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Industry fund or bank?

I am close to retirement and I have been in an industry fund with my government job but I am thinking about switching to a fund run by one of the banks. It has done better than my fund recently and I was wondering what you think?

Be careful but still do your homework on both funds and possibly other funds before you move. Also when you switch you could leave behind a life insurance coverage, which might not come with the new fund, or the coverage might not be as good.

Look at the five-year and 10-year returns. Even though the past is not regarded as a strong signpost for the future, it at least could be thrown into the mix in making your decision.

Also look at the fees of both funds. If you’re thinking about switching on the advice of a financial adviser, ask to see all of the costs to you and all of the payments to the adviser. Some advisers can be affected by commission or other payments that might come their way when they sign up a new customer.

Industry fund fees are generally cheaper and many have a good performance record but others can be second-raters.

It’s good to question your super fund, but don’t get sucked in by sales hype.

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: Thursday, January 21, 2010

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