One way to ruin your retirement

High fees are costing many Australians dearly when it comes to funding their retirement.

Are high fees going to ruin your retirement?

I’ve been writing for years about making the most of superannuation, yet I still see people every week who are not making the most of their super. In fact, I know some people will have stopped reading the moment they read the word ‘superannuation’.

Last week, APRA (the Australian Prudential Regulation Authority) released a report showing that one-in-five superannuation investment options is generating returns well below their benchmarks.

The APRA analysis covered 163 products, representing $292 billion worth of members’ money.

It found that while one-in-five investment options with an eight-year performance history had “significantly” underperformed benchmarks, about 44% were generating returns below expectations.

That’s almost half the people in these products stuck in investment options that are not performing.

And here’s potentially the most significant finding: the data found that investment options with high fees tend to have lower levels of member benefits.

Australians are slugged billions of dollars a year in higher-than-necessary fees on their super and if you’re not 100% confident about the fees you’re paying, then there’s a pretty high likelihood you’re paying too much in fees, leading to underperformance when it comes to returns.

Some people are also paying huge fees for financial advice that is recommending they invest in high-fee products. A double whammy!

In my experience, many people are unaware of the fees they are paying on their retirement savings.

Yep, sounds boring doesn’t it? So, what does that mean in the real world? It could mean a significant amount of money you will not have available to you in retirement. And it could be hundreds of thousands of dollars. It doesn’t have to be this way!

We have an enormous amount of control over our super. We can CHOOSE the super fund our retirement savings are held in, we can CHOOSE the investment option or options our money is invested in, and via these CHOICES, we can have a big say in what fees we pay and what investment returns will look like.

The end result is that if you get these things right, you will have more CHOICES later in life. After all, money doesn’t buy stuff, it buys choices.

Compulsory super contributions are about to rise to 11% of our income. That’s a big chunk of our pay that gets locked away for us until we are allowed to access it. Imagine if that money got paid to your bank account and was then withdrawn by your super fund… you’d want to know a lot more! But super happens behind the scenes and for most Australians it is out of sight and out of mind. Something to worry about later.

Yet, every day that you are potentially paying higher fees and languishing in underperforming investment options is robbing you of your future lifestyle when it comes time to retirement.

So, be mindful of advice you receive from others. Plenty of people are out there recommending you pay higher fees to supposedly get better returns. History shows that paying more in fees is highly unlikely to produce better results. In fact, it’s usually the opposite, which is backed up by APRA’s findings.

I’m a massive believer in ‘what’s simple is what works’. If you like the sound of that, then let’s have a chat to see what difference independent financial advice can have in improving the likelihood of you having the retirement you deserve.

Cheers, Daniel

If you’d like to find out more about how INDEPENDENT financial advice could help you manage cash flow, pay off the mortgage faster, get the most out of super and invest wisely, then get in touch on 0411 484 464 or head to wealthtrain.com.au. This advice may not be suitable to you because it contains general advice which does not take into consideration any of your personal circumstances. All strategies and information provided are general advice only.

Just listed on the market so don’t miss out on the opportunity here.

This neat clad home set on a huge 1,492 m2 block and is waiting for new Owners to renovate and make it theirs or for developers to take advantage of the land size (subject to Council approval).

A large four car garage (6m x 12m) would be ideal for the hobbyist or for the car enthusiast alike. The location is close to Primary Schools and the Alpine Shopping Centre is an easy walk if you need to grab some milk, take away food or a haircut.

bedrooms, this home is well presented both inside and outside with the living areas featuring a separate loungeroom with gas heating, a bright and an airy family room with wall to wall built in storage and reverse cycle air-conditioning.

Other features include a double garage and workshop, garden shed and a rainwater tank. $560,000

THE PERFECT RESTAURANT OR CAFÉ VENUE –UPSTAIRS/DOWNSTAIRS

CENTRAL THREE BEDROOM HOME WITH FOUR CAR GARAGE / WORKSHOP

A popular precinct on Summer Street surrounded by a variety of businesses and a new hotel complex to commence construction soon nearby.

The main area downstairs is complimented by further space on the first floor.

Rear laneway access for secure on-site parking for staff. Total floor area (ground floor & first floor) approx. 200 m2.

RENT: $57,500 P.A. + GST & OUTGOINGS

Refurbished with new carpets and freshly painted throughout, this home is located in a quiet small street within easy walking distance to the new Department of Primary Industries complex and very handy to the CBD of Orange too. The living areas include a separate lounge room and an open plan kitchen/dining room both with electric heating, as well as a North facing sunroom with separate outside access. There are three good sized bedrooms and all have built-in wardrobes.

