Introduction
Why super really is super
Better super: what it means for your super
How much is enough?
Getting your super together
Types of contributions
Super strategies
Tax on super
Super choice
Choosing your investment strategy
Choosing your investment options
Accessing your super
Options when you retire
Why indexing is a super choice
Introduction
Making the most of your superannuation whilst you are working is one of the most effective ways to save for your retirement. The combination of regular investments, tax concessions and time makes superannuation a powerful long-term wealth creation vehicle.
With medical advances increasing life expectancy, Australians may spend around 25 years in retirement. That's more than half the time many of us spend in the workforce. So, how do you fund your life after work?
There are many ways you can boost your retirement savings. Choosing the right super strategy and increasing your contributions are two of the most effective ways.
Now, with the Federal Government's Better Super system there are even more incentives to contribute to your super. Features of the new system include tax free super benefits for people over age 60,the removal of reasonable benefit limits and fully tax deductible contributions up to the age of 75 if you are self-employed.
This Plain Talk® guide offers some strategies for maximising your super. It also explains the new super rules, types of super contributions, tax and when you can access your super.
Why super is really super
We are told so often that superannuation is important and that we must start planning for our retirement as early as possible. Here are a few reasons why super is so important:
- you're saving for your retirement lifestyle. Your super provides you with a pension or lump sum when you retire. The more you contribute to super the better off you will be when you retire;
- it's compulsory for most working Australians. Compulsory employer super contributions alone may not be enough to fund your desired retirement lifestyle. This is especially true if you have taken a break from the workforce;
- it's your money. Over your entire working life your superannuation can accumulate into a significant sum of money. Because super is automatically deducted from your pay and you never see it many people fail to take control until it is too late. Most Australians now have a choice of where and how they invest their super;
- future governments may not be able to provide the same level of aged welfare they provide today. Not only are we ageing as a population but retirement itself is lasting longer as life expectancy improves. According to the Government's discussion paper, Australia's Demographic Challenges, in 2002 there were more than five people of working age supporting every person aged over 65. By 2042, this is expected to drop to 2.5 people of working age to every person aged over 65;
- for many Australians, super will be the largest asset they own outside of their home; and
- super offers excellent tax concessions, making it a difficult investment to beat. Super contributions and investment earnings on your super savings are taxed at a maximum of 15 per cent. The tax benefits of super can make a significant difference to the amount of money you will have when you retire compared to investments outside super. Best of all, you can access your super tax-free when you retire.
The following graph compares someone earning $70,000 per annum, making super contributions of $200 per month from their pre-tax earnings (using a salary-sacrifice strategy) against someone investing the same amount taxed at their marginal tax rate outside super. In both cases the investor is age 35.
The graph illustrates that an investor would be nearly $40,000 better off (in today's dollars) using the salary-sacrifice strategy and supposing the assumptions are borne out in practice.
Better super: what it means for your super
Some rules governing superannuation have changed under the Government's Better Super system. The main changes that came into effect on 1 July 2007 are shown below.
How much is enough?
Experts are divided on how much super you will need to make the most of your retirement. The general consensus suggests that between 60 to 80 per cent of your final salary will be enough. Of course, how much you need will depend on the type of lifestyle you want in retirement. Unfortunately, many people don't save enough so they don't have much choice.
How do you know how much you will need for retirement? First, ask yourself a few questions and then take action. Ask yourself:
- when would I like to retire?;
- do I expect to have outstanding debts when I retire?;
- what about dependants?;
- what type of retirement lifestyle would I like?;
- how long will my income need to last? Current life expectancy for Australians born in 2004 is 78 for males and 83 for females; and
- will I have other sources of income when I retire?
It is a well publicised fact that most people are not saving enough for their retirement. According to Investment and Financial Services Association (IFSA) Australians' super savings are inadequate to the tune of $93,000 per person on average.
Most Australians realise that simply relying on the minimum super guarantee contribution of nine per cent will not be enough to fund their retirement, but they are doing little about it.
A 35 year old who wants to retire at 65 would need to contribute an extra nine per cent for a retirement income that is 60 per cent of their pre-retirement income of $50,000 (based on the Westpac-Association of Superannuation Funds Australia (ASFA) Retirement Living Standard). This would give them a retirement income of $30,000 a year.
The March 2007 Westpac-ASFA Retirement Standard figures estimate a single person retiring at age 65 will need $495,193 for a comfortable retirement lifestyle, while a couple of the same age will need $627,581. So it is worth regularly tracking how your super is fairing against your retirement savings objectives.
Taking control
The first step in taking control of your super is to find out where your super is invested. If you've had a number of jobs you might find that your super is spread over different funds. Once you've got your super together, you can start thinking about contribution and investment strategies to grow your retirement savings.
