Getting Better Returns

Hello Scott,

My husband and I are now retired. We spoke recently to a financial advisor about our super, which is currently in two industry funds (VicSuper and Equip Super). My super is worth about $250,000 and my husband’s is worth about $475,000. The advice was to roll our super over to MLC to get a better return. What do you think about this? My husband is keen, but I am not sure.

Marg

Hi Marg,

There’s no need to be confused. When the advisor was talking about ‘getting a better return’ it’s likely he was talking about himself -- he’ll get paid more if you switch to the products he flogs. He can’t guarantee that you will get better returns by simply switching to another product provider. In fact, most industry funds have underlying investment choices that are similar to what MLC offers -- the only difference is that in most cases industry funds are much cheaper.

Scott