History

Meet Clever Cloggs

Clever thought he was being clever when in the mid 1980’s, when savings’ and ‘superannuation’ were a relatively new concepts in Australia, he started to put money away for his retirement.

He thought he was being really smart when he planned his retirement – nearly 40 years in the future and over that time he dutifully put money away on a regular basis.

The problem was, Clever wasn’t clever enough to pay attention to what was actually happening to his contributions.

Because of his apathy, he didn’t pay much attention to the annual statements he got from his super fund managers – other than to give a cursory glance at the starting and ending balances and storing them in a shoe-box in his cupboard.

So he didn’t notice that they didn’t really reflect much growth of the money he’d ‘saved’ over the years.

It was only when it came to the time of his retirement and Clever’s statement came showing his ‘final’ account balance, that Clever got a bit of a shock.

He thought he was being really smart when he planned his retirement – nearly 40 years in the future and over that time he dutifully put money away on a regular basis.

The problem was, Clever wasn’t clever enough to pay attention to what was actually happening to his contributions.

Because of his apathy, he didn’t pay much attention to the annual statements he got from his super fund managers – other than to give a cursory glance at the starting and ending balances and storing them in a shoe-box in his cupboard.

So he didn’t notice that they didn’t really reflect much growth of the money he’d ‘saved’ over the years.

It was only when it came to the time of his retirement and Clever’s statement came showing his ‘final’ account balance, that Clever got a bit of a shock.

Because it suddenly dawned on Clever that the actual value of his ‘final’ account balance wasn’t something that was going to last for very long – certainly not the 20 years or so he expected to be retired for.

In fact, when he added it all up, he calculated that his ‘nest-egg’ was roughly about the size of the money he’d saved over the years – as if it hadn’t earned any interest.

And, though he’d been saving for about 40 years – not only didn’t he have nearly enough to retire on he’d likely run out of money after just a few years of retirement.

So, Clever decided to have a more in-depth look at what had occurred over the years – because he got the impression he’d been screwed by the institutions that had been ‘looking after’ his savings for him.

And, for the first time in 40 years, he read the fund managers ‘Product Disclosure Statement’.

And with only a small bit of investigation he realised how those ‘low’ fees he was paying got taken out of his contribution even before any of it made it to his account.

It didn’t help his demeanor when he found that a super fund took

$183 million

in ‘Account keeping fees deducted from members’ accounts’ in 2015.


Because some of
that was his money

Then if he did make any money, it got taxed.

And then there was the effect of inflation.

And it got worse, he realised the additional contributions he’d ‘salary-sacrificed’ into his super fund over the last few years had done nothing to increase his account balance.

All they’d really done was to increase what he’d paid in account fees and tax.

As he’d only started salary-sacrificing in the latter part of his working life, naively thinking they would add to his retirement comfort, the reality was there was no real chance of them making much difference to his nest-egg.

Good for the fund manager and tax department – not much value to him.

To make things worse, there had been a relatively minor stock market ‘correction’ just before he retired which had pretty much diminished his savings significantly and from which he’d had insufficient time to recover.

He soon came to the conclusion that the ONLY people making any money out of his Superannuation ‘plan’ were the ones who were supposed to have been ‘looking after it’ for him.

And, the term ‘looking after it’, seemed a bit of a mis-nomer too.

He’d thought, up until then, that the people ‘looking after’ retirement savings should keep them safe and protected from the effects of stock market ‘corrections – or economical hard-times.

But, the reality is, all the people do is take fees from people’s savings, and gamble the balance.

When he studied the fund manager’s Product Disclosure Statement – for the first time ever – he realised all the information he needed had been available to him at all times.

He’d just done what most people do – ignored it.

And he had to admit – it was entirely HIS OWN FAULT he was in the situation he was.

He’d got lazy and left it all to the fund ‘managers’ – he’d WANTED to believe them and their claims about ‘low fees’ and ‘professional management’ of his saving account.

Even though there had been times in the past when he had made the occasional query about the super fund’s investment strategies – usually after a ‘crash’ happened.

But every time his financial ‘advisers’ they gave him the impression that his fears were unfounded and that no matter what had happened to diminish his savings they would always ‘recover’ over the ‘long-term’.

Because that’s the way it is – and there’s nothing he could do about it.

And Clever realised he’d wasted far too many years a waiting for a ‘magical recovery’ that, in reality, NEVER came.

Apart from fees and tax, he’d ignored the effect of INFLATION which, by itself, has increased the cost of living by about 40% since 2007.

He ignored that the majority of super funds NEVER HAVE (really) ‘RECOVERED’ AT ALL since the Global Financial Crisis.

He thought that when a super fund said it made, say, 10% in a year, that’s what HE got – but it turns out, that’s not how it works.

He didn’t realise all it meant was that compared to the value in the PREVIOUS year it had increased by 10% – but, if in the PREVIOUS year there had been a 50% LOSS he was still ‘behind’ by a least 40%.

And then, the fund managers dipped in to that too and all he got was a percentage.

He’d ignored the state of the economy over the last few years – which has seen the demise profits from pretty much ALL traditionally secure financial sectors.

Even miners and banks and retailers are finding it hard to make profits.

Many traditional Australian industries like car manufacturers have closed down forever.

He’d ignored that over the past few years super funds haven’t been returning much AT ALL – especially when inflation is taken into consideration.

And once Clever realised how un-clever he’d been by letting others look after his financial future and not taken more interest in it himself – he decided to create this web site to warn others.

But, he also got mad –
Much like Peter Finch in the movie ‘Network’
(You Tube clip below)

But, Clever is clever.

He realised, just getting mad isn’t enough and that his savings strategy needed to change and fairly quickly.

He needed to find an alternative SOLUTION to save money.

A solution which was a ‘fair deal’ for people who want to save, without them being cleaned up on fees.

And a solution that would give people’s savings a chance to not just grow but grow in a relatively safe environment where market ‘crashes’ would be unlikely to affect them – and they could avoid the effect of annual taxation on their savings growth.

A solution that avoided annual taxation.

A solution that’s SIMPLE.

A solution that would be safe as houses … not one that would enhance people’s financial security, not jeopardise it.

And, after a lot of thought and effort, he found one.

Even Blind Freddie
realised, if he's ever
going to have enough
money to retire with

he needs a different
saving strategy to the
one he's got now.


And he came
up with one.

superannuation no fees

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