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Considering your superannuation fund options

My dad is always getting into me to switch my money from the super fund my boss put me in with a financial institution to an industry fund. I have seen the ads and I don’t trust TV ads or funds run by trade unions. Am I being silly?

Industry funds might have had origins in unions and related industries but they aren’t really run by unions. They have performed better than many financial institution funds and they are generally cheaper.

However, the financial institution funds are lowering their fees. I suggest you get to know your current fund. Find out its total fees and how it has performed over a three, five and 10-year basis. Then compare it to industry funds such as Australian Super, Sunsuper and REST Super.

Of course, history does not mean that in the future they will perform as well but it’s a point of comparison.

Some pay extra fees for peace of mind and I don’t argue with that, but over a long time if you are paying 0.5 to one per cent more than you should, it could cost you tens to hundreds of thousands of dollars depending on how long you put into super and what wages you will be on over the course of your working life.

For advice you can trust book a complimentary first appointment with Switzer Financial Services today.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

 

Published on: Monday, July 12, 2010

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