We’ve all seen and read the ads for Industry Super. The guy that goes up the escalator vs the guy who goes down, representing their investments due to commissions being paid. Now I have always said there is value in Industry Funds, depending on what value you place on Super.
One side is that you save ‘a small amount’ of fees on your super with industry funds, but the other side is that nobody monitors your super, gives advice on where your money is supposed to be invested, and generally, there is nobody to talk about salary sacrifice, government co-contributions, etc.
An adviser, or financial planner can always help with these scenarios, but of course there is a fee involved. We don’t live in a benevolent society, and you get what you pay for. Most would understand this. Well, this week uncovered the under the table commissions paid to a fund manager by an industry fund. Sure, it’s not paying a trail commission from your account to an adviser, but instead it’s paid $1 Million to a firm to provide service on a SunSuper investment.
Where does that money come from? The SunSuper accounts. The member accounts! It comes directly from the interest returns of the members.
Please CLICK HERE for the full article. I would love to get your opinion on what you think.
PD
August 6th, 2009 at 2:48 am
Hmm… I read blogs on a similar topic, but i never visited your blog. I added it to favorites and i’ll be your constant reader.
August 7th, 2009 at 9:51 pm
Very interesting and amusing subject. I read with great pleasure.
August 19th, 2009 at 7:38 pm
I added your blog to bookmarks. And i’ll read your articles more often!
August 24th, 2009 at 3:34 am
Thank you! You often write very interesting articles. You improved my mood.