WHY SUPER IS INFERIOR
Better make your own pre-death arrangements where super is concerned because the only people making money now are the shysters in Parliament and those in control of your money.
There are over 400 super funds in this country and plenty of so-called investment managers fighting like hell to gain control of the $2 trillion in super and $9 billion a year in increasing contributions, so guess why the fastest growing sector is in self-managed funds.
The superannuation industry is basically a scam providing a “service” that is mandated by legislation but incredibly the fees demanded are unregulated.
Investment in shares, property, private equity, hedge funds, bonds and cash, are used by expensive managers charging unrestrained fees for each category (depending on your profit of course).
The Bureau of Statistics claims the average life expectancy for males is now 79.5 years and for females 84 years. The anti-smoking campaign has reduced smoking down to 20 per cent of the population but meanwhile the incidence of cancer has ballooned, mostly due to breast and prostate cancer. People are still expected to live longer and on ever more meagre incomes.
Assuming a retirement age of only 65, up to 20 years of financial support will be needed until death, and it’s unlikely super will suffice in any case.
The recent trade union royal commission uncovered evidence that a union slush fund had been created for Bill Shorten's campaign to become leader of the Labor Party.
Among a litany of revelations, it was demonstrated that the largest donation to this slush fund had been received from an industry super fund...none other than the Labour Union Co-operative Retirement Fund.
The rorts involved in union-managed super funds are manifold including the Health Services Union HESTA (and we all know about the shysters running that union with one ex-ALP President still sitting in gaol over a missing $20 million).
On August 18 last year, HESTA announced that it was withdrawing members’ investment funds from Transfield Services because Transfield was running regional processing centres on Nauru and Manus Island... clearly an ideological decision.
Transfield’s lucrative detention centre contracts, worth $1.2 billion pa, had helped it to achieve healthy shareholder returns. The resultant heavy losses reduced returns to a paltry 1.3 per cent for the 12 months to June 2015, instead of an expected average of 10.1 per cent.
The AFR reported at the time that, “This would be a relevant consideration if the fund was being run as a financial services agency rather than an ideological trade union plaything”.
Unions represent a mere 14 per cent of Australia’s workers and are vastly over-represented and under-qualified as money managers.
But it gets worse, and it concerns something the government never mentions:
The money members pay into super funds is money at its current value. A dollar earned and paid into a super fund forty years ago has since deteriorated in value due to decades of inflation.
The money you receive back is worth less than half what it was when you contributed it to the fund way back 40 years ago.
So fund managers are investing at the current dollar value but are still creaming their excessive percentages in fees at today’s value.
Then they reluctantly return what they want of your already devalued money.
The Government and the Opposition are fully aware of these dishonest practices but will continue to find ways of ripping off contributors, and retrospectively.
So don’t trust super funds or governments or the union controlled Opposition.
For the last 200 years, real estate has appreciated in value at an average of 12 per cent per annum... if you extrapolate that back to the UK for another 200 years, the average increase remains the same 12 per cent over 400 years.
So, is it best to purchase an investment property? Not really.
You see whatever you can legally do to provide for your retirement the government will always find a way to get your nest egg back from you. And they will probably make it retrospective.
There is only one way to beat the bastards... start chain smoking today and hope you die sooner.
Oh, hang on, they have already got at the smokes haven’t they?
Hmmm, and the $80 billion Shorten wants to spend on health will be filtered back down to the unions again, as it was in the car industry and it’s about to be in the submarine industry.
Good luck fellas.