Australia’s #1 Self Managed Super

· A non- industry fund that offers industry fund fee structures.

A true competitor to the industry funds from not only a fee perspective, but from an investment menu view. The ability to select your own investment strategy, and alter it at any time ensures a unique offering. No industry or current public offer fund can offer a true DIY/ SMS without the need for an accountant or auditor which inevitably abolishes the need for an ongoing fee usually exceeding $2000 per annum.

· No commissions to financial advisors

Much has been said and will continue to be said about commissions paid to financial advisors. This has come to light as many Superannuation products available in the market place have what are ‘inbuilt’ commissions that are paid the advisor responsible for the account. The current government has commented on this by suggesting abolition of this structure. This move, if adopted, will reveal the true cost to bring a product to market, which is why cleversuper.com.au is an innovator in the superannuation industry and will start a paradigm shift in the way products are made available to the public.

This topic will ultimately bring about a ‘change of terminology’ to the financial planning industry. Although full disclosure in relation to financial products and commissions is in place, the industry will move to a situation where all products are offered at their ‘true market cost’ i.e. The costs involved to bring the product to market, and advisors will have the ability to charge a fee for the original investment and strategy advice, and an ongoing fee for proactive management which can range from 0.25% to 1.1% per annum. This change of terminology will bring transparency to the market place and accountability to financial advisors for fees payable by clients. It is urged and industry funds offer companies this charging structure also making their products available to those who wish to ‘pay for good advice’

· Direct offer superannuation fund.

This is a true ‘stripped’ product offered to all member of the Australian public. This fund is not a Self Managed Superannuation Fund. Self Managed Superannuation funds require the establishment of Shelf Company, establishment of a cash account, share trading accounts, ongoing management fees for investments, platform fees, possible establishment of associated unit trusts, changes to trust deeds and legal structures for property that have large costs, tax return costs and auditing costs. This list is not exhaustive. Please note that to complete the majority of tasks and requirements that are listed above, the services of a registered accountant are required.

Cleversuper.com.au can abolish 99% of the above costs. No set up costs, no audit costs, no tax return cost. No visit to the accountant. No shelf company. No individual trust deed. No separate cash account. No separate share trading account. 1 transparent annual fee that decreases as your fund grows. CS is a fully complying superannuation account providing all administration and reporting each year.

· Public offer superannuation fund with a fully flexible investment menu

Investment using any current public offer superannuation fund, eg, MLC Masterkey, ING Oneanswer, Sunsuper, Hesta, (any fund for that matter other than a Self Managed Superannuation Fund) you are presently governed by an investment menu. Managed funds and model portfolios are almost always, with only very few exceptions, comprise of the investments offered by the provider. To further explain, a MLC masterkey fund will offer investment choices of their own funds (MLC income builder, MLC Australian Share fund etc)

Cleversuper.com.au will offer an investment menu comprising of over 100 managed funds and access to the ASX 100 for investment into direct equities. Term deposits offered by the ANZ bank will also be available within the platform.

· Suggested model portfolios

Cleversuper.com.au will provide users and members with a number of useful tools. These tools will aid members in making an informed choice when selecting a portfolio and investments for their superannuation. Detailed research and reviews on current funds will be provided allowing the clients to remain informed about the underlying investments within their superannuation. These model portfolios will reflect actual recommendations provided by a licensed financial advisor, although will be listed on the site as tools and suggestions only.

· Risk profiling tools

A risk profiling tool (again similar to those used by licensed financial advisors) will be available on the site for those clients interested in determining their underlying feelings towards investment and the associated risk that investments carry. Through the use of this tool, clients may better understand their personal goals and be able to establish a more suitable and personal superannuation account.

· Quick and easy administration and set up

Cleversuper.com.au will endeavour to provide users of the site and clients with the most up to date technologies and real time account opening capabilities. Clever automated systems will allow reduced administration and ultimately increase the control available to the investor. 24/7 online reporting will allow clients to receive a snap shot of their superannuation investments and account balances at any time.

· Easy roll over from other funds

As above, cleversuper.com.au will incorporate new technologies that will improve the administration process of moving your super from old accounts, to the new fund of your choice. Allowing this process will eventually mitigate the issue of ‘selling down’ in what could be a inopportune time in the market.

· Insurance offering

Cleversuper.com.au partnered with ING life will offer members of the fund group discounts for Life, TPD and Income Protection Insurances. Competitive premiums and reduced application times will be a fundamental difference of the fund. Structuring of insurance through superannuation will improve the cash flow position however financial advice and the product disclosure statements should be carefully considered before establishing/ replacing insurances using this strategy.

