take it like a man i say to hedge funds, page-6

The biggest scam about super is that it is not invested in fixed capital returns. You don't need a fund manager with his 3% fees, if the only thing you are buying is the 7% return you get from the reserve bank. The good thing about this is you never lose money!! Supers currently trade in equities hence on average you get 12%, but then you get years where you get -12%. So what happens over the years? Your average return goes maybe 3-4% above inflation. But your principle goes down in bad years, so you end up making 12% on a reduced principle. Hence in the long run, you end up behind some one who just dumps their money in fixed capital return with no manager fees.

The other biggest scam is the tax! If you look carefully at how they calculate it you see the following. You pay 15% on your super returns before fees and insurance. When I make a negative return because of fees and insurance why do I still pay tax? Why don't I get a tax credit for the money I have lost to offset my income.

The third scam is the insurance that is attached to your super fund. Why do I have to pay TDP and death insurance? The minimum amount is 1 unit, thats about $8 a year. Multiply that by a 40 year working life and compound interest and it amounts to a nice car at retirement.

But what can you do? Fund managers need to earn a living.