Hurting a retirement (Part 1)

Sometimes it's handy to invert the proposition you're considering.

One of our goals at Super Advisor is to highlight efficient ways to structure and run superannuation funds. And technology is seeing new options emerge, mostly for the better. But this blog post turns the idea on its head.

What if you could set up the structure for your worst enemy's super fund? How would you go about it?

Let's leave aside investment choices for the time being (we'll tackle that in part 2) and focus on structure. High costs will be our goal.

Starting with the advisor, if our enemy has a large balance, we'll look for one who charges a percentage fee. If the balance is lower, then an advisor who charges a hefty dollar fee (preferably five digits plus) would be our choice.

It'd be even better if the advisor was employed by a dealer group with its own products to push. This increases the likelihood that investments will be recommended on the basis of remuneration rather than suitability for our enemy's needs (more on this in our next blog post).

Then we'd want the portfolio invested via an expensive platform, ideally charging a percentage fee for what is, essentially, an administrative task.

Finally, we'd get the trust deed and other documents prepared by a law firm and make sure there's plenty of manual work in the accounting process. This ensures the lawyers and accountants get to spend as much time on our enemy's dime as possible at hefty hourly rates.

These are some high-level thought-starters and we'd love to hear your ideas. Gathering thoughts on what to avoid may prove helpful, thought provoking or, at least, a bit of fun.

In our next post we'll cover the topic of individual investment choices (how to select investments that will provide the best opportunity to dissipate or blow up our enemy's balance).

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