It’s human nature to always seek value for money. If we’re paying for something we expect a return. Whether it be a service, a product or advice. It’s the same with our superannuation and insurance.
I’ve met with a large number of clients in recent times who have been less than satisfied with the performance of their superannuation, and more so with the fact that for the most part, the only communication they receive is a mass produced end of financial year statement.
You’re paying fees, you should be holding your super fund to account as in many cases you’re receiving very little in return.
Did you know that there is a requirement for advisers (like myself) to ask their clients to opt-in, or renew, their advice agreements every two years? So basically, at the very minimum, I need to meet with each and every client at least every two years and earn my stripes.
This provision doesn’t apply to many of the industry funds, so essentially they can “set and forget you” and earn their annual fees for very little in return. The government has just released a similar provision for personal insurance by way of a two-year claw back provision.
This means that if you cancel your insurance policy within 2 years, some of the commission is clawed back from the adviser. Yes, that’s right, I have to pay them back! As you can see, it’s very much in my best interest to give my clients the best possible advice and service I can. To look for good returns in their superannuation and maintain long term adviser-client relationships. Is this happening with your current superannuation provider?
Incidentally, 2 years is far too long between meetings in my opinion. All of my clients have an annual review automatically scheduled. I always encourage my clients to call, email or simply drop in to the office any time for a catch up.
So for those of you who have recently received your end of financial year super statement. Have another look at it. What are you paying? Are you getting good returns? Do you understand what insurance you have, if any?
Be aware of how your returns are represented. I’ve reviewed plenty of statements from numerous providers and one of the tricks of the trade is to show your balance at the beginning of the financial year and then at the end and represent the difference as a percentage increase.
Consider this example. You might have started with $20,000 and it’s now worth $30,000 and the statement displays an “increase” of 50%. But what about your contributions?
Your employer has contributed $9,000 as part of your salary so the real return is only $1,000 i.e. $30,000 – ($20,000 starting balance + $9,000 contributions) which is only 5%. Yes, I have actually seen this on some statements!
Spend the time and have a think about your superannuation and insurance. It’s important.
If your statement makes little sense to you (some are confusing), call or email me and I’ll be more than happy to look at it for you. No obligation, we can work through it together and decipher what it’s saying, all it will cost you is a bit of your time. Let's have that conversation.
Recent appointments with my clients, has provided this feedback.
"I used Andrew O’Brien from Hindsight Wealth to manage my personal finances, superannuation and insurances and was very impressed with the friendly, professional and quick service provided. So much so, I asked him to present to our staff at UTM Global Pty Ltd who have also engaged Andrew to grow their superfunds".
Regards, Eden Hodson
"I have had the pleasure of dealing with Hindsight Wealth regarding my superannuation recently. The knowledge their Financial Advisers have of the industry has provided me with the security that my super is more suitably invested for my circumstances. Dealing with them is always an enjoyable experience and I am confident we will continue to have a mutually beneficial relationship". Cheers, Lee.
My Detail. Andrew O'Brien. Financial Adviser. m. 0403 156 625. a. Suite 4, 30 Florence Street Newstead Q 4006. e. firstname.lastname@example.org or connect with me on LinkedIn.