Voluntary super investments at salary < highest tax bracket, in mid 20's.

I'm just going to echo a few of the others here. Take note, none of this is advice, only my opinion. Super laws are likely to change in our lifetime, the only way they will change will be to favour the tax department and against you accessing that money so that you access it later rather than sooner. That being said, any sacrifice now will benefit you when you're 65/70+ if you live that long. Maybe you could lower your sacrifice - some to super, some to an investment fund? It's possible to set it up so that money is automatically debited from your bank account every month into your investment funds.

It might be wise for you to research about setting up a Wholesale Investment Account where the funds are managed for you cost effectively - similar to a super account, only your tax will be higher, but with most investments you only pay tax when you sell that investment or receive dividends! Even then the tax rules aren't straight forward depending on the type of dividend etc so talk to your accountant about that. Funds are a good option, if a particular sector is going bad there's a bunch of professionals who have hopefully already traded out of that sector for you. Also it's much easier to trade internationally through a fund then through the share markets and far more cost effective.

Generally if one can diversify their investments then they do. Which is why funds are great. Normally they diversify for you, but you can further diversify by investing in multiple funds. I personally use Colonial First State FirstChoice Wholesale Investments as it allows me access to 120+ different funds to invest in and the only costs are the management costs associated with the fund. Also a bonus, if you have your super through them as well you can access your super and investments info through the one system - simplifies things. That being said, there are other options out there so shop around for what suits you best - there's still a bit of research to do if you're choosing between so many funds!

Given your situation where you're working full time in a different profession and am probably not monitoring the market full time it's best to seek some financial advise from an actual financial advisor, it may cost a bit of money now but set you up for a long time (ensure the investment company they set you up with has online access so you can monitor investments but also switch investments yourself without having to be charged excessively by having to go through a financial adviser each and every time).

In my opinion probably the best thing about investing in funds is that you can invest and actually forget about your investment as the fund managers are trading it for you.

/r/AusFinance Thread