Super Wrap

I am 56 and looking towards transition to retirement options. Did not like complexity of SMSF. Looked at CFS First Choice and First Wrap.
What are the competing products for these two. My needs are following:

1. I am looking to hold my super/pension accounts with investments in managed fund and shares.
2. I do not want any advice
3. I want to control when to go in and out of asset classes
4. I want simple funds - true to label
5. I do not want too many choices
6. I want reputable provider

 

Hi Dissed,

Good competing products for you to compare would be Asgard ewrap, Macquarie wrap or BT wrap. All of which may or may not be suitable for your circumstances and provision of these names should not be taken as advice. Different products suit different people. Note like First wrap none of these products are designed to be used without an adviser regardless or not whether you want help making the underlying investment decisions or not.

By asking questions on this forum I'll respectfully suggest you do want advice. It may be that you don't want to pay for advice that you don't value. Be carefull however as TTR is complex, these products are complex and I am yet to meet a client over 55 I couldn't add more value than I charged for the advice. Unless you are a professional superannuation expert I'd suggest at least a sit down with someone who has significant experience with these matters.

Insist on a guarantee of value or outcome before you commit to paying anything. Many good advisers will be confident enough to take you on on that basis. Many professional advisers have access to products at cheaper rates (up to 50% off standard fees) than you can get directly so can save you significant amount of money if they rebate this saving back to you. That will help you pay for good advice rather than rely on well intentioned but possibly not fully informed opinions off the internet.

Using an adviser will also protect you from the many traps and pitfalls with your strategy and potentially to some extent shift the liability as well for for poor investment choices.

Either way good luck with your Pre-retirement planning.

Brisbane Financial Planners | Financial Advice | Financial Advisor

 

Good advice

Hi Dolfinwise

The points you make are valid and I also have to take into account pathetic level of advice provided by the two advisers I have dealt so far. Twice burnt is enough, hence use of this forum. Trust but verify. At 55, chance of recovery from stupid advice is small. I have now learnt that I am better off educating myself and have found this forum and contributors like yourself very helpful.

 

Hello Dissed,

There are two other competing products which wouldn't require you to have a financial adviser.

These are

OneAnswer Personal Super by OnePath (ANZ Bank) Superannuation - OneAnswer Personal Super | OnePath

Perpatual WealthFocus Super Plan Superannuation | Super funds & DIY super | Perpetual

 

That is a great help. I will go and research these two.

 

Dissed, please re consider the SMSF. All financial planners whether they are from the bank or so called independent use platforms like CFS, Macquarie, MLC, BT, AXA and soo on.. There are multiple layering of fees in these platforms from the managed funds you invest into, the administration fee for the wrap account and also the adviser service fee.

I am not sure where you are located but if you can find someone who can perform all the duties for the accounting/auditing and investments, the process is seemless. Our SMSF clients do not need to do anything, we completed all the accounting requirements/auditing and guide them with the investment strategy.. Certainly no managed funds and deal with direct shares, cash, term deposit and Gold/Silver Bullion.

The cost on running your super/pension can be substantially less versus the platforms so I would highly recommend you reconsider. In addition you as trustee have the power for death benefits, reversionary beneficiary benefits and this is important to ensure your assets maintain in the 0% pension tax enviornment. Too many cases I have seen a partner pass away, the surviving spouse inherit the money as it is released from the super fund. That capital is then invested in the name of surviving spouse and all the income generated is subject to the marginal tax rate - i.e. more than $30,000 income taxed at 31.5% versus the pension 0% [a big difference].

Get the structure not only right for today, but also cater for the events in the future.

As an ex Westpac planner and working with other so independent groups, the industry in my view is a joke and driven by products such as CFS, MLC, BT etc.

Hope this helps.

 

Thanks for this, I had not thought about the scenario when one of us dies and effect it will have on the survivor, this is a great point. I am assuming that in SMSF, the trustee can keep the estate money in pension space and not pay any tax.

 

Basically when you have your money in a Colonial platform, or MLC, BT etc, they are the trustees and ultimately have discretion as to how benefits can be paid. By having a SMSF, you are the trustee and have the control. You still complete the neccessary paperwork for binding nominations and reversionary beneficiaries but the most important thing here is that you have 100% control over your money now and if an event occurs how you would like to distribute. Yes retaining your member account balance in a pension phase is extremely important for tax planning in the future.

SMSF is the fatest growing sector for superannuation. Most SMSF owners outsource their requirements to professionals and I understand that you may not want the responsibilities but pay for a good accountant and financial adviser to oversee this. Just please do not see a financial planner that will put you into a CFS platform (Investment) service owned by the SMSF as again the fees are substantial.

Also, ensure you estate planning requirements are up to date. A Will, PoA is a must and in addition, think of a testementary trust for your children (if you have any), your hard earned assets will be kept within the family lines and not subject to any divorces for your children and they lose half the inheritance.

I say this to all my clients, get the structure right for today, tommorrow and in the future (inheritance to children). Very important.

Will be attending a meeting now but will jump online tonight if you need any more clarification.

 

Thanks, yes I have a current will and Enduring PoA. Will do some research on the testementary trust - all these are very helpful.