Last weekend I attended a training with our product partner company, Wealth Masters International, that brought home to me how little education most of us have on managing (and growing) our finances.

In particular, the training focused heavily on how little control Australians and New Zealanders are taking over their primary financial asset – their Superannuation.

The situation is the same the World over with Americans having their 401K accounts decimated and other countries retirement savings being degraded by the day – without most of us even noticing, let alone taking steps to reverse this.

What is happening and why should you care?

Well firstly it’s “YOUR MONEY” and it’s “YOUR FUTURE” but for the vast majority of us we hand over control of this asset to a complete stranger. Somebody with no emotional attachment to our money or us.

We then pay this person (or Company) a large amount to ‘manage’ this investment on our behalf with the ‘hope’ of future returns.

How’s that worked out for you in the last two years? Do you even know?

And when it comes to Super Funds it appears that paying more does not necessarily mean you will get the best advice and/or returns on your investment.

A new report out today called “Supernomics” by the Industry Super Network indicates that ‘tens of billions of dollars are being milked from workers’ retirement savings to pay for financial advice most people do not get.’

The report says millions of workers are charged in their super fees for financial advice that they do not receive.

“We estimate that well over 4 million people are paying for financial advice that they don’t receive.”

“For an average income earner they could spend up to one year’s wages in fees and commissions for financial advice that they don’t receive.”

And, according to Supernomics, “the money leached out in fees will cost the economy $120 billion in lost retirement savings over the next decade.” (See review of Supernomics report here by Stephen Long)

Why are we letting this happen?

Because that’s what we have been trained to do.

We are forced to put a percentage of our income into a Super Fund that generally is chosen by our employer or financial advisor and then we just hope it will be enough to retire on.

If you are self employed like us you may have “Self Managed Super” but who’s managing this? and how? Do you know?  Would you know if they were doing a bad job or charging excess fees?

I know I didn’t.

True we aren’t all “financial experts” and the rules change so often that management of your retirements savings can be a complex task. But my advice to you is this….

Seek the education.

Find out how your super is being managed and by whom. Are there cheaper fund options for you? Could/should you be managing this yourself? Or at the very least take a more active role in accessing financial advice from an alliance or Industry professional with no conflict of interest ie somebody that isn’t just selling you a service because it makes THEM the most money.

Think of how much research you do into buying a house or new car, and use the same approach in manging your superannuation. Are you really getting the best deal for you in the long term?

Our eyes have been opened wide by the financial education that we are receiving through Wealth Masters International (see my previous post for details on WMI in Australia). Wherever you chose to seek your education is up to you but I encourage you to do just that.

Stop letting a pimply faced kid with a keyboard somewhere whittle away your financial future so that Corporate headquarters can make their balance sheet look rosy enough for the CEO’s remuneration review.

Or don’t.  The choice is yours. But now you can’t say you “didn’t know”.

Love to here your comments on how you are educating yourself to maximise your retirement savings?
Agree/Disagree with me? Let me know in the comments below.

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Have a “Super” Day (sorry couldn’t resist).