Is It Time To Change Superannuation Fund Types?
10 November 2008
When choosing a superannuation fund, it is important that you do not think of your first choice as necessarily being your last choice. Different types of superannuation funds can be suited to different points in your retirement saving. A percentage based fee when you start your career may be fine. But in the future you may get better value from a flat annual fee for your superannuation fund. It is thus important for you to keep your mind open to changing your superannuation fund, but you must always be careful to choose the right opportunity to do so.
If you have just begun your retirement savings, saving money on fees can make a massive difference to the amount of money you will have in retirement. The problem, then, is in identifying which types of superannuation funds will save you the most on fees. Superannuation funds that are run for profit will often charge higher fees than industry superannuation funds. This can make an industry superannuation fund very good value for a new worker, though it is vital to make sure that the performance of a fund you are interested in will meet your expectations of returns.
New workers considering a self managed superannuation fund may find that they would be better off with other super types. A self managed superannuation fund that offers a flat fee, such as ESUPERFUND, can provide excellent value on fees - so long as alternative fee structures would be more costly. Fees based on percentages of your superannuation fund balance can be fine when your balance is low, while flat fees can end up costing much more. Managing a self managed superannuation fund with only a small amount of money in it may also not be worthwhile, so those who are enthusiastic about managing their superannuation fund at the start of their career may wish to spend their time looking at how a superannuation fund works and learning more about investment.
Please click on our ESUPERFUND sponsor banner if you are interested in learning about what ESUPERFUND offer to help start a self managed superannuation fund.
