Super - tips to grow it

Hi there, :)

Whilst...I am reasonably good at property...I am relative newbie to growing my super.

I am not keen on putting super into a SMSF...I believe that too many people are putting this into property. I am keen to keep it in good quality funds.

Currently I have about 350k across 2 funds - an AMP umbrella fund and Australian Super. I have had reasonable success moving it into various funds with some success in these two unbrella funds.

Any further tips? I would like to grow my super to $1m by 60 (12 years from now).
 
If what you are doing is working why change. $350,000 to $1,000,000. Roughly 9-10 % p.a would get you to $1,000,000 not counting any eextra contributions.

Rebalancing to put a major part of your funds in the worst performing investment in the last 12 months seems to have some validity
 
If what you are doing is working why change. $350,000 to $1,000,000. Roughly 9-10 % p.a would get you to $1,000,000 not counting any eextra contributions.

Rebalancing to put a major part of your funds in the worst performing investment in the last 12 months seems to have some validity

I did the math at 8.78%
What kinda rate are you getting at the moment sash? Not many can sustain the above over a whole cycle?
 
Yeah...but consistently getting 9-10% is hard... :confused:

If what you are doing is working why change. $350,000 to $1,000,000. Roughly 9-10 % p.a would get you to $1,000,000 not counting any eextra contributions.

Rebalancing to put a major part of your funds in the worst performing investment in the last 12 months seems to have some validity


Last year it went up aobut 40k or about 16% outside of contributions...simply chopped and changed funds. Pulled funds to convervative funds in Oct and went to shares again Jan and it did a big jump!
I did the math at 8.78%
What kinda rate are you getting at the moment sash? Not many can sustain the above over a whole cycle?
 
Very simplified response, other than chasing returns, look at making pre-tax contributions if you are still within the concessional contribution limits. But consult a financial planner who actually understands and isn't a product flogger to see if it suits your situation.
 
Constantly chopping and changing funds is probably not the best way to grow.

This includes changing risk profiles within a fund. If you go for a higher risk then you are generally best keeping it in that even though 1 in 5 years it might go backwards as the other years will make up for it.

For a young person I would have all my super with one company so that compounding can work it's magic. Then I would have all of it in a medium to high risk profile - some funds will let you split it and have 50% high growth and 50% balanced growth if you don't want to go all in with the riskier high growth.

Look into the different risk profiles within your fund of choice and see which one suits you best. As you move closer to retirement age you reduce the risk and go for a conservative risk profile
 
Super - SMSF

SMSF is more about flexibility and should be reduced fees rather than just a property vehicle. So compare the fees you are paying with having two funds and see if there is an option to reduce. Typically consolidation should mean less fees.

Many people would have SMSF without property.
 
Any further tips? I would like to grow my super to $1m by 60 (12 years from now).

Have you considered the risk of regulatory change, and how that would effect you (in relation to how much you might want to contribute)? I don't think it's a matter of if, but when. IMO the two most likely (and that could effect you) are an increase to preservation age (when you can get your hands on it) and possibly limiting lump some withdrawal.

So if you want/need to get your hands on it at 60 and/or want to get your hands on most/all of it at 60.001yrs old, I would be cautious of making voluntary contributions.
 
I have probably said it before but I avoid retail funds and concentrate on a consistent nfp industry fund.

Changing funds or selections within the fund will crystalise losses/gains.
 
Why would you want to feed cash into super when you are so good at property, Sash?

Even a super-duper fund will tank in another stockmarket crash.

Plus; don't forget thew Gubb; they'll tinker the hell out of Super until it is bled/taxed dry.
 
Why would you want to feed cash into super when you are so good at property, Sash?

Even a super-duper fund will tank in another stockmarket crash.

Plus; don't forget thew Gubb; they'll tinker the hell out of Super until it is bled/taxed dry.

That sounds like a jealousy statement to me. Many Self Funded Retirees live quite comfortably off their Superannuation, without ever dabbling in property investment.
Possibly having both is a better alternative.
 
I know someone who has done this basing on largely moving before the market moves. He has grown from 400k to 1.3m in super ...though he has contributed an extra 250k over the last 10 years. Still a stellar result for him.

I have mirrored what he has done over the last 12 months but want to know if there are any other pearls of wisdom out there.

Constantly chopping and changing funds is probably not the best way to grow.

This includes changing risk profiles within a fund. If you go for a higher risk then you are generally best keeping it in that even though 1 in 5 years it might go backwards as the other years will make up for it.

For a young person I would have all my super with one company so that compounding can work it's magic. Then I would have all of it in a medium to high risk profile - some funds will let you split it and have 50% high growth and 50% balanced growth if you don't want to go all in with the riskier high growth.

Look into the different risk profiles within your fund of choice and see which one suits you best. As you move closer to retirement age you reduce the risk and go for a conservative risk profile

Yes...but a little bit of diversification helps. Interestingly...even if the govt fidles with it will still be concessionally taxed due to voter backlash.
Why would you want to feed cash into super when you are so good at property, Sash?

Even a super-duper fund will tank in another stockmarket crash.

Plus; don't forget thew Gubb; they'll tinker the hell out of Super until it is bled/taxed dry.

Yes...there is that risk....which is why I will not be putting any more than another 6-8k for tax benefits...where I will pay 15% tax instead of 50%. I am at the highest marginal rate...so after tax the difference in pay is only another 250-330pm in real dollars. But will add nother 5-6.8k into my super per month on top of the 22k odd provided by my employer.
Have you considered the risk of regulatory change, and how that would effect you (in relation to how much you might want to contribute)? I don't think it's a matter of if, but when. IMO the two most likely (and that could effect you) are an increase to preservation age (when you can get your hands on it) and possibly limiting lump some withdrawal.

