Serious Opinions

Everyone has an opinion about super and most of what is said is never good.  In spite of that, surely everyone can acknowledge the fact that progressively Australia has built up a huge saving pool that is the envy of the developed world.

As a simple measure of what has been created and assuming we have close to $3 trillion in super spread over 12 million workers we have an average balance of $200,000 approximately.

Why Ignore Your Super?

Evidence suggests that all generations have persisted in not paying attention to their super soon enough.  Our personal mismanagement of this serious asset will most likely cost every individual in Australia more than $100,000 of what they could have had with minimum effort when they originally started to work.  

Most people start to pay more attention to their super in mid-life and even then they continuously struggle to know what to do with it.  The overall super system and then the misinformation that occurs makes it so difficult to know what to do.  

The base rationale around super seems to be that everyone involved in its management wants to make it as complicated and contested as possible.  Arguably with the technology we have available, things should be a lot simpler but then there are so many vested interests in examining and managing your asset that maybe no one really wants the public to be either educated or informed.

Working Super to Your Advantage

To understand how best to manage your super, you would need an enormous amount of information in analysing the best options around product and then investment choice.  There is a plethora of products available and every product makes promises around their service and their value.  In essence, most working Australians are given a one size fits all solution.

If you had access to an online service which has the product analysis for you and has the ability to compare different solutions in informing you what is the best decision for your super, would you want to examine your past decisions and whether or not you have been super wise? 

Personal Scaled Advice

This is a service not promoted by the bigger players in the market because it is not a high enough margin for them.  They all have a strong preference for delivering holistic financial planning.  Even the regulations as developed by government fail to take account of which rules should apply for personal scaled advice as a truly affordable option.  

As a result, the rules for holistic financial planning are applied to anyone delivering holistic financial advice.

The Definition of Personal Scaled Advice

 This is sometimes referred to as limited advice.  It is significantly less expensive than holistic financial planning because personal scaled advice can provide a valuable service which limits the advice to your super account as distinct from your whole financial situation.

The benefit of personal scaled advice can be enormous as all products present a proposition which in some ways is less than transparent.  Any adviser presenting their service around individual super must possess certain skills around legislative knowledge, product expertise and then capability around asset management, in particular portfolio construction appropriate to the next two year market cycle.  If approached on a manual basis, any adviser will know they have limited capacity to deal with their client base, peaking out somewhere around 1500 appointments a year.  That assumes they have the appropriate resources in terms of support staff and processes.

From a client viewpoint, they will obtain valuable information about product choice around cost and functionality, contribution advice and then ongoing investment advice.  If established correctly the client will know their goals and objectives, the parameters of performance and then their next two milestones, a definitive feature to monitor progress and even evaluate the performance of the advice as delivered.

Technology

The world has gone a long way in such a short time as far as the potential of technology goes.  All product providers do present a service but it is a product service and not a personal service.  So product providers have all developed a historical record of transactions against your super and therefore whatever your balance is at any point in time.  While they all boast they will either optimise or maximise super, they do not have either the service passion or even the intention to be truly market competitive on service and value delivered.

SuperWiser has been developed to concentrate on service and does so because of its design and the fact that it is available 24/7 online.  Features included in the design are:

  • Maintained controls around anything limited by legislation
  • Appropriate product data for 40 different product offerings
  • Comparison between your current strategy versus an improved strategy
  • Contribution advice
  • Investment portfolios for a range of portfolios suitable for the next market cycle
  • All documentation as required by law
  • Information to help you monitor your super’s performance against your goals and objectives
  • An implementation guidance service
  • All for the affordable price of $220 inclusive of GST

The service from SuperWiser does not stop there as there is no ongoing service fee but there is a system that assists you in monitoring your super once we have helped you establish what you are trying to achieve.  SuperWiser will make contact with you when appropriate to adjust your strategy.

