If Super Fund A averages 11% and Super Fund B averages 10% over the next few years, it doesn't sound like much of a difference. However, this is a 10% greater return, and can translate into Person A having $500,000 at retirement rather than Person B’s $450,000.
Some funds have returned 25% and even 40% over the last year, without much risk. They were buying shares in well-known companies such as Woolworths, AXA, Coles Myer & Soul Pattinson.
How did your super fund go by comparison?
Far from being stuck for choice, you can choose to invest in any of virtually thousands of different “off the shelf” super funds, or you can even start your own.
Your own Family Super Fund can invest into shares, listed property, direct property (including buying the house next door or purchasing your business premises). It may be able to invest into options, warrants and other things. Some FSFs that I have seen hold investments in antique cars and oil paintings.
The benefits of controlling your own destiny through DIY super, rather than letting someone else do it will soon become apparent. Not only can you control investment risk and return, you can control the taxation of the funds and you can protect your own assets and the assets of other members from creditors.
Assets (such as the business premises) can be at risk from devious people who may want to sue you and take your hard-earned worldly goods. These are protected inside the FSF. The “spouse from hell” may decide to divorce you, or the “in-law from hell” may decide to split from one of your children, taking half of the family assets or forcing the sale of business property, or the business itself. A FSF may be able to prevent this.
If you would like to review your do-it-yourself superannuation options (DIY super), give your financial planner a quick call. It's always a good idea to explore all your options.
Advice given is of a general nature only and you should seek specific advice relevant to your situation before proceeding with any investment decision.
“ Far from being stuck for choice, you can choose to invest in any of virtually thousands of different 'off the shelf' super funds, or you can even start your own. ”