If you’re unhappy paying high fees on your super balance, these low-cost options could be right for you.
that I am most unhappy at discovering I am paying 0.73 per cent in fees each year to my current super fund.
People closer to retirement will want a higher proportion of their super invested in safer assets like cash or bonds, while younger workers may have an appetite for risk.I have decided that, at this stage in my life, I would like to have my super money invested 100 per cent in shares and – importantly – in passive ‘indexed’ share options: ones that deliver the broader returns of a diversified index of stocks, and which don’t pay active fund managers to try to pick winners for me.
Some will also believe in the ability of active managers to consistently deliver above-market returns by picking winning stocks .So, this week I researched three potential super funds in which I can invest 100 per cent in equities, with a 50:50 split between Australian and international indexed shares. It’s a non-exhaustive list and you should do your own research, but here are my current thoughts.
However, your money in that option is not invested 100 per cent in equities, but rather 75 per cent in shares and 25 per cent in fixed interest and cash. As I say, that may be a great option for many people. But for me, I’m comfortable with a higher shares allocation, in the knowledge that over time this should deliver me a better return on my savings.
ART also charges low investment fees on index options at 0.09 per cent for Australian shares indexed and 0.10 per cent for International shares indexed .For my higher balance, however, the admin fees work out higher too, with a flat fee of $62.40 payable plus a 0.10 per cent admin fee plus a 0.07 per cent reserve fee.
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