I still have 15-20 years of work life and thinking of switching superfund to either Unisuper High Growth or Hostplus 50% IFM Australian shares and 50% International shares indexed (as recommened by barefoot), any thoughts which one would be a better option? Thanks!
People keep saying that but then they turn around and always pick the fastest horse with the most amount of wins.
"Past performance is the best indicator of future performance."
until its not
"Past performance is the best indicator of future performance."
"Generally, people try their best to justify random outcomes as non-random and rationalise chance outcomes as results of deliberate actions. This makes people have misled faith in their ability to accurately predict the future."
“The trend is your friend until the end when it bends” – E.D
Traders that go against the trend always end up rekt.
If you are following barefoot, do the sum of the fees you will pay, based on your balance and annual contribution. Pointless just purely asking what people think of the product - we all just see the same published past performance.
You must be in the educational sector like me. Kudos to you!
Unisuper has been open to everyone since July.
Thanks for the update. I'm old school ..pardon the pun :P
I'm with Hostplus and have been for a long time. They seem pretty good.
I am a planning to take a look at Vanguard if they open something up.
I am a planning to take a look at Vanguard if they open something up.
similar. With Australian Super currently, but should expect vanguard to make a product thats better designed for direct ETF options (and generally lower fees as is their general trend)
Hostplus is hopeless. I am only with them because if the merger from Statewide. Will move this week to Unisuper. Less fees.
Always go for funds that are 100% in US stonks. In particular innovative and disruptive technology.
One more thing. Assets that have a historical performance that goes up to the right will always go up to the right unless they're usurp by a better technology.
Both are good.
I've got half my pension funds with Unisuper and half with Hostplus. Yes, I'm paying two lots of management fees and I could reduce that by consolidating into one fund. But I like the security of not having all my eggs in one basket - if one company goes bust, I may only lose 50% of my pension, not all of it.
Maybe put half in each and track how they are doing for a couple of years, and then consolidate. But if I was forced to choose one, with 15-20 years to go, I would go for High Growth. You will get a fright every 4 or 5 years, but over 20 years will get a very good return.
You can also run these funds through ChantWest AppleCheck which compares different super and pension funds. It normally costs $55, but if you do the check via a super fund, you can get it free. The Hostplus site offers this facility at https://hostplus.com.au/super/join/compare-us
Check it out if you want to do a deep dive on your super research. Awesome that you are considering this so far from retirement!
The only way an industry fund could go bust is if they are highly leveraged (investing more than they own) which is impossible given the regulation by APRA and the risk control applied on the portfolio. It is not a great reason to split the contribution.
if one company goes bust
between Unisuper and Hostplus its like $170 billion in funds invested.
As industry funds, I think if either goes bust, they both will… likely coinciding with say a meteor wiping out civilisation :)
I'm speaking from bitter experience.
I lost half my UK private pension because it was with Equitable Life, an insurance and pension company established in 1762 with an impeccable reputation, holding about AU$52billion. It imploded about year 2000 and no longer exists.
Nobody saw it coming so it is naive to suggest that it won't happen here.
It is a fair comment. That is why DB funds are no longer open to new members. It is just a disconnect between promising a certain annuity payment and the fund taking all the market risk. With Super, both parties share the risk. You would lose money that is in line with the market but the risk of it going to Zero is very low.
I made 10% and paid $69 in fees under Hostplus model.
Is thst thr admin fee? Are there any other fees?
Where's the dude who withdrew all his super at the start of covid and forgot to reinvest?
Don't follow his advice.
Probably lost his OzB membership too?
Wait ten years
From memory, uni Super high growth includes bonds and emerging markets. Funnily enough, I compared the net returns of that option with almost exactly your other option only a few weeks ago.
Turns out Uni Super had higher fees, but performed better as a net return, by just a little.
So pretty similar. Hostplus index Aus/US appears slightly more risky, but it's the option I choose.
"Past performance is not a reliable indicator of future performance."