Discussion in 'Superannuation, SMSF & Personal Insurance' started by Simon Hampel, 1st May, 2008.
Superannuation volatility spooks workers - AustraliaWide - ABC
Australia Wide 2008 - 01-May-2008
It really does surprise me how many people ask the percentage return for different superannuation administrators are as they don't understand that they can invest in many different assets under the superannuation umbrella.
At least two super/pension administrators now have Term Deposits available which I think could be a big hit with investors over these gloomy times.
The main worry is unecessary switching of funds, with attendant fees.
Back in 2003 with the last negative fund returns, this provided fertile ground for "promoters" to encourage people with small industry fund balances to switch to high cost retail funds or even set up a SMSF which was inappropriate to their circumstances.
Hopefully ASIC is a bit more wary of this nowadays and require a Reasonable Basis for Super Switching. If an adviser super switches without a reasonable basis they better watch out as ASIC will come down very hard. AMP found out how much trouble and bad publicity.
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