Contact us to Discuss

Look at SuperWiser on www.superwiser.com.au or call us with your questions on 1800 467 467

This document was prepared and issued by Super Simpler Pty Ltd (ABN 74 150 240 421) a privately-owned company operating as a Corporate Authorised Representative (CAR No. 468 201) of AXIS Financial Group Pty Ltd (ABN 21 092 889 579, AFSL 233 680). The information contained within it is not advice. It provides general information only and does not take into account your individual objectives, financial situation or needs. You should assess whether the information is appropriate for you and consider talking with your financial adviser before making an investment decision. Information in this publication, which is taken from sources other than Super Simpler, is believed to be accurate. However, subject to any contrary provision in any applicable law, neither Super Simpler, nor its employees and directors, provide any warranty of accuracy or reliability in relation to such information or accepts any liability to any person who relies on it.

Welcome to 2021! I am sure we are all delighted to see the back of 2020 but then again I am sure there are some challenges to be faced in 2021 of a possibly similar scale. With the start of a new year, it’s a good time to think about your super. 

Although, it’s not such a silly question to ask, is it mine? There is still a large proportion of the working population who do not really own their super as they give it very little attention.  And with the government’s current regulatory program it does appear that the government is potentially indicating their future intention to own your asset. So why is it important to pay attention to super? Here are a few opinions you should keep in mind.

  • Anyone working full time and not paying attention to their super is essentially reducing their accumulation of asset by half at age forty.
  • Time in the market is so financially powerful and yet most people don’t worry about their lack of attention to super for the first 20 years of their career
  • Just an extra 1% additional in your super for 25 years results in an increase in your projected income in retirement of over 20% per annum in today’s dollars for the first 20 years of retirement

In short, someone else seems to be benefiting more from your super than you are! If you do not start paying attention to the management of your asset, I can assure you someone else is enjoying your benefits.

Is it someone else’s fault?

Compulsory super was introduced in 1992 and the government has had numerous attempts at sorting out problems since. I suspect there will be ongoing regulation this year and next as different initiatives by the government play out:

  • There exists an APRA heat map, intended to benchmark good versus dud funds but limited to MySuper.  Visit here if you want to read the information paper. 
  • The ATO has been given a budget to develop a product comparator tool for use by the public.  This initiative along with the existence of the APRA heat map might represent significant interference around super being a personal or a community asset
  • The government intends to staple a super product to an individual for their first job, in an effort to make sure employees do not end up with multiple super accounts
  • The government wants to have the right to act on their conclusions around the performance of product and, at present, if a particular product is underperforming on MySuper, the government can stop them accepting future contributions

Personally I believe super is a personal asset and maybe, as a regulatory force for super, the government has proven themselves to be less than competent since 1992?

Market Indicators

I am of the view that there will be a significant drop in global markets in 2021, most likely between April and September. Market factors considered in my prediction are:

  • Economic damage globally, caused by the ongoing mismanagement of the pandemic by various governments
  • Global political tensions across major nations
  • Global trade tensions, some of which emanate from the above political tensions
  • Social unrest in major economies, possibly triggered by underlying social tensions between the haves and have-nots
  • Economic structural change caused by the introduction of technology and climate change
  • Record level of global government debt
  • Record levels of domestic debt across the developed economies
  • The fact that the ongoing global expectation of, let’s say, annual growth of 3% is actually unsustainable 
  • Overall extremely poor economic management by governments in trying to sustain their power as opposed to dealing with economic challenges that only become more complicated

Some of us can see the iceberg coming but no one steering the ship is held accountable for their mismanagement of outcomes.

What should I do?

SuperWiser is a product comparator now available to the public.  Whether you are in a corporate plan or a retail product or an industry fund, SuperWiser will advise you if you are doing it right or if you can do much better.  SuperWiser gives you a tailored calculation before you have to pay anything.  It provides the advice you require to implement the recommended strategy and has a contact centre should you want to ask some questions before proceeding.

All of this for the affordable price of $220 including GST!  The proposition is as simple as that!  