· No trading costs

· Direct debit, BPAY and cheque payment options

· Trustee is the second largest bank in the world

· Quality service and call centre staff

· New age fund for Gen Y and Gen X

· Very marketable

· Own AFSL licence (pending)

Difference between a Master Trust and a Self Managed Superannuation Fund.

If you are a little confused with the Super Fund system and it’s specialized terms, don’t worry you are not alone. Super co-contributions, self managed super funds, eligible termination payments, Super Guarantees and dozens more of finance jargon is a challenge for the most financially literate among us, never mind those of us that struggle understanding a balance sheet.

The tempting route is to pass on all the responsibility of choosing and managing your super fund to someone else. This might not be a bad solution, letting professionals help you out is often a smart choice. However it is good to understand the basics of super funds and the different options you have so that you know if you are making a good decision or not.

This is especially important when talking about the difference between Master Trusts and Self Managed Super funds so it is worth out time to get comfortable with the pros, cons and differences between each Super fund management system.

Super Funds.

A super fund is a pension saving scheme set up by the Australian government to help and encourage saving for retirement among the low and middle classes. These super funds receive deposits from employers (super guarantee payments, 9% of each month’s wage), super fund members (personal payments) and the government (super co-contributions) where the government matches every dollar saved by the member with $1.5.

The money deposited in the super fund is then invested in order to create interest to add to the basic pension savings. The main choices come when deciding how to manage these super funds. Investing money in today’s markets is no easy task. An in-depth understanding and specialized skills are required to make money, and even then there is a significant risk.

However the government has created a flexible system full of choice where you can choose from three main options in order to manage your Super Fund.

1)    You can manage it yourself.
2)    You can use an industry super fund.
3)    You can use a master trust.

This article will focus on the difference between self managed super funds and master trusts.

Self managed superannuation funds.

With this system the trustees of the super fund (that would be you and maybe someone else) have sole responsibility for the investment and legal responsibilities linked to the super fund. If you do not follow your legal requirements you could be liable to prosecution or a hefty fine. However you have full control of your Super Fund investments deciding how and when to invest.

Master Trusts.

Master trusts offer an alternative for the super fund member that wants control of his super fund investment but does not want to or does not have the knowhow to take full control and responsibility of their super fund. Master Trusts will take on all the administrative and legal task linked to managing a super fund while still providing a lot of choice to members in how they invest their super.

Another reason people are attracted to Master Trusts is the price. Master Trusts work as wholesale Super Funds providing a discounted price when compared to industry super funds. Some Master Trusts will even share the commissions they receive from investment funds with the member.

Delayed super co-contributions, what can you do?

Super co-contributions are an Australian initiative to help low to middle class earners save for their retirement. The program is simple the Australian Government will match every dollar a person saves towards his pension saving fund up to a certain amount. The Government actually provides $1.50 for every dollar an individual pays into his super fund with after tax payments. Payments that are claimed as a tax deductable payment do not qualify for super co-

Unfortunately according to the Australian Tax Office that manages the oversees the payment of super co-contributions 200,000 out of a total of 1.3 million super co-contribution payments may not be made due to problems in the government payment systems.
What can you do if you feel or realize you are among those that have not received their super co-contributions?
The Australian government guarantees that interest will be paid on all super co-contributions that are delayed. The interest rate specified by the Reserve Bank of Australia is currently at 3.16%.

What do you need to do?

If you are eligible to receive super co-contributions and you are making your personal payments that qualify you for super co-contributions you do not need to do anything. The Australian government will continue to pay interest and pay super co-contributions automatically to your chosen super fund. Interest will be due until the super co-contribution is paid.

If you are anxious about this delay you can always contact your super fund to satisfy yourself that interest is been paid. You can also ask them to notify you as soon as the co-contribution payment is made.
For those that are suffering some kind of hardship due to this delay there is a telephone hotline they can contact at 1300 139 027 where you will be able to talk about your situation.

When do you qualify for direct payments when your super co-contributions are delayed?

The only circumstance that makes you eligible for direct payment is when you are already retired and no longer have an eligible super account to where the co-contribution can be deposited.

There is no reason to worry, if you qualify for super co-contributions and make the appropriate personal payments your super co-contributions will be eventually made with interest which means that you will not lose any savings due to the delay. Not a bad deal when you are getting a “free” super payment.