Superannuation may well be the biggest investment you make over your lifetime, and in many cases the end value will far exceed the value of your home. Superannuation is complex and recent studies have shown that there is significant value for members in getting advice about the many aspects of the fund to ensure that the fund you choose actually suits your needs.
In recent times, there has been a focus on reducing the cost of superannuation products, and that has been of significant value to fund members. Improved technology may even result in lower cost products being available in the future. But, at what point does the lowest price mean cheap-and-ugly? How important is it that the true value of the fund’s assets be reflected in a client’s account balance on a daily basis?
Of course, it is important that the client sees the benefits of their chosen fund in their account, daily. If it is not properly reflected in the accounts, then a member who withdraws funds, or for that matter invests funds on one day may pay a higher or lower price than they should for the assets which they are buying.
It should be known that not all funds offer daily pricing and not all funds check the value of significant assets on a regular basis. When you invest in superannuation, it is worth asking the question, ‘When was the last time the significant assets such as infrastructure projects or real estate were valued?’
There are many things you should consider when selecting a fund:
How transparent is the fund?
What is your risk profile, and does the chosen fund match your risk profile?
Does the fund offer the services that you require?
What type of insurance cover is offered, and what are the definitions that apply?
Does the insurance cover mental illness, such as depression?
Insurance within superannuation is a very complex area. There are many things to consider and getting advice is important for you to get the right outcomes. If you are curious about whether or not you are getting the best value and cover from your superannuation fund, contact us at ClearWay Advice and Financial Management today on 07 4078 0900.
ClearWay Advice and Financial Management is a Corporate Authorised Representative Representative No.473095 of Keystone Partnership Pty Ltd ABN 22 169 650 720, Australian Financial Services License (AFSL) No.466137.