Mark Bouris’ wealth management company Yellow Brick Road has set its sights on carving its own slice of the $1.5 trillion superannuation savings market, with the launch of a low-fee super fund.
Bouris is introducing the RetireRight superannuation fund with costs of 0.75 per cent and a minimum fee of $1.44 a week. The cheapest of the big super funds have fees of around 1 per cent.
“Research shows that too many Australians don’t have enough super to fund five years in retirement, never mind the 20 or more that they’ll actually be in,” Mr Bouris, executive chairman of the ASX-listed company, said.
“The majors are competing for business at the top end of town: the clients who are earning a comfortable six figures,” he said. “But then there is the rest of Australia, the people who are slogging it out just to get by.”
RetireRight has three investment options: Smart Cash, which is invested in cash and diversified fixed interest.
The 50/50 option is invested half in ‘growth’ investments such as shares and property, and half in ‘defensive’ investments such as cash and fixed interest.
The third option Go for Growth has at least 80 per cent of the money invested in growth investments and the remainder in defensive investments.
The super fund can be accessed through Yellow Brick Road financial advisers. The process involves paying a one-off fee for advice, or the planner can be paid an ongoing fee of up to 0.55 per cent of funds under advice. The fees are negotiable.
Superannuation savers can decline advice and apply online to invest in RetireRight and avoid the planner’s fees.
While many big super funds have automatic acceptance of members for death and total and permanent disability cover, some restrictions have been reported on the RetireRight scheme, such as cover not being extended to those employed in ‘high risk’ occupations.
The launch of the RetireRight fund comes as Bouris’ latest book is released this week entitled What It Takes.
The book published by Allen & Unwin chronicles what the mega-successful entrepreneur believes is at the heart of anyone’s ability to achieve commercial business success. According to Bouris, it’s all down to attitude, commitment and purpose.