If you have money in an Industry or Retail Super fund sit up and pay attention to the following.
If your Super is invested in a Self managed Super Fund you may rest easy as this will not affect you.
The Government is currently having a National inquiry in the $1.2 trillion superannuation industry to compel major super funds to provide annuity products so that they can invest in big infrastructure funds.
This is being promoted on the safety platform, the government is stating that by investing in infrastructure funds your money is safe by reducing your exposure to the volatility of the share market. This line is for suckers, the below chart shows the movements of four major infrastructure assets below. What is clear is that infrastructure assets are as volatile the share market.
1. Annuity Products – this is a nice way of saying that you will get back your own money dressed up as income. By doing this it appears that you are getting a good yield while in fact most of this is your own capital coming back to you. Do not expect any sort of growth.
2. The government is short of cash and is unable to fund necessary infrastructure spending. Perhaps the school building project, insulation bats and solar projects were simply just too short term to sustain real growth. As such they are now looking to spend you retirement nest egg to get the country moving again.
3. The government is betting that you do not care or understand how this will affect your super.
What is clear from this move is that the Government will stop at nothing to get re-elected and care little about increasing the long term wealth of the average Australian. This has been shown clearly with how they have treated Telstra after selling out of the stock.
What is clear is that the Average Australian needs to take control of their own Superannuation to make sure that the money is invested for your benefit. To do this you need to look at a Self Managed Super Fund. For more information on Self Managed Super Funds go to the below link.
For more information on this subject give us a call on 07 4771 4577.