09/08/2023
๐ธ ๐ช๐ต๐ ๐๐ผ๐๐ฟ ๐ฆ๐๐ฝ๐ฒ๐ฟ๐ฎ๐ป๐ป๐๐ฎ๐๐ถ๐ผ๐ป ๐ณ๐๐ป๐ฑ ๐๐ถ๐น๐น ๐ณ๐ฎ๐ถ๐น (๐ฎ๐ป๐ฑ ๐ต๐ผ๐ ๐๐ผ ๐ฏ๐ฌ๐ฌ๐
๐๐ผ๐๐ฟ ๐ฟ๐ฒ๐๐๐ฟ๐ป๐)
To understand why your super fund will fail to deliver is as simple as asking three very simple questions we ask all Super funds, and the answers should make you very nervous.
1. What outcome is Superannuation designed to achieve
2. What strategy are they using to achieve this outcome
3. Will this strategy work (spoiler alertโฆit wonโt)
โ ๏ธ ๐ฆ๐๐ฝ๐ฒ๐ฟ๐ฎ๐ป๐ป๐๐ฎ๐๐ถ๐ผ๐ป: ๐ ๐๐ฎ๐ฟ๐๐ต ๐ฅ๐ฒ๐ฎ๐น๐ถ๐๐ ๐๐ต๐ฒ๐ฐ๐ธ
Last year, millions of Australians received a harsh wake-up call about how their Super funds poor financial management was killing their dreams of retiring.
โข ๐ญ๐ฑ๐ฌ ๐๐๐๐๐๐ข๐ก ๐๐ฎ๐ ๐๐ถ๐ฝ๐ฒ๐ฑ ๐ผ๐ณ๐ณ ๐๐๐๐๐ฟ๐ฎ๐น๐ถ๐ฎ๐ป๐ ๐ฆ๐๐ฝ๐ฒ๐ฟ๐ฎ๐ป๐ป๐๐ฎ๐๐ถ๐ผ๐ป ๐ฏ๐ฎ๐น๐ฎ๐ป๐ฐ๐ฒ๐.
โข ๐ง๐ต๐ฒ ๐ณ๐ถ๐ป๐ฎ๐ป๐ฐ๐ถ๐ฎ๐น ๐๐ฎ๐๐ฐ๐ต๐ฑ๐ผ๐ด ๐๐ฃ๐ฅ๐ ๐ฟ๐ฒ๐๐ฒ๐ฎ๐น๐ฒ๐ฑ $๐ฐ.๐ฎ ๐๐๐๐๐๐ข๐ก ๐ถ๐ป ๐ฆ๐๐ฝ๐ฒ๐ฟ ๐ฎ๐ฟ๐ฒ ๐ต๐ฒ๐น๐ฑ ๐ถ๐ป ๐ณ๐๐ป๐ฑ๐ ๐๐ต๐ฎ๐ ๐๐ฒ๐ฟ๐ฒ ๐๐ฒ๐๐ฒ๐ฟ๐ฒ๐น๐ ๐๐ป๐ฑ๐ฒ๐ฟ๐ฝ๐ฒ๐ฟ๐ณ๐ผ๐ฟ๐บ๐ถ๐ป๐ด.
โข ๐ฆ๐ผ๐บ๐ฒ ๐ผ๐ณ ๐๐๐๐๐ฟ๐ฎ๐น๐ถ๐ฎโ๐ ๐บ๐ผ๐๐ ๐ฝ๐ผ๐ฝ๐๐น๐ฎ๐ฟ ๐ฎ๐ป๐ฑ ๐๐ฒ๐น๐น-๐ธ๐ป๐ผ๐๐ป ๐ณ๐๐ป๐ฑ๐ ๐ฝ๐ผ๐๐๐ฒ๐ฑ ๐น๐ผ๐๐๐ฒ๐ ๐ผ๐ณ -๐ญ๐ฐ%
โข ๐ ๐๐ฆ๐๐ฝ๐ฒ๐ฟ ๐ฝ๐ฟ๐ผ๐ฑ๐๐ฐ๐๐ (๐ฎ๐ฝ๐ฝ๐ฎ๐ฟ๐ฒ๐ป๐๐น๐ ๐๐ต๐ฒ ๐๐ฎ๐ณ๐ฒ๐๐ ๐ผ๐ฝ๐๐ถ๐ผ๐ป๐) ๐ฝ๐น๐๐ป๐ด๐ฒ๐ฑ ๐ฏ๐ ๐ฎ ๐บ๐ฎ๐๐๐ถ๐๐ฒ -๐ฑ.๐ญ%.
