Greg is closely following the performance of his super fund now that he is retired and asks personal finance expert Noel Whittaker for help on how to assess funds.
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Q. Greg
I always enjoy your articles. My wife and I retired last year (aged 63) and we live off our $830,000 through the super fund BUSSQ. Their returns are always in the top 20 funds, but I also note that the Hostplus indexed fund wins the gong every year with returns of 12 per cent plus and low fees. I wonder: would I lose too much money swapping over to them? It’s really hard to obtain reliable information on funds as there are so many variables in the data.
A. As you point out, there are many variables when you try to compare one fund with another. Usually, the main factor that influences returns is asset allocation – some investors choose a more conservative asset allocation than others, and some funds invest a greater proportion of their assets in unlisted assets such as infrastructure.
I think the important thing is to sit down with your adviser and choose an asset allocation that suits your goals and your risk profile. That way, you can more accurately assess other funds and ensure that your returns match your particular goals.
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Noel Whittaker is the author of Making Money Made Simple and numerous other books on personal finance. His advice is general in nature, and readers should seek their own professional advice before making any financial decisions.
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