"A super adviser has offered for me to change my super from Host Plus to Hub 24 for a one-time fee of $3000 and a trailing 1.9% fee for what he says is 8% return after fees... Does this sound legitimate? Should I go down this path?
- Michael in Perth, WA
Top answer provided by:
The answer to this question entirely depends on what your preferences are.
The one-time fee of $3,000 sounds quite reasonable for an adviser to meet with you and understand your needs and prepare your personal advice document. A trailing fee of 1.9% sounds reasonably high, so I would be expecting that it includes some active ongoing management of your portfolio and/or some proactive service.
Any time a client changes products we need to ask ourselves a few questions. 1. What does the client want? (for example, do they want very low-cost options or a specific ethical tilt, some direct share exposure or access to exchange-traded funds.) 2. Is this achievable in their current Super platform? 3. What would some comparable platform options be and do they put you in a better position? (for example, do they provide lower fees, do they have options that are not available on the current platform?).
Every Financial Planner in Australia is required to act in the best interests of their clients, but in order to do so do ensure that they are very clear about what you want. There will be pros and cons of remaining with your current fund and moving to the new fund, so the investigative process is helpful to work out what is MOST important to you.
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