esuperfund

Esuprefund

Looks very interesting.

No set up fee, annaul fee of $599 (includes audit). Macq CMT with rate of 5.7%, however shares must be traded via comsec (which with them being cheap isnt much of an issue).

Everything else is conducted by them. Makes a SMSF alot more attractive.

What are peoples opinions?

 

Hi DaveA,

Call me sceptic but when someone says that ASIC is wrong I run the other direction.

ESUPERFUND

vs

DIY super administering your fund - Australian Securities and Investments Commission

I think I'll believe the Corporate Regulator and not a product seller.

Cheers,

Dan

PS The above information is general information and not a product recommendation. Speak to your FPA registered Financial Planner, Accountant or Tax Adviser before making an investment decision.

 

As far as I can tell, ASIC are merely making the suggestion that unless you have $200k in super it MAY (and it does say may) be better to go with a standard fund.
If for $599 they are covering all your compliance and tax work, that sounds like a bargain to me.
I would suggest the vast majority of accountants treat SMSF as money for jam, they whack a graduate (if you are lucky) on your audit and tax and charge you a nice margin for the pleasure. The audit is basically treated as a rubber stamp. If they dont do this, they probably outsource it to someone who does anyway!
If someone is already getting charged $599 by their retail super fund, and they think they can add value through their own administration, that sounds like a great way to do it!

 

I do generally agree but they say usually fees are 2k, which brings the 200k in to play.

If its only $599, then it brings it down to 60k. But what super funds do you find with a 1% fee?

 

i must say though the value comment is very true.

If you only plan to open a super fund to then invest in managed funds from a cfs platform, then there is no point (as youll be chanrged that admin fee + the % of your portfolio).

It would be good to trade shares with though.

 

Hi Dave,

Basically any super fund that isn't a retail superannuation fund, ie, medium to large corporate superannuation funds (eg, any employer with 300 or more employees plus you get cheaper insurance which a SMSF won't), industry superannuation funds (eg, AustralianSuper) and my favourite because no one ever talks about them is public offer funds (eg, First State Super which is the NSW state government super fund Fees).

Cheers,

Dan

PS This is general information. Before making an investment decision speak to your FPA registered Financial Planner, Accountant or Tax Adviser.

 

agriculture indices

thanks for all your replies. Was going to set a portion of my super into esuperfund but now am not sure if its worth the $599 fee. was planning to invest in some sugar or gold. anyone know if thats possible and whats teh best way to invest in commodity index. check this article on sugar - reckon the entire agriculture sector is going to go through what metals went through. How To Invest In Sugar | The Inflationist - Making Money in Stocks, Bonds, Forex, Commodities, Agriculture
would appreciate some feedback on the most cost effective way to invest in agriculture via esuper.

 

Hi Uzumaki,

Pardon the pun, but are you looking for a sweet deal?

Cheers,

Dan

 

I hear sugar stocks are taking a caning of late.


Anyhow, how does this make the eSuper $599 not worth it ?

 

Sweet Sugar

yes indeed. but sugar prices are still pretty high based on the article. ill wait for The Inflationist - Making Money in Stocks, Forex, Bonds, Commodities to pull the trigger, then ill get in BELOW their entry price. the problem is they have an expiry hence highly manipulated expiry time. it could swing any way. its like crude oil, i had a long at $39 knowing for a fact that its undervalued. but it went down on expiry date just to take out people like myself before going crazy. i just need something that does NOT expire. an index. anyone know how via comsec or ig etc?

 

Like eSuperfund

I've been with eSuperfund for almost a year and have been through one yearly audit process last year, I've found them to be excellent and the whole process very easy.

I only have about $60K in the fund, and after being in AMP for over 10 years (half that time in conservative option) and calculating they made me 0.00% over that time, figured even if I stick the money into a term deposit I'll still be way ahead. Even in the boom times the best they did was 12%, then in other good years I got 2 or 3%, several other years were losses.

I can't say enough how useless AMP is.

I'm very happy to have found eSuperfund, I'm on track to do better in my first year than AMP ever did for me in 10 years.

 

Hi

I thought this sounded good when I looked at it but have since spoken to a couple of other investors (AIA members) who have used esuperfund and they found the level of service was non-existent. Maybe you get what you pay for.

From my experience no one can do an audit properly for $599 let alone all the rest. (When I did my accounts a totally independent auditor cost upwards of $700.)

 

If you aren’t receiving ongoing financial advice from these services, you shouldn’t be paying any fees. Why don’t you save yourself the $599 by nominating a broker who specialises in financial cash-back services- they refund back the trailing fees and commissions you pay and should recommend a true fee for service financial advisor.

 

Hi e.stanton

I think you misunderstand - the $599 is to prepare and audit the accounts for a SMSF. It is not a commission of any kind - rather a fee for a service. All SMSF have to prepare accounts (usually but not always done by an accountant) and have an independent audit (compulsory).

 

Hi,
yes sorry i was aware of that, i guess more tryng to prove a point for the others to see. I do understand the concept.
Its just really interesting to see that especially at this time, with new ground being made with regard to super, that people are still talking about paying fees and commissions (i guess soon to be a thing of the past for those who choose to have it so), as well as how much they are paying.
I understand the reservations that would be had when looking at eliminating fees and commissions, however, their lack of existance is soon to become standard as of 2012
And from past experience, it is near impossible to find a true fee for service broker, despite it being a task i thought would be easy.
So with regard to saving $599, i guess i was more leaning towards looking down avenues that would allow you to save money on on ongoing fees, and use these savings to pay for other upkeep. I guess another way of looking at things!

 

The only way to better this is to invest in a Separately Managed Account (SMA) with your super fund. There are 2 main advantages going this way:
1. Gives you access to a model share portfolio; and
2. Brokerage is much lower at 5 basis points vs. $20 per trade with an online broker. So on $500 you pay 25 cents with a SMA where you will pay $60 if you buy 3 shares with an online broker.

 

Over esuperfund

I am leaving esuperfund. Their service is shocking. You have to leave messages that never get returned. They responded rarely despite several physical letters or emails. They refused to complete required paperwork when I needed to transfer some funds. I had to write to the ATO to get action. They are cheap but you get no service.
Pay a bit more and at least get your calls answered!

 

Interesting that you say this. I am in the process of joining esuperfund and have been most impressed with their prompt responses to my questions either by phone or email. They have been most helpfull.