Choosing a superannuation fund
Monday September 22, 2008
There are many different types of super funds, but not every one of these kinds of managed super funds will suit you. Choosing a super fund will depend on many different factors. Ask yourself a few questions when choosing a superannuation fund in order to help narrow down the list of managed super funds you will choose from.
How much time do you have?
If you do not have much time to spend on running a self managed superannuation fund, then self managed super funds will probably not be a good option for you. You may still be interested in industry super funds and other commercial super funds, though, as these will often take care of most of their account management for you. If you have enough time to open your own self managed super fund, then self managed super funds may be appealing as they can save on money.
What have the return of the super fund been like?
Managed super funds that offer poor returns aren't useful. Even if they save on fees, if those savings are then going to be poorly invested you may end up losing them due to poor management. Make sure that a superannuation fund you choose receives decent average returns, and be aware that all superannuation funds carry some element of risk to your money, so managed super funds cannot be judged just on a bad year or an excellent year - they must be judged on overall performance over time.
How much are the fees and what activities have fees attached?
One of the easiest ways of keeping more money in your managed super funds is to choose types of super funds that do not charge high fees. As has been mentioned, this will not be that useful if the returns are particularly bad for a super fund, but for managed super funds with a decent average performance minimising fees can make a huge difference to your retirement savings in the long run.
Please click on our ESUPERFUND sponsor banner if you are interested in finding out what products they can offer you to help you start self managed super funds.
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