I agree with Lindso47, I am suprised at how -ve people are to super.
I am actively managing my daughter's super. She turns 22 in May and has $21,500. This is a result of getting the super co-contribution, getting good returns, and market timing with regards to share market exposure. I had her super in high levels of cash between June 2007 and late March 2009. It is invested in managed funds and some direct shares and is an aggressive approach.
She has had no interest in it till recently, when I have told her the balance.
To me, super is an effective tax arbitrage when one is on a marginal tax rate of 30% or higher. Once one has built up the base, super will take on a life of its own. ie with small super balances the contributions are more important, with larger super balances the investment returns are more important.
Super becomes tax free in pension mode.
My approach with my daughter will ensure that by the time she is 30, she will have more in super than a large % of the population. Her contributions to super will not be as important then and managing it (rather than contributing to it) will set her up for life (after 65).
My main message to her has been to stop wasting all her money while she is young (save a little extra via super). She has worked full time since leaving school and rents with friends and has supported herself since age 17 1/2. She owes money via a small loan and has no savings (rent is a killer for her) BUT she has $21,500 in super.
