Not All Industry Super Funds Are Super!

Don’t be fooled by the Industry Fund sales and marketing machine into believing that all Industry Super funds are created equally.  They most certainly are not!

 

It is a very big job to analyse them all and we have not done that but we have looked at a number of them for the most expensive ones we could find in both super and pension.

 

We have decided not to name the most expensive industry super and industry pension accounts we found, but you can be assured they are very expensive by our standards.

 

For a “Balanced” fund with $50,000 invested as per their published PDS’s, from a total cost perspective the most expensive industry account we found for either super or pension was $1,115 p.a. (2.23% p.a.) which seems very expensive to us!!  The Industry Super funds might boast about admin fees of around $1.50 per week but their admin fees for pension accounts can be much higher and when combined with the underlying investment fees for some Industry Funds, the total costs can be very high indeed.

 

HOT TIP:  As the heading suggests, don’t be fooled by industry fund sales and marketing into thinking that all Industry Funds are created equally.  The need for honest and practical financial advice has never been greater, so if you are over 50, contact The Financial Advice Shop without delay to see if we can assist with a cost effective Financial Advice Health Check to ensure you better understand all of your future superannuation contribution and investment options.

 

ABOUT THE FINANCIAL ADVICE SHOP:  We are a leading, independent and experienced provider of strategic financial planning solutions for the over 50’s with a specific focus on cost effective investment options.

 

www.financialadviceshop.com.au

 

Disclaimer:  information current at time of publication but is subject to change without notice so accuracy is not guaranteed.

#industrysuper #industrysuperfund #industrysuperfundfees #superannuationfees

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It’s A Question Everyone Should Be Able To Answer But Sadly Most People Can’t Until It’s Too Late?

It is very common to get a blank look when a new client is asked how much they feel they will need in retirement. The reality is that the later people start thinking about this question, the more disappointing the outcome is likely to be.

While it may seem like a complex question, there are plenty of tools available to assist with planning but make sure you use them wisely and conservatively. A variety of calculators are available from the Australian Securities and Investments Commission (ASIC) via the following link:

https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps

When thinking about income needs in retirement there are a number of ways to approach it. One approach is to look at your current net pay and then take out expenses that will not exist when you are retired, but make sure you plan to own your home outright at retirement.

Once you have settled on an income figure for your retirement, you then need to think about a retirement date, your life expectancy (with an appropriate margin of error included as you may live longer than you think) and how much the lump sum goal needs to be to achieve your retirement income goal. The suite of calculators above from ASIC will assist with this projection.

From there it is a reasonable straight forward exercise to determine how much you need to save per month, from now until retirement, based on a reasonable level of investment risk and earnings (net of fees and a margin of error). Investment fees should be given special consideration as high fees can be very detrimental to retirement goals and the calculators above will assist with this projection also.

Hot Tip: The sooner you take a proactive approach to your retirement affairs, the more likely you will be to make your retirement a success. Don’t make the mistake in believing your employer superannuation contributions of 9.5% will ensure you a comfortable retirement as it most likely will not.

We do not agree to help everyone but if you feel you need a second opinion on your superannuation and financial position, contact The Financial Advice Shop to see if we can add value.

www.financialadviceshop.com.au

#financialadvice #retirementplanning #superannuation #financialadvicecanberra #retirementplanningcanberra #financialplanningcanberra #financialplannercanberra #superannuationadvicecanberra #financialadvisercanberra

Why Trying To Time The Share Market Can Be A Really Dumb Idea!!

Investing and financial advice is often about making sensible and informed decisions, and for most people it should not be about major speculation.

In recent months I have been amazed at the number of new client discussions I have had where their investments have been in cash. In some cases they have been invested in cash since the Global Financial Crisis when they sold out in a panic, and in other cases it has been for the last year or two because they were concerned share markets were about to correct.  In all cases they have missed out on a substantial return on their investments because they have taken an extreme position without advice.

I am certainly not saying that 2018 is not without significant share market risks but there is a lot of value to be gained through seeking assistance before you make decisions.  Once you have made an extreme investment decision and got it wrong, it is much harder to then decide what to do next.

It is very normal to be concerned or excited about investments from time to time and at those times there is always a question about how to manage the situation. Think carefully before you commit to a high risk binary solution: all in or all out.  It is often far better to modestly adjust the cash levels in your investments over time in consultation with your adviser, to sensibly manage the situation and to give you more options down the track.

If you are foolish enough to be in a set and forget investment and have accepted the default position on your level of risk, you may have made a poor choice. Your investment portfolio manager is certainly not going to consider your individual needs or concerns as they invest on behalf of thousands of other investors with a ten or twenty year investment horizon.  If you want a tailored outcome you need to be proactive and initiate sensible changes to your portfolio that are right for you.

At the end of the day, share markets are more a measure of fear and greed. When investors are fearful share markets tend to fall and when investors are greedy share markets tend to rise.  Unfortunately for many investors they tend to follow the herd and make decisions at the extremes in the investment cycle, and the outcome is not always ideal.

Hot Tip: Everyone’s financial situation is different so now might be a good time for you and your Financial Adviser to review and understand the risks you are taking with your investments.  In periods of share market volatility and uncertainty, nervousness can result in wealth passing from weak hands to strong hands so make sure you have a plan for how you will respond to a share market correction as it will come eventually.

