“My super fund is growing.”
By how much? Is this with or without your contributions? Does the reported return include fees and your contributions, or not? Nobody should settle for mediocre returns…
The only objective of our service is to see if it’s possible to improve your superannuation and your situation in retirement. Why wouldn’t you want to see if – and by how much – that’s possible?
“But I like my super fund.”
If moving to another fund can put you in a better position in retirement, then why do you like your current fund?
We aren’t associated with any super fund so we can maintain objectivity.
Our goal is to help you end up in your best possible position in retirement. When we connect you with your financial adviser, they may find a better investment strategy within a different super fund.
What matters more to you and your family – your current super fund or your projected balance at retirement?
“My super fund has the lowest fees.”
We often get what we pay for.
Here’s the bottom line. The fee is only one element of many that contributes to how much you will end up with at retirement. To reiterate, our service has one goal – help you get to the best possible position in retirement.
To put another way. If you retire with $10K, $100K, or $1 Million less than what you could have had, you won’t be thinking “at least I paid the lowest fees.”
“Making any change is too risky.”
All investments have risk – just like all choices, and non-choices.
This is why we connect you with a fully licenced financial adviser. Their job is to defend your money which reduces your risk. In fact, their livelihood depends on it.
The alternative is to manage on your own or simply ignore it and let your current super fund run its course. In our opinion, that isn’t a very proactive way to approach retirement planning.
“I can’t afford financial advice.”
All advice pertaining to your super fund can be paid by your super. This means that there are no out of pocket expenses for you.
In this sense, you are being incentivized to get financial advice. If the advice of our partners is able to increase the return of your investment, and therefore substantially grow the balance of your investment over time – with the fees of the adviser included – it’s a no brainer.
What is a Super Fund?
Superannuation is a tax effective way to save for your retirement. It’s similar to a managed fund where your money is pooled with other members’ money and invested on your behalf by professional investment managers. Generally you will not be able to access this money until you retire. Your employer will make contributions to your super fund and you can top it up with your own money. The government may also make contributions if you are a low income earner.
My employer set up my fund, what does that mean for me?
Then you likely have a default super fund.
Many super funds make it easy for employers to set up standard, default investments for their employees. It’s a great and efficient system for them, but because it’s set up for any and everyone, it’s likely not the best investment for you.
What is a default super fund?
A default fund is simply a standard, one-size-fits-all investment.
The first problem here is that it puts you in the dark. With a default setup, you are unlikely to know how your money is invested or where you are on track for at retirement.
But the second problem is much more significant. It’s a harsh reality, but that default setup is likely to come with low returns.
The sooner you look into this the bigger of a difference it will make for you and your future. The alternative is to ignore it and just hope for the best. But we don’t want you to do that because it isn’t a good plan for you, your family, or your retirement.
What is an industry fund?
An industry fund was originally created for workers of a specific industry. For example, construction is usually CBUS, retail is usually Rest, and hospitality is usually Host Plus.
However, the industry you work in says very little about your investment needs or retirement goals… To put another way, a construction company owner, foreman, and new hire are all in very different financial situations. It takes about 10 seconds of thinking to realize that these individuals need different superannuation setups. But for some reason many are under the impression that CBUS would be the most ideal fund for them, just because they work in the same industry.
We think this logic is nuts.
Your investment needs to be tailored to you to get you the result that you want. You are not the same person as everyone else who works in your industry, and therefore you should not be invested the same. Like any other fund, an industry fund can be tailored to suit you and get a better result at retirement.
My superannuation statement says I’m doing great!
When super funds send out their statements to clients, they put how much their fund has grown at the very top, and this often says something like 20%. Take a moment right now if you have your superannuation statement and see what your super is telling you.
The problem is that this number often includes your contributions, not the actual rate of return on your investment.
In our opinion, this is misleading. You aren’t being given the true picture of how your Super is performing. Your Super is likely underperforming if they are hiding your real rate, and in some cases, you could be losing money. And nobody is telling you…
Here’s an Example. Let’s say you have 100,000 in Super, over the year you invest 15,000, and your fund grew by 5%. By next year, your fund will be at 120,000.
Is that a 5% return or a 20% return?
The real rate of return is 5%, but many supers will say 20% – you see your annual statement and think, great! My retirement is going to be excellent!
Let’s wind back the clock and start at 100,000 again. You invest 15,000, and your Super lost 2% on the market.
Is that a -2% return or a 13% return?
The real rate is -2%. If you saw -2%, you would take action, quickly. But most Supers put 13% up top. 13% is great! And you think your retirement is shaping up nicely…
Why should I review my super?
It’s in everyone’s interest to review their super periodically. If you’ve never had a professional review, then you are likely to benefit significantly.
A professional review “lifts the hood” on your superannuation. From how you’re invested, how your insurances are setup, and how you’re projected at retirement. The answer to all these questions matters.
This is why we offer a free professional review so you can get the information you need to make informed decisions.
In our experience, many of the challenges described above pertain to many Aussies. As stated above, when a super fund is originally created, whether by you or your employer, it is often automatically set up in a default account. This means it’s the same fund for everyone, with the same investments, fees, and insurances all attached. The problem with a default setup is that we’re not all the same. One strategy doesn’t fit every situation. A review allows you to identify the full scope of your investment and then tailor your investments to suit you and your situation.
As an example, if you are 18 and just entering the workforce, you don’t want to be invested the same as someone who is 64 and about to retire. Default funds can also be quite expensive, often see low returns, and can come with insurances already attached that you may not want or need. It is important to look at these things because they will all impact the amount you retire with.
Ultimately, a few smart decisions today could make a few percent difference in your return. A few percentage points better for you, plus one, two, three, or more decades could add up to a significantly better retirement for you and your family.
How can financial advice help my super?
1. Get help setting real financial goals
2. Reach your financial goals
3. Improve your money management
4. Get real advice during times of change/transition
5. Develop a strategy for your future
6. Make the most of what you have no matter how much
7. Plan your retirement… for real.
8. Know your investment options
9. Get help managing your estate
10. Make the most of your superannuation
How can a financial adviser help me?
Simply put, a good financial adviser can increase your returns.
In 2019, our partner financial advisers were able to increase returns by between 2% and 7%. That might not sound like a massive difference, but over a long period of time, it can be.
Please check out our “results” page to see these numbers applied to our customers.
Will AGAT get me my own financial adviser?
This is precisely what we do for you after learning about your financial goals and conducting our research into your Super. All our partners are AFSL licenced financial advisers with long track records of helping Aussies with their financial needs.
Do you support small businesses with their superannuation needs too?
Yes! We help individuals, families, organizations, and businesses.
Super funds offer employer-nominated funds that are easy to set up, but it still takes time and resources from business owners. For staff, it’s worse, as these funds typically come with low returns and high fees. This is inconvenient for business owners and potentially dreadful for everyone.
We address this by partnering with businesses to improve their employees’ Superannuation. The result of our work is less financial stress, better employee satisfaction, and less time spent on Superannuation for you and your staff.