barefoot investor BAREFOOT KID REFUSES TO GO TO SLEEP
VANGUARD SUPER?
Hi Scott
I came across an article stating that Vanguard is now in the Superannuation business and will be competing against the likes of Australian Super, HostPlus etc. What is your view on this?
Andrew
Hi Andrew
Yes, this week Vanguard officially launched their super fund offering.
They’re charging 0.58 per cent per annum, which is one of the lowest in the market for standard default funds with balances under $50,000.
There are cheaper superannuation index funds available.
Yet here’s what’s interesting about this:
First, Vanguard has said they’ll look to lower their fees over time as they grow. I’m inclined to believe them, because that’s what they have a history of doing.
Second, this ain’t your bog-average super fund.
Research from SuperRatings found there is a “high risk at retirement” for many of the current top-returning super funds. That’s because most of our biggest super funds throw everyone – young and old – into a one-size-fits-all investment pot.
Instead, Vanguard’s offering is a life cycle fund that invests your super based on your age. In simple terms, they automatically reduce the amount of riskier assets, like shares, in your portfolio as you get older and closer to retirement. In all, they make 36 of these adjustments up to your 83rd birthday (with no switching fees), which is far and away the most comprehensive of any Australian super offering.
So what do I think?
I think this is great news for every
Australian – regardless of whether you switch to Vanguard or not.
The super fund industry trousers an outrageous $30bn a year in fees – money that could and should be going towards our retirement.
Hopefully now that one of the world’s biggest fund managers – with a relentless focus on lowering costs – has set up shop, they’ll keep everyone on their toes.
For disclosure, I invest in some Vanguard index funds.
THANK YOU FOR COMING TO LISMORE
Hey Scott,
I came to your Beer with Barefoot session last night – and wow – it was packed! I was so excited to get to meet you in person and you bought me a beer and signed my book. It’s been almost nine months since we lost our house and we’re still struggling. I left last night with a clear plan and knowing I had help. Thank you for supporting the community of Lismore, it’s the lift we really needed.
Lauren
Hey Lauren
It was lovely to meet you there. And it was a real pleasure to come to Lismore. After meeting so many people like you who shared heartbreaking stories, I’m blown away by what an amazing, resilient community you have.
A big thank you to the Lismore Book Warehouse, and to the publican at the Metropole for putting on such a great event!
Dear Scott,
I gave my son, 10, your new book this afternoon … and he can’t put it down. He’s on page 104! He won’t go to sleep until he finishes it! He says it’s amazing! Loves the ‘little tips’ and stories the most.
Perhaps this book will change his life like Barefoot Investor has changed mine.
Thank You!
Sasha
Hey Sasha,
What a little champion!
And your son’s not alone: We launched the book on Monday … and by Monday night my inbox was full of kids (and their parents) writing emails to me, bragging that they’d already finished the whole book.
That’s only happened to me once before:
The day I launched the original Barefoot Investor book.
But this time it’s even better … because it’s happening with kids.
I’ve said that Barefoot Kids is the best book I’ve ever written, and I believe it.
So I’m putting it out there early: there is something very special about this book.
Thank you for sharing, Sasha. I look forward to hearing about the epic money adventure your son is now on!
DISCLAIMER: Information and opinions provided in this column are general in nature and have been prepared for educational purposes only. Always seek personal financial advice tailored to your specific needs before making financial and investment decisions.