There was discussion elsewhere about 'super' being a con.
For those that think so, I have a few things to think about.
1. What should the govt. do when the population is aging? Traditional pensions, come out of current taxpayers taxes. If the number of people working drops, there are going to be less taxes to pay for more pensions (for longer as people live longer).
2. 'Super' is just 'investment money'. You get to pick a fund and how it is invested. You can even do it all yourself with a self managed super fund.
3. There are tax breaks for putting money into super. If you are going to regularly put some figure into investments for your retirement, what better way is there to do it? Please show calculations.
well they should have set it up like in the UK where they do get a pension and I know a bloke that lives here and gets a pommy pension and ours and why do we pay so much tax when they should be taxing those who can aford it..like from our minerals for an eg as we do have the richest woman in the world and can you tell my why, because they WON'T tax those that should be as it's easier to the stupid workers and make them believe that the gov is poor and can't aford it well why don't we get rid of gov and let the ADF take over as I think that's what abbot is trying to do with his "we need small gov" and don't get me started on how much our ex pollies cost us and they get their super as soon as they retire and walk into a nice well paying job from one of the big companies and also what about people like me wher I got well and truly F#$^ED as I should have been paid by insurance until retirement age so as thery just cut you off and you have no other choice but to go on DSP and it's really relly hard to get your money as even the local member couldn't find aany of my super so don't know where it is so I will now cost the tax payer over 1/2 mill roughly that should have been covered by insurance and I'm only one so how many others are there so really what is the point in insurance or even working if you get hurt ya screwed, it's not like the old days where you got a payout :( MY LIFE SUCKS..wish I'd have died on the table sometimes :cray:
Sorry for the language http://www.youtube.com/watch?v=UEaKX9YYHiQ
The govt keeps upping super guarantee. They could save doing this by making all public funds a guaranteed fund and banning fund managers charging any fees on funds if they do not return the deeming rate and by placing a fee cap on funds. They should also ban entry and exist fees. Most super funds don't make the deeming rate and the govt allows this to occur. I am sure most Australians would take bank account that pays the deeming rate that has the same withdrawal rules as super rather than a public fund if the option existed.
Yep, somethings gotta be done so that the peoples money goes to the people and not be used as some sort of slush fund :(
Systemic inefficiency (or corruption if you like) inevitable when any government takes money from the public and hands it back in another form. If the government was collecting the superannuation guarantee themselves and passing back as a pension they'd lose a lot of it in bureaucracy costs or because of lack of incentive to do anything productive with it. At least by moving that money into the private sector there's a degree of competition and reduction in costs. If you think fees are bad now when I first entered the super market in the early 1990's it wasn't unusual for the fund fees to amount to half of my contributions each year. These days they are MUCH MUCH less.
But most funds do not pay bank interest. This is where it wrong
Some years ago I took "voluntary" redundancy from a Government organisation and had to roll over my super. I was contributing 9% of salary -"catch up" for long standing members had recently been allowed.
Well, asked around and found a finance manager that had worked in the same industry previously.
First year with him my return was over 14% plus some tax credits. Previous two years my State Super return was between 1% and 2%. I asked previous workmates how theirs was going and that year their return had escalated to 2.2%.
Still with same partnership -new fund manager for me as previous retired recently- and happy.
Things to look out for;
•Commisions. My manager rebates any commissions he receives direct to my account.
•Trailing commissions. These are annual commissions paid to the financial adviser, every year, as long as you retain that investment! Money for nothing for the advisor and you pay for it. These are EVIL in my opinion and should be banned.
•Fees. I pay an agreed fee annually, based an the value of my superannuation. It is quite reasonable and, the more my asset value is the more my fund manager makes. That is a good incentive for him to improve my position. Also, the fee is on a sliding scale and rate reduces as my value increases.
•Investments. Where is your money placed? Is it in a good mix of various types of funds and investments? My advisor explains what he is doing and his mix of investments takes account of my opinion as to how risk averse I am.
•Service. My advisor visits me at home, twice a year, and explains all the details of my financial progress (or otherwise as a few years ago). I can call him anytime with a question. I can go to Sydney on a Friday and meet him, stay the weekend and claim most of the costs of that trip as a tax deduction.
•TRUST. You must have implicit trust in your advisor or fund. Do you get a different person every time you contact them? Do they never call back as promised? Are your quarterly statements (you do get them quarterly don't you?) clearly set out? If you have a question, does the explanation clarufy it or confuse it for you?
This is the rest of your life in someone else's hands -it is important.
I trusted my financial advisor and others to look after my super and for the past four/five years, I have been marking time and have been paying huge fees for these so in so's to loose my money and slight gains.. Now I have taken all my monies and bought a house.
No commissions to pay to anyone. My money is now mine and I can do as I like with it. No more keeping an eye on the stock market(s).
With rental income coming in all I have to worry about is the tax man once a year. With a rental property on hand, I hope to be writing all the rental income off. If not all, then most of it.
Quote from: 'Bigfellani5' pid='43742' dateline='1394692819'But most funds do not pay bank interest. This is where it wrong
that is true shane , but listen to them and they will tell ya that they are earning better then 6 % .. ,, kel ,,
Quote from: 'Bigfellani5' pid='43742' dateline='1394692819'But most funds do not pay bank interest. This is where it wrong
Put it in a fund that invests in fixed interest accounts and it will. And no doubt people will complain when the stock market is going gang-busters and they are still getting bank interest.
I was informed of that just recently. My FA advised/informed me that if I didn't want to gamble with my rollover, that he could put it in cash and get 4% for me.
What, 4%, I can get more than that by doing it on line with many other funds/banks etc. I was and still am doing that as I type.
15% contribution tax ... biggest con ever thank you ATO