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The first Balanced option available to all Australians with no administration or management fees
Stop Paying Unnecessary Super Fees - ING (No admin or management fees)
Lpandibabi on 06/08/2014 - 13:03
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I'll add that being "no fees" is just one factor to consider. The flip side of the coin will consider investment returns. Long term asset mix may be a more powerful driver of long-term performance (and volatility) compared to fees. I would consider whether ING's Balanced asset mix is suitable over my investment horizon.
As a case in point about asset classes: over the last 3 years to 30 June 2014, an investment in Australian Shares delivered about 9.95% pa whereas Cash returns delivered about 3.55% pa. Future returns do not necessarily reflect past performance, but there are plenty of academic studies that demonstrate that equities outperform cash over the long term.
Sources for historical investment performance:
Cash performance to 30 June 2014 (gross of tax and fees):
3.55% pa for UBS Australian Bank Bill Index
See benchmark return in the Vanguard Investor Cash Plus Fund
https://static.vgcontent.info/crp/intl/auw/docs/funds/factsheets/ret/vicpf.pdf?20140804|082400Australian Shares performance to 30 June 2014 (gross of tax and fees):
9.95% pa for S&P/ASX 300 Index
See benchmark return in the Vanguard Index Australian Shares Fund
https://static.vgcontent.info/crp/intl/auw/docs/funds/factsheets/ret/vicpf.pdf?20140804|082400Note that this post is not financial advice - it's just about things that I would consider.
I am seriously considering dropping my REST account and going for this. REST has fees. ING dosn't. I imagine they will probs perform the same.
So… REST vs. ING any thoughts?
i am actually thinking of doing the same myself
I don't know the ING product and I can't provide financial advice.
However, from a common sense perspective, if something looks too good to be true, it probably is.
A better question may be "what are my returns after fees?" rather than "what are the fees?". (Plus as lidker said, the question of fees is only one factor to consider. For example, as he described, you need to consider whether the types of investment used by the fund are appropriate for your personal needs.)
If it were me considering this product, I would be asking ING the obvious question: if ING has no fees, how can it pay its staff? (You can always contact ING or any other product provider for more information on its product.)
Are there hidden costs? Is the fund invested in other ING products, so that fees are paid indirectly from the underlying product rather than directly from the superannuation product? These fees should be disclosed in the Product Disclosure Statement: have you read it?
Are you paying for insurance premiums which are higher than other funds with similar cover, terms and conditions?
I can't say whether this product is good or not, or appropriate for you or not. You could get advice from a licensed financial adviser, or investigate it yourself. But you should always think about any financial decision and not just jump in based on advertising.
This was always available since ING super was introduced sometime ago, anything new ?