Hi all, my daughter is starting work for first time as a casual in daycare area.
I'm looking for a good super fund she should join. I would prefer industry funds.
She has a friend who has suggested Active Super.
Thanks
Superannuation Fund Recommendation for First Job Suggestions
pencilhead on 19/05/2024 - 17:55
Last edited 20/05/2024 - 08:46 by 1 other user
Last edited 20/05/2024 - 08:46 by 1 other user
Comments
I would recommend looking beyond that website, since it only contains mysuper products. These products start at growth and swap to conservative at a certain age. At a younger age it may be worth their time considering high growth options or even asset class choices.
For first fund, choose one without a flat annual fee as this will be a larger percentage of the balance when starting out.
Then I’d suggest reading through the investment choices. When you a young a high growth low cost solution will do well over the long term. The default option will generally be too conservative for a young person with a 40 year investment timeframe.
generally speaking - ppl stick with same super fund throughout their working life.
This is even more true these days … as can OPT for specific super fund (but not so going back to 2000+ prior - where you had to use super fund that your work was linked to).
Hence prior to 2000 - ppl had multiple super accounts with multiple companies (+ each having admin fees).As mentioned by posters above - since your daughter is just starting out in workforce - may be best to look at high growth with selected fund.
Lastly, TPD + income support through super == a value add-on for the super fund (this is where they often make money from their clients).
Since daughter is young - worth considering whether needed … but IF you/daughter do feel need these securities - it's 100% BEST to source outside of super.Super funds also have HUGE hoops to jump through, if you do ever need to claim for TPD/etc - whereas independent are easier to make the pre-requisite requirements to put a claim through.
Australian Super
Australian Super
yeah - I am with them too (for super but not for TPD/income ins).
Super wise - they have been 1 of top performers for decades.
But didn't want to try to persuade OP to any certain fund for daughter - best that they do their own research - and come to own conclusion - as to what is right for them.[EDIT] : 2011'ish - I did try claiming income protection through Australian Super == such a convoluted process.
Hence why, afterwards - I now have TPD + income protection … outside of super.I now have TPD + income protection … outside of super
Who through?
UniSuper is on a similar level, as is Aware Super.
I moved to UniSuper out of a State Government fund that was grossly underperforming.
UniSuper is very easy to use, has good options, excellent results and low fees. I recently took on a second job at a Uni and UniSuper made all the appropriate fund changes instantly.
Ive even been considering rolling my teens super to them but his is with PSSap 🤷♀️
I was a little worried with their recent downtime after Google deleted their account (lol), the lack of redundancy to process transactions was worrying - sounds like they had all their eggs in the google cloud basket.
That said, I imagine most providers aren't any better. And unisuper will probably be getting free google cloud storage for the next 12 months, might improve their returns.
Honestly, how they handled it didnt have us worried at all. Constant updates, there was never a time I didnt know how it was travelling.
And I logged in the other day and everything is back to normal, including my money.
While I appreciate Google is taking the hit and there's probably some system and process issues they need to revise, I didnt think (based on the industry gossip), that there was anything malicious or incompetent in it (which would have been more concerning to me).
UniSuper for sure
Australian Super (among others) offers a link to Chant West Applecheck where you can compare two additional funds. I just tried balance $10K, age 18 for Active Super and UniSuper Personal. It's an easy way to compare fees and a range of other metrics. I know an advisor who recommends starting with a low-fee option then pivoting later as your balance grows.
Read the barefoot investor. If you starting your first job. It will be very well worth it, and does cover super too.
Does he have any tips for shoes?
What about remembering socks?
Ah I remember socks like it was yesterday
I've been with Rest super they got low fees so i just stuck to them (like others said people probably just stick to like whatever they got first super with).
Industry super has the lowest administration costs. But it is never apples and apples.
For someone who is in their 20s they actually should take most risk (invest in growth assets like 100% shares local and international). You have to look into cost of investment options.
Anyone up to their 50s I'd say go 100% into shares (mostly international as Australia is only a few % of the global share market) and wait until top of the next cycle to get out.
Not financial advice.
Australian Super fees https://www.australiansuper.com/compare-us/fees-and-costs
On $10k it is $180 per year (so try to compare same size pot with another provider)Investment options https://www.australiansuper.com/investments/your-investment-…
For the uninitiated I wouldn't suggest doing member direct as you need to do the leg workThis is coming from someone who made 150% on private equity in the last year and lost like 50% in a China fund. Depending on capital committed I could have just broke even. Percentages can lie. Welcome to the world of investment!
Choosing a fund is half the question. Choosing a product is the other. If your unsure, go high growth.
Thanks everyone! Some really good tips in here.
My daughter has decided to go with Australiansuper.
She will go high growth for a few years at least.Please study the investment options. Everyone here is saying high growth but with reward comes risk. Otherwise we'd all be in high growth…
Their just starting work, so assuming they have something like 40+ years till retirement.
They should be choosing the highest growth option their chosen fund offers.At that age and low balance i'd likely be going host plus as my default recommendation, and something like a 70/30 index tracking overseas/au option.
Australian supers 'high growth' managed fund isn't bad for an actively managed fund though.
I'm not disagreeing, just suggesting it's a good exercise to understand the myriad available options and make an informed choice. Some funds offer an ethical or socially aware option which may appeal to this demographic.
I understand, but as others have said she is just starting work. High risk is reasonable safe at this stage. She can ride out dips in early years.
Australian super high growth is expensive compared to a share index fund.
Assuming 10k super Australian supers own actively managed share fund is $97 compared to high growth at $117. Rest passively managed is $88.
Not going to save a lot of dollars to start but might learn not to just pick the most well known. Which will save money in the future.
https://www.reddit.com/r/AusFinance/comments/w38ebq/super_co…
Depends on the level of diversification you may want in your asset choices.
While the fees for the high growth choice are slightly higher, depends on your opinion of not being entirely allocated to shares for your asset choices.
For an actively managed fund, that's not entirely share market allocated, it's still one of the cheapest options
Not Financial advice but im going to assume your daughter has multiple decades
Hostplus - 100% allocated to international develop markets index - simple easy cheap
Pretty sure Australian super has a similar option
have a good like
+1 for Hostplus. Joined with my first job 30 years and still have it.
My suggestion is to pick a performing one but with the lowest annual fee you can. You can use ATO website: https://www.ato.gov.au/single-page-applications/yoursuper-co…