Fee Free Super Account

Hi members

I was with ING Living Super and recently received and email in which it stated that it will start charging fees of $5.00 per month. ie $60 per year.

I am a low income earner, and my average employer contribution is about $500-$1000 per year and my balance stands around at $30,000. I don't know whether super contribution will be continuous because my source of income varies and in the past I did not have any contributions for 3 years. So not knowing whether there will be any more than $100 in contributions to cover the fees per year, I don't want to pay the fees from the capital.

Previously when I first started working as a casual person earning about $30 a month in the early 2000s, (contribution from employer ranged between $3-10 after each assignment, then 15% deducted as tax) and I did not get any assignment for 6 months my super balance dropped to $0.00 and got an automatic termination notice from the Super Fund. So I am not too keen on paying fees. Then I found about retirement account at CBA and started putting my super contributions into that until I found ING Living Super.

I am aged in my 40s, and rather than risk putting my money into share based growth fund, I want to protect the capital as much as possible. And not knowing what the future contributions will be I want to avoid fees as much as possible.

Does anybody know what is the best type of Super account for me?

 

please note , i took a rare opportunity and closed my super accounts

in your case would an SMSF fund structure work for you ( yes i know the experts say you need a big balance to get the best out of it )

i went for a non-formal set-up , just a share-trading account ( initially ) buying equities and interest bearing equities ( hybrids ).

the DOWNSIDE of my style is it leaves you without insurance cover ( might be good or bad for you )

this non-formal style also loses you some tax benefits , but franking credits might neutralize that for you .

isn't casual work a special form of hell ?? ( yes i have done my share )

good luck .

 

Thanks for your input Twisted Strategies.

I wish I were a little bit more investment savvy so I can invest directly in shares or possibly in ETFs or LICs. My brain is so full of things to do and to take care of, even though I have done plenty of reading, I haven't gotten around to thinking everything through. Although I will get there in the end.

Right now, until I establish my investment strategy- whether it be SMSF or share trading or in a established super fund I just want to protect the capital.

Hiflo

 

your problem is you can't just put it in the bank .. say a holding account and say every $2K take out another term deposit ( at least not with the compulsory super )

( your own savings could be done like that )

but the truth is .. leaving your money somewhere ( even in the bank ) exposes you to some risk .... but that risk taken , in best outcomes produces capital gain .

'savvy' is over-rated , educated ( in financial matters ) and knowing how brave you are ( how much risk to take ) are more important .. a risky adventure might cause you to lose sleep ( and cause you to suffer a mishap ) others love risk and will take too much .

it is very hard to find a profitable ( and comparatively safe ) place to park your money , currently

ALSO read the fine print of the government guarantee ( of bank deposits ) if the bank fails you CAN have too much in the bank ( and risk losing some )