There are a few concepts to adopt if you really want to easily manage your super.  They are so easy to understand:

  1. Goals & Objectives

Define as retirement at what age and what projected income you want in retirement in today’s dollars

  1. Parameters of Performance

This is essentially two figures, one being your level of contribution and the other being your forecast rate of return

  1. Milestones

SuperWiser advises you at what age you will reach your next hundred thousand, the theory being that it depends upon market volatility and the degrees of market rises and falls

SuperWiser provides you with a strategy and then the means to manage your progression towards your targeted lifestyle in retirement.

Contact Planning

Go to the SuperWiser website at www.superwiser.com.au  and try the calculation tool.  Register on the application and learn some more about the level of value to be delivered against what the cost might be.  If you have any questions, our free call number is 1800 467 467.

This document was prepared and issued by Super Simpler Pty Ltd (ABN 74 150 240 421) a privately-owned company operating as a Corporate Authorised Representative (CAR No. 468 201) of AXIS Financial Group Pty Ltd (ABN 21 092 889 579, AFSL 233 680). The information contained within it is not advice. It provides general information only and does not take into account your individual objectives, financial situation or needs. You should assess whether the information is appropriate for you and consider talking with your financial adviser before making an investment decision. Information in this publication, which is taken from sources other than Super Simpler, is believed to be accurate. However, subject to any contrary provision in any applicable law, neither Super Simpler, nor its employees and directors, provide any warranty of accuracy or reliability in relation to such information or accepts any liability to any person who relies on it.

A new idea on super from the Government

Recently there is a new initiative from the government focused on the affordability of financial advice which would benefit 80% of the workforce who cannot afford to engage with a financial planner. ASIC is examining personal scaled advice seriously for the first time since super was originally introduced.

“Our first public output for the unmet advice needs project is a consultation paper, which seeks to gather information from industry participants (licensees and individual advisers) to help us understand what impediments [or] issues exist in relation to them providing limited and affordable personal advice to consumers,” the regulator has said. ASIC added that they are focused on “whether it can assist industry [to] overcome some of the barriers it faces in providing good quality ‘limited’ and affordable personal advice through actions within its regulatory purview”.

That is exactly the service that SuperWiser delivers.  SuperWiser provides limited personal advice at a very affordable price.

Don’t Wait to Get Started

I doubt there is anyone born who has not faced an opportunity that they later regret not taking. 

Super is one such opportunity – the longer you wait, the less you make.

Every individual by the time they turn 30 should be thinking about strategies to ensure that they are a dollar millionaire by the time they reach retirement.

SuperWiser can provide you with the right information to help you make the best choices for your circumstances:

o   Lowest costs

o   Appropriate contributions

o   A personalised investment strategy

o   Highest returns

o   The setting of goals and objectives

o   The ability to monitor your progress

o   An improved understanding on how the rich make more and more money

While super appears overcomplicated, SuperWiser simplifies the process by having a database of around 40 or more products including all the details around peer group performance based upon costs and investment returns. SuperWiser assists you in identifying what you want to do based upon your personal circumstances and then showing you the options so you can see the difference in $’s to be accumulated.

SuperWiser is the new normal in super servicing should you want to optimise your super at the point of retirement.

Why SuperWiser?

There is a way of managing money in creating wealth. SuperWiser helps to ensure that your super is optimised and performing as well as it possibly can. Here’s why you should use SuperWiser: 

o   Some years ago the government introduced MySuper. It was touted as a solution to certain super issues, partly because it required applying for a MySuper license. If you start to examine government re-regulation since the Royal Commission in 2018, it appears that little was fixed. 

o   The annual publication of investment returns by product presents misleading data. 

o   SuperWiser not only compares the performance of default options but actually examines investment choice menus by product to construct a mix of portfolios from high growth to conservative to compete with the level of investment returns from MySuper.

o   Any decision you need to make around your super needs to be a reliable and unambiguous source of information and also needs to examine a width of options available from the market.

o   SuperWiser makes the complicated to be dead simple.

