Which Super Fund is Best?

By Jason Fittler

This is a loaded question.

The easiest way to tell someone that your product is the best, is to focus on the one feature that outperforms all other products.

It is in the nature of a consumer to look for the quickest answer to their problem and then make a decision.

But, when it comes to your superannuation it is not about set and forget.

It is a ongoing problem which you need to work on to get the best result.

If you are lazy you will pay the price.

Let’s take a look at the some key variables when super funds get compared.

  1. Best performing fund over 12-months. For 2014 the top ten super funds returned between 13.9% and 15.8%. The market return 17.4% over the year.

  2. Best performing fund over 10-years. For the ten years ending 2014 the top ten super funds returned between 7.5% and 8%. The market return 13.5% over the ten years.

  3. The average balance of super funds: 

    a. Average balance for a women is $112,000 

    b. Average balance for a man is $198,000 

    c. Average balance of a industry super fund client $300,000 

    d. Average balance of a Self Managed Super Fund $1 million

Hang on this is not what you have saw on the Television, heard on the radio or read in the paper! How can this be right I must be pulling a fast one on you surely.

What you see hear and read is all advertising and developed to sell you their product. This is not done by telling lies, but by “leaving out information” and assuming that you are too lazy to go out and check the facts.

So which super fund is best for you:

a. This year’s best performer

b. The one which performed the best over 10 years

c. The one which has the largest average balance

It’s a trick question.

The answer is (d.) The one which achieves your goals.

Each product has its own advantaged and disadvantages. The trick is to know what result you want and walk the path which will take you there.

Self Managed Super Funds have larger average balance by a factor of 3. This is not because they have better returns year in and year out or because they are the cheapest on fees.

The balance is achieved through focus, effort, guidance and continued input.

Most Self Managed Super Funds get professional advice on a regular bases. The trustees will speak to their investment adviser on a quarterly bases and their accountant at least once a year.

If you are looking to retire comfortably, you need to put in the effort. Get the right advice and continue to focus on the end result.

This is why successful people have Self Managed Super Funds. It is in their nature to want to take control, believe in themselves and achieve their goals.

“Low fees are good, but if you pay peanuts you get monkeys”

Like to know more? Give us a call (07) 4771 4577.