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Stay-at-home super

I currently have three superannuation funds that I want to roll into one. Is there any superannuation product available for stay-at-home mums? So far my super funds are being diminished by fees, which I know are unavoidable. After trying to research information myself, I am now more confused than when I started.

Super Seeker is a great way to find lost super, but I don’t think there are any products for stay-at-home mums. Let me help you through the super minefield.

Because you aren’t putting money into super, fees will eat into your capital, but your funds growth should have offset these in recent years. There is a big case for funding the cheapest yet best returning super fund out there. Industry funds fit the bill well here as they have topped the balanced fund tables for performance. They are also the cheapest and generally cheaper than funds run by financial institutions. I would use the website Super Ratings to do some research.

There are a range of good performers in the industry fund class. You could select a good fund after doing some homework and notify your other funds that you want the forms to transfer the funds – under the federal government’s super choice laws, they have to do it for you. Lumping them altogether is a smart way to go, but make sure you find a good performing fund with solid returns records for five years.

The so-called experts believe past performance says nothing about the future, but at least it’s a record of success. By the way, don’t be afraid to ask what all of the fees charged on your super fund are and also have a look at the insurance they provide.

Some funds – and it is often industry funds – that are the best for the insurance add-on in your super fund. Super is so important and we all should become experts on it, but most of us neglect it shockingly. Many people don’t know their balance and many don’t even know what fund they are in!

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: Wednesday, October 06, 2010

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