Roll with it No.2
Welcome to our second newsletter, Roll with it No.2
In this edition we wrap up the Melbourne University MAP17 Velocity accelerator program, and get a sneak peak at the comparison of six industry and retail super funds - AMP, Australian Super, Care Super, HESTA, MLC and Suncorp.
Next edition I'll provide a link to our first research report "The erosion of Australian retirement incomes". The report maps superannuation market failure to the consumer buying process to achieve greater consumer led competition in superannuation.
If that sounds a bit heavy for you, we'll also introduce the Employee Rewards program and highlight a few of the over 2,600 discounts and offers available from 360 of Australia's favourite brands.
In case you missed it, ABC Four Corners aired a great episode on Super Risk last week. I highly recommend watching the program and reflecting on your personal superannuation situation.
If you know someone who would love to receive our updates, direct them to www.rollitwealth.com to join the mailing list.
MAP Velocity Accelerator
MAP Velocity is an accelerator program open to alumni, staff and students of Melbourne University. Roll-it Super won through to the MAP17 cohort via a competitive pitch process.
The program provides founders with a structured, lean approach to creating and managing a start-up. Through a combination of workshops, master-classes, networking and mentoring we were supported through the search for a problem-solution fit and the discovery of our first customers.
Eight start-ups from the MAP17 cohort were selected to pitch at the MAP Velocity showcase, with Roll-it Super representing the FinTech stream. It was the first pitch for Roll-it Super and a fantastic opportunity to introduce the business to a room of supporters, investors and potential customers.
Our thanks to Lisian, Abena, Jeremy and the whole MAP team for a academically rigorous and well managed accelerator program.
"Roll-it Super were a great addition to the MAP17 Velocity cohort and made a strong contribution to our group of fintech startups. During the Velocity program, it was great to see Roll-it develop their social impact value proposition and build out their sales pipeline. We’re looking forward to seeing what the future holds for Roll-it Super!" Lisian Teh, MAP Development Manager.
Applications are now open for MAP18. If you have a high potential start-up we highly recommend you apply!
Not all super funds are equal
Selecting a super fund is like marriage
You want to partner with a super fund that is a proven performer and has your interests at heart over the long term. You'll sleep easier at night, despite the occasional short-term ups and downs.
If your super fund is consistently inconsistent, or has a long history of under-performance they are probably a loser and you'll only be staying in the hope that one day they will change... was that too harsh? Well superannuation is important - read on folks!
Rainmaker Information is the market leader in financial services research and analytics. Our integration with Rainmaker is now complete and we're able to provide unbiased, independent information on super funds, their products and investment options.
We're initially testing the comparison and switching service using a sample of 3 industry funds - Australian Super, Care Super, HESTA, and 3 retail super funds - AMP, MLC and Suncorp.
Below is a glimpse at the insights that will be soon be available to everyday Australians.
The information below is a snapshot of historic net returns over 3 years for 11 balanced investment options. It is not financial advice, nor is it a comprehensive comparison of the entire market, or consider your personal financial situation and insurance needs - so don't go making decisions about your super unless you do more research first.
Super fund comparison
Our snapshot comparison looks at net return for balanced investments over 3 years. Here is a simple explanation of what that means.
A net return is what is left in your pocket after the super fund takes out their fees.
We use a net compounding return as our key comparison metric as it considers investment performance, fees and the impact of earning interest on your interest each year.
A percentage return is not meaningful for everyone. Some of us make more sense of returns when we see how much our savings would have increased had we invested in the product. For this reason we include a view that tracks your return on a $50,000 investment.
This example compares balanced investment options. Other options we track include growth, conservative, indexed and ethical investments.
Balanced investments typically invest 50%-75% of your super in growth assets such as shares and property. These investments have better medium to long term returns than keeping your money in the bank, however you may have a negative return 4 years in every 20, which make them low to medium risk investments.
3 year period
The tables below compares a 3 year return period.
Super is a long term investment, so chasing last months or even last years best return is not generally a 'super' great strategy.
3 years is probably the shortest period you might consider when comparing super funds. You should also look at 5, 7 and 10 year returns to get a full picture of a fund's historic performance.
3 year net return per annum
Net return for a $50,000 investment over 3 years
Yes it is. Your choice of super fund and investment option matters.
Let's assume you have the average Australian super balance of $120,000 and invested it 3 years ago.
As a HESTA Eco Pool member your super would have grown by almost $40,000, while if you were an AMP Super Easy Moderately Conservative member it would have grown by just by over $18,000 for a comparable investment risk.
Your choice of super fund might of cost you $21,000 in lost savings in only 3 years.
Past performance is not a predictor of future performance, hindsight is 20:20, there are two types of forecasts ... lucky or wrong.
True, you can't pick tomorrow's best performing fund based on yesterday's performance. But you can take comfort that you are invested in a quality super fund if they have a history of performance over a number of years, when markets are good and bad.
Taking a closer look at the HESTA Personal Super ECO Pool below, they rank first over 3, 5, 7 and 10 years. As a member you would sleep easy at night knowing they have proven that they can manage their member's super money over the long term.
HESTA Eco Pool
Well done in getting to the end of this newsletter. Super is hard to love, but it is one of the most important financial decisions of our lives and deserves our attention.
Roll-it Super will make it possible for every Australian to take action and feel confident they have their super savings in the right place.
If you have any feedback drop me an email or give me a call.
M: 0451 308 170
P.S. Check out the next edition to access our first research report "The erosion of Australian retirement incomes" and find out about our absolutely massive Employee Rewards program.