The great super rip-off

Yippe-Ki-Ya said:
Why do you think these barstads are so keen to have the government swipe 12% (as apposed to 9%) of every pay packet??
So these barstads can skim off many billions of dollars more in fees!
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For anyone with a SMSF, that means the government is forcing, yes forcing you to pay less tax by putting more of your pay packet into your super fund. :P

I went through my parents' super fund statements with them last year and like someone above, they would have been better off just having the whole lot in cash sitting in a high interest savings account or term deposit.
 
Big A.D. said:
Yippe-Ki-Ya said:
Why do you think these barstads are so keen to have the government swipe 12% (as apposed to 9%) of every pay packet??
So these barstads can skim off many billions of dollars more in fees!
Click to expand...

For anyone with a SMSF, that means the government is forcing, yes forcing you to pay less tax by putting more of your pay packet into your super fund. :P

I went through my parents' super fund statements with them last year and like someone above, they would have been better off just having the whole lot in cash sitting in a high interest savings account or term deposit.
Click to expand...

Ultimately super is just another tax...
It's not your money and the way things are going i dont believe it ever will be. I predict the government will still swipe everything in super (including SMSF) with new draconian regulations which will take away all control and force you to invest in their lamebrained projects...

In return the government will guarentee you a certain level of income, i.e. pension mkII ...
Mark my words - you cant trust this government as far as you can throw 'em!
 
Yippe-Ki-Ya said:
Big A.D. said:
Yippe-Ki-Ya said:
Why do you think these barstads are so keen to have the government swipe 12% (as apposed to 9%) of every pay packet??
So these barstads can skim off many billions of dollars more in fees!
Click to expand...

For anyone with a SMSF, that means the government is forcing, yes forcing you to pay less tax by putting more of your pay packet into your super fund. :P

I went through my parents' super fund statements with them last year and like someone above, they would have been better off just having the whole lot in cash sitting in a high interest savings account or term deposit.
Click to expand...

Ultimately super is just another tax...
It's not your money and the way things are going i dont believe it ever will be. I predict the government will still swipe everything in super (including SMSF) with new draconian regulations which will take away all control and force you to invest in their lamebrained projects...

In return the government will guarentee you a certain level of income, i.e. pension mkII ... Mark my words - you cant trust this government as far as you can throw 'em!
Click to expand...
+1
 
It's not just that it's another scam.

In my opinion, it's another thing that takes responsibility away from the individual. More moral hazard. "Don't worry about saving any money we've got that under control." The nanny state won't end well, it never does. People would be well advised to observe what happened when the socialist states of the 20th century ran out of money.

That's what we basically have today, almost a fully socialist state promising to look after us all, without the capability to do so but blasting out the propaganda on all levels that it does have the capability to do so, ensuring that most people still have enough faith in it and don't question that it's taking vast amounts of money from us through tax from which we see little benefit either on a personal or societal level.

When the economy turns many people will learn to their regret that the govt does not have the power they thought it did. And they may get upset.
 
Yippe-Ki-Ya said:
zurnaik said:
Ok I know I might be stating the obvious here but I think that "Administration fees" for super funds are a huge ripoff. It seems that the 'administration fee' (ie the cream that the super fund company takes off the top) is on average 2 - 5x as much as the underlying investment funds 'investment fees.' It seems to me that it is the people DOING the actual hard work of managing the money in the investment fund like doing research, complying with ASIC, writing up fancy prospectus only need 0.25% to 1% to do this important task while the super fund takes 1-2% off the top for answering phone calls, writing letters, sending emails and pushing a button to create the automated tax return.
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Mate - you nailed it! Why do you think these barstads are so keen to have the government swipe 12% (as apposed to 9%) of every pay packet??
So these barstads can skim off many billions of dollars more in fees!

Its one massive ripoff!

Super is a scam - the best way to try to circumvent the government theft is to set up a SMSF...
No doubt the government will change the rules eventually to swipe the money in SMSF's as well! So dont get too excited...
but for now its by far the best option.

