If you’re like me and have made several career moves already, you probably have a lot of money sitting around in different places. In my earlier years of investing, I though the more supers I have, the more diversified I am, right? Aside from the ease in having all of your money in one place (receiving one statement, the ease that comes with filing taxes, etc) there are several disadvantages to having several accounts:
The most dreaded word when it comes to investing:
Most super accounts charge a custodial fee which is the cost of “maintaining” your super account. In the long-run these can really add up if you’re paying them on multiple accounts. It is usually better to bite the bullet and pay the termination fee that often comes with transferring your funds and reap the reward of fewer fees down the road.
It is true that many employer-sponsored super plans are expensive for investors. Like most insurance plans, and other employer sponsored programs, they are looking out for themselves; what costs the least for the company. Also the highest cost of all is to have potentially lost some of your super. If you change jobs frequently it is very likely that you have lost some of your super, which can equate to additional years of work before retirement. Suncorp can help you determine if you’ve lost out on some of the super that is due to you.
Super can be taxed at a high rate when it is transferred into your account. However the fact of the matter is that it is taxed at a lesser rate than a bank savings account is taxed. It is easy to acquire good advice such as this when you are working with a company that is knowledgeable in superannuation like www.suncorp.com.au/super/grow-
How you handle your super money is dependent on several factors, particularly what you are comfortable with as far as risk and where you are at in life.
In my case, I am already too diversified. I can hardly keep track of all of my accounts. Rolling over two of my high-cost accounts into low costs options such as Suncorp will save me in the long-run without giving up certain legal protections and advantages.