Changing your superannuation funds can be an important financial decision. Of course, if you have to change because you're changing jobs and your current fund is not available with your new employer, then that's just a fact of life. However, if you choose to change, make sure you keep all the important benefits of your current scheme. Here's a brief checklist of the most basic benefits. You will probably need to check other factors as well. Benefit Large professionally-run fund Your own SMSF fund Investment Look for a fund with a that's You must to make sure it can meet strategy and delivered reasonable returns to your retirement needs. returns members over the long term. It's wise to avoid risking all your Investments are diversified to retirement savings in one or a few spread the risk. (One or two years investments. You'll need to find of poor returns in every seven to and purchase suitable investments. ten years is regarded as normal.) Low fees Shop around. You face yearly running costs of at least $1,000 to $1,500 but you Industry funds often have the must also take into account the lowest fees, but you might want to additional cost of locating and pay more for extra features. Use managing suitable investments thefor help on fees. without the 'wholesale' purchasing power of the professionals. Suitable Some people may not realise they No special benefits or cover unless insurance even have insurance through their you arrange it, and this may be cover for death super. more expensive without the and total or 'wholesale' purchasing power of permanent Cover is often purchased for all the professionals. disability members at group rates. (You may need to check you have enough cover for your own needs.) Investment Strategy - SMSF Under superannuation laws, all trustees must draft and implement an investment strategy.
Changing your superannuation funds can be an important financial decision. Of course, if you have to change because you're changing jobs and your current fund is not available with your new employer, then that's just a fact of life. However, if you choose to change, make sure you keep all the important benefits of your current scheme. Here's a brief checklist of the most basic benefits. You will probably need to check other factors as well. Benefit Large professionally-run fund Your own SMSF fund Investment strategy and returns Look for a fund with a that's delivered reasonable returns to members over the long term. Investments are diversified to spread the risk. (One or two years of poor returns in every seven to ten years is regarded as normal.) You must to make sure it can meet your retirement needs. It's wise to avoid risking all your retirement savings in one or a few investments. You'll need to find and purchase suitable investments. Low fees Shop around. Industry funds often have the lowest fees, but you might want to pay more for extra features. Use thefor help on fees. You face yearly running costs of at least $1,000 to $1,500 but you must also take into account the additional cost of locating and managing suitable investments without the 'wholesale' purchasing power of the professionals. Suitable insurance cover for death and total or permanent disability Some people may not realise they even have insurance through their super. Cover is often purchased for all members at group rates. (You may need to check you have enough cover for your own needs.) No special benefits or cover unless you arrange it, and this may be more expensive without the 'wholesale' purchasing power of the professionals. Investment Strategy - SMSF Under superannuation laws, all trustees must draft and implement an investment strategy.
Superannuation%20Advanced%20Diploma%20Resource.docx