Am I Funding the Invasion of Ukraine?

Wally, my long-suffering editor, knows he has a hot question when it’s written in ALL CAPS.

Here’s one that landed last week:

“AM I FUNDING THE INVASION OF UKRAINE?”

Wally leaned in … and it went on … and on, and on, and then took some weird tangents about Bill Gates. (Why is it always about Bill Gates?)

Anyway, the gist of the person’s question was this: he didn’t want his super to be funding war criminals (or Windows 97).

And fair enough too!

Yet, while I’ve got the tin-foil hat on, let me tell you that for well over a decade the super industry fought tooth and nail against laws that required them to disclose to investors where they were investing their money.

“Seriously, just trust us, we’re good guys!” Uh-huh.

Thankfully, the disclosure laws have now been passed, so you can see where your money is invested.

Here’s the deal. There are two ways to invest ethically within super: by choosing a dedicated ethical fund, or by selecting an ethical investment option within your existing fund.

Just understand a couple of things: first, the term ‘ethical’ is about as loose as an over-28s nightclub, so you need to dig in and see what they’re actually investing in, and whether it fits with your worldview.

Second, the fees for ethical funds and options are often much, much higher than for general investment options … which will eventually detract from your returns.

Regardless, there’s a very good chance your super fund has dumped any Russian assets it was holding. Since the start of the crisis, most funds have written off hundreds of millions of dollars of Russian investments. Yet the only way to be really sure is to call your fund and ask them.

Tread Your Own Path!

Here’s How Much You Should Have in Super Right Now

“You look different in real life than you do on the cover of your book”, said the waitress.

“You’ve lost a lot of weight.”

It’s true, over the past few months I’ve dropped roughly 13 kilos.

How did I do it?

Liposuction! Just kidding. I banished biscuits from the house and set up a gym in the shearing shed.

That’s the thing about being tubby: you can’t hide it (especially if your mug is printed on millions of books). Yet when it comes to wealth it’s the opposite. Plenty of people are hiding their financial flab in a leased Lexus.

So, for a moment, let’s you and I get naked and compare our financial bits. Here’s a table from the Association of Superannuation Funds of Australia (ASFA) that breaks down how much the men and women have in super on average by age.

So ask yourself: “Am I flabby or fit?”

Remember, it’s just an average.

It depends on how much you earn, and how long you take off to raise kids. That being said, if you’re following the Barefoot Steps long term, you’ll almost certainly end up with more than the average.

As I say in Barefoot Step 5, once you’ve bought a home (though not yet paid it off), boosting your pre-tax super contributions from 10% to 15% will make a hell of a difference. As will switching to a growth investment option if you’re under the age of 45. And lowering your fees will give you a huge boost at any age (remember, you’ll pay the majority of your fees after you retire, because that’s when your balance is the biggest).

Don’t be flabby … be financially fit!

Tread Your Own Path!

All Clear from COVID

Barefoot,

We stupidly made the decision to withdraw the maximum $20,000 from my husband’s super when it was on offer due to Covid. Now we want to give it back. Is it as simple as depositing it back into his super account?

Narelle

Hi Narelle,

Good idea.

Almost five million people have withdrawn a combined $37 billion in early release Covid payments. And, given there were no conditions on how the dough was spent, some of it ended up being spent on boob jobs and Botox.

The good news is that the ATO has given an update, saying “individuals can now recontribute their COVID-19 early release payments without it counting towards their non-concessional (after-tax) contributions cap”.

Oh-kay.

Basically, it means you won’t be penalised for injecting the money back into your super, rather than into your lips. Give your fund a call and tell them your plan. They may need you to fill out a form before you BPay the dough.

Scott.

A Super Confession

Hi Scott,

My husband and I have been with Christian Super Fund for the past 20 years. Today they sent us a letter saying that they’ve been underperforming and that we should change funds. My husband is 61 and I’m 59. We don’t have much super. Should we be worried about this?

Jenny

Hi Jenny,

So it’s confession time at Christian Super:

“Forgive me, member, for we have sinned … we have consistently underperformed other super funds.”

For background, earlier this year 13 super funds were named and shamed by the regulator. The Government then forced these dud funds to write a letter to their (combined 1.1 million) members and not only confess their sins but recommend they switch to a better product using the Government’s YourSuper comparison tool.

Can you imagine if you had to do this to your girlfriend?

“Jenny, it’s come to my attention that I’m a jerk. I’ve underperformed for so many years that I’m writing to you today to suggest you go on Tinder and find someone who can truly listen, get along with your mother, and meet your needs without being passive aggressive.”

