Superannuation

[The Green Goblin]

Okay folks,

I don't think we have actually had a thread on this, and as someone who wants to swap funds to something more aviation specific, I'd like to ask what is the best fund for Australian Pilots or Airline Pilots more specifically?

I'm currently with AMP (kept from en ex employers fund from years back, since we have had a choice in recent years) and am in the market for a change.

I've been so far looking at Avsuper, and TAIST.

What are the pros and cons of each and is there anything better out there?

What do the finance gurus have to say about growth, stability, returns, fees and insurance?

Cheers

[1a sound asleep]

Just go somewhere SAFE and STABLE. Dont be fooled into thinking the world economy is safe. Better to have 3-4% growth and know you are not going to lose a penny than chase big returns and risk losing a nest egg. Dont be greedy. Keep away from high fees

[glekichi]

How about KiwiSaver? :E

[castrol]

Do some calculations to cost out rolling to another fund. You may find that adviser upfront and trail commisions just make it too expensive and therefore not viable.

The business of changing super funds is 'Money for Jam" for financial planners and their para-planners so stick with the big co's and main-stream equities and cash assests.

Also make sure your aware of the 5 asset classes and how they form a profile for the various risk profiles....your risk analysis will change with age and as your personal circumstances change so always know where you fit, other-wise there will be a "miss-match" between you and the way your money is "spread-out" .

Maybe thats just the case now...has your risk profile been updated lately and have you reviewed the fee structure?...and re-negotiated.

I'm with Colonial First State....

Cheers

[VH-XXX]

I'd like to ask what is the best fund for Australian Pilots or Airline Pilots more specifically?

Probably try not to think of it like this...... a well performing fund should be the first priority.

[Bankstown Boy]

For my 2cents worth.

I wouldn't go on a financial planning forum and ask what plane I should buy and how I should fly it - equally I wouldn't ask pilots about which super is "best".

Like there is no "best" aircraft, there is no "best" superfund.

Sure, a good financial planner will cost money, but who here flies for free?

[Shagpile]

Do your own super. Buy an index fund and you will outperform 80% of fund managers at their own game since there are no fees.

[mnehpets]

Sure, a good financial planner will cost money, but who here flies for free?

The problem with the financial advisory industry is that advisors are typically paid by commissions from the funds. This gives advisors incentive to recommend a fund based on the commission rate, rather than on what's in the best interest of the client. Unfortunately, the commissions are subtracted from your returns in the form of management fees. If your advisor is being paid a 0.5% commission, and the fund return is 5%, then you're effectively paying 10% of your returns in advisor fees. Would you be happy if the government took an extra 10% tax out of your super returns?

These problems might go away when the "Future of Financial Advice" changes come into force in July 2012, but I would want to wait until I see their effect before deciding if they actually solve this issue.

But back to the OP. APRA publishes a table of performance for the 200 largest funds at:

http://www.apra.gov.au/Statistics/upload/2010-Superannuation-Fund-Level-Rates-of-Return-PDF.pdf

It's not a particularly good analysis, but one thing stands out (table 1a and table 1b). The top 100 performing funds are dominated by corporate/industry/public sector funds, while the bottom 100 are dominated by retail funds. Not coincidentally, retail funds pay advisor commissions, while corporate/industry/public sector funds do not.

- S

[Quokka]

On 21 September 2010, ratings agency SuperRatings, announced the top 10 superannuation funds and the top 10 pension funds for 2010.

SuperRatings evaluated hundreds of superannuation funds based on based on 400 different criteria (including investments; fees; insurance; service delivery; member education; financial planning facilities; employer support; and fund governance).

In alphabetical order, the top 10 super funds for 2010...

AustralianSuper
CareSuper
Catholic Super
ESSSuper
First State Super
GESB Super
HOSTPLUS
REST
Sunsuper
Telstra Super

In alphabetical order, the top ten pension funds for 2010...

AMP SignatureSuper Allocated Pension
AustralianSuper Pension
AUSCOAL Super Account Based Pension
BUSS(Q) Standard Allocated Pension
Catholic Super Pension
First State Super Retirement Income Stream
GESB Retirement Income Allocated Pension
QSuper Pension Account
Russell Private Active Pension
Sunsuper Retirement Pension

[Jack Ranga]

Goblin,

Quokkas numbers above, they must be some pretty good funds. I've been with Av-super for 20 odd years and they have been super (pardon the pun) stable. Extremely happy with their performance through the GFC and any other bullsh!t crisis we've been through :ok:

[Quokka]

Avsuper's performance (http://www.avsuper.com.au/chart.php) ...select your risk option and the line will be displayed on the interactive chart.

Avsuper is up there close to the Big Boys of superannuation.

Otherwise, just open an E-Trade (https://invest.etrade.com.au/Home.aspx) or Comsec (https://www.comsec.com.au/default.aspx) account... mortgage the house and throw it all on a mine, oil or gas in WA.

[The Green Goblin]

Cheers guys, very helpful so far!

[wessex19]

I have found Catholic super to be the best for my situation. Move your money as many times as you want within their different funds. I have been getting double digit returns in the last 12 months

[Mr. Hat]

Always keep a few dollars in your company super and pay the insurance premiums. They are a good deal due to the numbers of employees involved. Later on or even now depending on your balance establishing your own super fund is a good way to go. To get a better picture talk to a financial advisor.