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Have you compared the two?
Yes we are continually interrupted with an advt.
asking us this question.
So we decided to do some
HW by venturing to such an industry fund who somehow can afford the large sums [a
contemporary recently suggested $18m] for
TV advertising.
We didn’t find it on the
first page of the website although they do have a calculator on their site
suggesting you use it.
However we just wanted
the answers & it will be in the PDS.
You have to search hard to
find the PDS & then under fees you find the answer.
It is not that simple
because they never are.
We have copied their fees
page from their PDS.
An example of annual fees
Here’s an
example of how the fees and costs in the Balanced option for this product can
affect your superannuation investment over a one-year period. You should use
this table to compare this product with other superannuation products.
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Example - the Balanced Investment
Option
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Balance of $50,000 with total contributions of
$5,000 during the year
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Contributions
fees
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Nil
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For
every $5,000 you put in, you will be charged $0.
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Plus:
Management costs
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0.65% plus $78 ($1.50 per week)
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And for
every $50,000 you have in the fund you'll be charged $325 each year, plus $78 in administration fees regardless
of your balance.
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Equals:
Cost of fund
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If you
put in $5,000 during a year and your balance was $50,000, then for that year
you'll be charged fees of $403.
What it
costs will depend on the investment option you choose and the fees you negotiate
with your fund or financial adviser.
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Account management costs Amount Administration fee $1.50 per week
Adviser
service fee
This is deducted after you authorise payment to an eligible adviser for the
advice you receive about your investment.
This
fee is automatically set at zero but can be negotiated between you and your
adviser up to the following limits:
Initial advice: $4,659.10
Once-off advice: $2,329.55
Member
Benefit Protection (MBP) for 2009/10 # 0.05% pa
Additional service fee Amount
Binding nomination fee
This is the annual fee charged if you decide to make a Binding Death Benefit
Nomination. $10 per year.
This article suggests
a very good reason why you do so.
Hence we
conclude that their administration fees which is what they are wanting us to
compare to are not as cheap as they suggest.
I.e. it
is [0.65% & .05% = 0.70%] + $78p.a. + $10 = 0.70% +$88
Are we
sure that it is their hands they are holding?
We
suggest that for you we can generally do this cheaper.
It is implied that
theirs is better than others but closer examination suggests that may not be
so.
We heard
25 years ago that about from the weather the world’s most boring question is
‘what is the cost’?
And certainly cost is a factor &
we have answered this for you.
There is No debate that the biggest cost is the government 15% taxx
grab within the fund.
Why doesn’t government reduce
that?
They have made a start by refund
contributions taxx next year but why not this financial year. A $ is worth less
next year.
Why did the Liberals disagree
with this excellent labour idea?
Apart from cost the three other issues within your super are
·
the returns & many funds on a platform will
beat their fund returns.
·
when is the contributions taxx paid as the ATO shouldn’t
get it a day before necessary.
·
the insurance definitions are a minefield &
need close examination in many cases. You get what you pay for.
E.g. are
you covered if your employer doesn’t pay or if you leave that employer. And
what about the trustees
& beneficiaries?
We read today 5th July 2011 that
‘Serious
concerns about longevity risk are being expressed by
Australians over 50’.
The majority of
Australians approaching retirement have grave
fears they will outlive their savings, a new industry survey has shown.
The second MetLife International
Employee Benefits Trends Study revealed
52 per cent of respondents over the age of 51 were extremely worried they would
outspend their savings.
However, according to MetLife, only 40 per cent of individuals were actually
taking action to boost their retirement savings while they were still working.
Currently, the average superannuation asset balance for people over 50 was
$52,500, the research showed.
To compound this current lack of savings, the research found 25 per cent of
participants were unable to plan for the future and were continuing to live
from pay packet to pay packet. Furthermore,
most people had some form of debt to service as well.
The survey did uncover a desire to take some action, starting with education,
with a large number of employees calling for methods to improve their ability to plan their financial
future.
Employers are also concerned about the generation on the verge of
retirement and the impact it will have on the workforce. Reflective of this
sentiment was the fact 90 per cent of respondents named employee retention as
their first and foremost priority.
"Australians look to their chosen superannuation fund and their employers
when they consider their personal insurance and financial protection needs.
With both the economy and the labour market heating up, there is a real
opportunity to explore innovation in benefits packages, including flexible
retirement solutions,"
The survey was conducted between
November 2010 and February 2011 by GFK Custom Research on behalf of MetLife,
with the opinions of 258 people sought
We could conclude that you need advice today.
We will certainly suggest that our
advice fee will be a fraction of theirs because we don’t have the ego or the
advertising or the overheads that they do.
And we have been helping & advising for 27 years which beats almost
all.
Here to help you 24/6 if you wish
Welcome to call on 07 3848 1088
or email
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
or visit
our websites
www.wecoachwealth.com.au
John
McAuliffe
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