Getting real super advice

You don’t have to get advice when choosing super funds, or when considering making extra super contributions, or for any other financial matters. If you do want advice however, do some research on reputable advisers.

Advisers deserve to be paid for providing advice but you have to decide how you want them to be paid, and whether you want to pay for independent advice or biased advice.

A planner who receives commissions, rather than a fixed fee, for providing advice is representing the super fund as well as advising you. Some advisers offer many versions of retail funds and give you no other fund options.

Did you know that retail super funds include a fee that is effectively a trailing commission that’s paid to your adviser for ongoing advice he provides, for as long as you’re in the fund. If you join a retail fund make sure you get your money’s worth and avail yourself of this ongoing advice.

Note: Your existing super fund may provide a financial planning service for a cost-effective price but be sure that they can provide advice on all types of super funds and not just products relating to your existing fund.

Always choose a licensed adviser when seeking investment advice. The Australian Securities and Investments Commission (ASIC) and the Financial Planning Association has produced a guide on how to choose a financial adviser called, Getting advuce. You can obtain a free copy by phoning 1300 300 630, or downloading a copy (www.fido.gov.au).

Tip: If you’re seeking tax advice, and many superannuation strategies involve tax advice, then an accountant who is a registered tax agent is a more appropriate expert than an investment adviser.

See also

• Does Trish Power offer personal financial planning advice?
• Help! How can we find independent investment advice?
• Six dangers when seeking super fund advice
• Financial advice for less than $500? You’re dreaming.
• THE SOAPBOX: Not the time to quibble (financial advice)

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