Personally, as a strictly low-cost index fund investor, I have very little sympathy for super funds that underperform the benchmarks over the long term. Even so-called ethical funds like Christian Super. Fact is, there are low-cost index funds that will screen out unethical companies. Use them instead. Then donate the extra money you make to causes that you’re passionate about.

Scott.

Your super, your choice

I got absolutely belted for last week’s column.

My crime?

Innocently suggesting that people with uncomplicated tax affairs (read ‘employees’) could save themselves the $400 they spend on an accountant, and instead lodge via the ATO app on their phone, which does the job in a few minutes.

This did not go down well in accounting circles.

Neil, a suburban accountant, wrote to me saying: “You’re nothing but a government stooge for promoting their tools. You should be ashamed of yourself. You disgust me.”

WHAM! Neil sure wants to give me a bit of negative gearing alright, SMACK BANG in the kisser!

(On second thoughts, maybe Neil’s the accountant you want. He’ll FIGHT for every deduction.)

So, while I have Neil’s attention, let’s put another pot on the stove and get his blood boiling.

This week the Government has released another tool, this time for superannuation.

And you know what? It’s pretty darn good.

It’s called ‘YourSuper’ (ato.gov.au/yoursuper) and it helps you compare super funds.

Actually, its real value is that it’ll tell you whether you’re in a dud fund.

And that one bit of information is incredibly valuable: it can stop you from having hundreds of thousands of dollars of your retirement savings smoked by high fees and poor performance.

The fact that it took the Government 30 years to create a website that tells consumers this vital information is absolutely outrageous. Still, credit to Senator Jane Hume for pushing it through and finally getting it done.

If you access it through your myGov, you can check for lost super, consolidate your accounts, and shop for a cheaper fund (costs are the one thing that investors can control).

It’s another nail in the coffin for hopeless funds that should have been shut down long ago … and that’s good news in my book. It’s not perfect, and only covers MySuper products at this stage (more funds will be added over time). And the data on the dud funds won’t be out until later in the year … but it’s a great first step.

So here’s my tip: when you’re lodging your return in a month’s time, check out YourSuper … after all, it’s the same site, right Neil?

Tread Your Own Path!

A Super Idea?

Hi Scott

I have just seen a news item on a proposed policy which could see victims of domestic violence allowed to withdraw up to $10,000 from their super. Typically victims of domestic violence are women, and women on average have less super accumulated, due to raising families. I am supportive of any initiative to help victims of violence, but is this likely to help or hinder them financially in the long run?

Theresa

Hi Theresa,

Of course! Raiding your super early will hurt you financially in the long run.

Yet I also agree with Superannuation Minister Jane Hume, who says that it’s simply another tool, and if it encourages women to leave a dangerous, abusive relationship then that’s a good thing.

However, as someone who works in the community sector and has helped women in this very situation, I don’t think accessing 10 grand from super is high on their priority list.

What I think should be on the Government’s priority list is properly funding emergency housing, legislating for paid family violence leave, and doing everything they can to help these courageous women (and their kids) find safety and security.

Yes, there is a cost to properly fund this … yet there is an even bigger cost if we don’t.

Scott.

The Virgin Investor

Hi Scott

We are pretty excited that our 16-year-old daughter is about to start her first job. Now to work out which super fund for her to join! Following the advice in your book, we have started the process of searching for a low-cost fund. I like the look of Virgin Money Super, which charges a $58 admin fee plus 0.39% of the balance per annum. My concern is that it is a new fund and the investment options are all high risk, not to mention that Virgin Atlantic filed for ‘Chapter 11’ (hopefully not all the Virgin-branded businesses will meet the same fate). Would appreciate your advice.

Daniel

Hi Daniel,

Virgin Atlantic is not the same as Virgin Money. It’s just another one of Richard Branson’s many Virgin brand extensions. (He once tried Virgin Brides — a wedding dress business that didn’t survive its honeymoon). Virgin Money is actually owned 100% by the Bank of Queensland.

Which is kind of confusing, right?

Well, try looking at their fee structure!

They’re actually higher than you state: you left off the investment fee (0.116%) and indirect fees (0.09%).

But don’t feel bad for missing these details.

The fact is super is bloody confusing … and that’s exactly how the industry likes it.

You’re an awesome, well-meaning dad trying to help out your kid, and it’s a disgrace that it’s this hard.

