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What is the best Hostplus super option to choose for someone nearly 60?
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Hi Steven,
the answer is "it depends"
and the number of variables that may or may not affect the decision is HUUUUGE.
so you need to talk to an expert who knows the rules and can give you the advice that best suits your individual situation.
Now, Hostplus will possibly be able to offer you advice, however I have seen some extremely stange advice come out of industry funds......and I suspect that its because the people providing the advice dont actually know as much as they think they do.
sooooooo:
step 1: get advice from HostPlus
step 2: take this advice to someone independent and get it reviewed
step 3: make decisions
good luck
bc
Hi Steven,
I second what Brendan has just said.
You've asked a few questions on here regarding superannuation, if you would like someone to talk to I'm happy to chat - either phone or Skype/Zoom is all fine.
Regards
James
Hi Steven,
If you read The Barefoot Investor, he'll tell you it's the balanced - index option because it's cheap. In fact, he'll recommend that one out of all the super funds available out there. But if you look at the performance of that compared with the regular balanced option, it's underperformed significantly. The reason is almost solely due to the differences in asset allocation between the 2. So although they carry the same 'balanced' tag, they are in fact very different - so you need to, as they would say, "compare the pair".
Cost is very important, so I would agree with the barefoot investor on his desire to achieve low cost. However, asset allocation is even more important.
For someone who is nearly 60, it's easy to say "I need to draw on my money now (or soon) so I need to take a conservative approach to investing because I can't afford to go through a market crash" but, when you close the door to investment risk, you open the door to inflation risk. You likely have a 30 odd year investment and spending time horizon in front of you and inflation over that time will do more damage to your money than a short term market down turn. So, I believe it is important for people around your age to not be too defensive when it comes to their asset allocation.
I like Hostplus because I'm a big fan of NRL and AFL and they spend a lot of money on advertising in those 2 sports - it's great to keep the competitions and teams (I believe Gold Coast Suns and Melbourne Storm) flushed with cash.
Cheers
Glenn
So what other options do you have with balance option
Steven, almost all of the differences in performance between super funds/investment options is due to differences in asset allocation. Choosing the right asset allocation for you depends on so many things. There's no silver bullet that says "this is the best option".