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Superannuation?


unzippy

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Gosh that's a big question. 

There are two kinds of superannuation funds - retail funds and industry funds.  Retail funds are run by banks and insurance companies and like all bank and insurance products, they are designed to make money for the banks and insurance companies.  Industry funds are run by the trade unions and they are not-for-profit.   Once upon a time, each industry had its own fund ( Hostplus for hospitality, Cbus for construction, etc), but nowadays anybody can join any industry fund.

Financial advisers will say you should look at performance not fees, and that some retail funds perform so well that it cancels out their fees.  Personally I prefer not to give any more money to the fat cats, on principle.

There's a guy called the Barefoot Investor.  You can find his book at the library and he recommends the best value super funds, credit cards etc.  I think he's currently recommending Hostplus.   I'm with CBus and they're fine.  I know a few people who are with Australian Super and they're fine, too.

https://barefootinvestor.com/

When you start work, your employer will try to put you into a fund of their choice, but don't let them.  You are entitled by law to choose your own super fund, and once you've got it set up, you can take that fund with you from job to job. So choose the one you want, and ask your employer if there's a form you need to fill in to notify them of your choice.  

What else did you want to know?

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Thanks for that @Skani Have been on my soap box a few times trying to let the folks know that they must put money aside. Another way of putting it...My last pay packet was almost 19 years ago.  One day, they will need it.

Cheers, Bobj.

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2 hours ago, Bobj said:

Thanks for that @Skani Have been on my soap box a few times trying to let the folks know that they must put money aside. Another way of putting it...My last pay packet was almost 19 years ago.  One day, they will need it.

Cheers, Bobj.

Just as well you know how to fish or you would starve.

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13 hours ago, Englishwifeinoz said:

Hi,

I did quite a bit of research in to this and ended up choosing the best performing super which is Hostplus - but it depends whether you want a super with benefits added on that you will use or if your want a super that may provide more growth.

 

What do you mean by "benefits added on that you will use"?    If there are any benefits attached to a super fund, they are usually window-dressing designed to tempt you into the fund, and you pay for them in increased fees - so I'd be suspicious of any fund that offered them!

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Well it is cheaper to get insurance bundled in with your superannuation, ie death and disablement insurance compared to purchasing it separately.

The super fund with thousands of members will negotiate a better price than you would otherwise.

Not sure what other benefits there might be.

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20 minutes ago, Parley said:

Well it is cheaper to get insurance bundled in with your superannuation, ie death and disablement insurance compared to purchasing it separately.

The super fund with thousands of members will negotiate a better price than you would otherwise

You're absolutely right, but that's pretty standard on all super funds.  

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