Employer Super

Public offer funds

Advantages:

  • Uses an approved trustee.
  • Diverse range of investment options which are professionally managed.
  • Some Master Funds have access to direct shares within a portfolio.
  • Many Public offer funds offer life insurance cover as apart of the many services they provide to members.

Disadvantages

  • Members have limited opportunity to select specific investments they would like to include in their portfolio.
  • Investors have no control over the timing of investment decisions made by the underlying fund managers that, in turn, may have an impact on the taxation of the fund.
  • Public offer funds can be expensive, and generally can charge an entry fee between 0% and 5%, and an ongoing management fee that can range from 0.0% to 3% per annum.
  • Upon time of payment of a benefit, a public offer fund may only offer limited choices in terms of the manner in which a benefit is paid.

Employer Sponsored Superannuation Funds

Advantages:

  • Uses an approved trustee.
  • Diverse range of investment options which are professionally managed.
  • Some Master Funds have access to direct shares within a portfolio.
  • Many Public offer funds offer life insurance cover as apart of the many services they provide to members.
  • Some Plans have Automatic Acceptance of Life Cover without the need to be underwritten.
  • Some Plans may offer fee discounts.

Disadvantages

  • Members have limited opportunity to select specific investments they would like to include in their portfolio.
  • Investors have no control over the timing of investment decisions made by the underlying fund managers that, in turn, may have an impact on the taxation of the fund.
  • Public offer funds can be expensive, and generally can charge an entry fee between 0% and 5%, and an ongoing management fee that can range from 0.0% to 3% p.a.
  • Upon time of payment of a benefit, a public offer fund may only offer limited choices in terms of the manner in which a benefit is paid.
  • You will only remain a member of the employer plan whist employed by that company. Upon cessation of employment, your plan will automatically roll over into a personal plan.

Industry funds

Advantages:

  • Publish low administration fees.
  • Run only to profit members.
  • Simple to use.

Disadvantages:

  • Potentially lower level of service.
  • Generally no financial adviser attached to Industry Funds, when compared to Public.
  • Offer and Employer Sponsored Plans.
  • Generally a smaller range of investment options available.
  • Can have hidden fees.
  • May not be able to purchase direct shares.

Retirement Savings Account (RSA)

Advantages:

  • Capital Guaranteed products generally offered by banks.
  • Fully Portable, owned and controlled by the member.
  • Simple, low cost, low risk products.

Disadvantages:

  • Does not offer member investment choice.
  • May conflict with your investment objective of maintaining the real value of your portfolio and combating the effects of inflation over the medium to long term.

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