Super funds

[nuggetron]

I'm with PSSAP super fund, whilst I am quite focused on paying off the home loan, I also throw in an extra 10% in the super to set us up better.
I was looking online and it is so confusing which fund is better than another one, let alone which is the best.
Any recommendations for funds?
Balanced or aggressive? Or a mix of both?

I'm only 31 so retirement is a while away and have a sizeable amount already (about triple the average), we are frugal without been tight, we don't care for expensive or new stuff unless it is something we need.

I am thinking of splitting the super 50/50 balanced and aggressive, post covid market should bounce back and the aggressive funds should really excel? and then maybe cutting the extra 10% I put in to focus on the home loan.

I am a public servant so already getting 15.4% super, so the 10%, whilst nice, isn't as urgent

 

[Cultured_Bogan]

I'm going SMSF shortly, investing in QLD property. A workmate of mine just did it last year, he signed up this time last year, sold his property in 12 months and gained 100K.

 

[Pascoes_barber]

I'm with PSSAP super fund

You are already in one of the the best funds.

As far as advice on strategy, my advice is: don't ask on an internet forum.

Unless things have changed you should be able to book a 'fee for service' appointment with a financial specialist (within PSSAP) to talk about your specific situation, goals and requirements to get there, including life/TPD insurance stuff which a lot of people don't put much thought into. Might cost a couple of hundred dollars but probably well worth it if there are options you aren't aware of.

Otherwise they'll usually do a visit to your office for a more general 'come and talk about Super' once a year or so.

 

[nuggetron]

I'm with PSSAP super fund

You are already in one of the the best funds.

As far as advice on strategy, my advice is: don't ask on an internet forum.

Unless things have changed you should be able to book a 'fee for service' appointment with a financial specialist (within PSSAP) to talk about your specific situation, goals and requirements to get there, including life/TPD insurance stuff which a lot of people don't put much thought into. Might cost a couple of hundred dollars but probably well worth it if there are options you aren't aware of.

Otherwise they'll usually do a visit to your office for a more general 'come and talk about Super' once a year or so.

fair call
my initial research did say it was one of the better ones that are available, but then read that the limited investment strategies can be a negative if you aren't a set and forget individual.
i do remember the banking group coming out, can't remember if the super mob came out or not.
may be worth paying for them to have a look at it, rather than gambling on it
i know i did turn all the insurances down to a minimum pre-family, should reassess that, cheers for that

 

[Pascoes_barber]

i know i did turn all the insurances down to a minimum pre-family, should reassess that, cheers for that

Yes, you definitely need to look at this ASAP. When I was with them the minimum was something tiny like $250K (which might as well be $0 if you're in the unfortunate position of needing to claim on TPD and then live for another 40 years.)

 

[earl]

I'll tell you 2 things I've done to get really good performance:-

1. No insurance.
2. All index funds and 100% stocks. I think I'm 2/3 international and 1/2 Australian.

Insurance is an individual thing. I don't have any life insurance for instance but you have to look at your individual situation.

Assuming you won't access your Super for many years the rational approach is 100% stocks. I actually think you shouldn't have any Australian stocks. It's a tiny blip on the market. I'm hypocritical here though and I don't see a big issue.

My wife is in the same Super fund as mine and she has underperformed because she went a 70% balanced fund.

 

[nuggetron]

I'll tell you 2 things I've done to get really good performance:-

1. No insurance.
2. All index funds and 100% stocks. I think I'm 2/3 international and 1/2 Australian.

Insurance is an individual thing. I don't have any life insurance for instance but you have to look at your individual situation.

Assuming you won't access your Super for many years the rational approach is 100% stocks. I actually think you shouldn't have any Australian stocks. It's a tiny blip on the market. I'm hypocritical here though and I don't see a big issue.

