Thanks all for the good advice. It is a little troubling to see your super value declining all the time, especially after retirement. Jim
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Thanks all for the good advice. It is a little troubling to see your super value declining all the time, especially after retirement. Jim
Yes - $65K in 4 weeks :(Quote:
Originally Posted by jx2mad
There was a old guy in our share club who told me a story:
When those stock brokers offer you a deal ask them to some round to your house with their last ten years personal stock market buy and sell notices in their personal names and their bank statements to match, if they have made a profit let them in the door to at least talk to you , if not do not let them in the door.
Lots of studies of stock broker's and fund managers results over many years have shown that they are not better at picking the market than anyone or even getting returns above inflation if at all, just that some of them are more lucky than the others for a couple of years and then you get their advertising saying how great they are, its a lot of rubbish as history is not a guarantee of the future which no one can predict anyway. Apparently quite often those "lucky" fund managers get poached by other firms in a lot of cases after a couple of years so there is no basis to the advertising as well.
DO it yourself and you will watch it more carefully than any of these guys who get their fees whether the market rises or falls so what do they care...
The first thing to do with super is take an interest in what is happening with it, and you all semm to have got that right.
Next is to have a structure that allows you to do what you would like to do and have that structure at a reasonable price.
Dont overlook industry funds as their is one that allows you many ways to invest in many ways, whilst having very low fees.
i use a financial advisor........all i can say is i am in a much better position than i would have ever been. i was just cruising along in my own little world just relying on super and paying my house off to set me up for retirement.
i doubt i could do it myself so i am happy with the management fee that i pay for my portfolio......some say i am paying too much but for the service but i reckon its worth every cent.
the more i watch what my advisor is doing the more i learn.......i still doubt that i would manage my own portfolio
the company i used were very up front about fees and who they are in bed with, as they get most of there business from referral they encouraged us to get a second/third option or proposal from other institutions......
i haven't had to deal with a bank for 5/6 years.........i needed a replacement credit card the other week, all i do is a quick email to my advisor and the card turns up in the mail....we just changed our loans and all we did was turn up for coffee on a weekend and all the paperwork was sorted, a few signatures done and dusted in 30 minutes
sure they take a bit of cream.....but i reckon i will be better set up for retirement
With super funds and the stock market it is easy to get greedy when losses have been made over many a year.
As it is the end of the financial year I have looked at the performance of my super for the past 12 months.
I have my super spread over three areas, a volatile managed fund, an industrial fund and direct shares in an insurance company. I manage all my own stuff and I have nominated a trailing commission company as my finance advisor so I get about 75% of trailing commissions back.
The Aussie Stock market went up about 16% in the last 12 months, the US stock market about 19%. Both were a bit higher but lost over the past month.
Overall my super fund made 45% last year but if there had not been the downturn in the last 6 weeks it would have been 64%.
The risky fund made 56% but would have been closer to 100% if there was no drop off. The industrial fund which is a good stabilising fund made 28% and the shares in the insurance company made 64%.
So overall a great year and it could have been better - however this barely makes up for losses at the start and during the GFC.
I started this super in 2001 and in the 12 odd years it has been going it has only made 5% over inflation - that is not an average of 5% per year but 5% in 11 years so overall about .4% per year over inflation - so really in the long term super is not such a good investment.
Garry
All of the funds ultimately have to use the banks. Banks do not like losing money at all. So why not forget these financial advisors and fund managers and deal directly with your bank. My investment portfolio has returned 22% during all the latest doom and gloom and with all the May/June performance may drop to 20% before eofy results come out. Which bank....no not that one....Westpac and their BT Financial Services Program....which is a rippa . I don't want to hear negatives about this, if you are concerned, go to Westpac and ask them what they can do for you. mention you heard about BT and how it works.....it isn't free, you will be asked to pay. If all good advice was free, none of you would be having investment problems, now would you?
My funds are through "which bank". Their process makes it easy to review different funds and it takes 60 secs to change funds so I can move in and out of cash (no entry/exit fees) when when the nerve begins to fail. Can all be done from home and there no financial advisors etc. If set up at the bank then trailing commissions go back to the person in the bank who initially setup the account (I assume WESTPAC is similar). My nominated financial advisor does not provide financial advise but collects the trailing commission and passes it back to me less their fee of course.Quote:
Originally Posted by ramblingboy42
What I do not like about Financial Advisors is they seem to only provide advice at the annual review of the portfolio with little management advice in the intervening period no matter what is happening and they get paid no matter if their advice works or not. I ditched my financial advisor 4 years ago and have been able to match or exceed his performance since then.
Garry
My followup question is...do you have to have an advisor? My cousin has a self managed fund and has to have one
I have stuck with commercial property over the years.Quote:
Originally Posted by garrycol
But you have to hunt around and do a lot of the work yourself, with a good freestanding commercial property,you often can't go wrong.
Our super is with an industry fund and is reasonably small.
The properties we have,over the last 10yrs,have put our superfund to shame,there is actually no comparison.
Just my 2cents worth.....