Thankfully, in last year’s budget the Government announced they’re building a new comparison tool called ‘YourSuper’ which is slated to be available by 1 July this year.

So, for now, I’d probably stick with her default fund, and then when YourSuper is launched I’d encourage you to cut the apron strings and let your daughter select her own super fund using it.

You could even bribe her with a new pair of shoes if she can find a good high-growth option in a low-cost fund. Because the money she saves getting this right will eventually buy her a whole new wardrobe.

Scott.

My Doom and Gloom Dad

Hi Scott,
 
My dad and I are classic doomers. Dad would often speak around the dining table about the looming subprime mortgage crisis — among other things, like public debt, and the devil in credit cards — when I was a teen. Now I am a Millennial who turned 30 this year.  
 
I have a modest but secure(ish) job in the Queensland Public Service, and was rattled to see my superannuation wiped by the corona-crash. Naturally, I went to my father for advice. He told me a huge crash is coming and to put my super into cash. However, I have seen it recover very quickly. So is my dad an economic genius or is this all pure coincidence? 

Jim

Hey Jim,
 
How lucky are you to have had serious, meaty discussions over the family dinner table growing up!
 
Now, no one can predict the future, yet you should internalise the real message your old man is giving you: 
 
“Life is risky, so be sensible with your money.”
 
But what about his suggestion to move to cash?
 
Well, I wouldn’t do it.
 
That’s because I worry that all this money-printing will at some stage lead to inflation: if inflation averages just 2.5% per year, then after 15 years a third of your purchasing power is gone. After 30 years, more than half the real value is gone. 
 
You need to outrun inflation, and historically the best way to do that is by investing in the share market.
 
Know this: investing, like parenting, is the ultimate act of faith. 
 
Things are never clear. There are no guarantees. You just put your best foot forward. 
 
It sounds like you have an awesome dad. So learn from his wisdom, plan for the worst, and hope for the best.

Scott

I Want to Hit My Dad … Does Barefoot Agree?

Howdy Scott,

My dad and I are just about coming to blows! He has a mate, an investment manager, who is managing his $700,000 in superannuation. The portfolio currently has 15 holdings, all ETFs and LICs, and his ‘mate’ is slugging him $330 a quarter to manage this rubbish. I said I could do this for free, or spend a day explaining the basics so he could do it himself. His response: “I’m happy with how much I am making, plus you don’t know what you are talking about.” Haha! How can I get the message through to him that passive investing will take a whole 10 minutes out of his year to organise? Or should I just let him be?

Pete

Hi Pete,

I actually agree with your old man, for a couple of reasons:

At $330 a quarter ($1,320 a year), it represents around 0.18% per annum cost to his portfolio.

And, so long as he’s invested in decent, low-cost products (no expensive actively managed funds), he’ll be fine.

More importantly, if his ‘mate’ can stop him from freaking out and jumping off the stock market rollercoaster as we do the occasional loop-the-loop, then he will have more than earnt his money.

Don’t feel bad.

My old man talks to me about stocks all the time, but then when he wants ‘real’ advice he talks to my analyst Mike (who then says the same thing as me). It must be something about the fact that they’ve had to wipe our bottoms at one point in our lives.

Then again, their turn will come someday soon. Circle of life.

Scott

You Got Ten Grand?

“Do you have $10,000?”

I was sitting in the back of an Uber when my driver grunted this muffled request through his face mask.

“Sorry … what?”

His piercing eyes stared back at me through the rear-view mirror.

I started to feel a little nervous. 

Why was this dude asking me for ten grand?

And why were the doors locked?

And why the hell was Phil Collins playing on the radio?

In frustration my driver pulled down his mask and repeated (clearly this time), “You’re the Barefoot Investor, aren’t you? What do you think I should do with the $10k I took out of my super?”

Ah-ha! Now it all made sense. In fact, I’ve been getting that question a lot lately.

One financial counselling client of mine, in his mid-30s, took his $10,000 and gambled the lot inside of a week.

He plans on doing the same with the next $10,000 he can apply for.

(Though this time he assures me he’s going to win.)

Over 1.75 million applications for a total of $14.3 billion have been approved, and I’ve come to realise that people are doing it for three main reasons (other than to feed their addictions):

First, there are people who are using it for the purpose it was intended: maybe they’ve been laid off or have lost hours and they want a cushion for what promises to be a very long winter.

