How to Choose the Best Super?
Like most financial decisions there is no one right answer for picking the best superfund. I have listed below the criteria in order of how we evaluate different super funds for our clients and you may be surprised that it is not based on performance.
Fees – It is fine to pay fees because you need to pay someone to manage your money. It is not about chasing the cheapest one because often the cheapest funds have the least options which may cost you more in the long term. We aim to find funds that have total fees less than 2%. This includes the admin fee, advisor fee and fund manager fee.
Insurance options and premiums – This is a very crucial component to picking the best fund. You need to ensure the fund offers all insurance (life/tpd/income protection) and the premiums are competitive. It is surprising to see the number of people who find the cheapest fund from a fee perspective but then pay more than that in insurance premiums.
Investment Options – This is more important than the fund performance. The performance is based on the funds you choose so it is crucial that you have the best funds to choose from. Just because your fund performed less than another doesn’t make it worse, you may just be invested in the wrong investment option. How pick the right investment options is another article in itself but there are some simple methods to follow and it is worth getting some advice.
If you would like to find out how your fund rates and what is the best one for you feel free to click the chat button and find out more.