Consolidating superannuation

[Constipated Duck]

Got a week off this week, so outside of watching the cricket have been poring over a crapload of paperwork. Looking to consolidate 7 or 8 super accounts into one... accounts ranging from $80 to $10,000.

My current account is one I'm happy with, so eventually looking to chuck it all in there.

What obstacles might I face in consolidating so many accounts? For a start it seems like a hell of a lot of paperwork even at the initial stage, and I dread sitting on the phone for hours getting it all done.

Can anyone share previous experiences of going through this?

 

[chooke]

Get the super fund (the one you're happy with) to do most of the work for you - most will if you provide them with the info from the funds you want to roll out from. The only trap to consolidation is that some retail funds charge entry/exit fees and these sometimes can be quite substantial. If this is the case, do your sums because more often than not, funds that charge these sorts of fees tend to charge hefty ongoing fees as well so you are still better off taking the hit and getting out.

 

[Constipated Duck]

Thanx chooke. Will have to get on the blower next week to find out about the exit fees, hopefully nothing too serious. :s

 

[Philzsay]

Have you considered starting a DIY Self Managed Superannuation Fund?

It depends on how comfortable you and how much money you have. Most accountants say you need around $100,000 as a minimum to make it worth while but Me and my wife have started ours when we had about $40k. (However my wife is an accountant so can do some of the auditing leg work to cut down accounting costs.)

Most set up costs are around $500 but we found a place which cost just $250 and there our accounting firms that will audit you funds relativly cheeply. Remember also all expenses is paid by your super money, not your own money.

The good thing is that you get to control you investments and we have found we have made quite significant returns (even after the accounting fees), more than what a manged fund would have.

Anyway you might not have enough money or feel comfortable about it yet but you should think about it for maybe the future.

 

[Tangodown]

Decided to consolidate all my funds. Some very small but still its my money..

I have 7 funds and I swear 5 are making it difficult to transfer out of... . Arguing over who's form I should fill in...

Eg:I want to keep Fund A..So I fill out a form provided and send it to 4 other funds to tranfer my funds into Fund A. 3 wrote back enclosing their form.

Surprisingly the only one that didnt try to baffle me with BS and was pleasant and understanding was the Government Super Fund... Sadly I cant roll into them as I no longer work for the Gov...

I just wish I could roll over all these funds online...

My whine for the day...

 

[Rog the Ramjet]

I also need to roll over my superannuation, but am not sure which fund is the best.

I have superannuation in Vision Super and UniSuper and some other one where i did casual work for AWB.

Does anyone know which Super funds are the best going around, and whether the two above are any good???

 

[Papa G]

Good luck trying to roll money out of industry funds. Most require 3 forms of ID which have to be certified by a Justice of the Peace. Then they'll probably lose your paperwork, won't accept copies and you'll have to get the original paperwork done all over again. Although as stated before, many of the older type retail funds do sometimes have hefty penalties for getting out, this practice stopped around 5-10 years ago. In fact you'll find that many of the industry funds charge exit fees. In my experience Host Plus and STA are the worst to deal with. Industry Funds do not properly disclose their fees either, so don't get sucked in by their low fee model. All profits go to members, yeah right, that's why you adverise much more than any retial fund and sponsor a rugby league side.

 

[Astro_]

Good luck trying to roll money out of industry funds. Most require 3 forms of ID which have to be certified by a Justice of the Peace. Then they'll probably lose your paperwork, won't accept copies and you'll have to get the original paperwork done all over again. Although as stated before, many of the older type retail funds do sometimes have hefty penalties for getting out, this practice stopped around 5-10 years ago. In fact you'll find that many of the industry funds charge exit fees. In my experience Host Plus and STA are the worst to deal with. Industry Funds do not properly disclose their fees either, so don't get sucked in by their low fee model. All profits go to members, yeah right, that's why you adverise much more than any retial fund and sponsor a rugby league side.

Also, industry funds like to reserve investment returns and place them in a cash account instead of passing them onto the member so they can "smooth" returns in years where they or the market has underperformed. They then charge a MER on the smoothing account which is not disclosed at all.

Fees may be lower, but you receive no investment advice, no formal review and their investment choices are very limited.

 

[rickster]

I also need to roll over my superannuation, but am not sure which fund is the best.

I have superannuation in Vision Super and UniSuper and some other one where i did casual work for AWB.

Does anyone know which Super funds are the best going around, and whether the two above are any good???

Hi Rog

I've found Unisuper to be good, have been with them for 5 + years, great website and successfully rolled in money from other funds.

Oh, and good returns.

 

[Aquamarinejewel]

I am with MTAA Super have never had a moments concern with them, very helpful and their website has all forms available to print out, which saves heaps of time. Rollover options process is simple. Can't say a bad word about their fund.

 

[i_hate_scams]

Just call them up and ask them what you are required to do. Make sure you get their name, when you spoken to them and write down what they tell you to do (in infront of the internet so you can download the exact form when they refer them to you, etc). Do as they say and if they still stuff you around just call APRA and report the matter. record your chain of events so that you can provide details to APRA if required.

I hate these superfunds, just like the banks, they charge you for everything and you must use them.

for selecting a fund, go to selectingsuper.com.au and knock yourself out!

 

[kolchak]

I've heard that if you have a super fund that only has a couple of hundred in it, you can close it off and be sent a cheque, instead of moving it to another fund...?

 

[Astro_]

I've heard that if you have a super fund that only has a couple of hundred in it, you can close it off and be sent a cheque, instead of moving it to another fund...?

Thats only if the funds went in prior to 1999 and you leave your employer. Anything contributed after that date or above that amount are preserved.