    I purchased a off the plan unit last year to be completed in May 2016. Put the remainder in shares/ETF.

    I will just transfer the remaining cash in the offset once i have the keys.
    Also the rental income will go in the offset account.

    • SydneySwan on 25/04/2016 - 10:26

      This is poor advice. You cannot do 'whatever you like' in an SMSF.

      There is a serious commitment in both time and skills required to run an SMSF successfully and unless you have a reasonable sum in super already, at least 100k but more realistically 200k+ you are much better off in an industry super fund.

      • ilsan0 on 25/04/2016 - 10:43

        Its not poor advise, its poor interpretation.
        Of course there are guidelines you need to follow.
        Anyone going down that path will explore that parameters.

        How do you know how much he has saved in his super.
        given he is 40, one would presume he has a decent amount in there…

  • meumax on 26/04/2016 - 13:43

    Past performance is no indication of future performance. The only thing you have control over is how much you pay for your super in fees. Therefore you should just choose the one with the lowest fees for your account balance and be done with it.

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