Super Funds

[BB gun]

There are a range of fees that funds can charge:

entry and exit fees;
administration fees - these cover fees for consultants, the fund's office and administration, insurance premiums etc.;
transfer fees - these are sometimes used if you change from one type of investment to another; and
early termination fees
Taxed on 15% of earnings.

Everyone must contribute to there super funds


What super annuation fund are you in?
Do you have lost super? it might be worth checking to see if you have any super which you don't know about, http://www.findmysuper.com.au/
What age will you consider contributing extra to you super fund?
When do you plan to retire?
Will you have enough to retire?

 

[1jasonoz]

There are a range of fees that funds can charge:

entry and exit fees;

Don't pay any;

administration fees - these cover fees for consultants, the fund's office and

i pay about $1 per week;

administration, insurance premiums etc.;

I get a $300,000 life a permanent/partial disabilty insurance for the above $1 per week.

transfer fees - these are sometimes used if you change from one type of investment to another; and

I don't pay any fees at all for transfering between my investments;

early termination fees

Don't pay these either, i can shut my account and transfer my money without any cost to me.

Taxed on 15% of earnings.

Government tax that all pay;

My Super;

www.srf.com.au

Do you have lost super? it might be worth checking to see if you have any super which you don't know about, http://www.findmysuper.com.au/

I might as well have lost my military superannuation, as i don't earn interest on the money for the next 26 years until i retire, and cannot roll it over into the fund of my choice, costing me 100's of thousands of lost retirement income in the future;

What age will you consider contributing extra to you super fund?

I have been since i was 23. For every $1 i put in, my employer pays $2. I have had 19% superannuation being paid for the past 11 years(the power of compound interest at work is great ).

When do you plan to retire?
Will you have enough to retire?

I plan to semi-retire from the workforce at 50, live of my dividend income from my shares until 60, when my superannuation will well and truely kick in. I will have a stack when i retire, will have to stop pay around 50, as i will hit my RBL.

 

[Qsaint]

Perpetual and CFS are doing alright in the non union/organisation super area. You can reduce fees by not going through a broker and either directly to the fund or through www.comsec.com.au

 

[Frodo]

Be careful when considering fees. There is a charge, maybe $1 a week, but the real fees are deducted from earnings. Eg your money may earn 8% but 2% is deducted for fees leaving 6% paid.
Years ago I found this out with a capital guaraneed policy that had a zero return. As it was a cash investment you may, as I did, this seemed impossible. But the zero was 'after' management fees were deducted.

Also watch out for your financial adviser. The often get a percentage of your earnings and a percentage of your earnings every year as long as you are in the fund.

 

[Micketts]

Also watch out for your financial adviser. The often get a percentage of your earnings and a percentage of your earnings every year as long as you are in the fund.

I believe financial planners always get the entry fee for managed fees. Thats how they get there money.

 

[Qsaint]

I believe financial planners always get the entry fee for managed fees. Thats how they get there money.

The can also get a trailer from the management fee

 

[Billy Hunt]

You could always try DIY Super

The Self managed superannuation market has been the fastest growing sector within the superannuation industry for the last few years, with significant growth in both new fund establishments and total funds under management (now in excess of $128 billion).

http://www.christinegriffin.biz/

 

[*Danni*]

Everyone must contribute to there super funds

??What??

Isn't it that every employer must contribute if you are are permanent employee and every employer must contribute if you are a casual employee that earns over x amount of dollars per month?

I thought Salary Sacrifice was an option, not compulsory. But that as an option it offered tax benefits as well.

And be careful of putting non-cash assets into a super-fund. I had an employer that was (wrongfully) advised to put a land package he had purchased into his superfund instead of his family trust. It meant he then couldn't develop the land without purchasing it back from the superfund for market value. Had he put it first up in the family trust he could have developed it with the development being in trust as well, instead he had to effectively pay for it twice so that he could build the warehouse on the piece of land next to our office.

