Superannuation Warehouse does not provide product specific or financial advice.
We can provide you with factual information and execute accounting and taxation work. We are a Chartered Accountant in public practice, a registered Tax Agent and have professional indemnity insurance in place.
So, if your question is “How much should I contribute into my Super to have enough?” Unfortunately, we can’t tell you, we are not licensed as a financial planner, and therefore unable to provide any advice. You have to work this out yourself or ask a planner to help you. What we can tell you is that the earlier you start with Superannuation the better it is.
Generally speaking, if you have a big Super balance, say $1m or more, it makes good sense to pay for an advisor. However, if your balance is less than that, and you’re financially literate, the best is to be frugal and conservative.
If you’d had all your Superannuation contributions in a fixed term deposit over the last 5 years, you’d be in a very reasonable position today. One of the great advantages of bank deposits is that the capital is government guaranteed.
The greater focus on transparency in fees has resulted in the restructuring of fees and commissions charged by Financial Planners.
One of the major reasons for the rise in popularity of SMSFs is that individuals are realising that retail superannuation funds will leak a substantial amount of their money. When the markets were running at 20% per year and the retail funds had 5% in fees, 15% was a reasonable return. Now, although the markets are barely even, the funds still charge a 5% fee. When individuals see their superannuation balance reduce every year, they start asking questions.
When a retail fund says it costs you a dollar a week to run your fund with them it’s not quite true. In fact, there’s a whole layer of fees deducted before the returns are allocated to you. Only after that do you pay the dollar per week.
A good way to look at your retail fund returns may be to compare them against a relevant index. For example, if you’re invested in Australian Shares, compare the return you have against the ASX200 return for the same period. This will tell you whether your retail fund managing your money well or not.
The test to do with your super is to add the return of the ASX200 to your SMSF and then deduct the monthly fixed fee of $39 or $79 that Superannuation Warehouse charges. Remember if there are 2 members, each member will only pay a portion of this fee. You can then go and purchase direct shares in your SMSF resembling the ASX200.
If you as a Trustee wants to set up an SMSF, you can follow this link