hello all,
I am looking for a superfund that would be good for my father.
It needs to be low risk and low fees. As he wont be adding any more to it.
The balance he has to put in is low $30K.
And he is at retiring age, so he will be taking money out of it every so often. Unfortunately he has to put it in a superfund, instead of an interest savings bank account due to his centerlink benefits.
Would anyone have any experience and recommendations on such a fund?
Good Super Fund for Low Balance That Wont Be Topped up. Low Fees?
PixelPaul on 19/08/2021 - 12:55
Comments
Can he not 'gift' it to you or someone else to manage…?
In turn, then having it where ever you find it best suited - e.g. bank account or the likes.
The trade-off (as you are trying to look at obviously) will be fee's v's any potential growth.Maybe look at an annuity if he has reached the preservation age and is permanently retiring from work.
It needs to be low risk and low fees. As he wont be adding any more to it.
Wherever you put it, select the low-risk investment option, such as "Cash". These options are less volatile (ie, more stable) and because they're less "actively managed", the fees are lower. This is separate to what they call the Administration Fee which is charged weekly, monthly or yearly. The admin fees are usually quite low and are often similar to those of a bank account.
The biggest super balance killer is usually insurance premiums. So depending on his age and whether he's still insurable (insurance tends to stop at around age 65), that's something to keep a lookout for. The premiums increase significantly as one gets older. Some funds have "default" cover so he may automatically get covered when he joins. If insurance is not required, then make sure a request is put in to cancel the cover.
I have heard QSuper is good for low balance accounts.
Not financial advice.
Starting point would be Hostplus and invest in Cash or Diversified Fixed Interest.
Annual fees would be $78 plus about 0.02% of 30k so in total less than $100. Real value will also depreciate due to inflation.
qsuper. Lifetime Sustain 0.47% total fees.
https://qsuper.qld.gov.au/investments/options/lifetime/susta…
You should also look at the transition to retirement and retirement income streams
Understand what you are talking about when you say "low fees".
If you simply want to put the money in cash (and earn literally zero interest), you'll be able to get out of this for around $50 - $100 a year.
If you want to have the money invested in any other way, you're going to be looking at another ~$150 a year depending on what you're investing in.
As ever, weigh up whether or not the above costs outweigh simply biting the bullet on the government pension.