Super choice survival guide

How to get the greatest benefit from super choice.
 
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  • Updated:6 Jan 2005
 

12.Jargon buster

  • Corporate or company fund: available to people who work for a particular employer. May be run by the company or through a fund manager or master trust. Some master trusts provide wholesale deals to employers. If you change employers and want to stay with your existing fund, you may have to switch to the retail fund with higher fees.
  • Industry fund: available if you work within a certain industry or under a certain industrial award. Some are open to the general public.
  • Retail fund or retail master trust: open to members of the public and run by financial institutions.
  • Retirement Savings Account: a low-risk, low-return super account provided by banks and other financial organisations. RSAs are not long term investment options but a parking vehicle until a person accumulated a large account balance or gets around to consolidating super accounts. Employers are permitted to choose an RSA as a default fund so be careful you don't end up in an RSA by inaction. In most cases, as a member of an RSA, you won't have any insurance cover.
  • Self-managed Superannuation Fund: regulated by the Australian Taxation Office. Can have up to four members and each member is a trustee.
  • Wholesale fund: offered by fund managers to employers, usually with lower fees than retail master trusts.