So if you want/need to get your hands on it at 60 and/or want to get your hands on most/all of it at 60.001yrs old, I would be cautious of making voluntary contributions.
 
I invest in property, super and shares. When I retire, I want income streams from all 3. I'm am not sticking all of my investment dollars into one asset class. I think putting some additional dollars into super can be a good move.
 
Yep....all my research says that is is quite effective from 50 onwards...even if they raise the access age from 60...there will be some grandfathering...

If you are over 50 and in the top tax rate it is a no brainer to salary sacrifice into super

Yes..this is what I am leaning towards....it makes for a stable income base when I retire. I have over 90% in property albeit not in just one city.
I invest in property, super and shares. When I retire, I want income streams from all 3. I'm am not sticking all of my investment dollars into one asset class. I think putting some additional dollars into super can be a good move.
 
Hi there, :)

Whilst...I am reasonably good at property...I am relative newbie to growing my super.

I am not keen on putting super into a SMSF...I believe that too many people are putting this into property. I am keen to keep it in good quality funds.

Currently I have about 350k across 2 funds - an AMP umbrella fund and Australian Super. I have had reasonable success moving it into various funds with some success in these two unbrella funds.

Any further tips? I would like to grow my super to $1m by 60 (12 years from now).

Growing super, surely shouldn't matter what asset class you chose, as long as you are happy with the return, right? Perhaps you are seeking diversification from property, so you like managed funds, or lack the experience to invest directly into shares (another option).
I really dislike the comment that too many people are putting money into property in their SMSF? What do you mean, the statistic is that around 3.5% of SMSF have leveraged into residential property, but yes commercial is much more invested as many would involve their businesses there.
Yet most, I think at least of 60% of people's super is invested in stocks, yet no one is worried there? So I do not understand there reasoning for concern there?
Anyway best of luck in your investing......
 
Lets say....that SMSFs are complicated...the compliance matters are onerous...people who are not skilled will get themselves into trouble.

I have considered setting up a SMSF...and putting it on the top 20 bluechips with weighting on dividend paying stocks.

In the end rationalised that the experts will do it better than me because I can't devote the time...yet...maybe in the future it maybe different...though a something which I am working through...

Growing super, surely shouldn't matter what asset class you chose, as long as you are happy with the return, right? Perhaps you are seeking diversification from property, so you like managed funds, or lack the experience to invest directly into shares (another option).
I really dislike the comment that too many people are putting money into property in their SMSF? What do you mean, the statistic is that around 3.5% of SMSF have leveraged into residential property, but yes commercial is much more invested as many would involve their businesses there.
Yet most, I think at least of 60% of people's super is invested in stocks, yet no one is worried there? So I do not understand there reasoning for concern there?
Anyway best of luck in your investing......
 
Lets say....that SMSFs are complicated...the compliance matters are onerous...people who are not skilled will get themselves into trouble.

I have considered setting up a SMSF...and putting it on the top 20 bluechips with weighting on dividend paying stocks.

In the end rationalised that the experts will do it better than me because I can't devote the time...yet...maybe in the future it maybe different...though a something which I am working through...

As I often say everyone likes their cup of tea or coffee differently, right?
And yes, risk is much greater when we lack knowledge...so I agree with you there.
So "The Great Challenge of Life" as quoted by great Jim Rohn.
He said:
Here?s the great challenge of life ? You can have more than you?ve got because you can become more than you are. "
Believing you can make what you want and having achieved that, IMHO, is up to us rather than the experts (who are the experts?).
I would gladly invest $1million with the experts, if I could ask the experts to double the return in lets' say 10 years, but as we know, no one has a crystal ball, right?:)
I just remember another quote, where people are chauffeured to take advice from people who catch a train to work.....:confused:
 
I know someone who has done this basing on largely moving before the market moves. He has grown from 400k to 1.3m in super ...though he has contributed an extra 250k over the last 10 years. Still a stellar result for him.

Be careful being impressed with someone else stated performance. Over the last 10 years we had 2 major dips in the market and if he was lucky he was in cash just prior to each. On that basis he would be reporting stellar performance but it's not every year.


I have mirrored what he has done over the last 12 months but want to know if there are any other pearls of wisdom out there.



Yes...but a little bit of diversification helps. Interestingly...even if the govt fidles with it will still be concessionally taxed due to voter backlash.


Yes...there is that risk....which is why I will not be putting any more than another 6-8k for tax benefits...where I will pay 15% tax instead of 50%. I am at the highest marginal rate...so after tax the difference in pay is only another 250-330pm in real dollars. But will add nother 5-6.8k into my super per month on top of the 22k odd provided by my employer.

Using experts is IMHO just a falacy as they don't have the capacity to enter and exit markets as you could personally. They are restricted by their licence/ controls and must have certain portions of their portfolio in blue chip etc.

Personally we have a SMSF and hold divided paying shares. Like you I don't have the time or interest in share market. All up I directly pay $1200 pa in fees on a value just on $2mil. I say directly as I do hold a small portion in a managed fund so there are some fees hidden in there.

Having said all that I am currently toying with the idea of cashing out (all or portion) and purchasing a CIP. If I could find one with the right returns it would have already happened.

Cheers
 
Yes...there is that risk....which is why I will not be putting any more than another 6-8k for tax benefits...where I will pay 15% tax instead of 50%. I am at the highest marginal rate...so after tax the difference in pay is only another 250-330pm in real dollars. But will add nother 5-6.8k into my super per month on top of the
22k odd provided by my employer
.
No wonder you've done so well out of property...shidd loads of income before the game starts makes a huge diff.

Good luck to you, but I think we have to put everyone's success into perspective here on SS.
 
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