Optimising Your Own Super

If you are to achieve your super goal, you must spend time on optimising it. With SuperWiser, you can have a play with the application by providing some information to begin the development of super advice tailored to your situation. When you finally decide to accept you need the level of service automatically provided by SuperWiser, you will find yourself surprised by how helpful the application is in guiding you through the implementation of the advice.

SuperWiser is affordable. SuperWiser is primed full of the appropriate information to compare different super solutions. SuperWiser is a leading edge application in presenting personal scaled advice to a needy market.  SuperWiser presents high value for a very minimum cost. 

What to do from here?

Check your last super statement and consider how long it has taken you to accumulate your current asset and whether or not you should have got there faster.  Visit www.superwiser.com.au to try our Play Tool and take a look at the video too.

This document was prepared and issued by Super Simpler Pty Ltd (ABN 74 150 240 421) a privately-owned company operating as a Corporate Authorised Representative (CAR No. 468 201) of AXIS Financial Group Pty Ltd (ABN 21 092 889 579, AFSL 233 680). The information contained within it is not advice. It provides general information only and does not take into account your individual objectives, financial situation or needs. You should assess whether the information is appropriate for you and consider talking with your financial adviser before making an investment decision. Information in this publication, which is taken from sources other than Super Simpler, is believed to be accurate. However, subject to any contrary provision in any applicable law, neither Super Simpler, nor its employees and directors, provide any warranty of accuracy or reliability in relation to such information or accepts any liability to any person who relies on it.

Most services offered by super providers are designed to optimise your product provider’s revenue, and not necessarily yours. Personalised service is hard to come by because it involves higher overheads and little returns for product providers. In fact, due to the costs involved, obtaining holistic financial advice is out of reach for at least 80% of the public, most of whom would definitely benefit from it. Instead product providers target individuals with high balances or some who need significant insurances.

SuperWiser makes it possible for that 80% of the public to access personal scaled advice at a very affordable price.

How does SuperWiser Manage This?

SuperWiser is an application that compares data from more than 40 well-known super products against your current super set-up. It uses an actuarial algorithm to calculate the benefit of different funds based on which service model you’re in:

  • Corporate Super
  • Personal Retail
  • Industry Fund

SuperWiser can help explain where there is room for improvement and if there is a better super set-up out there for you. It provides parameters for performance, thus enabling your ability to monitor your progress against your stated goals and objectives.

Should you decide to proceed with SuperWiser’s recommendations, the application will guide you through each step of the implementation process until completion. And for peace of mind, SuperWiser’s client support team is available should you need it.

Welcome to a new world of personal scaled advice.

Our Approved Product List

SuperWiser is an application owned by a company called Super Simpler Pty Ltd. It has been developed carefully over 5 years and is designed to allow you to play before you pay. The full fee for service is only $220 including GST.

With SuperWiser you can always be assured that you’re getting the right current advice because analysis is based on an approved product list which is constantly updated should any changes occur in terms of fees, insurance or product design.

The maintenance of the Approved Product List within SuperWiser is a key responsibility and a necessary function under an Australian Financial Services License. SuperWiser operates under the license held by AXIS Financial Group Pty Ltd (AFSL 233680).

What to do?

Try our play tool today and see if there might be a better super set-up available to you.

This document was prepared and issued by Super Simpler Pty Ltd (ABN 74 150 240 421) a privately-owned company operating as a Corporate Authorised Representative (CAR No. 468 201) of AXIS Financial Group Pty Ltd (ABN 21 092 889 579, AFSL 233 680). The information contained within it is not advice. It provides general information only and does not take into account your individual objectives, financial situation or needs. You should assess whether the information is appropriate for you and consider talking with your financial adviser before making an investment decision. Information in this publication, which is taken from sources other than Super Simpler, is believed to be accurate. However, subject to any contrary provision in any applicable law, neither Super Simpler, nor its employees and directors, provide any warranty of accuracy or reliability in relation to such information or accepts any liability to any person who relies on it.