The Feels Nobody Checks

When it comes to your superannuation and investments, regularly reviewing the fees you are paying can make a significant difference over time. Many people don’t realise how much fees can add up because they often appear as small percentages. For example, we worked with a client who wanted a second opinion on their existing financial arrangements. After reviewing their superannuation, they had around $1.1 million invested in a retail super fund with an investment fee of 0.83%. While that percentage may seem low, it worked out to around $9,500 per year in investment fees alone. Once other costs, including performance fees, transaction costs, and additional charges, were considered, the total cost was much higher. By moving to a lower-cost fund, they were able to reduce their superannuation fees from around $16,500 per year to approximately $6,000 per year. The review also identified further savings within their personal investment portfolio and investment bond. Their existing investment platforms had ongoing fees of around $10,500 per year, which were reduced to approximately $100 per year by restructuring the investments and moving to a more cost-effective approach. The key takeaway is that even small percentages can have a large impact when they are applied to significant investment balances. Your superannuation and investments are likely to be held for many years, meaning fees can continue to compound over time. It is important to regularly review what you own, what you are paying, and whether there are more suitable alternatives available. Looking beyond advertised products and understanding the actual costs involved can help ensure your investments are working as efficiently as possible for your future. General advice only. Amy Lehmann is an Authorised Representative (No. 1292710) of Consortium Private Wealth Pty Ltd (AFS Licence 495401).

Disclaimer || The information provided in this post is general in nature only and does not constitute personal financial advice. Amy Lehmann is an Authorised Representative(No. 1292710) of AFSL 495401.