โข ๐๐ป๐ณ๐น๐ฎ๐๐ถ๐ผ๐ป ๐ฟ๐ถ๐๐ถ๐ป๐ด ๐๐ผ ๐ฎ ๐ฟ๐ฒ๐ฐ๐ผ๐ฟ๐ฑ ๐ต๐ถ๐ด๐ต ๐ผ๐ณ ๐ณ% ๐บ๐ฒ๐ฎ๐ป๐ ๐๐ผ๐๐ฟ ๐บ๐ผ๐ป๐ฒ๐๐ ๐ฝ๐๐ฟ๐ฐ๐ต๐ฎ๐๐ถ๐ป๐ด ๐ฝ๐ผ๐๐ฒ๐ฟ ๐๐ฎ๐ ๐ฒ๐๐ฎ๐ฝ๐ผ๐ฟ๐ฎ๐๐ฒ๐ฑ.
โข ๐ต๐ณ ๐ณ๐๐ป๐ฑ๐ ๐ณ๐ฎ๐ถ๐น๐ฒ๐ฑ ๐๐ต๐ฒ ๐๐ฃ๐ฅ๐ ๐๐ฒ๐๐.
โข ๐ญ๐ฌ๐ฌโ๐ ๐ผ๐ณ ๐ฝ๐ฟ๐ผ๐ฑ๐๐ฐ๐๐ ๐ฎ๐ป๐ฑ ๐ถ๐ป๐๐ฒ๐๐๐บ๐ฒ๐ป๐ ๐ผ๐ฝ๐๐ถ๐ผ๐ป๐ ๐ฎ๐น๐๐ผ ๐ณ๐ฎ๐ถ๐น๐ฒ๐ฑ ๐๐ต๐ฒ ๐๐ฎ๐บ๐ฒ ๐ฟ๐ถ๐ด๐ผ๐ฟ๐ผ๐๐ ๐๐ฒ๐๐๐ถ๐ป๐ด.
๐ก ๐ฆ๐ผ ๐ต๐ผ๐ ๐บ๐๐ฐ๐ต ๐ฑ๐ถ๐ฑ ๐๐ผ๐ ๐ฟ๐ฒ๐ฎ๐น๐น๐ ๐น๐ผ๐๐ฒ?
For a 45-year-old with $250,000 in Super with a major fund like Australian Super, on an income of $120,000, this is the equivalent of losing $30,000 in 12 months, an average loss of $600 a week.
That figure reinvested at an 8% return over the following 22 years equates to over $170,000 extra in your Super when you retire.
That is the equivalent of losing almost 15 years worth of contributions in the space of 12 months!!
So why didnโt Super funds do anything to protect their members from such massive losses, and why are they failing to deliver results in anything other than a bull market?
โ ๐ช๐ต๐ ๐๐ผ๐๐ฟ ๐ฆ๐๐ฝ๐ฒ๐ฟ ๐ณ๐๐ป๐ฑ ๐ฟ๐ฒ๐ณ๐๐๐ฒ๐ ๐๐ผ ๐ฝ๐ฟ๐ผ๐๐ฒ๐ฐ๐ ๐๐ผ๐๐ฟ ๐บ๐ผ๐ป๐ฒ๐ ๐ฎ๐ด๐ฎ๐ถ๐ป๐๐ ๐น๐ผ๐๐๐ฒ๐
99% of people we speak to assume their Super fund manages their money through market cycles, but 100% of all standard, retail and industry superannuation funds operate with no goal of outperforming the market, and they have absolutely no plan of action when times are bad.
