Reinvestment of returned funds deducted from your super account.

I have recently been informed that my former financial advisors are prepared to refuned me $10,000 of  the $24,000 deducted from my super funds over a period of 15 years (fees for no service)

This money cannot be reinvested into my super fund although it was deducted from it!!!!!!!!

So I lose not only the accumulated interest over the period but also the superior (sometimes) return that my super fund can provide.

This should surely be corrected.

What should be done.

I understand that there are thousands of people. who like me have had their super funds ripped off by monthly deductions masquarading as financial advice fees !!!!!!!!!  (Re banking royal commision.)

7 comments

Government departments tend to be cautious when allowing a change to their rules as they don't want to create a legal precedent. Your case seems to be very straightforward as funds were taken from your super fund illegally and should be allowed to be reinstated. Also those who initially took the funds illegally should be made to compensate you for the loss of interest and this too should be allowed to be paid into your super fund. I can't see where any legal precedent could result in others rorting the system. Maybe a good place to start would be with your local federal Member

You cannot contribute to super if it is in pension phase. So you have basically two choices: spend it or save/invest it elsewhere.

Look at it as a windfall. You didn't have it. You didn't miss it or you would have done something about it 15 years ago or 10 years ago or five years ago. It is pretty churlish to complain about lost interest and investment gains now.

There is an age above which you cannot contribute to super - I think it's 72.

If you are younger than that you can't put it back into your pension mode super fund but there are other possible ways of getting it back into super.

If you are older than that you can't put it back into super.

In that case you might invest it in shares or an ETF (exchange traded fund) directly yourself. You can do that through an ordinary bank and the one-off fees aren't too bad generally.

As long as your total income is below about $32,000 (super drawdowns and fund earnings don't count  towards that) you won't pay tax anyway and you'll avoid the super fund fees so you might end up being ahead.

If you do that be sure to reclaim your franking credits - they don't always autofill.

 

The problem is adbob, that to take advantage of an independant investment into

a share fund or whatever,  you really need a lot more than a mere $24K (these days)

Whereas attached back to the much larger capital of my super fund would generate far more

earnngs.

Whilst on this subject of Fees for NO Advice:

Can anyone inform me if one can claim deducted fees back past 2013 when ASIC deemed them

to be illegal.  In other words can I claim the refund of fees back to say 2008

The period of deductions is from 2004 until July 2018.

I have spoken to the people at ASIC and AFCA and they say that they cannot give an

individual opinion on this. Rather they advise me to place the total claim for return of funds

into the hands AFCA which I would prefer not to do at this time as my finacial advisor does appear to be somewhat sympathetic and willing to negotiate!!

 

 

 

 

Go to your normal bank branch and tell them you have $24K that you'd like to invest in shares or an ETF. They'll tell you how it's done and how they can do it for you or how you can do it online yourself.

A typical ETF will give you (for a fee) a spread of shares - you can choose which type.

Or you can simply choose a few shares that you've heard of and buy them.

It can be fun tracking their progress online.

Of course it was investors like that (small holdings outside of super) who were going to be hit by Shorten's ridiculous franking credit proposals. Not the big fish - as he wanted us to believe.

You need to do some homework.

I do a lot of homework adbob,   iv'e got a large holding of EV battery minerals shares

right now (Li Co Ni Dys and SG)  and they are giving me a cold showere!!!!!!!!

What I meant by homework was: you need to decide which investments you fancy.

The ones you mention there were always going to be a gamble.

The main purpose in buying shares should be to enjoy dividends over the long term - not to gamble in the short term - nor to save the planet (by lining someone else's pockets).

Normally, to hedge rather than gamble, you want a spread and you want to spread the time over which you get in.

OTOH if you want to gamble go for it - it's your money - it's your life and (as the economist (Keynes) famously observed):"In the long run we are all dead."

Thanks for the advice adbob,

But my original post was concerning the rip offs by financial leaches which very many people who rolled over the super to an income generating one have suffered.

I was rolled over    (in more ways than one!!!!) by a private accounting/finanacial advisory bunch

which are not covered by the ASIC war horses on the big4 plus AMP.

7 comments



To make a comment, please register or login

Preview your comment