I've been meaning to switch my super for sometime from it's current indexed home at Plum-NAB (The Golden Egg). It was originally a vanguard fund, then through some black magic vanguard retreated from it and its now re-emerged as an MLC managed fund (ugh). Still charging 0.37% for now.
Anyway, the fund du jour amongst many Australian mustachians seems to be SunSuper, chiefly due to its 0.09% fee for the Australian index option, and the International unhedged option, as well as the ability of allocate assets as per your own allocation. I briefly considered Host Plus for their ridiculously low 0.04% balanced option but I prefer the flexibility of SunSuper's DIY asset allocation.
So now I'm not sure how much to allocation to each pile. I've drunk the kool-aid on how shares outperforming everything in the long run, but there are some persuasive arguments to suggest that there should be some allocation to fixed interest/bonds which smooths out volatility and ultimately equals a 100% equity position, or even betters a 100% equity position.
And then there's Australia (3% of world economy, concentrated in banks and holes in the ground) v Rest of World (97%). How much to sink into this crazy resources/financial sector/residential property obsessed content, or how much to stash away elsewhere if the good times end.
Any suggestions on allocations? And reasons why? I've prepared a few straw examples we can toss around.
1) Aus Shares 50% / International shares 50%
2) Aus Shares 40% / International shares 40% / Fixed interest 20%
3) Aus Shares 30% / International shares 60% / Fixed interest 10%
4) Aus shares 20% / International shares 80%
My life circumstances is that I'm 40. Do not own my own house. 4% withdrawal rate is telling me I can pull out $30k per annum at the moment. Currently living on around $23k per annum. Would probably want more passive income. And want to live on more. But also focused on trying to get to FI.
So will have the super for another 20 years without touching it. Of course, by that stage, the robots may have vanquished us.
https://www.youtube.com/watch?v=zkv-_LqTeQA Thanks in advance for your suggestions, thoughts!