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  • #982817
    Keelie
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    • Total posts: 6
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    Hello,

    I’ve got two super accounts (VicSuper and Recruitment Super) with former employers. Now I’m working for myself and I want to get rid of one, or both, if I can find a better one.

    I’ve looked at the comparision websites and I’m no clearer than when I started. Media Super seems okay and suits my work profile. Does anyone have experience with them?

    I don’t want to learn the ins and outs of super. I just want someone to recommend me a good super account where I can leave my money without too much worry. Why is this so hard??!

    If anyone has any advice I’d be very grateful.
    Cheers,
    Keelie

    #1139027
    MH08
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    • Total posts: 284
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    Because this is a question that will need to be tailored to your needs, a financial advisor or PDS from complying superannuation funds should help your decision.

    Asking which is the best superannuation fund on FS could be detrimental to your retirement.

    #1139028
    Chief guru
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    Hi Keelie

    I agree with MH08 – you need to see a financial adviser. Having worked in the the financial planning industry for the last 3 years but no longer, I’m happy to suggest that without being seen as trying to feather my own nest.
    A good place to start is talk to family and friends and see if they use an adviser and if they are happy with fees, services etc. Work out what you really want for your super (low fees, good returns, good service, imbedded insurances) and let all this guide you. I really recommend you sit down and talk with someone not just rely on your own research.

    Good luck.

    #1139029
    Burgo
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    • Total posts: 2,104
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    I had several super funds and discussed them with a Financial advised who organised them into one. Must admit the super funds are ok but property is a much better investment, you can negatively gear and over time the property will increase in value.
    However dont take notice unless they are experienced in Financial planning.

    Many soloists really dont plan for retirement, I didnt and when I retired 5 years ago I would have been much better financially than I am, still I have enough money to live on for the next 15 years or so.

    Discuss your finances with an experienced financial planner

    #1139030
    MH08
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    • Total posts: 284
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    That’s interesting you say that Burgo, I was talking this over with another business owner the other day and we discussing superannuation and I had said to the businessman to buy property also sometime ago.

    He calculated with the standard SG, plus some contributions, including the increase of the SG till 2020 wouldn’t amount to owning 3 properties had him retire from $900k to $2.1m and that was only during a 15 year period.

    Superannuation is just a safety net for those who cannot manage finances correctly and that’s 98% of the population.

    #1139031
    Robert72
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    Hi Keelie,

    Good question and great feedback, one extremely important thing to consider is what insurance is currently within your existing superannuation plans. Once you roll over, the insurance within the existing plans is lost. By rolling two super funds into one you will almost definitely end up with a reduced amount of death and TPD and possibly even lose some income protection. So depending on your own personal situation regarding the amount of debt you, have and financial dependence this could be a significant issue.

    You could spend a significant amount of time researching past performance and fees, but I feel the most important issue may well be the insurance. As we know past performance is no indication of future returns, and superannuation has become extremely competitive in recent years and most offerings from a fee prospective are very similar. As everyone has said please seek financial advice, as Guru mentioned getting a referral from a family or friend is one of the best ways to go about finding a financial adviser to suit your needs.

    I just wanted to make a few comments on negatively geared investment properties; these strategies generally involving high levels of debt and investing large amount of money into one asset therefore increasing the risk further. A negatively geared property is where the expenses of owning the property will outweigh the income provided by the investment. The difference between the two can often be claimed as a tax deduction, this deduction is often seen as the Holy Grail, but in reality you’re spending a dollar to save tax at your marginal tax rate. Let’s assume the average tax rate is 34% including Medicare, so by spending one dollar in deductible costs it will only save you $0.34. So for this strategy to work, the property has to go up in value which is certainly no guarantee in the current environment.

    Please get personal financial advice.

    Hope that helps.

    Rob

    http://www.meritumfg.com.au

    Check out our financial Q & A on Youtube

    http://www.youtube.com/user/meritumfg

    #1139032
    Keelie
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    • Total posts: 6
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    Thanks everyone. I appreciate your advice. I’ve seen my accountant this morning and I’m going to speak to a financial advisor soon to look at alternative options.

    #1139033
    PhalanxFS
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    • Total posts: 36
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    Hi Keelie,

    Great to hear that you are seeking advice in this area and it sounds like you are on the right track. As others have already stated definitely check the insurance cover held in each Superannuation provider and whichever one you decide on make sure you have the appropriate level of cover in that Super Fund before rolling the funds across.

    Superannuation is a fantastic structure to help save for retirement and its important to get it right. Most planners/advisers will have some software to help you with your decision and will compare the pros/cons of each. Who to use will come down to what you are wanting to achieve and how much involvement you want with your Superannuation. A good example would be someone who just wants to ‘set and forget’ and is happy to receive an annual statement each year is probably suited to a low cost no frills fund whereas as others have mentioned someone looking at buying direct property through Superannuation will need to do so through a Self Managed Fund which comes with more responsibilities etc.

    It really comes back to you and finding out your goals and aspirations then once that is sorted finding the right product to suit them.

    Kind Regards

    Stuart.

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