HOW TO GET THE RIGHT NEST EGG for you

Superannuation is all about setting you up for your future and providing you with a nest egg large enough to retire comfortably, making it vitally important that your super’s investment returns are, over time, sufficient enough to meet your goals.

However, a recent survey* suggested most people spend less time analysing their nest egg than they do their actual egg purchases. After all, how do you choose: cage-free, barn-laid or free-range eggs? Sometimes there is so much on offer it becomes overwhelming. It can be much the same with your super.

Muirfield Certified Financial Planner Courtney Robinson hopes to provide you with some guidance, as the last thing he’d want you to do is scramble your super.

Determine what eggs are in your nest
Approximately 90 per cent of Australians don’t choose where their money is invested, and they end up in a “default” super fund investment, which often spreads money across different assets such as shares, property, cash and fixed interest. Unfortunately, not all “default” funds are created equal, so it is important to know what eggs you’re holding and how much of your super is allocated to “growth” assets, like shares, and “defensive” assets, such as fixed interest.

Make sure you’re comparing similar eggs
It makes sense to compare how super funds have performed over time. However, the naming conventions used by different funds do not make comparisons easy. For example, the Australian Super “balanced” investment option has an allocation of 82 per cent growth assets 18 per cent defensive assets. Meanwhile, Vic Super has a “balanced” option consisting of 62 per cent growth assets. It should therefore not be surprising to find that the two have not performed at the same rate. You can’t compare the two on the basis of label alone.

Pay for the eggs you actually want
The impact of fees on your super returns can be significant over time, but like many things in life, cheapest isn’t always best. In addition to administration fees, there are fees to account for the features funds offer and the type of services they provide. For example, the quality of service you receive can vary significantly and sometimes in
direct correlation with the fees you pay. You don’t want to get caught out in the cold just when you need access to your nest egg the most. Whilst it isn’t possible to try before you buy, be resourceful – ask friends what their experiences have been.

If you want a second opinion on your super, or want to know more about what’s on the menu at Muirfield, consider a free appointment with one of their Certified Financial Planners.

* A 2018 survey of Muirfield Financial Services clients conducted by Certified Financial Planners