 

[mantis]

My super just got a cash injection from the government no less, I am stoked, seems the inept idiots made a mistake & thought my bosses contributions were from me.

OH well, just let it sit there gathering interest, until if & when they realise they stuffed up, will make up for the money they are always ripping off of me.

 

[Frodo]

My super just got a cash injection from the government no less, I am stoked, seems the inept idiots made a mistake & thought my bosses contributions were from me.

OH well, just let it sit there gathering interest, until if & when they realise they stuffed up, will make up for the money they are always ripping off of me.

It's the fund that reports to the ATO and although they may have made a mistake it is more likely that your boss did. If he claimed you had paid up to $1000 in after tax super the government would match it. (150% this year).

But watch out. The ATO puts the onus on you and if caught in an audit they will reclaim money, charge very high interest on it AND may fine you

 

[mantis]

No, my boss has said nothing, he just hands me the company cheque to send off to my super fund, OH they don't charge interest or fine you, just make you give it back, my boss found out for me, in case they discover their stuff up one day.

 

[Frodo]

No, my boss has said nothing, he just hands me the company cheque to send off to my super fund, OH they don't charge interest or fine you, just make you give it back, my boss found out for me, in case they discover their stuff up one day.

Sandie, you have a problem situation. He can't do that without making a statement to your fund or it will be classified as a fringe benefit and subject to FBT. He will also legally owe you his company's compulsory Super. The funds have to be lodged correctly. If you are doing it wrong then it will be down to you and I guarantee that there is interest and fines to consider down the track, although if it is remedied in a reasonable time frame (say 3 months ) you will just have to pay it back.
I seriously recommend you phone your super fund and talk to them about it.

 

[mantis]

Sandie, you have a problem situation. He can't do that without making a statement to your fund or it will be classified as a fringe benefit and subject to FBT. He will also legally owe you his company's compulsory Super. The funds have to be lodged correctly. If you are doing it wrong then it will be down to you and I guarantee that there is interest and fines to consider down the track, although if it is remedied in a reasonable time frame (say 3 months ) you will just have to pay it back.
I seriously recommend you phone your super fund and talk to them about it.

No, he pays my super properly, sends the paperwork off to the ATO etc, just that I mail my super cheque to my superfund, so he is not doing anything wrong, either ATO or my superfund stuffed up, thinking it's my money & not the companies, so it's all good.

 

[Frodo]

No, he pays my super properly, sends the paperwork off to the ATO etc, just that I mail my super cheque to my superfund, so he is not doing anything wrong, either ATO or my superfund stuffed up, thinking it's my money & not the companies, so it's all good.

Pearls of wisdom................

He doesn't send it to the ATO. He sends it to your super fund with each payment. I'll bet 99.99999% that neither the ATO or your super fund stuffed up.

 

[mantis]

Pearls of wisdom................

He doesn't send it to the ATO. He sends it to your super fund with each payment. I'll bet 99.99999% that neither the ATO or your super fund stuffed up.

Well you'd lose the bet, because it had to be one of them, my boss does everything correctly, he is a certified accountant, so makes sure he does everything by the book & considering he has been paying my super for 8 years now, just shows that someone has suddenly made a mistake.

Anyway, I am just going to sit back & watch the interest grow.

 

[Linda_Lovelace]

On the investment side for DIY's, have a look at listed investment companies (LIC)for domestic exposure and exhange traded funds via the ASX world link service (International), they are basically managed funds but the fees are generally a lot lower than managed funds (still need to check as some of the new ones charge more).

As an example the olderst LIC, AFI has made about 20% in the last 12 months and when I last checked had an MER of .15%. Century Australia is a new one that charges 1% plus performance fees but it is run by Morgan (ex head of Perpetual) and Perry (ex head of investment at Colonial).

ETF's pretty much let you get exposure to any index of sub index in the world, S&P, FTSE, etc. Bigger the index the lower the fee is a general rule, just go to http://www.asx.com.au/markets/ASXWorldLink_AM2.shtm for more information.