Tuesday, 7 May 2013

Case study: superannuation

My posts last month forced the MoH to turn my attention to my own super situation.

Historically, I maintained a fairly simple super strategy.  I had two accounts – a low cost one and then whichever was the default fund of my current employer (all of whom paid our life, total and permanent disability (TPD), and income protection insurance premiums, so we needed to belong to the fund to make it efficient).  Whenever I changed jobs, I transferred the balance from the default employer fund of my former employer into the low cost one.

However, after a couple of quick job changes, my attention to detail lapsed, and suddenly I had four super accounts.

Consolidation was required.  Plus I had to purchase life, TPD, and income protection insurance for the first time.

The first step was to select the best fund for myself based on three criteria I developed:
  • Low cost
  • Good performer
  • Reasonably priced insurance