The Superannuation Thread (2 Viewers)

[mreditor16]

Overall, my super has only grown by 7 dollars in last 7 months Employer has contributed around 260, government tax chewed up 38 dollars, super fees chewed up 17 dollars. Hopefully, when I take advantage of the government co-contribution by contributing $1000 next week (and government matching $500), I will start to see some sort of real growth in my super.

 

[mreditor16]

The Superannation Thread

Hey guys,

Thought it might be good to start a thread, where we can ask our questions about superannuation, different super funds and all that. Also, just general discussion about super is what this thread is for!

Happy working!

 

[Squar3root]

Re: Confessions

Overall, my super has only grown by 7 dollars in last 7 months Employer has contributed around 260, government tax chewed up 38 dollars, super fees chewed up 17 dollars. Hopefully, when I take advantage of the government co-contribution by contributing $1000 next week (and government matching $500), I will start to see some sort of real growth in my super.

I wouldn't be too inclined into investing into super now since you're not full time working. Fees and tariffs and what not will just chew it up. IMO just wait until you have a full time job

 

[OzKo]

Re: The Superannation Thread

Protip: Avoid insurance where possible.

The opt-out insurance that super funds offer are a real money spinner.

 

[OzKo]

Re: Confessions

Overall, my super has only grown by 7 dollars in last 7 months Employer has contributed around 260, government tax chewed up 38 dollars, super fees chewed up 17 dollars. Hopefully, when I take advantage of the government co-contribution by contributing $1000 next week (and government matching $500), I will start to see some sort of real growth in my super.

No, you won't see any growth for a very long time.

 

[mreditor16]

Re: Confessions

I wouldn't be too inclined into investing into super now since you're not full time working. Fees and tariffs and what not will just chew it up. IMO just wait until you have a full time job

hmm the thing is my super fund only has a flat 4.40 fee per month (and a tiny-ass fee based on the size of your super, but that chews up 1 cent a month lel), so even if I chuck more money into my super, the amount chewed up by fees will be the same. And if you have more money in it, then more gains

 

[mreditor16]

Re: Confessions

Overall, my super has only grown by 7 dollars in last 7 months Employer has contributed around 260, government tax chewed up 38 dollars, super fees chewed up 17 dollars. Hopefully, when I take advantage of the government co-contribution by contributing $1000 next week (and government matching $500), I will start to see some sort of real growth in my super.

No, you won't see any growth for a very long time.

Of course lel, Square is recommending not going with this idea above ^^^ What are your thoughts?

 

[mreditor16]

Re: The Superannation Thread

Protip: Avoid insurance where possible.

The opt-out insurance that super funds offer are a real money spinner.

Definitely agree, I only found out about it when seeing how much was chewed up by their opt-out insurance. Luckily, my super fund was nice enough to give back all the money chewed up by the insurance, when I asked to opt out of the insurance scheme.

 

[OzKo]

Re: Confessions

Of course lel, Square is recommending not going with this idea above ^^^ What are your thoughts?

Definitely take advantage of co-contribution, and then leave it at that.

It's not a bad strategy to put money into your super this early, provided that you have nowhere else to put it.

 

[brent012]

Re: Confessions

hmm the thing is my super fund only has a flat 4.40 fee per month (and a tiny-ass fee based on the size of your super, but that chews up 1 cent a month lel), so even if I chuck more money into my super, the amount chewed up by fees will be the same. And if you have more money in it, then more gains

That's pretty good, i'm guessing your super fund has no insurance or salary continuation at all? (dont really need it if you arent full time though) I wasnt really convinced about all that stuff before, but I went to something at work about super and now I see why a lot of super funds have it - fees go waaaay up though.

I'm with OzKo and Square though, I wouldnt think about super until you have a full time job - same as HECs. The money is better spent/used elsewhere, even if its just sitting around or in high liquidity investments I think it's better to have the money available in case you ever want to get a car, move out etc.

I have a feeling retirement age will be a constantly moving target for our generation and (after the GFC) super funds are often designed to scale risk depending on how far you are away from retirement age, so I doubt we'll need to be as mindful of it as some other generations have had to be.

