TNR Wealth

Don’t change for the sake of change

For more information or to speak to one of our Financial Advisers please contact TNR Wealth Management on 02 6626 3000.

Don’t change for the sake of change

I can almost guarantee that I’ll get asked more often during summer if it’s a good idea to switch super funds.

The source of this unique research? Barbecues! It appears that one of the most popular topics during these summer social events is superannuation. Friends sharing their good or bad tales about the balances of their retirement funds seem to trump sports talk at the great Aussie outing these days.

So what do I say when a client asks me if they should change their super fund because their friend’s fund seems to be “doing much better” than theirs? It’s the same response I give when a client tells me their mate has “made a killing” out of investing in one asset, such as property, and they want to get in on the act. I ask them questions…

Switching super funds can be quite costly and as no two clients’ needs are exactly the same, there is no guarantee that a different fund would perform any better.

Let’s look at a few of the key questions to be answered before a switch should be considered:

  • Does the new fund provide investment options suitable to your circumstances?
  • What is the cost of transferring?
    • Are there exit fees from the current fund?
    • What are the entry fees into the new fund?
    • What are the ongoing fees of the new fund?
  • What has been the long-term performance compared to your current fund?
  • What retirement income options does the new fund provide?
  • Will it provide appropriate insurance cover at the right cost?
  • And after all is said and done, what benefits will you achieve from a change?

Once we’ve worked through these initial questions, we go more deeply and sometimes a change might be appropriate.

So the next time you’re at a barbie and the talk swings around to super, listen carefully to others’ experiences by all means, but it’s important to remember that your choice of super fund needs to be driven by what’s best for you.

Superannuation mirrors life, it’s constantly changing, so if it’s time for a review, give us a call.

For more information or to speak to one of our Financial Advisers please contact TNR Wealth Management on 02 6621 8544.

Disclaimer
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.