The Gold-Plated Urinal

Scott,

I read you religiously, so I think I know your thoughts, but I’m just checking. My AMP-administered super fund financial planner charges me a management fee of 2.0058 per cent, less a rebate of 0.4500 per cent, over the range of products I hold with AMP. This equates to about $6,500 a year. I then pay an ongoing commission of 0.44 per cent, which adds a further $1,800 (pretty much cancelling out the rebate). I am assuming I have read the documents correctly. Am I being ripped off?

Peter

Hi Peter,

I once answered a similar question by suggesting that anyone being charged these nosebleed fees (and there’s a lot of people in this boat), they should have their name fixed on a gold plaque just above the urinals at AMP HQ. That way, the 26-year-old fund manager knows who he’s peeing on. “Thank you, Peter from Cranbourne.”

However, that answer caused a bit of a stir, and took a few years off my editor’s life, so let’s not engage in toilet humour (again).

Yes, you are being legged. If you have 15 years left till you retire, and you’re contributing $10,000 a year, the cost of your current fee arrangement paid to AMP will be around $283,000. With that type of money you could redecorate a bathroom, or three.

Scott