salvadordillon

Super funds

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    Hi

     

    It really depends on how you want your Super to run and the sort of balance that you have.

     

    If it is just for starting out with and for your employer to pay in to, do they not have a default scheme that they can offer you?

     

    Otherwise take a look at this website Chant West it is a pretty good Super comparison site and should give you a good idea of some of the top funds.

     

    If you are looking to invest a larger sum of money then perhaps you should consider taking advice on what will fit with your individual goals and objectives and investment strategy.

     

     

    Regards

     

     

    Andy

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    Guest Chelseadownunder

    They all say they are the best. Many different options are available and one to one advice could help. Is there an adviser available for your employers default super? Usually your employers super is a good place to start as there may be special terms due to the size of your employers fund. Some Supers cannot accept UK Transfers.

    If you would like a chat give me a call.

    Steve

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    Guest fredhargreaves

    I would not be influenced by performance comparisons such as Chant West. Performance over any finite period is generally related to risk, so high performers on one period can come unstuck later on.

     

    Most super funds actually invest through wholesale funds run by the big financial institutions.

     

    The biggest issue for individuals is fees. In Australia there are mutual super funds (i.e. they do not have shateholder owners looking to maximise their own profits) called Industry Funds. These have much lower fees than the others.

     

    Historically the Financial Advice Industry in Australia has been run using a swindle called "trailing commissions". You get free advice from an adviser (great guy) who tells you to buy product X, just sign here, so you do. As time goes on you notice that the fees are rather high - guess what - most of them are going right into his pocket. so you think 'maybe I'll switch out of this product" - guess what - there are huge exit fees - also going largely into his pocket.

     

    Under pressure form goverment these crooks have now gone honest - well they call it honest - they have fine print explaining their tricks, which you probably won't read. They also market on the basis of more choice etc which is (here's a great Australian word for you) a Furphy - in other words

    it's still (here's another one) a rort.

     

    So in short:

     

    1: Never buy a product on the basis of Free Financial Advice.

    2: Never even if you paid a bit for it.

    3: Pay for advice - then go shopping somewhere else.

    4: Favour Industry Funds generally.

    5: Fees is the big catch - over time they can drain the fun out of any product. Especially check for exit fees.

    6: Don't be fooled by performance ratings over the short term.

    7: A financial adviser (even an honest one) will never tell you to buy e.g. a rental property - it's just not part of their culture.

    8: After taking income tax into account very few investments pay as well as putting the same money into your house mortgage account.

     

    HTH

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    Guest Chelseadownunder

    Financial Advice in Australia is heavily regulated. Nothing is put in force that was an advised sale without a statement of advice. I had to retake all of my examinations again when I came to Australia and now I am taking advanced exams to enable me to give the best advice I can. I had allready taken advanced exams in the UK. I am not saying this to say "How good am I" I am saying this to show that you cant just go out and advise people here.

    For some clients industry funds are the best for their personal circumstances, for some self managed and others Insurance funds. Talking to an adviser you trust, you feel comfortable with can help. You may be the kind of person who takes their own advice, if that works for you, thats fine.

    There is a never ending list of people I see that need advice and value the relationship between the adviser and themselves. I find the above comment very insulting it is hard not to react to it. If you only knew the hours we put into self education and exgratia work. I have seen loads of people off of this site who I spent time with trying to help and many I have not charged anything for my time. All my fees are disclosed upfrount if I have to do any work.

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    Guest fredhargreaves

    Don't take it from me.

     

    Check this.

     

    Financial advice: Government bans new adviser commissions from 2012 | Super basics

     

    Regulation in this country is a joke in almost every sphere. The regulators always get too cosy with the industry.

     

    I stand by all the enumerated points above. Newcomers to this country need to be aware of these issues. As stated in the linked article billions of savers' funds have disappeared from their accounts over the years, which they never realised they were up for. The new laws don't come in until 2012. Until then buyer beware.

     

    BTW I have written elsewhere that for UK pension transfer advice people definitely need an adviser specialising in that field.

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    Guest Chelseadownunder

    Do you remember Equitable Life, they use to use similar wording in their adverts. They use to slate financial advisers. What happened to them and their clients. Or maybe Virgin Equity ISAs, sold as low fees....but the performance was wowfull for many years. Yes Equitable was cheep low fees and so was Virgin but that cannot be the deciding factor theres more to it. Self Managed super funds are getting more and more popular here, They can be expensive to run but it gives that client much more scope for investment inside their super including property. Industry funds are cheep and they suit many clients but look at their investment choice 5,6,8 funds maybe. 1 Equity 1 Managed Fund etc

    Everybody is different with different needs. To say everybody should have vanilla would be wrong.

    We have adopted the government recomendations a whole year early. We have the zero commision product now and advice fees are clearly stated to every client. Every client can have the low fee option on a par with industry funds or they can get more choice with a wider range of funds.

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    Guest fredhargreaves

    "We have the zero commision product now.." - gives it all away really.

     

    Equitable Life had nothing to do with low fees and everything to do with lax regulation.

     

    Personally I have more faith in operators who have been straight all along than with those who when caught say "It's OK, we're gonna be honest from now on.", especially when regulation has been and probably will continue to be so lax.

     

    The scam that has gone on on the past is almost beyond belief and I heard on the radio recently that many of the big operators are using dodges such as "soft comissions" to get round the new regulations. We're not talking about the odd fly-by-night in all this. We're talking about some of the biggest names in finance.

     

    The stuff about tailoring investment choice to individual needs is rubbish and one of the lies the industry builds on. Most ordinary working people can be easily classified into one of a handful of categories.

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    Guest Chelseadownunder

    At the end of the day. In Australia there are qualified financial advisers here who can give advice according to the law, they are backed by millions of dollars of indenity insurance if they were to miss advise someone. Its pretty obvious you have neither. If anything you write was to be interpreted as advice well...... good luck buddy. I havent got time for this. Good luck. I wish you the very best.

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