What’s the Catch?

Hi Scott,

Long time reader, first time writer! After comparing super funds I was contacted by Sue from (FINANCIAL PLANNING FIRM’S NAME DELETED BY BAREFOOT’S LAWYERS) and after answering a lot of questions they’ve suggested I move my $70k Rest super (growth index) to an AMP super where they say they can manage it and improve my return from 9% (500k retirement) to approx 15% (1M+ retirement) due to the larger variety of investing options. The only catch is a one off transfer fee of $3,300 and I’m certain they mentioned another fee of about 1.65% which I believe was recurring. What do you think? 

Barry

Barry,

No. No. No.

Barry, just … no.

We are not doing this. Not on my watch.  You haven’t been reading me for this many years to get screwed by some cocker spaniel cold caller.

They are lying to you.

The catch isn’t just the $3,300 one off fee. That’s gerbil feed in the scheme of things. 

The real snatch is that they are TRIPLING your annual fees. That will end up costing you hundreds of thousands of dollars over your working life.

From your super account to Sue’s savings account.

Barry, stick with your low cost industry fund.

If you want to boost your returns, cut your fees. You could consider moving your current investment option to high growth index funds.

Don’t take the call, make the call: to your super fund.

Scott