Hi Peeps - we get people asking about how super is going to fit into all this. We talk a lot to our friends at Grow Super whose philosophy on super is similar to ours on banking ( you might like to hear Grow’s Josh & our own Betsy shoot the breeze on money, life & business here also.…) but what bugs you /worries you about super and how would you like it to work?
Growth looks fine, but my first reaction was ‘not established long enough to entrust my super there’. Security is what I want for Super. I hate that we lost super in crashes.
However, I did take my super off some of the larger superannuation managers because their fees were too high and the returns were barely providing growth after their fees and well after the crash then I lost even more. The fees for self-managed funds also seem to be high from what I have seen for the average worker. However, I found with one of the competitive medium-sized banks they had simple super fees, similar to savings bank rate fees and you get to be more involved in your super.
They still have a limited number of choices, such as High Risk/Growth, Medium Risk, Low Risk, Cash, Australian Shares, Australian Property, International Share, International Property, Hedge funds, and more. However, you can download an excel spreadsheet that shows the past performance day by day for each of these areas, providing a gimps of the trends. And you get to choose what percentage of your money you want to put where, and you can change that around a few times with just a click of a button, right now the mix seems good that I’ve set.
I will say I was afraid to take on High Risk before however as I could see the history for over 5 years was good for all investments, I was confident to include in my super recently and have been happy by the quick growth, and well the high risk is diversified in a portfolio which I trust their managers have mixed too so really the risk is not of high concern, but to watch. I have chosen a mix though.
So being able to watch the trend in the super choices growth, and not be surprised by statements is really good.
Being able to swap it out quickly to cash or other if it seemed to be dropping is also a good control to have.
Being able to set up two super accounts too is good, I pointed out the low fees to one of our staff members recently and she set one up and asked me to put her extra super deductions into that account for her to access now (as she was of that age) the other account she collects the employer Super payments.
Hi @PLeigh Patricia - really like the idea of the flexibility of 2 accounts - will look into that and other types of flexibility. And visibility is key as you say.
I want a super where I have complete control over my money, for example, being able to choose what shares are in vested in and seeing the exact amount owned by me
Hi @ohlookitslee Lee - I think quite a few of them give you choice and visibility like this now - particularly the neo-supers - have you looked at Grow Super, Zuper etc?
Hi everyone, first time poster.
I’ve got a few ideas around super, which I’ve always wanted to become reality but I think the big banks are not agile enough to create such concepts.
I believe in educating the younger generation on financial literacy and super.
*disclosure part of this idea is from a existing app somewhere essentially the first part.
The concept involves in kids using a app and parents using a app. The parent lists chores and the kids do the chores. Photos can be uploaded into the app as proof and at the end of the week or fortnight depending on level of completion parent pays their children their agreed allowance through the app (from the parents end). This already teaches kids many things but plenty of opportunity here to expand and educate from the app on the kids end. NOW here comes the SUPER part. For kids to understand the concept of super, a percentage of that amount that is paid to them for doing their chores is locked away and put aside until they turn 18. I’m thinking probably not investing it but more of a savings with interest.
Well that’s the basic idea. Hope people like it.
Oh and the name maybe something along the lines of Xinja Mini which then upgrades to Xinja Teen then just Xinja.
Super part could be named miniSUPER.
Love this @Emre86 ! We have a lot of people asking us about our plans for including kids and their financial literacy/education - a bit like Spriggy has done - but more. (people have asked for ‘Xinja kids’ etc!)I think what’s interesting is that adults need a lot of help with the basic concepts also! Compound interest! That sort of thing. The obvious follow up is teach it young. As Josh at Grow Super said ‘you leave school understanding Pythagoras’ theorem but with no idea what tax rates are.’ So we are definitely looking at extending better financial behaviours younger. I like the idea of explaining the nature of super as saving in this way - the obvious thing would be for them to put that nest egg they’ve saved into their first super! Although might get splurged on a gap year - but the main thing is the concept and then the handover to the adult equivalent. Putting this idea into the pot!
I agree with @PLeigh . Trust is key here and Xinja will likely need runs on the board before people will invest their super with/through Xinja. Feels like a second or third order priority in terms of sequencing of products/services.
Just my opinion, but I also I feel it is important to discuss some realities of Super. For the vast majority of people is widely accepted that investing via a low-cost industry fund is the best course of action long term. I would be intrigued to understand what customer value Xinja thinks comes from partnering with a sub-scale fintech like Grow Super? If it is integrated functionality/tools, then perhaps partnering with an industry super fund to build out this functionality might be a better course of action for customers?
BTW – before anyone asks, I don’t work for an industry fund.
Hi @Azzy Super is not actually somewhere where we are planning to play and we aren’t partnering with anyone at the moment but talk to the neosupers and some others as between them we share a common interest in improving financial behaviours for better outcomes. We see super as a key vehicle for long term benefit and so how we help customers interact with their existing super (regardless of whom they have it with) is something we need to think about and accommodate.