I also just started making a reasonable income (70k+super) after graduating university. After working around 9 months I now have half my salary as savings, and figure I should start caring about my finance. For context, I am only somewhat familiar with financial jargon, if it helps, I am making my way through "If you can" and am up to reading "Common Sense on Mutual Funds" (A little over 100 pages deep). I was hit with a realization reading over the costs section in regards to my super. I probably have some costs I can reduce, which could greatly impact my earnings over time (especially considering I wont be retiring for 40+ years, I'm under 25).
In regards to fund types, I am inclined to invest in either an Index Diversified portfolio, or just going 100:0 into International Shares (which I'm sure someone smarter than me will tell me good reasons not to) based on a comment from Bogle:
I feel like the quote accurately describes where I am at in my life. Anyway, I made a (very messy) spreadsheet with funds I were interested due to low costs, and the lowest cost funds looked like so (there may be mistakes, so don't take it as gospel)."It would not be imprudent for a highly risk tolerant young investor (25 years old or so), who is just beginning to invest for retirement, to allocate everything to stocks, provided that the investor has confidence that regular investments could be made through thick and thin."
Based on 50k invested.
For Index Diversified:
- Rest: $133.00
- HostPlus: $143.49
- AvSuper: $156.00
- AustralianSuper: $172.00
- Hesta: $182.00
- BrighterSuper: $185.00
- Rest: $133.00
- HostPlus (Hedged): $153.49
- BTSuper*: $155.00
- AwareSuper: $157.00
- Commonwealth Bank Essential Super*: $160.00
- HostPlus: $168.49
- Mine Super: $187.00
So, currently I haven't moved anything yet, I have <10k in my super, just sitting in Balanced AustralianSuper (my employers choice) and am considering my options. To me, I like the idea of either Rest or HostPlus, since both their International Share and Index Diversified funds are quite low cost. Is there anything else I should be considering here that I haven't?
To note, I have little living expenses, and have a large amount of super I can pay forward, so I would expect to have 50k+ in the account within the next 2 years quite easily, if not within 1 year depending on my salary increase.
Also I hope the information above proves useful to other people .