G'day all, I have been reading thru these SUPERANNUATION posts for quite a while now and I think I might try running my own super. I am with Cbus since the 1980's and now I want to divert some of those funds to PM's and my choice of other assets. I am leaning to use Esuper. Question? can I partially rollover a percentage of Cbus into eSuper (say $50k) until I get the confindence of running the SMSF and fully rollover the lot? Or am I better off setting up the eSUPER and plow all my Salary Sacrifice contribution into it rather than Cbus? My Salary Sacrifice is double than what my employer puts in. Any comments? Bad Idea? anything just to start me off in SMSF. Cheers, LD
Yes, you can do partial roll overs into esuper. I do it all the time (though not from Cbus). Having never been a member of Cbus, a quick perousal of their web site makes it obvious it is run to feed the gravy train union boys and their band of merry men. Typical of their style, their is no mention or downloadable form available without having to call them and beg for one - probably after listening to their spin about why you should not roll money out of their fund. This observation alone would ring alarm bells for me, and it would be a full rollover as fast as I possibly could.
Just remember, if you split your super into 2, you'll have extra management/account keeping fees. You'll have to weigh up if the added choice/flexibility is worth it.
Thanks. I'll start the eSuper and once I get the feel for the running of it, I'll choose where I park the lot. This is going to be exciting. Cbus! your days are numbered.
Dear Lord....if you are thinking about moving to SMSF do it for the right reasons.Moving part of your fund into PM suggests you are keen to take advantage of the low silver price which may seem smart at the moment. There are many here on this forum that went balls deep with SMSF investments in PM some 14 months back with E Super . I personally would never use E Super as you have no control over fees long term.
Can you please clarify Kawa? What am I in for if I do that? I was thinking 5 to 10% of the Cbus into PM. Then 25% later on into my choice of ASX products and then the rest when I am confident enough. You see, this started because I am so concerned that the Super returns pull back 20% or more just like in 2009. Most of my Cbus is alloted to International and conservative. International is going good at the moment but what if 2009 comes back for another go. I just don't know which asset to switch to with the Cbus choices. Thank you for the feedback.
Also don't forget any income protection and life cover you may have through CBus. You'll have to set these up externally outside of SMSF (afaik).
Personally, I would get as much as possible out of industry/government superannuation funds and into a SMSF, as soon as possible. http://www.abc.net.au/news/2013-07-07/super-fund-urges-governments-to-tap-into-its-billions/4804092
I can't think of any Australian syndicates led by groups starting with the letter M or L that would stoop to doing such a thing.
Damn! This is one of the ways the Government can raid the piggy bank. Divert to infrastructure. IFM owning the NBN? very risky.
Note sure how much you have for the SMSF.However IMO if its less than 250K you maybe better where you are. Forget E Super.
Many of my clients ask abt partial rollovers however I donot see the benefit. Go to the ATO website and download the 'request to rollover whole balance of superannuation fund' fill it out and attach a cover letter titled 'partial rollover', and the industry fund will roll it over. Need more help pm me.
Agreed. If you're going to dip your toes in SMSF, you may as well go for swim. Who really wants to get hit with fees twice for having an account with a retail super fund and the maintainence required for a SMSF.
Ha, anyone considering SMSF v Industry fund should read this. Essence of SMSF is control, look at many industry funds between 2008-2012 and they made zilch over that period.....thats why people want 'control'. I can tell you more of my clients are between 25-35.....young tackers just want to control their own money and anyone who has worked in investment management will understand the investment classes the industry funds are investing in including infrastuce funds overseas and hedge funds, sometimes with a lack of due diligence....
That is the bull$hit that the industry and retail funds like to tell you. The reality is you need about $70,000. You need to purchase BGL software and do as much of the data entry yourself. Find an accountant and an independent auditor who will use the BGL software for your accounts & audit. Next find a solicitor who deals with superannuation Like Dan Butler in Melbourne or contact the National Accountants Association for the name of a solicitor. I would not use an accountant to set up your super trust deed I started our SMSF with just $6,000 and then once I felt confident had the wife roll most of her super out of her industry fund. They screamed and carried on and threatened her. That was well over 20 years ago. Result kind regards non recourse
Good on you non recourse, I can tell you admin fees have decreased significantly over the last 10 years in particular, the corporates are in saturating the market, where independent SMSF specialists like my firm need to fight, and I think we will win. There is room, as an FYI my firm charges $89 a month $1080 per annum.
