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Timothy H.
Timothy H.
Cremorne, NSW
3 Likes
0 Followers

Hi,
We have our own self managed superfund and now struggling with the all administration work. We want to roll into an industry fund and would like to ask about fees and hopefully pay less than 1%. Any recommendation, the funds is about $1.2M?

9 months ago

Responses

Hi There,

Yep do not go to AMP this is the word on the street they charge like a wounded bull. ....Look at the end of the day you really need to assess ALL the fees and charges including the ones that the fund manager takes BUT all associated fees and charges.

Also by utilising a program like class super you can get up to date info on your fund from your phone and all the paperwork can be automated including automated bank fees, automated shares information. Talk to your accountant. Another great software program is myprosperity

If you already have your SMSF you can get a planner to manage the funds for you as an alternative for rolling it all into an industry fund.

Check all fees and charges you may be surprised.

AJ

Comments

Thanks Andrew. Yes I have hear similar things about AMP

Hi Timothy,

Fairly common outcome unfortunately. Why did you go to an SMSF in the first place? Yes, there is a big admin burden with the SMSF but can also be great for some people.

I can't give you a recommendation on a replacement super fund without providing written advice (nor will anyone else on this forum) - for which I would need to charge you. Happy to provide that assistance if you would like.

Outside of that, Google is going to be your best friend here. Together with working closely with your accountant to ensure the fund it wound up correctly & you meet your requirements to the ATO.

All the best.
James

Comments

Thanks James. The SMSF has worked well for us but I'm finding the administration requirements too difficult at this time

Hi Timothy,

Most industry funds do offer accounts that charge less than 1%, you should also be aware that the are also retail funds that charge less than 1% while also being able to provide you access to more comprehensive investment managers, superior insurance definitions and extended features depending on your needs.

Different platforms allow access to different investment types such as Managed funds, direct shares, EFTs, term deposits and property investments.

As James mentioned above you won't get a specific recommendation on this forum from an Authorised person, however I have put together an article around this and what to look for when choosing a fund which can be found at: https://www.rpwealthmanagement.com.au/industry-fund-vs-retail-super-fund/

If you would like to discuss your options further and see what might be appropriate, please don't hesitate to contact me on the below details.

Thanks,

Ronald Pratap
Principal Financial Adviser
RP Wealth Management
Level 2, 351 Oran Park Drive, Oran Park 2570
T: 02 9188 1547 M: 0434 502 079
E: ronald.pratap@rpwealthmanagement.com.au
W: www.rpwealthmanagement.com.au

Comments

Thanks Ronald, very helpful

Hi Tim,

It is important to understand your needs going forward and whether an industry fund, retail super fund or a SMSF will be the best vehicle to meet those needs. From an ongoing cost point of view, it is important to understand what services you need and only pay for those services.

Happy to chat over the phone or in person.

Kind Regards,

Steve

Hi tim,

Industry funds ARE generally cheaper than retail funds.
Industry funds also outperform retail funds sometimes.....and sometimes they dont.

But if your focus is on fees, then I think you need to look at the performance of your own fund, and take into account the benefits you are getting......which you may not necessarily get from an industry/retail fund.

If you want to be in the drivers seat with your super, and you want your investment strategy to be tailored to you specifically, and you want to make sure that the guy buying and selling the shares is accountable DIRECTLY to you.....then an industry fund is not in your best interests.

I know that industry funds are actively advertising how great they are performing, and how they are soooo much better than SMSF, but if this were true, why is the SMSF sector growing SO rapidly???? (and bear in mind that the prime time ads being shown on telly are coming out of members' funds.......and none of them ticked a box to say "yes, please spend my retirement nest egg on advertising")

And on the subject of cost: if you cant get EVERYTHING sorted for less than $10,000 pa, give me a ring....which is less than the 1% you mentioned. I will be more than happy to put you in contact with any number of accounting and planning types who will dazzle you with service and expertise for a LOT less than what I suspect you might be paying at the moment.

Last word from me is this: dont get wrapped up in fees, look at your position after all the fees come out, consider the risks, get good advice and run the show yourself.

good luck
bc

Comments

Thank you Brendan, also very helpful

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