Superannuation Help
- Thread starter brocky05
- Start date
It is extremely unlikely you will ever qualify to withdraw your super early due to financial hardship. I have never seen anyone do it - and I am not even sure about the tax on it but you would probably get a 15% rebate.
Its not worth considering.
This is how AustralianSuper rates the risk of Australian Sustainable shares:
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Risk level for the time invested (Australian Sustainable shares)
Short term (If savings are required in 5 years or less): Very High (Risk Band 7)
Medium term (If savings are required after 5 to 20 years): High
Long term (If savings are required after 20 years or more): Medium to high
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Compare this with how AustralianSuper rates the risk of Australian Shares:
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Risk level for the time invested (Australian Shares)
Short term (If savings are required in 5 years or less): High (Risk Band 6)
Medium term (If savings are required after 5 to 20 years): Medium
Long term (If savings are required after 20 years or more): Low to medium
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You have chosen a higher risk investment option and you are attempting to blame AustralianSuper for how this is performing in the short term.
Not only that, the Australian Sustainable Shares option does not involve the potential of a higher yield or increased capital gain in exchange for the higher risk, it only means you will be investing in shares which "are performing well by financial as well as environmental, social and corporate governance standards."
In other words, you have invested in "feel good" shares and now you complain about the short term outcome.
In answer to your specific question, AustralianSuper allows people to invest directly in the share market from a range of 300 ASX shares (including CBA shares although this would most likely not be a good investment at this time) and ETFs. However, this method of investing is not suitable for you. You have demonstrated by investing in Australian Sustainable Shares rather than Australian Shares (for example) that you are likely to make very poor investment decisions based on factors such as "feeling good".
In the short term I would suggest at the very least that you move your super funds out of the Australian Sustainable Shares option and place it in the Australian Shares options. I don't know how well Australian Shares are going to do, but there is no upside for Australian Sustainable Shares that is not also available to Australian Shares, with Australian Shares having less risk.
In the longer term you might be better off placing your super funds in the "Balanced" option which spreads the risk over multiple investment options.
I don't really want to advise you on this because superannuation decisions and investment risk is very personal but I cannot see any benefit at all (apart from "feeling good") of having your super funds in Australian Sustainable Shares rather than Australian Shares (for example).
As pointed out above Australian sustainable shares are a higher risk profile compared with other options. If you have hopped on this wave at the wrong time you may be riding it down for quite a while before it bounces back.
Hi
Thanks for the constructive criticism I have taken ally our good advice on board, It may seem like im blaming Australian super but not how this post was suppose to come across. So my best bet would be to change from Australian sustainable shares. I already have half invested in high growth at the moment which is doing ok at 5% return.
I thing I did notice is International shares are returning 14% should I jump on board this or is it very risky and likely to maybe turn negative very quickly? I definatly dont know much about Australian shares let alone international. Or maybe should I go balanced as you suggested and play it safe.
Thanks for the advice
It seems that you have not been exploring the website of your Super company. It will be able to show you the pages Jenny pointed out, and you can compare the various investment groups yourself. Don't just look at five year returns, look at returns for as far back as each fund goes. Why? What was happening in the last five years?
With international shares, you have to consider exchange rates. Will this have any impact? I don't know the answer to that question, I merely recall that international shares did very well a few years back when the AUD was at parity with USD. In that time, many OS countries were recovering from the GFC and their share prices were indicative of this.
With international shares, you have to consider exchange rates. Will this have any impact? I don't know the answer to that question, I merely recall that international shares did very well a few years back when the AUD was at parity with USD. In that time, many OS countries were recovering from the GFC and their share prices were indicative of this.
1. You are 33. Put the lot in Australian Super's high growth option. In 20 years you can start increasing your fixed interest allocation. Balanced will give you short term peace of mind for long term underperformance and a poorer retirement.
2. Get a copy of Burton Malkiel's "A random walk down Wall Street" and learn. This will add some meat on the bones to the super providers material.
3. Sleep well and let the capital markets work.
4. Stay the course.
2. Get a copy of Burton Malkiel's "A random walk down Wall Street" and learn. This will add some meat on the bones to the super providers material.
3. Sleep well and let the capital markets work.
4. Stay the course.
Hi
I'm going to switch my super from Australian sustainable shares in the next couple of days. Just wondering what should I go with I have 50% in high growth I was thinking just put the other 50% in Balanced as its FYTD return is 5%. What else should I consider that may offer a good return in the coming years?
thanks for the help.
I'm going to switch my super from Australian sustainable shares in the next couple of days. Just wondering what should I go with I have 50% in high growth I was thinking just put the other 50% in Balanced as its FYTD return is 5%. What else should I consider that may offer a good return in the coming years?
thanks for the help.