Getting your super together
The nature of work is changing. Contract and casual employment and mid-career changes have become more common, making the notion of a job for life unrealistic for most of us. With the introduction of the Super Guarantee in 1992, all Australians who have been in the workforce since 1992, and currently earn over $450 a month, are likely to have some money in super.
When many people start a new job, they start contributing into a super fund with their new employer leaving their old superannuation behind.
Having small balances in a number of superannuation funds can make it difficult to keep track of your retirement nest egg. It can also mean paying higher fees and missing out on long-term growth, particularly if your money is invested in a conservative option. These two factors can make a significant difference to your final retirement benefit.
How to consolidate your super
1. Gather together all your most recent superannuation statements
If you can locate all your statements go to step 3.
2. If you cannot locate all your statements contact your previous employer
You need to find out the name of the super fund and its contact details. Call the super fund to confirm it has your super money and ask for your member/account number.
3. Decide which super fund to invest in
Review your current superannuation investments. Compare the investment options and insurance available, fees payable and past performance. Roll your super benefits into the fund of your choice. It may be a new fund altogether. A fund that offers a range of investment options will give you the flexibility to change your strategy as your circumstances or needs change.
4. Consolidate your super
Once you have made your decision and selected the super fund you want to invest in, you can simply apply for your super to be withdrawn and rolled over into your chosen fund. Some super funds will contact your other super providers and consolidate your super for you.
Take your time and check all the fine print before changing your fund. In particular, take note of any fees that may be payable when you exit a fund.
Finding your lost super
Did you know over five million Australians have lost some of their super? If your previous employers have lost track of you and lists you
as a 'lost member' your money may eventually end up with the Government.
You can track down your super using the Government's SuperSeeker service online at www.ato.gov.au/super or phone 13 28 65. You will need your Tax File Number to use this service. Super Seeker searches the Lost Members Register and other Australian Taxation Office (ATO) records to find possible matches. Once a possible match is found you will need to contact the superannuation fund or the ATO.
Types of contributions
Contributions are broken-down into two basic areas:
- Concessional contributions; and
- Non-concessional contributions.
Concessional contributions
Superannuation Guarantee (SG)
All employers are required to provide minimum super cover for eligible employees known as the SG. The SG was introduced in 1992 to relieve some of the retirement funding burden from the Government and to encourage people to fund their own retirement.
The current SG level is nine per cent of your gross salary and it applies to full-time, part-time and casual employees who earn more than $450 a month (certain exceptions apply under the law). If you're covered by an industrial award this amount may be higher.
Salary sacrifice
Many employers offer salary sacrifice, a simple strategy where your employer contributes a portion of your pre-tax salary into super on your behalf. This contribution usually attracts a tax of just 15 per cent, much less than the average marginal tax rate. That's why salary sacrificing is such an attractive option to boost your retirement savings. Instead of investing that money outside super and paying a higher tax rate, you can contribute it to super and invest more for your long-term future.
If eligible, a tax deduction can be claimed for up to $50,000 for people aged under 50 (including the self employed). For those over 50, this limit increases to $100,000 a year until 2012.
Ask your employer if you can make salary sacrifice contributions to your super fund. You may be able to contribute one-off payments like your annual bonus using salary sacrifice, provided you make prior arrangements.
Self-employed
The Government's more generous annual limits under the Better Super system have made super an even more attractive investment for the self-employed. Self-employed people under 50 years of age can claim a full tax deduction on up to $50,000 a year. People over 50 years of age can claim a full tax deduction on $100,000 a year between 1 July 2007 and 1 July 2012, reducing to $50,000 from 1 July 2012.
Non-concessional contributions
After tax contributions
You can also make your own after tax contributions, otherwise known as non-concessional or personal contributions. No tax is deducted from the contribution when invested as you have already paid income tax on it.
When you retire there is no tax payable on the amount invested. However, tax is still payable on the investment earnings at a rate of 15 per cent along the way.
A limit on after tax contributions of $150,000 a year applies from 1 July 2007. This limit can be averaged over three years, so you can make a single lump-sum contribution of $450,000 by bringing forward the next three years' contribution (this will only apply if you are 64 years of age or less).
Spouse contributions
Contributing to super on behalf of your spouse is a tax-efficient way for a couple to save for retirement. If you are employed and your 'eligible spouse' is either not working or earning less than $13,800 a year, you can contribute to their super and gain certain tax benefits.
There is no limit to the amount you can contribute on behalf of your spouse (provided the contribution to their account does not exceed the limit on non-concessional contributions). But you can only claim a rebate of 18 per cent on contributions of up to $3,000 made to a complying super fund on your spouse's behalf.
