Too many people make an uninformed choice about where to put their super. If you’re not a pilot, you wouldn’t try to fly a plane yourself! Super is the same, it’s complicated and the knowledge required to optimise your super’s investment strategy is immense.
So, let’s examine some of the things you need to consider.
There are many choices that could be made in managing your super as a personal asset but in summation there are three basic options:
- Your employers corporate plan
- Personal retail
- Industry fund
Other strategies required to optimise your super are contribution and investment strategies. The simple truth is that most people make mistakes in both areas by salary sacrificing too late or contributing too much, or by investing in a strategy that is not appropriate to their circumstances.
Regulation around concessional and non-concessional contributions are subject to change and the choice is about how much to contribute and when to start. The general rule would be to do a modest amount over the long term and increase when it is affordable, but every situation is different. When considering your options it is essential you have a tool that illustrates the benefit of contributing different amounts.
In terms of investment growth, everyone considers the publication of the annual returns identifying best performers and then the so called dud funds. A new consideration in this space is the APRA heatmap, a government initiative to rule out underperforming MySuper investment defaults, but so much more information is required when managing your investment strategy.
Australia has around 3% of global assets and yet one major fund had a 60% exposure to Australian assets. Quietly they recognised that they need to diversify and rebalance their portfolio, a transition undertaken quietly and without transparency. There are other considerations around knowing more about what and where you are invested and how such a strategy works as global investment markets go through a change in cycle.
SuperWiser as a product comparator
SuperWiser is designed so you can have a good look at the possibilities before you have to pay any fee. SuperWiser examines cost, target market return, target outperformance return and also the benefit derived from salary sacrifice. SuperWiser identifies where the benefit of the advice will land.
Within each service model (corporate super, personal retail and industry fund) SuperWiser contemplates your options. If you are in a corporate plan, SuperWiser assumes you are already paying discounted fees and similar to insurance rates. Where personal retail and industry fund products are used, SuperWiser will compare your current product with around 30 other products and if you proceed to pay the very affordable price of $220 for the service, SuperWiser will show you the top three products where there is potential to optimise your projected income in retirement.
At that point, you review your strategy and confirm what you want to do before SuperWiser holds your hand through the implementation of said advice.
Ongoing Super Management
Service from SuperWiser is not just a one off experience. We all work a long time and your initial registration and advice is the gateway to ongoing service because as regulations change, new products come to market and most certainly global investment markets are always highly variable.
Through your initial induction into SuperWiser, you will establish your goals and objectives for the point of retirement but you are also provided with milestones which indicate your next stepping stone to confirm you are on target for your long term objective. Your progress is monitored by our Contact Centre, a resource who will reach out to you whenever there are some additional considerations.
One feature is that global investment markets change periodically and new portfolios are released on average every 18 months. This is the result of changes in the market and market volatility with your record as a user indicating your situation and what might be a consideration in optimising positive returns or very much minimising losses when they happen. Ours is not a park your asset proposition and is very much on the track of wealth management.
Other surprise changes might be in modifications to existing product and occasionally the addition of a new product to market, one that requires assessment for every user currently in a similar service model.
Try the SuperWiser play tool. No personal details required initially but you do get a good idea of the application.
For your information, SuperWiser is owned and funded by Super Simpler Pty Ltd, a private company with 5 individual owners. SuperWiser has no commercial relationship with any product.
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.