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Consolidating Super

  • Thread starter Thread starter gaffy444
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gaffy444

gaffy444

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Hey everyone,

I'm new to this particular forum so I hope that there isn't some sort of multi-super thread or something that I missed.

Anyway, I'm a second year university student with an income of about 18-22k per annum so this isn't the most important thing but I had three super accounts from previous employers LOL. I've already shut down the MLC account that was losing money.

Now I am left with two:

Rest (has about $5700 in it due to consolidation)

Woolworths Super [AMP Signature Super] (only about $800, but the fees aren't chewing it up so I believe they are reasonable).

Anyway, does anybody know the benefits/fee reductions of Woolworths Super (I know it's ironic that I am asking this as the a/c holder) that may make it a good value proposition to change into over REST. Circa late 2010, in my gap year I held a salaried position at woolworths for about a year before deciding to enrol in university later on. So this is an option that is only offered to managers/etc. of woolies, but I don't actually have much info on whether the fees will remain constant since I'm no longer in such a position.

I'm just going to cut it there anyway, I hope that makes sense haha
 
Just got a question for any super guru's on bigfooty


I've been employed with a company for just over 6 years with contributions of between 10k-13k a year and selected the high risk option. I just checked what my balance is and it's only about $38k. I am assuming this is because the stock market is volatile at the moment. What should I do keep the high risk option or change it to low risk option I had the choice of
 
bulldogrob said:
Just got a question for any super guru's on bigfooty


I've been employed with a company for just over 6 years with contributions of between 10k-13k a year and selected the high risk option. I just checked what my balance is and it's only about $38k. I am assuming this is because the stock market is volatile at the moment. What should I do keep the high risk option or change it to low risk option I had the choice of
Click to expand...


this obv depends on your personal circumstances.

no-one can tell you what to do.

there is also nothing stopping you from having x% in high risk and 1-x% in a lower risk fund.
 

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checkraiseulite said:
this obv depends on your personal circumstances.

no-one can tell you what to do.

there is also nothing stopping you from having x% in high risk and 1-x% in a lower risk fund.
Click to expand...

Ok.........thanks

I've often heard if you have it in high risk and it goes down just leave it high risk over time and you will get it all back..not sure if correct but sounds too good lol
 
bulldogrob said:
Just got a question for any super guru's on bigfooty


I've been employed with a company for just over 6 years with contributions of between 10k-13k a year and selected the high risk option. I just checked what my balance is and it's only about $38k. I am assuming this is because the stock market is volatile at the moment. What should I do keep the high risk option or change it to low risk option I had the choice of
Click to expand...

Do a Risk Profile questionnaire, plenty can be found online. Without knowing the level of risk that you are comfortable with it is hard to say which asset classes you should have your super invested in.

FWIW, I'm 27 and have it all in High Growth as I'm a high growth investor. If the questionnaire shows that you are a Balanced investor, then put your super in the Balanced option, etc. In theory, High Growth will get the best returns in the long run, but the trade off is the extra volatility involved with that asset class. A lot of the time people prefer Balanced or Defensive options as it minimises the stress involved with investing.
 
It took me way too long to consolidate my super accounts and I regret it now.

Regarding risk tolerance.

Definitely agree with those who have said look at a risk questionnaire and do as much reading as you can, everyone is different. Tolerance for risk is a very personal thing, superannuation is not something that should keep you awake at night.

Major factor is age and how much longer you expect to be working.

I've got all in high risk as I know there is a good chance I will be working for potentially another 40 years, which means I'll see and survive a fair few market crashes.
 
Not quite the right thread but my daughter quit working last year and went to uni - she only has about 2 grand in one and a couple of hundred in another but does she need to notify them that she is no longer working so that it doesn't get eaten by fees
 
CouchPotato said:
Not quite the right thread but my daughter quit working last year and went to uni - she only has about 2 grand in one and a couple of hundred in another but does she need to notify them that she is no longer working so that it doesn't get eaten by fees
Click to expand...


If that's the case then I would just look into putting it into a low fee super fund. Assuming she is in something such as retail, she would be with Rest. Their fees are reasonable, as are other funds such as ING and Aus Super. I'd change into one of them, if she isn't with a reasonable performing, low-fee fund already.

This may help

http://www.canstar.com.au/superannuation/compare-starter/
 
Industry Funds are generally the best performers as the fees are lower, the insurance is cheaper too.

Less investment options generally, but that shouldn't bother most vanilla investors.

Abbott government wants to kill them off, so you know they must be doing something right.
 

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Hey guys,

I run my own business as a financial planner and its always a case of matching up what is right for the person or family. There will always be people that are more suited to low cost no frills funds, retails funds and Self Managed Super Funds. One thing I should mention though is price isn't always everything and sometimes the lowest fees may not have the investment or insurance options that you need. There are some super funds out there with inferior insurance in particular and you need to make sure your covered properly if something does go wrong.
 
I thought this is worth a Bump as it will help everyone that raads this thread.

I am no expert just just got 3 super statements in the mail in the last 6 months, i think i have 5 superannuation funds all up and am finally building the motivation to consolidate them after i read how my fees are staking up in them. Anyway the 3 statements i read ranged in fees from 300 too 500 i think so roughly 1000 in fees which i was a bit shocked with, i am 25 and just starting my first full time job after uni and havnt been worried until now about my finances but thought i better sort it all out.

So anyway, anyone that knows correct me but lets say i cut my fees across the 5 accounts by 1000k overall, times 40 years is 40K yeah? then we compound this with interest t lets say 5.5% per annum, this will add up to be pretty substantial? over 100K easily yeah? i worked it to be closer to 150K

Or is it not THIS good but still good, ie the 40K you save is good to start with, i get confused when compounding this interest over 40 years
 
also placing it a higher risk account will possibly improve this significantly again over 40 years
 

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