Finding a super fund that offers you good value and healthy returns is important for your financial future. However, your superannuation becomes even more important when you start planning for retirement.
The government offers tax incentives to help you add extra money to your super, but it’s important to choose the right super fund in the first place to make sure your additional contributions are working hard for you.
Why would you consider changing super funds?
- If you are concerned about your super fund’s performance and your investment returns
- If you are concerned about the fees associated with your super fund
- If you’re looking for an SMSF (self-managed super fund)
- If you are nearing retirement and need to boost your superannuation fund dramatically!
To help you out, we thought it would be useful to put together a brief article on what you need to think of when choosing a super fund. If this is something that you’re interested in learning more about, read on as we discuss six things you need to consider when choosing a super fund.
Performance of Your Super Fund
The current and past performance of your superannuation fund can make a big difference to your balance when you retire.
A fund that has a track record of strong and stable returns can help you make the most of your money and save more for retirement. It’s also essential to consider your investment options and how your money is invested within your super fund.
- Is your superannuation in a growth fund or a balanced fund?
- Is your superannuation invested ethically and sustainably?
Take note that the returns are not guaranteed and will vary but a financial adviser who offers personal advice can help you choose a super fund based on the investment option that is right for you.
Fees of Super Funds
Super funds charge administration and investment fees to cover the cost of managing your account and investing your money.
Some funds charge a set administration fee, while others charge a set percentage fee on your total account balance. Some funds will charge both, but usually, the percentage-based fee applies if you have at least $5000 in your super fund. Some funds will also have an asset-based fee which does not change depending on your account balance or the amount you invest.
Fees vary between super funds so it’s important to understand what fees you are paying and if they can be minimised because ultimately, costly fees will minimise your superannuation balance and your retirement savings.
Additionally, if you are interested in self managed super funds, the fees around this can be quite complex so it’s best to seek professional advice.
Insurance within Super Funds
Many superannuation funds offer insurance cover that you can pay for through your super fund. The types of insurance cover you can purchase through your include:
- Life cover
- Income protection insurance
- TPD (total and permanent disability) insurance
Both the insurance options and prices are something to consider when you choose a super fund. We can help you understand what insurance coverage is available, what it covers, and how much it costs.
Investment: Investing in Your Own Super Fund
When it comes to growing your super, you can choose from a range of different investment options and a personalised investment strategy can help you boost your super quickly.
Besides the employer contributions that are compulsory for you to receive from your workplace, you can also make extra super contributions (as an investment option) to grow the money in your super fund. There are also enormous tax benefits to making voluntary super contributions from your own savings.
However, there are contribution caps and processes you need to follow to ensure your super fund is following the rules and to ensure your investment options are the right ones for your goals.
Seek advice from a professional financial planner who can help you grow your superannuation tax-effectively and help you prepare for a stress-free, financially secure retirement.
Seek Personal Financial Advice to Pick the Right Super Fund
When it comes to helping you choose the best super fund for your specific financial situation, it’s important to compare super funds (including self managed super funds), investment options and future performance. While this may seem like a lot to take in all at once, this information should be enough to help you make the most informed decision possible. If you have more questions, it would be best to consult with a financial adviser to discuss how your superannuation fits into your investment strategy.
TNR Wealth Management always endeavours to provide the most personalised financial advice for every one of our clients.
We understand your super fund is an important part of your financial future and we can help you:
- Compare investment options
- Maximise investment returns from your super
- Choose a super fund that is right for you
- Feel confident that your super fund will deliver you your dream retirement!
Seek personal financial advice from Adam Wade and the team today – book your complimentary 15 minute chat!
Past performance is not a reliable indicator of future performance. The information and any advice in this publication does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it. This article may contain material provided directly by third parties and is given in good faith and has been derived from sources believed to be reliable but has not been independently verified. It is important that your personal circumstances are taken into account before making any financial decision and we recommend you seek detailed and specific advice from a suitably qualified adviser before acting on any information or advice in this publication. Any taxation position described in this publication is general and should only be used as a guide. It does not constitute tax advice and is based on current laws and our interpretation. You should consult a registered tax agent for specific tax advice on your circumstances.