 

[Squar3root]

Re: Confessions

hmm the thing is my super fund only has a flat 4.40 fee per month (and a tiny-ass fee based on the size of your super, but that chews up 1 cent a month lel), so even if I chuck more money into my super, the amount chewed up by fees will be the same. And if you have more money in it, then more gains

I'm not sure about your bank but I used to salary sacrifice and put $70 every now and then just so I could have more money later on but it was all just even taken away in tax and monthly fees and ridiculous things. I didn't even know I signed up for insurance and that was like $10 month

If you'd be happier with $1000 now, then keep it unless you really have nothing else to do with the money

 

[Carrotsticks]

Re: Confessions

Keep the money now. Your contributions at your age and salary will be minuscule over the long run, and will greatly inconvenience you a few years down the track when you need the money, have it, but cannot access it for another 50 years.

 

[mreditor16]

Re: Confessions

Keep the money now. Your contributions at your age and salary will be minuscule over the long run, and will greatly inconvenience you a few years down the track when you need the money, have it, but cannot access it for another 50 years.

That's pretty good, i'm guessing your super fund has no insurance or salary continuation at all? (dont really need it if you arent full time though) I wasnt really convinced about all that stuff before, but I went to something at work about super and now I see why a lot of super funds have it - fees go waaaay up though.

I'm with OzKo and Square though, I wouldnt think about super until you have a full time job - same as HECs. The money is better spent/used elsewhere, even if its just sitting around or in high liquidity investments I think it's better to have the money available in case you ever want to get a car, move out etc.

I have a feeling retirement age will be a constantly moving target for our generation and (after the GFC) super funds are often designed to scale risk depending on how far you are away from retirement age, so I doubt we'll need to be as mindful of it as some other generations have had to be.

Yeh, it's a good super fund. I got that super fund automatically, cos it is Department of Education's super fund of choice. There was insurance, but I opted out very early on and got the money chewed up back. And no salary contribution, my employer contributes 10.5% iirc of my pay to super, on top of my normal pay.

See, tbf, the thing is I am on a 10k per annum scholarship for 4 years (which is going to straight to a progress saver account - but after a few years, I might chuck like 30k into a term deposit) as well, on top of my well-paying part-time job. And I'm definitely not moving out in the next 5 years LOL. So I pretty much have close to no need for the money tbf. Hence, if government is matching 500 dollars for chucking in 1000 dollars, my logic is "Why not?" LOL - but I'm not that familiar with the super scene, hence me asking you guys.

I'm not sure about your bank but I used to salary sacrifice and put $70 every now and then just so I could have more money later on but it was all just even taken away in tax and monthly fees and ridiculous things. I didn't even know I signed up for insurance and that was like $10 month

If you'd be happier with $1000 now, then keep it unless you really have nothing else to do with the money

Hmm from the sounds of it, I think you might need to consider whether there are better super funds you can transfer to.

 

[Carrotsticks]

Re: Confessions

If it's just the $1000, then just put that in and save the rest in a term deposit. Interest is a powerful thing.

 

[Squar3root]

Re: Confessions

Yes I need to change my bank, I am with ANZ currently and they're just shit so I'll change all my accounts sometime soon

 

[enoilgam]

Re: The Superannation Thread

Im with an employer designated super but I want to make a change - anyone have any advice as to what I should look for?

 

[Squar3root]

Re: Confessions

But yeah on topic, I don't see a reason why you would need to invest $1000 now. It will be another 4 years at least before you start working full time an within that 4 years, your bank will take $4.40x12x4 and whatever else. I think it would be more wise to put it into savings where you hae access to it now incase you change your mind and need money for something else

 

[mreditor16]

Re: Confessions

But yeah on topic, I don't see a reason why you would need to invest $1000 now. It will be another 4 years at least before you start working full time an within that 4 years, your bank will take $4.40x12x4 and whatever else. I think it would be more wise to put it into savings where you hae access to it now incase you change your mind and need money for something else

Regardless of whether I deposit the $1000 (plus $500 contributed by the government) or not, I'm still gonna get whacked by the same fees, though.... So then what?

 

[mreditor16]

Re: Confessions

Yes I need to change my bank, I am with ANZ currently and they're just shit so I'll change all my accounts sometime soon

Go for an Industry Super Fund imo - from what I've heard. I didn't get choose mine, but I got lucky, since my employer chose a good super fund.

 

[Squar3root]

Re: Confessions

Regardless of whether I deposit the $1000 (plus $500 contributed by the government) or not, I'm still gonna get whacked by the same fees, though.... So then what?

You said your super made $7 in 7 months and you pay $4.40/month for an account fee so I've assumed your super made a loss in that period. IMO, I would just let your employer contribute what they already do and leave your other money in a high interest savings account. Since you're a student, you won't be charged an account fee and you make a little bit more money than you would with your super