It’s your super:guard it carefully

Unlock your super?

That can seem like a great idea.

You are desperate, financially. And you have a big bill to pay.

And the nice man says he will fix it all up for you.

All he needs is your signature.

Then he will arrange to have that money that is tied up,  in your poorly performing super fund at work,  transferred to your own self managed super fund.

Then you can get immediate access to your money – and pay that nasty bill.

Sounds too good to be true, doesn’t it?

That’s probably because it is.

There are some things about this proposed deal that you might not have thought about.

The promoters, who deal with these schemes, have their own interests.

Typically, they charge a fee, which is often between 15 and 30 per cent of the sum that’s  transferred.

Either way, that’s a big slice out of your retirement savings.

That is the money you will need to live on, when you are too old to work.

Remember, too, that the Tax Office will regard any of your superannuation money, that you might access illegally, as taxable.

So you are likely, also, to be faced with a bigger tax bill if you go down this path.

Be carefiul.

Even if the promoter promises better returns than your superannuation fund has been chalking up lately.

Related stories:

1. A super tax subsidy – of almost $25 billion a year
2. More super advice
3. Sherry calls for super projections