It is a set-you-and-forget-you strategy, where itโs up to you to follow the markets and contact them to make the appropriate instructions on what you want them to do with your money, when times are bad, and then again when times are good.
โณ ๐ช๐ต๐ ๐๐ต๐ฒ ๐ผ๐น๐ฑ ๐ฎ๐ฝ๐ฝ๐ฟ๐ผ๐ฎ๐ฐ๐ต ๐ถ๐ ๐ณ๐ฎ๐ถ๐น๐ถ๐ป๐ด
Super was implemented in 1992, and at that time there had only been one crash since the great depression. This puts just 2 crashes in the proceeding 120 years, making a catastrophic downturn a 1 in 60-year event.
Fast forward to today, and we see 3 major crashes in 20 years.
Thats one every 6.7 years!!
To understand why this is important you need to understand that when Super was implemented in 1992, there had been one major stock market crash (Black Monday in 1987) since the great depression of 1929, so the set and forget approach seemed like it could work.
But just a few years later in 2000 we saw the tech bubble crash which resulted in the S&P 500 falling by more than 50%
In 2008 we had the subprime mortgage collapse that saw the S&P fall by 56.8%
In 2020 we had an unprecedented pandemic that wiped out 34% off the S&P and then inflation that stands at a whopping 7% which degraded the purchasing power of any funds you had left.
In essence we are 9X more likely to experience a major adverse financial event in this century as opposed to when Super was initially implemented.
This strategy of not making adjustments to how your Super is invested was bearable when a downturn was a 1 in 60 year event, but when itโs a one in 6.7 year event you can start to see why the old strategy isnโt working anymore.
๐ฅ ๐ช๐ต๐ ๐๐ผ๐ ๐ฐ๐ฎ๐ป'๐ ๐ฎ๐ณ๐ณ๐ผ๐ฟ๐ฑ ๐๐ผ ๐น๐ฒ๐ฎ๐๐ฒ ๐๐ผ๐๐ฟ ๐ฆ๐๐ฝ๐ฒ๐ฟ ๐๐ถ๐๐ต ๐ป๐ผ ๐ฎ๐ฐ๐๐ถ๐๐ฒ ๐ฟ๐ถ๐๐ธ ๐บ๐ฎ๐ป๐ฎ๐ด๐ฒ๐บ๐ฒ๐ป๐
At the end of the day, your fund is assuming your completely ok with how they are treating your plans for retirement, why else would you stay?
But when there are options out there that in the same time frame had returns of 10-15%, equating to a 300-400% increase in performance in a 12 month period, why would you?
As an example, that same $250,000 balance referenced earlier, posting a loss of $30,000, would have made a profit of $32,375, and thatโs factoring in inflation and just a 10% return.
Thatโs an extra $62,375 in one 12 month period.
That money, once again reinvested at 8%, over a 22 year period stands at an incredible $360,000+
Why would you leave your retirement in the hands of people who donโt manage money, and provide zero active risk management to protect you from losses when markets turn sour?
๐ค ๐๐ผ๐ ๐บ๐๐ฐ๐ต ๐ฑ๐ผ ๐ ๐ฎ๐ฐ๐๐๐ฎ๐น๐น๐ ๐ป๐ฒ๐ฒ๐ฑ?
The Association of Superannuation Funds of Australia March 2023 figures state individuals and couples around age 65, who own their own home outright, need an annual income of around $50,000 or $70,000 respectively to fund a comfortable lifestyle.
This equates to $1,000,000+ if your single and $1,400,000+ if youโre a couple.
But according to KPMG data, Australian men aged 60 to 64 years have Super balances of just $204,107 with similar aged women faring even worse with balances of $146,900.
