lets talk about your superannuation
lets talk about your superannuation


Likely, if you’re reading
this at all, it’s probably
because you suspect
or recognise there’s


something ‘wrong’
with your super


and that maybe
it’s time for you to
re-think about whether
your Superannuation
really is the best vehicle
for you to save money
over the long term.

Banking Royal Commission articles

But, before you read further, let’s make it clear. There’s no financial advice given here – everyone’s personal financial situation is different and there’s no ‘one cure fixes all’ solution.

This website has no agenda, it isn’t trying to sell you anything or influence your financial decisions in any way.

All you’ll find here is information and discussion to help you make your own common sense decisions about what might be right for you.

Do your own research to determine whether anything you read on the web site has any relevance to your own personal situation.

If you’re unsure about making any financial decision it might benefit you to seek the services of a professional financial adviser.

There are only
5 pages

on this web site
all are accessible from
the drop-down menu
in the header or
via the buttons
at the bottom
of each page.

Even if you only
read just this
ONE PAGE
maybe you’ll
NEVER
look at ‘managed’,
(or ’employer-sponsored’)
superannuation plans
the same way ever again.

In only about 5 minutes,
you’ll get to see
Superannuation
for what it is


without all the
mis-information, hype and
smoke-and-mirrors
financial gobbledegook

that has been fed to
Australians since
compulsory super started.

lets talk about your superannuation
lets talk about your superannuation

Note:

For the purpose of this illustration the tax deduction that superannuation contributions can attract is not taken into consideration – there are just too many variables.

At the same time, and for mostly the same reasons the fees that fund managers charge on individual accounts are also largely ignored – but, if insurance cover is included, they can make a substantial ‘hit’ to any long-term accumulation plan.

This example is only concerned about what happens to your contributions when they GET TO a managed / employer sponsored superannuation plannot what their journey was on the way.

It attempts to illustrate the possible effect that tax and fees can have on the effectiveness of saving money in a ‘managed / employer sponsored’ superannuation plan.

lets talk about your superannuation
lets talk about your superannuation
lets talk about your superannuation
lets talk about your superannuation
lets talk about your superannuation

This is where it
really starts
to go pear-shaped.

… because, if think about it
for ANY savings plan to be
of any value to you it must …

AT LEAST KEEP UP
WITH INFLATION
AS WELL

so, if you assume an
inflation rate of just
3%
… by the end of year 1
your $1,000 needs to
have grown by 3%

$1000 * 3% = $1030
just to break even

This means your $850
has to make you
$1030 – $850 = $180

by the end of the year,
just to keep up
and to do this it must
show a return of
$(180/850) * 100 =
21%

Can’t see that happening
any time soon …

lets talk about your superannuation

Because any gain made
by your super
gets taxed at 15%
so, on
that $180 you just made,
you’ve just lost another
180 * 15% = ($27.00)

Which is ANOTHER
3.14%

This means that
what’s left of
your ‘contribution’

(that $850 again)
really needs to earn
about
24%
in the first year of
that contribution
just to break even.

That’s 24% needed in year 1
just to ‘catch up’ with
what’s been taken
in tax and with
inflation of just 3%.

Are you getting the picture?

lets talk about your superannuation

Now deduct
any fees and charges
taken by your fund manager
which are charged
EVERY YEAR

Apparently, in Australia,
the super industry sucks
$20 BILLION in fees
from super accounts
EVERY YEAR
that’s $20,000,000,000

If you think about it,
it’s likely, some of them
are YOURS.

There’s a whole
section of this website
that looks at this subject.

lets talk about your superannuation

Then, if you use the services
of a financial advisor
there’s their fees to consider …

so, now it’s …

24% + ? + ?

lets talk about your superannuation
lets talk about your superannuation
lets talk about your superannuation
lets talk about your superannuation
lets talk about your superannuation
lets talk about your superannuation
lets talk about your superannuation

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