It’s a new financial year, and if you’re a young person reviewing your retirement savings, there are things you need to know.
The best superannuation funds for younger people tend to have two things in common: total fees are kept to a maximum of 1 per cent and between 70 and 90 per cent of the money is invested in growth assets such as shares and property, according to robo-advice platform Stockspot’s chief executive Chris Brycki.
Fees are charged as a percentage of funds under management. So if you have $100,000 in your fund, a 1 per cent fee will come to $1000.You will see these fees on your annual statement or in the product disclosure statement. Typically, there will be an administration fee charged at either a fixed rate or a percentage, or a combination of both. You will usually also pay a membership fee.
“As your balance grows, review the fees associated with your portfolio – ‘low-cost’ super funds are often ‘low cost’ while your balance is below $100,000. From there, there may be more competitive funds available,” she says.An allocation of between 70 and 90 per cent to growth assets means the majority of the money is invested in assets that will provide capital growth over time.
Hostplus chief investment officer Sam Sicilia says the fund’s younger membership base – and the continual flow of new, younger members coming from the hospitality industry – means it can afford to invest more heavily in unlisted growth assets because they won’t need the money for decades. “You couldn’t tolerate illiquidity if you had a lot of members switching or leaving your fund and going somewhere else – then you’d only be in listed equities and listed bonds.”Conversely, a fund with an ageing demographic needs to hold many liquid assets so it can pay people who want to cash out or draw a retirement income.“But if you have a younger demographic, you can withstand those dips because they have a lot more time to recover,” says Sicilia.
“If you have a large Australian share portfolio in your personal name, and you then also include a significant weighting to Australian shares in your superannuation, are you overexposed to this asset class?” Weerasinghe asks.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
The one thing the Matildas shouldn’t inspire young kids to doThe Matildas have inspired a generation of kids to pick up a soccer ball. But experts say parents should be wary of children attempting one skill in the backyard.
Read more »
The one thing the Matildas shouldn’t inspire young kids to doThe Matildas have inspired a generation of kids to pick up a soccer ball. But experts say parents should be wary of children attempting one skill in the backyard.
Read more »
The one thing the Matildas shouldn’t inspire young kids to doThe Matildas have inspired a generation of kids to pick up a soccer ball. But experts say parents should be wary of children attempting one skill in the backyard.
Read more »
‘A very Sydney thing’: More parents delaying children from starting schoolAge differences in kindergarten classes span up to 19 months in NSW because children can start as old as six or as young as four-and-a-half.
Read more »
From Aukus to tax cuts: six things to watch for at Labor’s national conferenceExpect a ‘little bit of a bizarro world’ with the policy fights largely already settled, one insider says. Still, some debates will be worth watching
Read more »
The free public sites where you can watch the Matildas' World Cup third place matchThe final match in the captivating Matildas World Cup journey for third place against Sweden will kick off tonight
Read more »