{"id":3092,"date":"2016-05-13T01:15:43","date_gmt":"2016-05-13T01:15:43","guid":{"rendered":"https:\/\/raizinvest.com.au\/investors\/the-sneaky-money-trick-that-fools-us-all\/"},"modified":"2019-02-01T03:39:25","modified_gmt":"2019-02-01T03:39:25","slug":"the-sneaky-money-trick-that-fools-us-all","status":"publish","type":"post","link":"https:\/\/raizinvest.com.au\/investors\/blog\/the-sneaky-money-trick-that-fools-us-all\/","title":{"rendered":"The Sneaky Money Trick That Fools Us All"},"content":{"rendered":"
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By\u00a0Superfitdad<\/a><\/i><\/p>\n

You might not be into investments for any number of reasons. Maybe you don\u2019t understand the vagaries of the markets and prefer to stay away from things you don\u2019t understand. That\u2019s perfectly understandable. Maybe you\u2019re more into property, since \u201cthere\u2019s no better investment than bricks and mortar.\u201d Again, perfectly understandable.<\/p>\n

But, I\u2019m telling you right here and right now, if you\u2019re in Australia (or most anywhere in the world), there\u2019s an element of the investment markets that you simply CANNOT AFFORD TO IGNORE because you have a (in)vested interest in it.<\/p>\n

This is something so simple and so basic that it\u2019s almost invariably overlooked. And yet it takes just 5 minute to review it and see if you\u2019re making a simple mistake that could end up costing you hundreds of thousands of dollars.<\/p>\n

That\u2019s right: fixing this one thing up \u2013 the one thing that I\u2019m betting you haven\u2019t looked at recently (because it\u2019s tucked away in fine print on the statement that you barely look at, let alone understand (I\u2019m just starting to get my head around it) \u2013 could literally save you hundreds of thousands of dollars.<\/p>\n

Or put those dollars in your pocket.<\/p>\n

Do I have your attention?<\/b><\/p>\n

Good.<\/p>\n

Now, what is it?<\/p>\n

Your. Superannuation. Fees.<\/b><\/p>\n

Really?<\/p>\n

Yup, those measly 2% or 3% fees tucked away in a corner of your annual super statement, which, as we\u2019ve established, you probably don\u2019t read because those things are about as user-friendly it\u2019s as if they were written in Arabic. Or Latin.<\/p>\n

These fees can eat away at your retirement fund like a cancer, compounding and growing as your pot grows. And you\u2019re (probably) letting it happen around you. So if you do one thing and one thing only in regard to anything I\u2019ve ever written, it\u2019s this:<\/p>\n

See how much you are paying in fees and assess whether the fund manager deserves your money based on their performance.<\/b><\/p>\n

Why This Matters?<\/b><\/p>\n

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The illustration above makes it clear just how the fees can mount up if left unattended.<\/p>\n

Assuming you (and your employer) have saved wisely for 40 years, your fund could end up being \u201cworth\u201d circa $1m. Except you\u2019ve been paying an itty-bitty 2% annual management fee to your superannuation fund manager \u2013 regardless of their performance \u2013 so all you\u2019re left with is $630,000.<\/p>\n

The scoundrels have taken $370,000 in fees. Compare this $630K with the guy who has been paying 0.5% as an annual management fee. He\u2019s left with a pot of $890,000. That\u2019s 41% more at retirement (or $261,000). That\u2019s a lot of cruises. A lot of pina coladas.<\/p>\n

Worth checking out what you\u2019re paying, huh?<\/p>\n

You might be thinking that if your fund is performing well, returning maybe 8% per annum or more, then it\u2019s worth paying a little extra in fees. You\u2019re damn right, it might be. But, often it\u2019s not.<\/p>\n

High fees don\u2019t always come with high returns. And if you end up accepting high fees for poor or average returns, well, you\u2019re getting mugged off paying for schmick offices and coffee waiters.<\/p>\n

Remember this: you can\u2019t control how the market performs. But you can control the fees you pay and your approach to risk.<\/p>\n

Your Task Now (yep, right now, don\u2019t put it off)<\/p>\n

Promise me this one thing. You\u2019ll go and check the annual management fees you\u2019re paying and take whatever action is necessary.<\/p>\n

\u00a0Superfitdad<\/a><\/i><\/p>\n

 <\/p>\n

Important Information<\/strong><\/span><\/p>\n

The information on this website is general advice only. This means it does not consider any person\u2019s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product.<\/p>\n

The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information.<\/p>\n

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz.<\/p>\n

Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.<\/p>\n","protected":false},"excerpt":{"rendered":"

  By\u00a0Superfitdad You might not be into investments for any number of reasons. Maybe you don\u2019t understand the vagaries of the markets and prefer to stay away from things you don\u2019t understand. That\u2019s perfectly understandable. Maybe you\u2019re more into property, since \u201cthere\u2019s no better investment than bricks and mortar.\u201d Again, perfectly understandable. But, I\u2019m telling […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[1],"tags":[],"yst_prominent_words":[1311,1304,1303,665,1281,155,154,1306,1309,151,314,1307,1308,1305,500,117,150,1310,713,631]}