Skip to main content
#
A Clear Direction
rss feedour twitterour facebook page linkdin
home
Financial Advisor Brisbane - AdviserScott Keefer - A Clear DirectionBuilding Investment PortfoliosPortfolio Management ServiceUpdated ContentContact Us - Brisbane Financial Planning
A Clear Direction Financial Planning logo

 Financial Happenings Blog 
Monday, October 29 2012
I read with interest a Sydney Morning Herald article that looked at a range of investors who had chosen to go down the DIY Self Managed Superannuation path – Master of Your Own Destiny.


One participant to the article suggested they had $7.6 million in their fund and were paying fees of approximately $100,000 per annum.

So I decided to look at what the fees would look like in 2 superannuation accounts of $3.8 million each using the cheapest available administration service I have at my disposal for that amount. 

The following table sets out the total fees for the combined $7.6 million portfolio across a range of asset allocations:

 

60 / 40

50 / 50

40 / 60

30 70

Administration Service

$3,800

$3,800

$3,800

$3,800

Investment Managers

$24,600

$25,400

$26,200

$27,000

Adviser

$4,400

$4,400

$4,400

$4,400

Total

$32,800

$33,600

$34,400

$35,200


These numbers are based on using the standard investment philosophy suggested by the firm.  If a client wanted to through in a direct shareholding component to the portfolio the investment manager costs would fall further.

Keep in mind that the members no longer have the responsibility of being trustees of their own fund plus they have shaved off more than $65,000 from their cost base. 

I think this shows that the cost basis of A Clear Direction’s approach is extremely competitive for large portfolios and also puts into question the oft quoted perception of lower fees in SMSFs.

If you think you are paying too much please get in contact.

Regards,
Scott

Posted by: Scott Keefer AT 12:15 am   |  Permalink   |  Email
 
Scott Francis' articles in the Eureka Report 
Request for Information 
If you have questions, or would like more information, please go to our Contact page and leave your name and contact information.

Plan Well, Invest Well, Live Well! Financial advice providing a clear direction

A Clear Direction Financial Planning and Portfolio Management ABN 85 147 572 870

Level 19
10 Eagle Street
Brisbane QLD Australia
Ph: (07) 3303 0269
Email: scottk@acleardirection.com.au

Authorised Representative (398444) and Credit Representative (403292) of FYG Planners Pty Ltd AFSL/ACL 224 543.

ASIC - Financial Advisers Register

All content of this website is copyright © A Clear Direction Financial Planning Pty Ltd, 2017

FYG Planners Pty Ltd & A Clear Direction Financial Planning Privacy Policy