By Jason Fittler
Superannuation is, for most of us our biggest asset.
Here is why, first it is money which we can not access to until we retire. This prevents us from spending it. Second, these funds are generally invested over a very long time frame, which allows the investments to ride out the ups and downs in the market place.
Over the long term we can expect that you will receive a return of 8% pa. This means that every 10 years your investment will double.
It is the rules placed around superannuation which allows it to grow into our largest asset, however, it is these same rules which stop us accessing the super which also stop us caring about it. It is this apathy which the Industry funds prey on, sure they offer you low fees, but they do not offer you any service either.
Industry funds understand that you have little interest in your super so for very little effort that are able to extract huge amounts from the funds they have under their control, without anyone ever kicking up a stink.
You need to understand that this is your money, one day you will need this money to live on, if you have not made any effort to make this money work hard for you then you should not expect to live well in retirement.
Low fees do not equal a good result, I am yet to meet a successful business person who uses the cheapest accountant or lawyer they can find. If you go to hospital do you ask for the cheapest Doctor?
For those who want to live off more than an age pension you need to start looking at who is looking after you superannuation. Some effort now will produce great results.
If cost is a concern take a look at Self Managed Super Funds, they are cheaper than an Industry Fund and produce better results.
Good retirement or bad retirement, it is up to you.
PS. Call us at ABN AMRO Morgans Townsville, 07 4771 4577 we are always ready to listen, explain and help.