Steve Tyshing, Director from Haines Muir Hill, outlines 4 types of Super.
Since the advent of employee superannuation contributions in 1986 and then ‘choice’ of super in 2005, the superannuation industry has come a long way in terms of the products that are available to individuals.
Typically the Industry Fund is the best option for the ‘set and forget’ type of investor with a small balance. As we move up the scale, Retail Funds and Master Trusts / Wraps tend to cost more but with that extra cost comes more scope to tailor your investments and access a wider variety of investment managers with the view of out-performing the market. The ability to customise investments also acts as a means of reducing your fees. You also have potentially more scope to tailor your insurance and estate planning to meet your needs. Finally for those investors who have sizable account balances, they can take advantage of a SMSF’s lower costs, gain full control over investments, align your Will and/or estate plan to compliment your super and you can even shop around to pick the right insurance policies.
So when reviewing your super, consider the following:
- Is my super in the right structure? If no am I paying too much?
- Do I want more control over my investments? The Global Financial Crisis saw many investors unable to make changes to their investments when it counted, resulting in greater losses.
- Are my super investments the best ones? Not all investment managers deliver the same returns due to a variety of reasons. Am I missing out?
- Does my fund provide me with flexible insurance options? If no, I could be underinsured.
- In the event of death, will my fund look for the easiest option or will they accommodate the most tax effective option/s?
Steve Tyshing is Director at Haines Muir Hill, Chartered Accountants and Financial Advisors.
HMH provide clients with a wide range of professional business services that establish effective and practical control of business performance. Profitability, cashflow and wealth creation follow. Please contact Steve Tyshing on (03) 9840 2200 or visit www.hmh.com.au
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