This means a couple retiring at 65 would have just $351,007 in Super and run out of money in under 5 years, and if your single itโs even worse with the average payout lasting between 3-4 years.
The grim reality: Most people relying on standard Super funds will run out of money shortly after retirement, leaving them on a government pension after contributing hundreds of thousands of dollars to underperforming Super funds and then losing hundreds of thousands in fees and unnecessary losses.
๐ ๐๐ฒ๐ฟ๐ฒ ๐ฎ๐ฟ๐ฒ ๐๐ต๐ฒ ๐บ๐ฎ๐ถ๐ป ๐๐ฎ๐ธ๐ฒ๐ฎ๐๐ฎ๐๐
๐ต๐ต% ๐ผ๐ณ ๐ฆ๐๐ฝ๐ฒ๐ฟ ๐ณ๐๐ป๐ฑ๐ ๐ฑ๐ผ๐ปโ๐ ๐บ๐ฎ๐ป๐ฎ๐ด๐ฒ ๐บ๐ผ๐ป๐ฒ๐: Your standard industry and retail funds donโt manage your money, they leave that job up to you.
๐ญ๐ฒ๐ฟ๐ผ ๐ฟ๐ถ๐๐ธ ๐บ๐ฎ๐ป๐ฎ๐ด๐ฒ๐บ๐ฒ๐ป๐: No active risk management means when the stock market falls like it did in 2022 they just watch as your balance falls and make zero effort to remedy the situation.
๐ญ๐ฒ๐ฟ๐ผ ๐ฝ๐ฒ๐ฟ๐ณ๐ผ๐ฟ๐บ๐ฎ๐ป๐ฐ๐ฒ ๐บ๐ฎ๐ป๐ฎ๐ด๐ฒ๐บ๐ฒ๐ป๐: As markets change from boom to bust, they make no effort to diversify the way your moneys invested. Whether the market is falling, or rising, your Super fund is do nothing to mitigate risk or maximise your opportunities to make solid returns when they present themselves.
๐ฅ๐ฒ๐๐๐ฟ๐ป๐ ๐ฎ๐ฟ๐ฒ ๐ป๐ผ๐ ๐ฎ ๐๐ฟ๐๐ฒ ๐ฟ๐ฒ๐ณ๐น๐ฒ๐ฐ๐๐ถ๐ผ๐ป ๐ผ๐ณ ๐ฝ๐ฒ๐ฟ๐ณ๐ผ๐ฟ๐บ๐ฎ๐ป๐ฐ๐ฒ: When inflation is 7%, your fund must make this at a minimum just to not go backwards.
Super funds donโt factor in inflation when posting returns, and when you factor in inflation rising above 4% on multiple occasions since 2000, you can start to see why your super fund is not telling the whole truth when it comes to the real effect of inflation on the purchasing power of your money.
๐ฅ๐ฒ๐๐ฎ๐ถ๐น ๐ฎ๐ป๐ฑ ๐๐ป๐ฑ๐๐๐๐ฟ๐ ๐ณ๐๐ป๐ฑ๐ ๐ฎ๐ฟ๐ฒ๐ปโ๐ ๐ฐ๐๐๐๐ถ๐ป๐ด ๐ถ๐: These funds lost the most amount of money in 2022. They left their members funds over exposed to massive losses when the market was obviously heading in the wrong direction, provide retail rates of returns instead of wholesale, provide no active risk management and wear no accountability for how your Super fund is performing.
โจ ๐ช๐ฎ๐ป๐ ๐๐ผ ๐ธ๐ป๐ผ๐ ๐๐ต๐ถ๐ฐ๐ต ๐ผ๐ฝ๐๐ถ๐ผ๐ป๐ ๐ผ๐๐๐ฝ๐ฒ๐ฟ๐ณ๐ผ๐ฟ๐บ๐ฒ๐ฑ ๐๐๐ฎ๐ป๐ฑ๐ฎ๐ฟ๐ฑ ๐ฆ๐๐ฝ๐ฒ๐ฟ ๐ณ๐๐ป๐ฑ๐ ๐ฏ๐ ๐ฏ๐ฌ๐ฌ%?
