Spaceship is a newly launched superannuation fund that focuses on technology companies and investing in future thinking business ideas. Is it time to board the Spaceship?
Unlike conventional Superannuation funds that take a more conservative approach to where your money is invested (think cash, bonds and large cap Australian shares like BHP and the big banks), Spaceship Super is taking a different tactic and uses the motto “Invest where the world is going, not where it’s been”.
The media is giving Spaceship a lot of attention at the moment (for better or worse) with a plethora of Spaceship Superannuation reviews from millennial’s, baby boomers and any financial advisor that needs attention (“Hey! Look at me, I’m still relevant! I charge recurring fees for recommending a super fund to you!”).
While I won’t be giving you advice on whether or not to invest in Spaceship, I am taking the time to share my views on why businesses like this are imperative to changing the way we think about money (namely our retirement savings).
Now, it’s time to board this Spaceship and….
Quick overview of Spaceship Growth X
Growth X is the only option you get with Spaceship. It’s the name of its Superannuation fund that focuses on technology at it’s core (with a few run of the mill shares of major companies thrown in for good measure).
- Risk: Level 6 (level 1 is the most conservative, level 7 is the least conservative)
- Objective of fund: Beat the CPI by 2.5%
- Investment option: Growth X (no others as yet)
- Does Growth X offer insurance? Not as yet
- Expected risk profile and return: High
- Minimum amount of time to invest: 9 years
Some examples of where Spaceship Growth X invest:
Technology companies (less conservative):
- Alphabet (Google)
- Mastercard & Visa
- Baidu (Chinese company)
- ..and more
Other more mainstream companies (conservative) that Spaceship invest in:
- Westfarmers (Coles)
- …and more
What exactly is Spaceship Super and should I board this rocket ship?
It’s simply a Super fund that is making headlines due to its investment in technology focused companies. For years technology companies have been viewed as high risk. The future however is pretty much a new frontier for the digital world. Companies like Amazon stand to change the way we do grocery shopping, we spend hours a day on Facebook, we Google anything and everything we don’t understand.
Technology is a big part of our lives and it’s making a lot of people rich. Why not invest in these companies that have proven themselves to be essential to the modern world?
Henry Ford (who invented the first automobile) summed it up best when he stated that “If I asked the customer what they wanted, they would have said a faster horse!” – Superannuation has for too long been a boring, dull and un-sexy mandatory investment. Spaceship is different; in turn people are going to criticise it, analyze it, review it and poke fun at it.
So should you move your Superannuation to Spaceship? I wouldn’t be able to tell you. I’m not able to give you financial advice but don’t disregard them just because of an article or two you read.
What are the fees for Spaceship Superannuation?
Spaceship charge a management fee of 1.60% along with an additional fee of $78 per year. This is touted as quite high compared to Industry Super funds like Australian Super (I think they charge around 0.73% or so).
The game here is that with higher risk, comes higher reward, which could make higher fees not a problem. That’s essentially the view of many when it comes to reviewing Spaceship’s fees.
Is it risky to invest in Spaceship?
Absolutely. Then again, every investment is risky. It’s about doing your research and investing in such a way that you can sleep at night without fear.
Spaceship also hold a large portion of funds in cash and big cap Australian companies. It’s not all pure technology companies so it’s a little more diversified than the media will let on.
Remember, it’s important to seek financial advice and invest in things you believe in. The general rule of thumb is that the younger you are, the more risk you can afford to take when investing in Superannuation.
My final thoughts on Spaceship super?
I dig what they are doing; they’re backing some of the biggest and most expensive technology companies and I think I’m going to give them a go for a portion of my Super.
Finally someone is making a stand in the Super industry and making super sexy again.
REMEMBER! Seek professional finance advice when dealing with all things money. Don’t let a review, article, blog post or similar influence your decision.