In that case, I’d keep the money in a high-interest saver — preferably with a bank you don’t owe any money to (otherwise they may suggest you swipe it to ‘help’ pay off your loans). There are some sweetheart teaser offers at the moment, like Macquarie Bank’s online saver, which pays 2.65% for four months before reverting back to 1.35% p.a.

Second, there are young people who are saving for a deposit.

Depressingly, Treasury figures show that almost half a million people under the age of 30 have accessed their super. Now I understand the motivation to own a home, but I don’t really like raiding your super to do it. In this case, if you’ve satisfied the requirement for early release, it also means you need to work on boosting your income so you can get a loan.

And finally there are people like my Uber driver, who admitted that he didn’t need the money:

“I just figured it was better off in my hands than theirs.”

He was in his mid-50s and explained that he planned on retiring in a decade or so.

Well, if you’re going to invest the money in the share market you need to take at least a 10-year timeframe.

Reason being, in the current climate there’s a very real possibility that you could be underwater for many years.

And the best place to invest in index funds for the long term is … via your superannuation fund!

Tread Your Own Path!

Student Super

Hi Scott,

EmmaI am 18 years old and have just landed two casual jobs, so I need to set up a super account (after finding out that all of my past super from a part-time summer job in 2016 was reduced to $0.14 and then taken by the ATO!). I have several friends who swear by Student Super as it has zero fees for balances under $1,000. What’s your take? I would really like to have super that does not get reduced to nothing again.

Emma

Hi Emma,

Can I just say how much you rock for asking me this question at the start of your career?Seriously, if I wasn’t a daggy father who works in finance I’d do a TikTok dance for you.

Actually, maybe not. So let’s talk money:

You’re right, Student Super do have zero fees for balances under $1,000, which they should be applauded for.

But they need to make some kabana, so after your balance rises to $5,000 you’ll pay $78 plus 0.99% p.a.And that’s way too expensive, especially given you have 50 years or more (!) to compound your money.

It won’t take long to burst through the $5,000 barrier. Student Super knows this, which is why they’re trying to lure you in on the front end ... knowing they’ll make it back big time on the back end.

So, here’s what would be on my super shopping list:

Ultra-low fees … preferably under 0.5% p.a. no matter how much you have in the account.

The option to invest your money into a high-growth index fund.And no life insurance until you have dependents (cats don’t qualify).

Don’t worry about fancy apps or snazzy calculators: so long as your fund continues charging low fees, the less you hear from them, the better. Good luck!

Scott

You’re Wrong, Barefoot!

Scott,

I was not happy with your answer to Rebecca a few weeks ago. You disagreed with her husband, who told her it was “better for us to have control of our money rather than a superannuation company”. If that company was such as AMP, with poor growth, ongoing fees and other rip-offs (as exposed by the Royal Commission), then her husband’s suggestion may have been the better way to go.

Peter

Hi Peter,

That’s like saying:

“You drive a Holden Barina. It’s a terrible car. So instead, you should sell it and ride a horse.”

Who says you have to drive a Barina?

Most people have the ability to choose a good super fund with low fees.

My view is that if you don’t like your super fund you should be looking to move to a better fund rather than flogging a dead horse.

Saddle up!

Scott

My Husband Is After My Super

Scott,

I need your help. I am 31 years old, earning $60,000, and my husband wants me to pull $20,000 out of super (which I can do because of the coronavirus situation) and put it on our mortgage to reduce our interest payments. He is convinced this will make us more money in the long run and that it is better for us to have control of our money rather than a superannuation company. I feel this is risky and do not have much in my super fund as it is. I feel pressured to do this.

Rebecca

Hi Rebecca,

There are a few reasons this sounds whiffy.

First, you should only raid your super as a last resort: if you’re in genuine hardship and you can’t pay your bills.

That doesn’t sound like you.

Second, you don’t want to end up with all your eggs in one basket:

I meet a lot of old people who end up at the end of their life owning their home, but have nothing else to live on. I also meet a lot of older, divorced women who don’t have a home or enough super.

The key to building long-term wealth is to spread your money around: property and shares (through super).

The final thing that stinks is that your husband is pressuring you.

This is your money.

Tell him to back off … but do it over a beer. Take him out on a Barefoot Date Night and show him the steps I lay out in my book: you’ll be making tax-effective super contributions and paying extra off your mortgage in no time!

Scott

Super Strange at Hostplus

Scott

I’m a 27-year-old with my super in Hostplus. I got an email from them talking about ‘unlisted assets’ which to be honest made no sense at all. Can you please break down what this means for me as someone with my super in the Indexed Balanced Fund.