We do not agree to help everyone but if you feel you need a second opinion on your superannuation and financial position, contact The Financial Advice Shop to see if we can add value.

www.financialadviceshop.com.au

#financialadvice #retirementplanning #superannuation #financialadvicecanberra #retirementplanningcanberra #financialplanningcanberra #financialplannercanberra #superannuationadvicecanberra #financialadvisercanberra

How Confident Are You That 2018 Will Be A Good Year For Your Superannuation?

Click on the link below to read a share market article from IPAC that attempts to look into the crystal ball for 2018.

Hot Tip: The investment world is not without significant risks at the moment so now might be a good time for you and your Financial Adviser to review and understand the risks you are taking with your superannuation.  In periods of share market volatility and uncertainty, nervousness can result in wealth passing from weak hands to strong hands so make sure you have a plan for a share market correction as it will come eventually.

If you feel you need a second opinion on your current superannuation arrangements, contact The Financial Advice Shop!

http://www.ampcapital.com.au/article-detail?alias=/site-assets/articles/insights-papers/2018/2018-01/equity-returns-keep-rolling

www.financialadviceshop.com.au

#financialadvice #retirementplanning #superannuation #financialadvicecanberra #retirementplanningcanberra #financialplanningcanberra #financialplannercanberra #superannuationadvicecanberra #financialadvisercanberra

Not All Industry Super Funds Are Super!

Don’t be fooled by sales and marketing into believing all industry super funds are created equally. They most certainly are not!

It is a very big job to analyse them all and we have not done that but we have looked at a number of them for the most expensive ones we could find in both super and pension.

We have decided not to name the most expensive industry super and industry pension accounts we found, but you can be assured they are very expensive by our standards.

For a “Balanced” fund with $50,000 invested, the most expensive industry fund account we found for either super or pension was $1,115 p.a. (2.23% p.a.) which seems very expensive to us!

HOT TIP: Don’t be fooled by industry fund sales and marketing. The need for honest and practical financial advice has never been greater, so contact The Financial Advice Shop without delay to see if we can assist with a cost effective Financial Advice Health Check to ensure you better understand all of your future superannuation contribution and investment options.

www.financialadviceshop.com.au

Disclaimer: information current at time of publication but is subject to change without notice so accuracy is not guaranteed.

#industrysuper #industrysuperfundfees

Are You Being Ripped Off With High Superannuation And Investment Fees?

There has never been a better time to review your superannuation investments and consider options to reduce costs. If you do not take action, you can be 100% sure that no one else will and you should not feel secure simply because you are using an industry super fund.  You should also not underestimate the negative effect high fees could have on your financial security.

In recent years, superannuation and investment costs have been steadily falling but unfortunately those costs are often not passed on to investors and often increase when members retire. There are a variety of reasons why so many investors are not benefiting from lower superannuation and investment costs, some of which relate to conflicted financial adviser remuneration and commissions that are paid from inflated fees.  If you have been invested in a financial superannuation or investment product for a number of years, it is time for a review!

None of the superannuation or investment recommendations from The Financial Advice Shop have hidden fees or commissions so you can be confident they are extremely cost effective and represent excellent value for money. Our superannuation and investment offering is very unique and it is a fact that we regularly save many new clients thousands, and in some cases tens of thousands, of dollars in ongoing fees every year.

While you are thinking about fees, make sure you also think about your strategy and the risk in your investments! We know from experience that it is extremely rare that improvements and refinements to existing strategies will not yield improved results.

HOT TIP: The need for honest and practical financial advice has never been greater, so contact The Financial Advice Shop without delay to see if we can assist with a cost effective Financial Advice Health Check to ensure you understand all of your fees and future superannuation investment options.

www.financialadviceshop.com.au

#superannuationfees #superannuation #financialadvicecanberra #superannuationcosts #financialplannercanberra #financialplanningcanberra #retirementplanningcanberra

To Reduce Fees On Your Superannuation And Improve Your Financial Situation It Is Never Too Late To Seek A Second Opinion!

It is a fact that over the last 5 years investment costs in superannuation have reduced considerably but for many investors those fee savings have not been passed on.  In some instances, the larger financial planning businesses have been moving clients into in-house superannuation products to protect their commissions and profits, and as a result fee savings are not passed on to investors.

In what has been an impulsive rush to Industry Funds, it should not be forgotten that all Industry Funds are not created equally and many very competitive retail options are now available.  If you investigate this issue thoroughly you will find that Industry Fund fees vary very significantly and it is surprising to many that the cost of pension accounts can be significantly higher than superannuation accounts.

It is also a fact that superannuation legislation has changed significantly over the last 5 years and many of the strategies of the past are not the right strategies for the future.

The best way to tackle these issues is to seek a second opinion from someone who has the knowledge and experience to understand all of the issues and guide you through them.  As part of that discussion you may well be provided with an insight into some financial planning strategies that could make a real difference and improve your financial situation.

With all of this complexity, isn’t it great to know that The Financial Advice Shop has expertise available to help you make sense of all this and can provide assistance where required.  If you, or someone you know, might benefit from a Financial Advice Health Check or a second opinion on your current superannuation and financial planning strategy, contact us without delay.

www.financialadviceshop.com.au

#financialadvice #retirementplanning #superannuation #financialadvicecanberra #retirementplanningcanberra #financialplanningcanberra #financialplannercanberra #superannuationadvicecanberra #financialadvisercanberra