Donโt limit yourself to the over bloated, underperforming Superannuation funds that have been spending their members money on marketing and advertising, while losing $150 Billion of their members money in 12 months.
Our network can give you direct access to options that you canโt access as a standard retail investor looking to boost your Supers performance.
We have a foolproof process that has been developed specifically to meet the changing economic landscape that awaits us, and adapt it to current day scenarios, not what the global economy looked like in 1992.
๐ ๐๐ผ๐ ๐ฑ๐ผ๐ฒ๐ ๐ถ๐ ๐๐ผ๐ฟ๐ธ?
While many superannuation experts charge upfront fees ranging from $3,000-$7,000 to access these funds, our network will provide you with a full Superannuation comparison report, comparing your current Superfund to 1000+ other options not usually accessible as a retail investor, at no cost and with no obligation.
The report will include a how-to guide on how you can:
๐๐ฐ๐ฐ๐ฒ๐๐ ๐๐ถ๐ด๐ต-๐ฃ๐ฒ๐ฟ๐ณ๐ผ๐ฟ๐บ๐ถ๐ป๐ด ๐๐๐ป๐ฑ๐: Utilising insights like those from our national network can identify and tap into top-performing funds in the market, offering much better returns than most standard industry and retail funds.
๐๐ฐ๐ฐ๐ฒ๐๐ ๐ช๐ต๐ผ๐น๐ฒ๐๐ฎ๐น๐ฒ ๐ฅ๐ฒ๐๐๐ฟ๐ป๐: Typically accessible only to sophisticated investors, these funds consistently outperform standard options, offer robust risk management, and have reduced fees due to the absence of retail intermediaries.
๐๐ฐ๐๐ถ๐๐ฒ ๐ ๐ฎ๐ป๐ฎ๐ด๐ฒ๐บ๐ฒ๐ป๐: Regular oversight and timely updates of your investments ensures you maximise your ability to protect yourself from losses while also identifying high growth opportunities when they present themselves.
๐๐ผ๐ป๐๐๐ฎ๐ป๐ ๐ฅ๐ฒ-๐ฒ๐๐ฎ๐น๐๐ฎ๐๐ถ๐ผ๐ป: When was the last time your Super company called you? Major life changes can serve as indicators to re-evaluate and adjust super strategies and contributions. An annual review is also included as a part of the service they provide to keep you up to date with any changes you need to know about.
๐๐
๐ฝ๐ฒ๐ฟ๐ ๐๐๐ถ๐ฑ๐ฎ๐ป๐ฐ๐ฒ: Employing experts, means youโre getting the best possible advice, from industry experts, without cost or obligation.
๐ง๐ฎ๐ถ๐น๐ผ๐ฟ๐ฒ๐ฑ ๐ฆ๐๐ฝ๐ฒ๐ฟ ๐ฆ๐๐ฟ๐ฎ๐๐ฒ๐ด๐ถ๐ฒ๐: Having an understanding of your individual dreams and goals, financial positions, and risk appetites, leads to tailored super recommendations that are a perfect fit for where you are today, and where you want to be when your retired.
๐๐ฎ๐ฟ๐ป๐ฒ๐๐ ๐๐ผ๐บ๐ฝ๐ผ๐๐ป๐ฑ๐ถ๐ป๐ด: Initiating early can lead to considerable wealth accumulation due to compound interest. Get in early and watch your Super balance explode!
๐ ๐๐ผ๐ป๐ฐ๐น๐๐๐ถ๐ผ๐ป
While it's easy to feel disheartened by 2022โs results, remember that knowledge is power.
By understanding all the options available to you, you can take control of your Super in a way you hadnโt imagined before with results that will give you the best possible transition into a smooth and comfortable retirement.
Contact us today and access your very own custominsed Superannuation comparison for free.
Don't be a victim of the financial markets; be its master.
The choice is yours.
