This is quite the debate at the moment. The whole ‘lower fees’ is published at prime time on the television so I guess it must be true….right?
Sure, low fees do sound great but the strange thing is this, we seem to be willing to spend more money on a new smart phone, or pay that little bit extra for a brand name product, for what really? Quality right? If we believe by paying a little bit extra we will save more money in the long run, then why when it comes to our financial future do we seem to simply want to skim on the cost of the product to make more money. It just seems a little strange.
Now we are not here to say that industry super funds are not good, we are simply here to poke holes in the way you think.
The real question you may want ask is this, why don’t these adds that spend millions of dollars on advertising about low fees simply just show their returns on the TV? They show people walking up stairs or people in a cherry pickers going up (these seem to indicate growth) but they never show the actual returns? Past performance is no indication of future performance but I thought a fund that seems to promote happy people would come with impressing results. I can comfortably say I have never been proud of a cheap car I bought that didn’t work.
Do you know your returns? Do you really know them and do you know what the competition has done, compared to your fund? As it stands today, 9.5% of your hard working money is going into a fund that you may know nothing about. ‘John’, the guy at work seems to like it, so it must be good.
Why don’t you compare your fund? I bet you shop your car insurance around to try to save a few bucks. Why don’t you shop your super fund around to try to earn a few bucks?
Is it lack of knowledge? Is it the fact that you do not want to upset your boss because they picked your fund for you? What is it really?
The one thing you cannot get back is time. How long has your fund been under performing for? How long can you continue to let it under perform for?
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