RENT: $500 PER WEEK

• Three bedrooms all with built in robes, master with en-suite

• Separate Lounge room and combined north facing kitchen and dining

• Central three way bathroom with bath and shower

• Attached double garage and recently installed 5kw solar panels

• Fully landscaped yard on a 866sqm (approx) block

• Rear yard backs onto a reserve which allows rear yard access

• Various sheds in back yard suitable for workshop etc

• Solid honest home in great location

• Large block approximately 866sqm

• Landscaped yard with plenty of sheds

• Orange High school zone

• Cul-de-sac location, no through traffic

• 5kw of solar panels to help with energy costs

A REAL LORDS PLACE LOVELY!

If you want central, and you want classy, then this could be the property you are looking for. This lovely property has been well maintained by the owner and presents beautifully. Currently run as an Airbnb, it is showing a good return and would also be a great property for you to call home. From the great facade to the polished floorboards and period features there is a lot to love about this home.

• Three bedrooms, good size living area, light and airy

• Great street appeal, established gardens front and rear

• Combined kitchen and dining, classy bathroom and ducted heating

• All furniture and appliances can be purchased with the property

CONTACT Chris Tyack 0438 258 590

Unique Spacious Cottage In Westlea

This is a regretful sale for the owners of this lovely three bedroom cottage, they have put so much into the property and have plans drawn up for an extension and then had to move to another city. For sale is one of the original Westlea properties on a huge 904sqm (approx.) block of land, close to the town centre, Duntryleague and in the popular Orange High school zone.

• 3 Large bedrooms, large lounge/family room, dining room, raised deck at rear of house

• Ducted gas heating throughout, 6.25KW (16 Panels) solar panels, A/C split system

• New Colorbond gutters and fascia’s, major electrical and plumbing upgrade

• Landscaped gardens, dual access to the block, great for caravan or trailers

• Pizza oven, fruit trees including fig and cider apple, plenty of room for projects

SOUGHT AFTER EAST ORANGE!

This lovely property has the classic late Federation/Inter-war facade and features 3 bedrooms all with pressed metal ceilings along with the hallway and formal lounge room. It has just had a full re-paint internally with light modern colours and looks nice and fresh. You will love the eat in kitchen and the rear extension featuring the second living area, as well as the federation style bathroom with a great claw foot bath plus shower.

Only 800m to the CBD and surrounded by similar lovely homes on an approx 613sqm block, don’t miss your opportunity on this one!

• 3 bedrooms, master with walk in robe and ensuite, others with built in robes

• All bedrooms have external remote controlled Block out shutters

• Large open plan kitchen/dining/family room which opens onto outdoor alfresco

• Well designed kitchen with dishwasher, corner pantry, breakfast bar and more

• Double garage with access into home, 3 way bathroom with bath and shower

• Ducted heating and cooling throughout, garden shed, tidy manageable yard

• Amazing views across the water to Waratahs, suit investor or buy and call it home

BEAUTIFUL, AND BRAND SPANKING NEW!

Expertly built by one of Orange’s life long builders is this impressive four bedroom home. You will be impressed as soon as you walk in the front door with the old world look featuring pressed metal, picture rails and beautiful floor tiles.

• 4 bedrooms, 3 with built ins and the master has en-suite and walk in.

• Open plan kitchen/dining/family which opens onto the covered alfresco.

• Beautiful kitchen with stone tops, soft close furniture, 900mm cooker and walk in pantry.

• 3 way bathroom with lovely tiling a feature and bath for the kids.

• Ducted heating throughout, attached garage with indoor access, fully fenced.

OWN YOUR OWN SLICE OF PADDINGTON IN ORANGE...

Modern Executive Style Home In Millthorpe

Cornerblockwith2xroadaccesses Landareaapprox.1,406Ha,buildingareaapprox.1,620m² 2gantrycranes

Cornerblockwith2xroadaccesses Landareaapprox.1,406Ha,buildingareaapprox.1,620m² 2gantrycranes

ZonedGeneralIndustrial OfferedwithVacantPossession

ZonedGeneralIndustrial OfferedwithVacantPossession

This central terrace cottage has been in the same family for around 55 years and is looking for new owners. The property dates to the 19th century and features 3 bedrooms, lounge, open plan kitchen/dining and a second comfortable living area at the rear. You will love the modern kitchen with soft close furniture, dishwasher, gas cooktop and under bench oven, and it looks great sitting on the beautiful timber floating floor.

This beautifully presented property in lovely Millthorpe is a must to inspect. Located in a quiet street and only 280m from the centre of town, this property oozes style and character. The 920mm doors throughout make it disabled friendly, with access through the rear. There are plantation shutters throughout as well as ducted heating and cooling, plus both bathrooms boast underfloor heating. There is also a pull-down ladder to the loft in the ceiling for extra storage. The 5kw solar panels on roof, established gardens and studio at rear of garage just add that extra touch.

Formoreinformationorforaninspection,contactGaryBlowes 0418635248|gary@blowesre.com.au

Formoreinformationorforaninspection,contactGaryBlowes 0418635248|gary@blowesre.com.au