My wife is in the same Super fund as mine and she has underperformed because she went a 70% balanced fund.

unfortunately PSSAP only have cash, income focused, balance and aggressive or something along those lines, can't choose where or how they/you invest

 

[Guest]

I'm with PSSAP super fund, whilst I am quite focused on paying off the home loan, I also throw in an extra 10% in the super to set us up better.
I was looking online and it is so confusing which fund is better than another one, let alone which is the best.
Any recommendations for funds?
Balanced or aggressive? Or a mix of both?

I'm only 31 so retirement is a while away and have a sizeable amount already (about triple the average), we are frugal without been tight, we don't care for expensive or new stuff unless it is something we need.

I am thinking of splitting the super 50/50 balanced and aggressive, post covid market should bounce back and the aggressive funds should really excel? and then maybe cutting the extra 10% I put in to focus on the home loan.

I am a public servant so already getting 15.4% super, so the 10%, whilst nice, isn't as urgent

I'd stay in that fund and not move out of it - I'm in the old PSS fund with defined benefits, which the Govt did away with at the start of 2006 because it was going to cost them too much money. As long as I remain in the Federal public service, I'm sweet.

 

[nuggetron]

I'm with PSSAP super fund, whilst I am quite focused on paying off the home loan, I also throw in an extra 10% in the super to set us up better.
I was looking online and it is so confusing which fund is better than another one, let alone which is the best.
Any recommendations for funds?
Balanced or aggressive? Or a mix of both?

I'm only 31 so retirement is a while away and have a sizeable amount already (about triple the average), we are frugal without been tight, we don't care for expensive or new stuff unless it is something we need.

I am thinking of splitting the super 50/50 balanced and aggressive, post covid market should bounce back and the aggressive funds should really excel? and then maybe cutting the extra 10% I put in to focus on the home loan.

I am a public servant so already getting 15.4% super, so the 10%, whilst nice, isn't as urgent

I'd stay in that fund and not move out of it - I'm in the old PSS fund with defined benefits, which the Govt did away with at the start of 2006 because it was going to cost them too much money. As long as I remain in the Federal public service, I'm sweet.

yeh all the oldies (no offense) at work all sit around and count their (defined) retirement funds bragging they will be making more when they retire, lucky buggers haha

 

[earl]

unfortunately PSSAP only have cash, income focused, balance and aggressive or something along those lines, can’t choose where or how they/you invest

That sucks. I'd get a Super fund where you can direct it into specific index options. I don't have a lot of options in my indexes but there is a world and an Australian Index. I think all funds should have that option. It's poor if they don't.

Those diversified funds in my opinion are not transparent. They can invest in big infrastructure projects and the like but we've got no idea if they are good investments.

 

[TillLindemann]

I'll tell you 2 things I've done to get really good performance:-

1. No insurance.
2. All index funds and 100% stocks. I think I'm 2/3 international and 1/2 Australian.

Insurance is an individual thing. I don't have any life insurance for instance but you have to look at your individual situation.

Assuming you won't access your Super for many years the rational approach is 100% stocks. I actually think you shouldn't have any Australian stocks. It's a tiny blip on the market. I'm hypocritical here though and I don't see a big issue.

My wife is in the same Super fund as mine and she has underperformed because she went a 70% balanced fund.

I disagree on the Aussie stocks comment - yes we're only 1 or 2% of the globe, but we are one of the best markets to be in, in terms of a mixture of safety and growth. And the ASX is probably the best dividend paying market on earth.

 

[nuggetron]

unfortunately PSSAP only have cash, income focused, balance and aggressive or something along those lines, can’t choose where or how they/you invest

That sucks. I'd get a Super fund where you can direct it into specific index options. I don't have a lot of options in my indexes but there is a world and an Australian Index. I think all funds should have that option. It's poor if they don't.

Those diversified funds in my opinion are not transparent. They can invest in big infrastructure projects and the like but we've got no idea if they are good investments.

agreed, part of the reason i was looking around
i mean the returns are fine except last years due to covid obviously but would still prefer to at least know what they have my money in

 

[Pascoes_barber]

I would generally trust the teams of analysts responsible for informing PSSAP's investment decisions for the hundreds of thousands of members more than suggestions of 'specific index options' that are fairly opaque anyway (and basically zero practical difference between changing your existing fund from 'balanced' to 'aggressive'.)