This tax benefit reduces when your spouse earns more than $10,800, including reportable fringe benefits, and is zero when your spouse's assessable income reaches $13,800 in a financial year. Spouse contributions are subject to the non-concessional contributions limit.
Government co-contribution
This is a Government-funded program to help those on lower incomes save for their retirement. If you earn less than $58,980 a year and make personal contributions to super, the Government will match these contributions up to a certain limit.
For example, if you earn below $28,980, the Government will match $1.50 per dollar contribution to a maximum of $1,500. This reduces progressively to no additional contribution at $58,980.
There is no need to apply for the co-contribution. The ATO will use details from your income tax return and contribution information from your super fund or retirement savings account to work out whether you are eligible. If you fall within the limits, the co-contribution will be calculated and deposited into your super account. It is not taxed when paid into your account because it is treated as a non-concessional contribution. The co-contribution will not be counted towards the non-concessional contributions limit.
When you can contribute to super
The age and employment restrictions for contributing to super are outlined in the following table.
Super strategies
Increasing your super contributions and choosing the right investment strategy can make a major difference to the amount of money you accumulate for your retirement.
* Benefits will be tax-free if you retire after age 60 but not if you retire earlier.
** The income thresholds apply in 2007/2008 and may be indexed for future years.
Super smart strategy 1 - salary sacrifice
Joan, aged 40, decides to 'top up' her superannuation by sacrificing an extra nine per cent of her pre-tax $80,000 annual salary. Her employer already contributes nine per cent on her behalf. Joan would like to retire at age 60 and her current superannuation balance is $60,000.
By making additional contributions, Joan ends up with around $180,000 more in super in today's dollars than if she had only relied on her employer's contributions (this does not take into account savings outside of superannuation ). In addition, only $72,800 of her salary is subject to income tax, instead of the full $80,000. The extra amount contributed to super is only taxed at 15 per cent, instead of 40 per cent which is Joan's marginal tax rate plus the Medicare Levy of 1.5 per cent. This can be a real tax advantage for both Joan and her employer.
Super smart strategy 2 - tax-deductible contributions for the self-employed
Darren is 45 and runs his own accountancy business. Currently Darren pays himself an income of $80,000, which puts him on a marginal tax rate of 40 per cent. Rather than taking all his salary as income, Darren decides to salary sacrifice $10,000 a year into superannuation .This is in addition to the 10 per cent he currently contributes to super on top of his annual salary. Darren's current super balance is $150,000.
Darren's extra super contribution has the effect of reducing his income to $70,000 and his marginal tax rate to 30 per cent. The table below shows the impact on Darren's post tax income and salary package.
The graph below shows the power of this strategy over time.
When Darren retires at 65 he will have $759,000, compared to $509,000 if he didn't make additional contributions to his super (this does not take into account savings outside of superannuation ).
Super smart strategy 3 - spouse contributions
For families with only one income earner, spouse contributions are one way to ensure both partners have an adequate retirement income, particularly if one partner has accumulated significantly more super than the other. You can only access the tax rebate of 18 per cent for the first $3,000 you contribute (maximum rebate in any one year is $3,000 x 18% = $540). Please refer to page 11 for spouse contributions.
Mario and Yolanda, a married couple, are both 50. Mario earns $85,000 a year and Yolanda, now works part-time after taking a 10 year break from the workforce. Mario is planning to retire at age 65, while Yolanda is happy to continue working as long as she enjoys it. Yolanda has no super and her current salary is $10,000 a year.
Mario and Yolanda would like to increase their retirement nest egg and decide to invest $3,000 a year into superannuation for Yolanda.
Assuming Mario invests his tax rebate of $540 p.a. into Yolanda's super, the following graph shows the difference between contributing $3,000 plus the tax rebate to Yolanda's superannuation or contributing $3,000 (with no rebate) to non-super investments (note that under this strategy Yolanda is not entitled to a co-contribution as contributions made by a spouse are ineligible).
Super smart strategy 4 - Non-concessional (personal after tax) contributions
Non-concessional contributions otherwise known as after tax or personal contributions, are contributions made from your salary after income tax has been deducted.
Jim is age 35 with an annual salary of $60,000. Jim's employer contributes nine per cent to his super. Jim currently has $20,000 in super and is looking to retire at age 60. If Jim makes no extra contributions he would retire with $236,000. If Jim decides to contribute an extra $25 per week after tax, Jim's super benefit would grow to $289,000 at age 60.
Best of all, Jim can access his super benefit as an income stream or lump sum tax free when he retires after age 60.
