1. Having multiple super funds
Multiple funds means multiple fees and likely multiple insurance policies and premiums. The number one mistake we see is not having all of your super in the one fund. How can you keep track of performance & fees where you have two, three or even four funds? Number one super strategy is to get all of your super together into the one account.
2. Fees vs performance
We all know we should be on the look out for a fund with lower fees, but that is only one part of the equation. What we need to look at is the big picture – what has the performance been in comparison to fees? Low fees are great, but if investment performance has been poor, then you will be worse off overall. Of course, past performance is not a reliable indicator of future performance, but we can get a feel for how the investments have tracked in the past in comparison with benchmarks and other funds.
Remember, fees are not everything, they are just one piece of the puzzle.
3. Poor investment choice
About to retire? Then perhaps it is not best to have all of your money in high growth Emerging Markets shares!
Got 20 years to retirement? Maybe cash is not the best place to invest.
Investing in assets suited to your risk profile and personal goals will help you get more from your super. The default option is designed to suit the widest range of members, but it is best for you? Talk to a professional about what suits you personally and reap the rewards.
4. Assuming your employer’s default fund is right for you
Every Australian employer has to offer their employees a default super fund. If you don’t choose a separate fund to pay your super to, this is where it will all go.
Around 80% of Australian super fund members3 are in their employer’s default fund — and for many, it could be the right choice. That’s especially the case now that the Government’s MySuper regulations have created a new breed of default super funds, with lower costs and standard insurance benefits.
But if you would like more control over how your money is invested, you might prefer a fund that offers more investment choice. And if you’re a confident investor with the time to manage extra administration responsibilities, you might even consider starting your own self-managed super fund (SMSF).
5. Having no interest in super at all.
This is the biggest mistake we see. Super is YOUR MONEY! Make sure you review your super at least annually. Can you (or should you) invest more in super? How has the performance been? Fees? Is your insurance correct?
About Shartru Capital group
The Shartru Capital group is an Australian boutique investment and advisory firm. Shartru Capital is a significant investor in a number of businesses including Shartru Wealth Management.
Shartru Wealth Management is the financial advice and licensee business within the Shartru Capital group.
Whether looking for the right investment strategy; advice on superannuation funds – including DIY #Superannuation or Self-Managed Superannuation; personal insurance or how to get started with your first home loan, age care or estate planning – Shartru Wealth Management can help.
We work in partnership with our clients to provide financial advice to help you meet your individual financial goals and objectives. We encourage our customers to build sustainable futures. That’s why we offer financial planning advice to ensure our customers prosper over the long term.
Shartru Wealth has licensed representation in Sydney, Newcastle, Belmont, Brisbane, Tasmania, Melbourne & surrounds, Perth and the Sunshine Coast. For a full list of Financial Advisers licensed through Shartru Wealth Management please click here
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Disclaimer: Published by Shartru Wealth Management Pty Ltd. ABN 46 158 536 871 AFSL 422409. The advice is general advice only and we have not considered your personal circumstances. Before making any decision on the basis of this advice you should consider if the advice is appropriate for you based on your particular circumstance