Hi, I am in my twenties and I need to make a super account, what should I look for and which company do you suggest also please help me with investment & insurance options and tell me what it is for, Thank you in advance!
Seeking Advice for Best Super Account at The Moment and What to Look for
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I agree about the Industry fund part, however I disagree about the insurance part. If you cancel default insurance and decide to add it on later on you will need to go through underwriting where the insurer will analyse your medical history and health issues (if any)
It is a personal choice whether or not to keep it, and it's also a catch 22 - if you don't have you might need it - and that's a pickle if it's gone.
Most super funds offer some or all of the following;
- Death cover - lump sum paid upon a member's death or if you are diagnosed with a terminal illness it might be claimable
- TPD - Total and Permanent Disablement cover - if you are unable to work ever again due to illness or injury
- Income Protection - covers you temporarily if you're unable to work due to illness or injury, subject to a waiting periodJust think about it before choosing to cancel =)
Hostplus indexed balanced
Inb4 someone suggests withdrawing it all with a thinly veiled attempt to say out it in bitcoinany advice provided is general advice and if you want personal advice tailored to ur circumstance, please see a finanical advisor
just a usual disclaimer we have to read out so I don't get fined
you are young, go for broke, invest in super aggressive, u have time to ride the wave (unless it's a tsunami then we are all dead anyeay)
But industry super has limited options in term of individual fund managers, right? Industry super only has packages…
Some have preset mixed options, some allow Direct investment where you can choose how it's invested more specifically. Each fund is different.
yes im aware of presets, direct.
but not multi managers (picking individual managers for example challengers, creditsuisse, macquarie, etc)Is it this you're after? Or have I misunderstood
https://www.australiansuper.com/investments/your-investment-…
Each super fund has investment managers and other places that assist them with managing investments, generally speaking for their premixed options. I thought direct was different to this.. as you can specifically choose what shares etc to invest in.
"Member Direct offers you greater control and choice in the investment of your super or retirement income. You can invest in shares, Exchange Traded Funds (ETFs), Listed Investment Companies (LICs), term deposits and cash – all from an easy-to-use online platform."
@blueyez: No your link is direct.
If you never been with retail probably difficult to explain. With ANZ for example you can select each fund managers. Like I said before, for example, challenger, amp, credit Suisse, etc.@CyberMurning: In Industry funds the trustees pick their own organisations to work with.
I work in super but can't say that's the case for every single fund lol, only from what I've seen/experienced.
self manage
yea, cause that doesn't cost much at all…
Super is just a tax strategy. Money you put in there is taxed less than money you get in hand (for all but lowest income earners). In exchange, you need to leave the money there till you retire. People argue about how much to put in and rules about it, but it is the main way rich old people keep their money, so bear that in mind if you have aspirations to be rich when you are old (that means putting some extra in on top of the government’s 9.5% compulsory figure.).
The super fund charges fees for administration of your money. Select a fund with low fees.
When you select a fund, you will get to choose where your money is invested. All super funds have options that range between risky (mainly in shares) and safe (mainly in cash), and you should get more interest and growth (also called a higher return) for the riskier options.Since you are young, you should probably invest in the riskier options. So what if the share market crashed? You have decades yet of contributions to make it up, so go for it. Change it to something less risky when you are old.
The shortcut answer to achieve these outcomes is choose an industry super fund (owned by unions and operated as non-profits) as they have low fees, and choose their “growth” or “high growth” investment option.
The default in all funds is to also give you life insurance, and take the premiums out of your contributions.
If you don’t have dependents, I would also ask that the life insurance be cancelled. Make sure you keep disability insurance (called TPD) in case you have an issue that stops you working.
Here is a list of industry funds:
https://www.industrysuper.com/
It doesn't matter which fund you choose. The money that goes in isn't yours until you take it out and that may take 40 years. This could chance to 50 years by the time the government is done playing with it.
In the meantime, some wizard will be appointed by a board of other wizards to run the show. They'll take a yearly salary of between 19 to 23 times the median ~$50000 (2019) Australian income. They'll of course in return for taking all the cream try and not fubar the fund. Their lucky members in a good year may get a measly ~$400 added to their retirement bag.
https://www.news.com.au/finance/average-australian-salary-ho…
https://www.wsws.org/en/articles/2021/03/20/supe-m20.html
https://hostplus.com.au/investment/mysuper-product-dashboardHiding behind a comment that was made by a leader that takes overseas holidays when the country is literally on fire shows how much they care about their members.
https://www.investordaily.com.au/superannuation/47840-hostpl…
However, Mr Elia waved away suggestions of taking a cut to his fixed remuneration despite a large part of the fund’s hospitality industry member base being out of work, saying that if anything staff at the fund had worked harder than usual over the COVID period.
“I think I’d adopt the Prime Minister’s comments in that we’re getting on with the job, we’re incredibly busy – in fact we’ve never been busier,” he said.
“Our job is to continue to deliver great outcomes for our 1.3 million members and we’re focused on that task. We’ve been working overtime in order to assist the government’s program.”
Choose an Industry fund, avoid the private players. Look for low fees and cancel any insurance in case it's turned on by default.
Hostplus, Australian Super, etc are good choices. Get started with one and you can always roll over at a later date once you start having preferences.