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10 Super Commandments
There are dozens of super fund providers and thousands of investment choices on offer which can make selecting the right fund for you a long process. Only history will tell if you have made the right selection. However, there are some voodoo principles that can help you make the right decision
- If your young, consider ratcheting up your risk – with a longer investment time horizon such as 30-40 years you’ll ride out many downturns and achieve average or higher returns.
- Choose low fee funds – fees compounded over years equals $1000’s of dollars less in your final balance.
- Consider the motivation of the fund – not for profit or profit for shareholders.
- Consider the size of the fund – do they have a enough staff to carry out all the due diligence required or are you paying for a plethora of paper shufflers.
- Are you going to be in accumulation mode or drawing down your super?
- Is past performance the best predictor of future performance or is past performance no guidance for future returns.
- Should you outsource the decision to a professional advisor or do you do your own research peer reviewed by the confirmation bias.
- Is your occupation given preferential treatment by the fund?
- Is having a specific insurance option important to you?
- Should you just accept chance, presentation and luck are as good as any other factors to a successful outcome or go with a high conviction sales pitch.