“It’s a no Brainer’ & ‘we are on the Same page’

“It’s a no Brainer’ & ‘we are on the Same page’

Linda came to that conclusion some weeks after she wrote
 ‘  Hi John
I imagine you would have seen the paper yesterday where the lowest performing workplace super funds were listed.  Surprise, surprise mine was on the list as the 2nd worst performer.
I have emailed payroll and I am able to have my super paid into a different fund.  Do you think I should consider doing this?’
We summarise our conversation with Linda with
• You are now over 55, in fact our age.
• You could do what we have done ourselves , actually with 2 funds.
• You could reduce your largest fee which is taxx from 15% on earnings to ZERO.
• You could redesign your super allocation by tailoring it for you commencing from a model portfolio designed by asset allocation specialists.
• You don’t want the over flogged SMSF as you don’t want the responsibilities of a trustee especially when you are 70+.
• We will retain some funds in your existing super to fund your current life cover to age 75.
• When you have a choice of 300 funds & 300 direct Aussie shares why would you do a SMSF?
• As you are in fact over 60 your income from your redesigned super will be Taxx FREE.
• You can access your super as a lump sum after you retire.
• You can use the extra TAXX FREE income to
• fund more into personal super & maybe earn the government co-contribution.
• Or to subsidise the loan on a new car
• Or to use for your next cruise
• Or to use to buy gold when you are in Hong Kong.
• …
Do you understand that? Does that make sense.
Linda  answered when completing the application.
 ‘It’s a no brainer’ & ‘We are on the same page’.

We also discussed with Linda that we had been invited to a Tapas cooking class by a global fund manager.
The analogy was simple. The starter or the introduction  was ‘Who cooked or prepared the tapas better?’ –Phillip the fund manager or Greg & Jamie who are the chefs.
You are right.
So we demonstrated to Linda one component & a percentage of her asset allocation. I.e. her cash component & would she do better by using fixed term deposits only as the retirees & the SMSF trustees are generally doing?
You are right & Phillip presented this graph for ‘his’ fund to ‘out perform’ a TD only strategy by 5,500 over a 12 year period & starting with 10,000.
We could make this analogy over any component of her portfolio. Who is better to maximise her assets, Linda or the fund managers.
Yes they charge a fee which is all explained but the biggest fee is the difference between what Linda might achieve & what ‘Philip’ might achieve.

If you are similar to Linda then you might look at a similar solution to her problem.
You are welcome to call us on 07 3848 1088 or email or visit our websites.
You might also email  us for the Tapas recipes. With WOW telling us its nearly Christmas & nearly then the end of the year lets maximise 2012 today.

John McAuliffe