Thursday, August 10, 2017

Superannuation in Australia is better than CPF

Check this video out

Look how easy it is for me to make investment switches for my own superannuation investment and how much control I have over how my money is invested.

Look also at how much returns I'm enjoying. Depending on the fund I choose returns can be anything from 3.4% p.a. for Bonds up to 16.99% p.a. for Global Environmental Opportunities (e.g. renewal energy and its related areas).

CPF is a ponzi fund by comparison. With CPF you get no choice I believe. And a terrible ROI of 2.5% right? I don't see ANY benefit at all with CPF. They make it complicated to access information and it's rigid rules mean that you essentially have no power to decide how your money is invested.

Superannuation in Australia is fantastic by comparison.

Also the website of my super fund shows me the returns over time for the one dozen or so options I get to choose from. I am able to vary the time period and see the graphs adjust immediately. I take note of the peaks and troughs and decide on which investment option based on my own stomach for risk and return.

Most of the investment options are very well managed and therefore I choose the one with the highest returns. When that fund falls, the other funds also fall with it but the fall is mostly similar in magnitude. The gains however can be double for the same period. So over time, I actually gain more by investing in a "higher growth" option.

This particular super fund I'm with has been voted Australia's "best super fund" for a number of years. The competition among super funds also results in better investment products and scrutiny from consumers and super fund consumer groups.

I hope you find this insight useful.

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