How to determine if self managed superfund is better than current superfund (PLUM)?

sagrules on 08/02/2016 - 09:50

Hi All,

I am in the process of making a decision on whether to keep my current superfund (PLUM) or move to my own self managed superfund. So far I have printed out my financial statement of fees charged and balance in my super. How can I calculate if it is worth doing in the long run? This fund will be also be combined with my partner who is in a fund of her own. Any resources would be great. I would like to do these calculations first before seeking assistance from a qualified financial advisor.

Thanks.

Financial

Comments

  • Cheeper on 08/02/2016 - 13:44

    ..How can I calculate if it is worth doing in the long run?
    Simple, it is all about maximum net return for you… plenty of super fund comparison and info sites on the net.
    Beware of the usual… entry & exit fees, management fees and any other sticky finger trickery.

    ..assistance from a qualified financial advisor
    Danger.. Most of these are focused on investments that deliver them the most commission. There are some good impartial ones around but they are very hard to find. I know of one guy paying a f/a $8k a year to manage his super and his returns are lower than any public super fund by a big margin.

  • mskeggs on 08/02/2016 - 21:48

    Why would you want an SMSF?
    There are fairly low fee funds that allow a large range of investments including direct equities.
    I share the 'danger' warning on financial advisors. Basically, an unscrupulous one might hear your question and end up costing you a lot in fees and commissions (some of which might be invisible to you).
    For the record, I have a SMSF and I intend to invest in a commercial property in the next few years, but based on my experience having run it for a few years, it is more trouble than it is worth unless you want the unusual investment. I have found my fees are lower, but I do need to be more on top of things.

    • sagrules on 09/02/2016 - 14:35

      Thanks for your reply, how many hours per week would you spend on average looking after it?
      What are your total annual fees like?

      • mskeggs on 09/02/2016 - 14:55

        Weekly, less than one. Probably it adds up to a couple of days per annum. But there is a constant stream of paper to deal with. Takes a while to work out a system to capture it all properly, and there is the admin of holding additional bank accounts, brokerage accounts, dividend payments etc. It is as if you are dealing with the financial records of a second person.
        Annual fees for service, tax return and audit are sub-$1000, plus bank fees, brokerage, ATO etc.

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