Are master trusts to blame and are investors getting locked into them?
Superannuation is not an issue that gets people marching in the streets yet. But if the baby boomers’ retirement savings fall short of expectations, that could change dramatically. The protest generation is not generally known for turning the other cheek. When people take a closer look at their superannuation funds, the returns they are getting and the fees they are paying, the issue has the potential to “boil over” warns Robert Prugue, a director of investment research at van Eyk Research. He’s not alone in anticipating trouble down the track. Louise Sylvan, the chief executive of the Australian Consumers’ Association, thinks disillusionment over superannuation is a sleeping giant. The issue at hand is how retirement savings are being eaten away by the superannuation industry through excessive fees. “Very little in the way of explanation will be acceptable” she says. The immediate time bomb, she says, is when super fund members start receiving their funds’ statements for the last cale
I always felt that I could make more money investing excess cash vs. paying down my mortgage. When you consider the low interest rates and the IRS subsidizes your interest rate, I thought it was a no brainer. I feel different as I near retirement (again)! I have a 5% mortgage that will be paid off in a little over 4 years. The balance is relatively small and I cannot refinance even with fast cash loans assistance. I am paying additional principal which lowers my interest rate to close to the current rate. By the way, I max out all retirement accounts.
