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Superannuation -- how to preserve your dollars at time of crisis

It seems that you have a very good experience. Was this financial advisor from the Superannuation company? Perhaps, you can give us some idea how to choose a good reliable financial advisor? Any criteria to be fulfilled before you chose this particular financial advisor? This will be very helpful for everyone. Many thanks.

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I used https://ifs.net.au/ , Industry financial services. They give financial advice to most of the industry funds, some funds employ their own advisors. The service was not cheap, but it was tax deductible as an expense incurred in my superannuation.

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Which has been my experience.

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An article regarding super at the present time.

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Like AMP, some banks, and some others? :frowning:

For most people it pays to have an advisor, and requires due diligence selecting one including how they are paid, how well they listen to what you want from them and your risk profile, and their mastery and track records. Their independence matters. Fees for service may not always look reasonable, but commissions taint advice and historically insidious trailing commissions have usually been for nothing except their next new Benz.

A few years ago I had access to State Super advisors and took up the offer. I found it to be less helpful than I hoped for. Most of their advice was ‘the obvious’ and relatively conservative even though I expressed a desire to be moderately aggressive. Their service seemed to be targeted to the less financially savvy and that is OK and not necessarily bad, just my personal observation and was not appropriate for me. It was free via my super fund and worth every cent, but the same meetings might have been invaluable to others.

Back a few years,

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Fully agree, the Federal government’s policy of letting people access their super during the Covid crisis, is commendable. BUT, most people are wasting it on share market trading, paying off debt and consumer spending, your money is safer, more tax effective, a future asset in a super fund no matter what the present balance total is.

Paying off debt now can be more cost effective depending on the balance, and the interest rate the debt has. If the payer is able to resist further debt or the high interest rates attached to some debts the value can be great both for their wealth and health now and also for their more future financial needs.

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WRAPs are a mixed blessing. mainly because you can’t directly manage them yourself in Australia; ie, you have to use a Financial Planner, who charge for doing everything, even simple things like switching.

I think this is something Choice need to do something about.

We all do online financial transaction ourselves, so having to pay a FP to do something we are all capable of doing ourselves is a nonsense.

I think it is bordering on fraudulent for the big institutions, to insist that you employ a 3rd party FP to manage one of their WRAP products. Imagine car manufacturers being able to insist that you must employ a mechanical engineer to explain how to operate their vehicles, and to operate the vehicle for you. This cosy relationship between banks and FPs is rip off.

A better role for FPs is educating the population, ie, bringing the nations financial literacy up to scratch. Then those who wish can still employ them to manage their finances, but on the basis that the client is well informed, and knows what the FP is doing for them,can ask well informed questions, etc, or conversely the population can manage their own finances.

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There is an article in YourLifeChoices that may be worth a read. It outlines how the two possible (now 1 possible) withdrawal from Super may have a later much more severe impact on future retirees incomes when that day comes around for them. I thought about where to place this post, as it is a lot to do with the current COVID issues but this may just be one crisis at the start of many (or it may not).

https://www.yourlifechoices.com.au/finance/superannuation/scheme-set-to-destroy-retirement-dreams

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I agree. Withdrawing from superannuation is only the last resort. I did not want to withdraw my superannuation, either. I did it because I was not aware of the conversion to CASH OPTION at the time when the market collapsed. If the superannuation company had included this information during the withdrawal process, I would have left my money in the CASH OPTION until the market is stabilised.

So, please spread the word about this CASH OPTION in superannuation investment. It is unfortunate the superannuation companies did not include this in their general advice to their customers when they became panicky about their investment and wanted to withdraw their fund.

If withdrawing Super was not an option what would the population do, how would they be affected?

Am asking as I think public pressure would lead to an better government response. This option is a gov’t cop out and we are letting them get away with it.

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