Anything and Everything about Superannuation

why would you even allow this plonker to reply with some pre-prepared spin? just change it yourself!

 

I'm am going to change it myself, just thought i'd see what his response was... (have been with them for 4yrs now)

 

Hi all

I understand that Superannuation is like shooting fish in a barrel for all governments. Consequently it is impossible to understand the playing field as it will change over time. Also, for younger investors the funds are tied up until access conditions are met.

On the other hand for many people it can actually protect themselves from themselves. For example some investor personalities will continually chop and change investments, sell at the wrong times and fail to invest at the right times. Perhaps Super does play a role for some investor types and its apparent limitations may, in fact, be protective mechanisms for some that do not have the discipline as most on this forum.

I try to look for balance in most things in life, for me, Super is one wheel on my investment vehicle and has protected me over the years from my own investing limitations.

Just a passing thought

Best to all

 

Hi all, my complaint from ING has been addressed with a letter arriving today saying
"sorry, our fees were unsustainable, we acknowledge your disappointment in the fee structure, but you will need to pay CGT, term deposit early closure fees, brokerage or new admin fees."

All I can say is I will tell at least 10 people about this, and hope they all do the same too.

 

How kind of them.

 

I too am dumping ING, disappointed after all the effort I put in to select a fund. Simple indexing from now on, might consider a SMSF one day in the distant future

 

@wombat777 -- a bit of progress in ING in terms of their fees. You and @ErYan 's perseverance has paid off.

 

Thanks for the tag. I'm going to persevere with ING until something better comes along. I prefer the increase range of ETFs and LICs available.

The Australian Super Facebook and Product Team were unresponsive to my queries :-( I was trying to encourage them to improve their offering. They just need to add LICs and an improved selection of ETFs. How hard can it be!

 

I thought about sticking with ING. The switching cost was only going to increase as capital tax liability increased with portfolio value.

There was some attraction to staying, future risk want worth it for me.

 

When they say 0.08% fees for Australian Shares - Index. Does that fee include management fees and compliance fees as well?

By that I mean if the Australian index returned 15% in a financial year can I safely expect index fund to return 14.92%? If that is true it is even cheaper than Vanguard who are supposed to be experts at running index funds.

Cheers,
Oracle.

 

The admin fee is 0.1% up to 800k. Total fee is 0.18%. You won't see the money come out but your logic is correct. It makes 15% and you get 14.82%.

 

It is very impressive that they can do it for almost same costs (0.18%) as Vanguard Wholesale (0.18%) and ETF (0.14%) and include your compliance/audit fees as well.

I looked on their website to try and find their investment performance for Australian shares for last couple of financial years to compare with Vanguards performance but couldn't find any details. Are you able to share link about their Australian share performance after fees?

Cheers,
Oracle.

 

What is happening to the franking credits? You should get above accumulation returns for an Australian index post tax in super.

I think Sun super is getting rid of active managed Australia and world and just having index, not sure if my memory is right here

 

That is a good point. It's these details which sometimes lacks transparency with Superfunds and doesn't give me a lot of confidence.

About 3-4 years ago I was doing research and was very keen on just buying plain vanilla index fund a.k.a VAS with dividend re-investment ticked but couldn't find any Superfund that would let me buy just one stock even though it is equivalent to an index fund option.

I finally decided this lack of flexibility and transparency with all the fees and long term performance track records (> 20 to 30 years) I should just open my own SMSF. Again on doing enough research found e-superfund to be very competitive with the year around promotions of free setup and free first year compliance. I thought this is a good enough deal for me to do what I want with my super money. Secondly, for a couple remember you are still only paying one set of fees between both of you in SMSF.

The other good part is they are fixed price. Currently at $799 per annum. Your fees as a percentage of portfolio keeps going down as your portfolio size increases.

To give example:
For portfolio the size of $250K = 0.32%
For portfolio the size of $500K = 0.16%
For portfolio the size of $1M = 0.08%

You get the idea.

I retain full control and can buy any stocks traded on ASX in whatever proportion I want or buy commercial or residential property and even invest overseas if I wanted to. I just buy VAS index fund with couple of LIC and that's how I wish to keep it. Simple.

I spend all of 10 min throughout the year and that's just verifying the tax return paperwork. I would highly recommend SMSF if your portfolio is >200K and you plan to aggressively build your super balance by maxing out the concessional contribution cap each year and would like to get full control over where your SMSF money gets invested.

Cheers,
Oracle.

 

I signed up with Esuperfund recently too and was blown away by how easy and efficient the whole signing up process was. Also, they had an offer recently for 2 years fee being waived off which I happily accepted. I think you need to sign up on their website to receive that offer. I don't need to pay any compliance fees until January 2019.

 

I am also using Esuperfund with 2 years fees waived and find their platform super easy.

 

You only spend 10 minutes of your time to do the SMSF paperwork? That's not bad. Are there additional costs above the 759? Aren't there compulsory government fees?

 

Yes that is correct there is a ATO Supervisory levy for all SMSF of $259 per year. I also have Corporate trustee so pay another $250 ASIC review fees.

So total is $799 + $259 + $250 = $1308

The 10 min. is mostly because investments very straight forward in my SMSF. With just 3 shares in it. One is VAS ETF and other two are older LICs in it. They all have dividend re-investment boxes ticked.

The e-superfund systems will sync with Commbank SMSF transaction account for all your concessional contributions details and Commsec brokerage account to retrieve all buy/sell and dividends details. So all the work is already done by them I just need to double check the details hence only 10 minutes.

Cheers,
Oracle.

 

Has anyone heard of Home - Spaceship
A friend of mine attended a seminar a few months ago and of course i was skeptical

 

"Spaceship will charge an annual indirect cost ratio fee of 1.6 per cent, or $878 per $50,000 balance."

https://www.google.com.au/amp/s/amp...h-risk-and-not-enough-returns-20170310-guvfrr