Grace

Hi Grace,

My guess is that they’re talking about their Balanced Fund, which has a lot of unlisted investments (i.e. they aren’t traded on a stock market).

None of this applies to you.

Since you’re in the Indexed Balanced Fund (like me!), you have zero exposure to unlisted assets.

Now, I know the funds sound the same, but they are very, very different beasts.

Let’s compare the pair:

The Balanced Fund has high fees … in excess of 1%.

The Indexed Balanced Fund has very low fees … it’s the cheapest pure play index fund in the country, with fees at 0.05%.

(That’s more than 20 times cheaper.)

The Balanced Fund has 37% of its investments in illiquid investments that are hard to price, and hard to sell in a pinch.

The Indexed Balanced Fund is a very transparent portfolio, made up entirely of index funds, which are priced every business day. There’s a lot of uncertainty right now, but you don’t need to worry about unlisted investments. And that’s because you don’t own any.

Scott

Reminder: I first wrote about this years ago and highlighted the low fees. Today there are cheaper index super funds on offer. How do I know? Because my readers constantly email me about them! So before you do anything, go to YourSuper.gov.au and compare super funds first.

Too Broke to Go Broke

Dear Scott,

I am one of those ‘bastard bosses’ you talk about — I am still about $40,000 behind on my employees’ super (including mine — I have not paid myself any super, ever). I am also going broke. After six years of trying everything to stay afloat, including selling all my personal assets, my company ceased trading at the end of last month.Now I am trying to work out what the hell to do from here. By the time I liquidate what’s left, there should be enough to pay out the employees’ super, but there will still be about $150,000 in debt, mostly to the ATO. I’ve been advised to hire a liquidator, to do things correctly and end up with more to pay to their super, but I have been told it will cost about $15,000. I know it’s all on me — but do you have any advice on what I should do next?

Simon

Hi Simon,

I don’t think you’re a bastard boss -- you gave it a go and you couldn’t make it work. Fact is, more than 1,000 small businesses go broke each week in Australia, according to data analysts Illion.

One option you have is to pay your employees their super, directly into their funds, with any money you have left.

As for the ATO, there are two ways to go: appoint your own (expensive) liquidator, or wait for the ATO to eventually appoint their own. And if it works out that you’re personally liable, then really your only option is to negotiate a settlement with the ATO, or declare bankruptcy. My take?

The person who told you to see a liquidator was bang on. If you don’t, there’s a risk that you’ll open yourself up to even more trouble. It’s time to let the nightmare play out.

Scott

Living the ING Life

Hey Scott,

Long time reader, first time asker! I would love your thoughts on ING's latest superannuation offering — ‘Living Super’.

Stephanie

Hi Stephanie,

Not much.

It’s kind of like walking into your local pub and choosing between the 35 craft beers they have on tap.

They all have flashy logos and pompous names, but they all taste pretty much the same. Yes, ING allows you to buy individual shares, but industry funds offer the same thing.

And, while their portfolios are made up of sensible index funds, they’re really not that cheap.

(When you’re buying index funds, cost is one of the major factors.)

Bottom line: there are cheaper, and better, products out there in my opinion.

Case in point: arguably the best fund manager in the world is the not-for-profit Vanguard, and they’ll be coming out with their own super offering later in the year.

Hold my beer!

Scott

Reminder: I first wrote about this years ago and highlighted the low costs. Today there are better deals on offer. How do I know? Because my readers constantly email me about them! So before you do anything, do a quick google.

My Super Crappy Boss

Hi Scott,

I feel like everybody learns to check their super the hard way — by not being paid it at some point thanks to a super crappy boss. I am a 22-year-old uni student and have mostly had hospitality jobs while studying. I have in fact done two years of hard work with no super, thanks to the slimy owner of one of those neon-coloured hole-in-the-wall doughnut shops (that Instagram is so obsessed with).

I contacted the ATO, I contacted the Fair Work Ombudsman, and I even maintained contact with the boss himself after I rage-quit. In the end I lost my time as well as my money. The company just ‘phoenixed’ (went bankrupt, started a new company, then ‘bought’ the restaurant from the old company free of super debt). Scott, after you have got banks out of schools, the next thing you should throw your weight behind is stronger punishments for super theft.

Kelly

Hi Kelly,

Since last week’s column, I’ve been inundated by people telling me similar stories to yours, and a lot of them are young people working in hospitality. It seems there really are a lot of crappy bosses out there.

