Amp superfunds with 100k were losing money, page-46

You clearly have no idea as to financial services whatsoever. There is a base cost to provide any product or service and super is no different. The cash options in most super funds return around 1% per annum which is more than you would get in a cash account at a bank. There is also a base cost to administer any fund. The fund must have a custodian, a trustee and a fund manager. They must also meet all of the regulatory requirements. Put very simply the base cost of managing a super fund in the cash option out strips the financial return on a low balance account. Even in a low cost fund the fees for a very basic account invested in a low cost cash option run to about $100-$150 per year regardless of the balance. If you divide $150 by 1% then this tells you that a break even point for that fund is a $15k balance just to break even. These are the facts, take 'em or leave 'em.

For all of the moaners out there begrudging fees I'd suggest you consider setting up your own SMSF. By managing it yourself you should be able to avoid all the pesky fees!

Costs below are based on a basic web search for SMSF costs. Check it out and then tell me $150 per year in admin fees is too high!

NB Below is not a recommendation or advice.

	Column 1	Column 2	Column 3
0	Item	Guesstimate cost
1	Trust	$500
2	Corporate trustee	$1000
3	Investment plan	$1500
4	Tax return	$1500
5	Annual audit	$300
6	Annual review	$1500