Hugh recently chatted to Matt Johnson of The New Daily to discuss superannuation risks and considerations.

Excerpt below

Centaur Financial Services principal adviser Hugh Robertson told The New Daily the scant attention Australians pay to their superannuation has allowed providers to hike their fees without much backlash.

But making a judgement call solely based on how much a fund charges in fees is ill-advised, he said.

You need to look at the level of risk they’re taking and you need to see if they are invested in liquid or illiquid assets, with unlisted assets a real danger spot people need to be aware of,” Mr Robertson said.

Mr Robertson said the biggest risks facing members who are considering selling out and switching funds are losing much-needed insurance and being exposed to Capital Gains Tax.

For example, a customer with a $160,000 balance could expect to pay around $8000 in tax if they switched funds, he said.

So it’s important to get a holistic overview of a fund’s performance and how it aligns with short- and long-term investment goals before committing.

“If you have a 10-year outlook and you’re going to save $5000 a year in fees, it would be worth your while,” Mr Robertson said.

“And if you’re close to retirement, [your fund] might have a super pension CGT transfer, which means you can transfer to pension phase without paying any tax,” Mr Robertson said.

Read the full article

Similar Posts