You should've had a decent rebound after the initial 'dip' at the start of the pandemic, is this not the case?

 

[nuggetron]

I would generally trust the teams of analysts responsible for informing PSSAP's investment decisions for the hundreds of thousands of members more than suggestions of 'specific index options' that are fairly opaque anyway (and basically zero practical difference between changing your existing fund from 'balanced' to 'aggressive'.)

You should've had a decent rebound after the initial 'dip' at the start of the pandemic, is this not the case?

only noticed the 2020 statement was a loss for the first time in 10 years
2021 statement due sometime this week

 

[Pascoes_barber]

You should be able to see your balance in real time (at least as recently as your last pay) by setting up/logging into the online portal.

 

[earl]

I'll tell you 2 things I've done to get really good performance:-

1. No insurance.
2. All index funds and 100% stocks. I think I'm 2/3 international and 1/2 Australian.

Insurance is an individual thing. I don't have any life insurance for instance but you have to look at your individual situation.

Assuming you won't access your Super for many years the rational approach is 100% stocks. I actually think you shouldn't have any Australian stocks. It's a tiny blip on the market. I'm hypocritical here though and I don't see a big issue.

My wife is in the same Super fund as mine and she has underperformed because she went a 70% balanced fund.

I disagree on the Aussie stocks comment - yes we're only 1 or 2% of the globe, but we are one of the best markets to be in, in terms of a mixture of safety and growth. And the ASX is probably the best dividend paying market on earth.

Modern portfolio theory is pretty simple. Set your asset allocation, diversify as much as possible and get the lowest possible fees. I don't think you get the best diversification from buying Aussie stocks.

In stating that I don't do that. I also like the dividends. They pay well. I also like the fact that there aren't additional currency movements that impact my portfolio.

 

[earl]

I would generally trust the teams of analysts responsible for informing PSSAP's investment decisions for the hundreds of thousands of members

Do you really trust these guys ? One of my investing principles is that the experts will typically under perform the market. That includes all of us.

more than suggestions of 'specific index options' that are fairly opaque anyway

It should be 100% stocks and it should be clearly articulated. Some of my funds show the underlying securities that are held. That is transparent. It should be transparent.

>and basically zero practical difference between changing your existing fund from 'balanced' to 'aggressive'.

I agree with this. You probably won't notice the difference. I just find those opaque investments to me go against all good investing principles.

I should add it can make a difference. My returns were huge whereas my wife was sent a letter stating her fund under performed. Same fund. Just different investment options.

 

[earl]

only noticed the 2020 statement was a loss for the first time in 10 years

You are going to get losses. To me it's not that important. You get ups and downs. I think the trick is to follow the same principles over the long period.

It's no good going 100% stocks now and the market may have negative returns for the next 3 years and then go up 50% when you go back to a balanced approach in 2 years time.

 

[nuggetron]

You should be able to see your balance in real time (at least as recently as your last pay) by setting up/logging into the online portal.

yep that's there, but it's about 16 months behind
doing some quick maths, it has gone up greater than the contributions over those 16 months would account for

 

[nuggetron]

only noticed the 2020 statement was a loss for the first time in 10 years

You are going to get losses. To me it's not that important. You get ups and downs. I think the trick is to follow the same principles over the long period.

It's no good going 100% stocks now and the market may have negative returns for the next 3 years and then go up 50% when you go back to a balanced approach in 2 years time.

totally agree, the stock market is ,for the most part, a long term game, just meant that comment as in, the market was generally down and it's worth buying the dip. I assume, possibly wrongly, that the aggressive investment is on risky shares that have probably taken the greater hit over the pandemic
i thought i could see where the money was invested but i can't seem to find it anywhere which doesn't really help