To add some salt to your doughnut, I should point out that you didn’t just lose two grand. From age 22, with compounding over your lifetime, that money would have grown into tens of thousands of dollars!

And that’s why this theft — and that’s what it is — needs to be stamped out.

I also don’t understand why the Government is offering a no-questions-asked amnesty on bosses who haven’t paid super. I guess some employees might receive a bit of what they’re owed, but I reckon it sends the wrong message.

The people I feel for — apart from you, of course — are the honest business owners who are doing the right thing, paying their staff the correct wages and super, yet are competing with the likes of George Calombaris. Now that’s a doughnut.

Scott

Time for a Super Shakeup

What I’m about to share with you could possibly be the biggest change to superannuation since I wrote my book, The Barefoot Investor: The Only Money Guide You’ll Ever Need, a few years ago.

But first, a cute analogy to explain how Aussie super works:

Retail super funds, those owned by the banks and AMP, are the financial equivalent of Facebook. We all signed up for them years ago before we had a clue, then gradually worked out that they made their money by digitally shagging us — so they’re now well and truly on the nose.

Industry funds, on the other hand, are like Instagram: they’re just so hot right now. Post the Royal Commission, billions of dollars are flowing their way as people switch out of expensive retail funds.

The problem is that, when it comes to fees, all super funds are about as genuine as an Instagram selfie:

#it’s-not-all-about-fees-barefoot!

And, as a result, Australia has some of the highest investment fees in the world.

Yet this week the game changed: the world’s largest index fund manager, Vanguard, announced its intention to set up its own super fund Down Under.

Why is that such a big deal?

Because Vanguard is known as the ‘Amazon of finance’. The index fund pioneer is no pouty Instagram influencer: it has a history of aggressively, and relentlessly, lowering its fees. (Case in point: over the past decade alone, Vanguard Australia has cut its fees more than 25 times.)

Bottom line?

It’s high time for a super revolution, and my hope is that Vanguard helps deliver it. I’ll be watching closely to see what they come up with, and I’ll let you know what I think when they do.

Tread Your Own Path!

Reminder: I first wrote about this years ago and highlighted the low costs. Today there are better deals on offer. How do I know? Because my readers constantly email me about them! So before you do anything, do a quick google.

All My Eggs in One Basket

Hi Barefoot,

Following your recent post about expensive super funds, I had an appointment with a financial advisor at First State Super, where my fund is held. After doing a ‘risk report’ on me, the advisor suggested I essentially ‘put all my eggs in one basket’ by investing 100% in high growth. I am in my mid-thirties with a hubby and three kids under five. My question to you is: would you put all your eggs in one basket?

Emma

Hi Emma,

I actually think this is good advice.

I’ve said the same thing in my book: young people should be in high-growth super offerings.

I took a look at First State’s High Growth Option, and it has:

• 30% invested in Aussie shares (think CommBank, CSL, Woolies and a couple of hundred other companies)

• 37% invested in international shares (think Facebook, Apple, Nike and over a thousand other companies)

• 30% invested in unlisted assets (like the Sydney Convention Centre and various hospitals and other large projects)

• 3% in cash.

So, while it’s true that you’re investing in growth assets, it’s not like you’re putting all your eggs in one investment.

Emma, you have at least 30 years before you can access your super — that’s more than enough time to ride out the temporary dips of the share market. In fact, the biggest risk you face is not having your money in high-growth investments at all.

Scott

Don’t Go Changing

Hi Scott,

In last Sunday’s column there was a paragraph that read “Scarface Claw is in this instance OnePath/ANZ ... who have some of the worst performing Super Funds”. I have to say this scared the hell out of me as I have just done a transition to retirement with this specific fund you mentioned. I am 65 now and am topping up my Super with some of my pay other than the work contribution. Should I be concerned, or ride it out?

Wendy

Hi Wendy,

Your email reminds me of a friend of mine who married an ocker knockabout Aussie bloke who spends his free time sitting on the couch, drinking beer, and watching sport. She’s still holding out that one day she’ll arrive home from work and he’ll be watching the Bachelor, and drinking a bottle of Kombucha. It ain’t going to happen.

Similarly, ANZ/OnePath have consistently topped the FatCat Fund list of having the worst performing funds. Every year, for the last seven years! According to StockSpot, who compile the data on funds, they control almost a third of the worst 40 performing funds.

Faced with this dubious award, year after year, you’d think that ANZ would have woken up to themselves, and stopped picking the pockets of their customers with high fees. They haven’t.

Scott