Frequently Asked Questions

”Is it better to keep some funds in one superannuation fund (i.e REST), and some funds in another superannuation fund (i.e AMP), so you don’t have all your eggs in one basket?”

The saying “don’t have all your eggs in one basket” is not necessarily referring to keeping your funds in different superannuation providers (i.e REST or AMP). The saying (when discussing superannuation & investments), could be more in relation to making sure you don’t invest entirely in one asset class such as International shares for example. It can be advantageous to consolidate superannuation funds together (where appropriate) and diversify funds across different asset classes such as Cash, Fixed Interest, Shares & Property for example. When discussing superannuation consolidation, each individuals needs must be taken into consideration and products must be researched accordingly to ensure there is no loss of benefit.

”Can’t I just leave my superannuation to my friend if I die?”

No, you cannot leave your superannuation to your friend unless you have drafted a Will (and stated this specifically in your Will) and nominated that your superannuation be paid to your Estate upon your premature death. There are certain people who are allowed to be superannuation beneficiary recipients under SIS legislation. If you are ever unsure, then contact one of our experienced Financial Planners to discuss this.

”Why do you need to do a written Statement of Advice (financial plan)? Can’t you just tell me what I should do verbally?”

The financial services industry has changed over the years and it has become very compliance orientated and heavily regulated. Financial Planners are not usually allowed to give verbal personal advice. Personal Advice usually needs to be given in the form of a written recommendation, also known as a Statement of Advice (financial plan). This is not a bad thing as it ensures both clients and financial planners are really clear on what was originally wanted (by the client) and what was recommended (by the Financial Planner) and both parties then can sign off on this.