Just realise that most of us will probably never even catch a whiff of most of the money in our super... its a great big pot of money that our socialist bankrupt government cant wait to get its greedy paws on
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Holy crap I completly agree with YKY 100% - the end is near folks.
 
goldpelican said:
Just call it "<insert surname here> SUPERANNUATION FUND TRUSTEES"
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Hey GP, I'm pretty certain you can't have the word "trustee" in your company name. When I set mine up that's what I was told, anyway. I believe it's detailed on the asic site (www.asic.gov.au).

+37 (%) for getting out of the system & setting up a SMSF. And it's only been operating since December! Yeeeeeeeeeeeha.
 
I have nothing but admiration for those SS members who have the guts to set up a SMSF or at least changed to one of their choosing. One thing that does concern me for their sakes is having all your eggs in one basket. A case in point would be having all your super in gold and silver. When you get to the age when your body has enough and you get to pull the plug there will be no garantee that it would be the ideal time to do so.

One thing I would like you to think about is what other investments go well in bad economic times. Well I was told that in the great depression of 1929/39, the only business that flourished was the brewing and horse racing industries. No one was retrenched or put on reduced hours in these industries. These may well be ideal share investments to buy when all other shares would be in retreat in the event of another financial meltdown.

One thing to remember if you make the wrong call, down blame yourself, if TSHTF at least you throwing the SH.. . Financial Gurus are too clever by half when playing with other peoples money. If they are so smart, Why are they working?

People are inclined to forget that when super first became compulsory, the workers of Australia gave up a wage increase in lieu of a 3% super contribution. From that time on, more and more so called experts have got their nose in the trough. How many experts in these funds picked the downturn in 07 and 08?.

I believe that saving for your future is good providing you are the manager. Some people don't have the confidence to do so and I believe that a National Super Fund should be available to those who don't wish to manage their own. Contributions could be invested something like this.
National Home building 25%
National Rail and Roads 15%
Government Bonds 20%
Australian shares 15%
Members backed personal loans
security members contribution 10%
Gold and silver bullion 10%
Cash held in Banks etc 5%

I'm sure that someone could come up with a much better idea than this but IMHO it would be much better and safer than what exists today.

Anyway best of luck with your super fellow stackers.

Regards Errol43
 
errol43 said:
One thing that does concern me for their sakes is having all your eggs in one basket. A case in point would be having all your super in gold and silver. When you get to the age when your body has enough and you get to pull the plug there will be no garantee that it would be the ideal time to do so.
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Errol43, you are right, there is a good case for a diversified super strategy. However - & I hope these are not famous last words - I believe in the DYOR approach. I am over exposed in PMs, but not 100%. I monitor the Au/ Ag situation every day, keep up to date with traders who seem to know what they're doing (eg Turd Ferguson, Jim Sinclair, etc) & also spend some time on Zero Hedge & other blogs, going through the comments.

Using the same approach, I have little faith in anything from government (3.3% CPI - :lol:), brokers, or financial planners.

I bet there's just about noone with a retail super fund that follows their money as closely.

One of the nice things about PMDS unallocated is that I can switch to cash in an instant, if things look like they are going pear-shaped (whether I have the guts or intelligence is another question, but at least the choice is there).

Anyway, that's just the way I see things at the moment. It's a very fast ride & we all know there's crash waiting to happen just around one of those corners, but hopefully we can recognise it when it happens & jump off before too much damage is done. Put it another way - in 5 months I'm 37% up... even if I cash out completely right now, I'm 36.5% ahead of where I would have been sticking with my retail fund. And I believe (DYOR) there's still some time left in this run, & things can go quite a bit higher.
 
errol43 said:
I believe that saving for your future is good providing you are the manager. Some people don't have the confidence to do so and I believe that a National Super Fund should be available to those who don't wish to manage their own. Contributions could be invested something like this.

National Home building 25%
National Rail and Roads 15%
Government Bonds 20%
Australian shares 15%
Members backed personal loans
security members contribution 10%
Gold and silver bullion 10%
Cash held in Banks etc 5%

Regards Errol43
Click to expand...

That worked well in a stable world

Now just go

Cash held in Banks etc 5 %
Gold and silver bullion 65 %
Agricultural Land 30 %
 
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