Invest in better performing superannuation fund: ShareFinder
Superannuation is in the headlines again, making the front page of The Age and Sydney Morning Herald. The catalyst is a report released by the Association of Superannuation Funds of Australia, according to ShareFinder Investment Services.
The essence of the report is that Super contributions will be insufficient for average income earners leaving the average Super balance at the age of 60 at insufficient levels for retirement. The large Super Funds have blazoned Australian TV screens with multi million dollar advertising campaigns to attract Super investment prior to 30 June in accordance with the government’s new rules. Their campaigns have worked attracting $80bn of additional investment into Super Funds.
The problem is not just Super contributions. A bigger problem is the performance of the Super capital once it hits the Super Funds. While the TV campaigns have done comparative advertising comparing fee vs non-fee based returns, the reality is that managed Super Funds under-perform the share market and property thereby growing at rates that are unacceptable compared to the alternatives.
According to SuperRatings reported returns, Super Funds have underperformed the share market and property by around 40% per annum in compounded annual growth over the last 6 years. Over a 6 year period this level of underperformance equates to half the profit. As time passes the gap becomes larger and larger due to compounding.
Forgetting the fee vs non-fee Super Funds, get your Super capital into better performing investment strategies than just managed Super Funds.
Many individuals have established their own Self Managed Super Funds (of DIY Super) but also under-perform the market and property because their Super capital remains in cash or fixed interest due to the individual not having the time or knowledge to invest it themselves or because the individual fears taking the step to do it themselves.
Many of ShareFinder customers, spending 15 minutes a day, have achieved returns in their Super Funds of more than 40% better than the market over the last 6 years. Conservatively speaking, this means that $100,000 could have grown to a minimum of $265,000 instead of to $154,000 in an average managed Super Fund. Continue this out-performance over a 10 to 15 year period and the differences become huge.
It is not just contributions that need focus in the Super arena it is the performance of those funds once they hit Super Funds, managed or DIY. The difference of many years could be many 100’s of thousands of dollars per individual.
14-Jun-2007