Super smart strategy 5 - co-contributions
Co-contributions are a great way for low income earners to boost their super contribution. Jenny is a 25-year old who works casually in the hospitality industry. She currently earns $27,000 a year and decides to contribute an extra $20 a week from after tax pay into her super. Because Jenny earns less than $28,980 a year she qualifies for the maximum co-contribution amount of $1.50 per dollar contributed.
This means she gains an extra $1,500 on top of her $1,040 annual contribution. Assuming Jenny's earnings increase in line with inflation her contributions give a boost to her super over her lifetime to the tune of $183,000.
Note: Tax income thresholds for the co-contribution may be indexed for financial years after 2007/2008.
Super smart strategy 6 - higher growth investment strategy
Given the long term nature of superannuation, adopting a higher growth investment strategy can make a big difference to the amount of super you accumulate over your working life. While growth assets like shares and property tend to be more volatile over shorter time frames, they offer greater growth potential over the longer term. Generally, the longer your investment timeframe the higher the level of growth assets you can include in your portfolio.
Lili and Monica both started their legal careers at a major law firm when they were 28 with a salary of $80,000. Lili decided to choose a growth investment strategy for her super. A growth investment strategy tends to have approximately 70 per cent invested in growth assets, and is typical of the 'default' investment option, i.e. the option members find themselves invested in if they don't make an active choice.
Alternatively, Monica chose a higher growth option, for instance one that invested 90 per cent, or even more, in growth assets.
The following graph shows how much super both women would have accumulated at age 60, based on minimum super guarantee contributions of nine per cent during their working life.
Tax on super
As with any investment, there are important tax implications to consider.
Contributions tax
If the money paid into your super has not already been taxed, it will attract a 15 per cent tax on the way into the fund. There is no contributions tax if your money has already been taxed.
Tax on earnings
The money you earn on your investments within the super fund will be taxed at a maximum 15 per cent, which can be much lower than your marginal tax rate depending on how much you earn. The figure could be even lower if you take into account franking credits and tax concessions on capital gains.
Lump sum
There is no tax on lump sum super or pension benefits paid to people age 60 and over, provided a condition of release has been satisfied.
Super choice
Most working Australians have the right to choose their own superannuation fund. The major exceptions to super choice are public sector employees and people employed under some State awards.
For those that are eligible for super choice, there are a variety of superannuation arrangements available either publicly or to a restricted group. They mainly fall within these six categories.
Industry funds
An industry fund is usually set up to provide superannuation benefits to employees in a particular industry. They are often established by the relevant union body or industry group to provide low cost superannuation to employees. Due to the large numbers of members in many of these types of funds, the benefits offered can be very cost effective. Such funds are usually run on a not for profit basis. Membership is generally restricted to employees within the industry sector.
Corporate funds
Some employers set up corporate funds for their employees. Most of these funds accept compulsory superannuation guarantee contributions and additional voluntary contributions by employers and members. Instead of setting up a super fund some employers use a master trust to provide superannuation to employees. A master trust is a super fund to which a number of employers can contribute.
Self managed superannuation funds (SMSFs)
Some individuals prefer to set up their own superannuation arrangements. The main benefit of SMSFs is that the trustees have more flexibility than other types of super funds over the investment of fund assets.
Self managed super funds have less than five members and all members must be trustees (or directors of the trustee company).Single-member funds must also have one other trustee who must be either a relative or someone who is not an employee of the other member. Other than this exception non-member trustees are not allowed (except in limited cases where a member/trustee has died or is under a legal disability). As a member of this type of fund, you take on the responsibilities of being a trustee which can be substantial.
Small APRA funds
A small APRA fund, regulated by the Australian Prudential Regulation Authority (APRA), is similar to a self managed super funds except that the trustee must be an licensed trustee such as a professional trustee company. The benefit of this type of fund is that the superannuation member minimises their legal risk because an external trustee takes on the trustee duties and responsibilities.
Retail/personal super
Retail superannuation funds or public offer superannuation funds are generally available through fund managers, financial advisers and banks. Employees and employers can make contributions to a retail super fund. The benefit of this type of fund is that you can maintain the fund even if you change jobs and generally you have a number of investment options to choose from. Retail super can provide you with flexibility and control over your retirement savings throughout your working life.
Retirement savings accounts (RSAs)
Retirement savings accounts are capital guaranteed super funds, mainly offered by banks, building societies, credit unions and life insurance companies.
The RSA is designed to be a simple, low cost, low risk, low interest earning product especially suited to those with small amounts of superannuation . An RSA can usually accept contributions from members, their employers and/or spouses.
A disadvantage of this type of fund is the restriction in investment choice. It is usually only suitable as a short-term solution such as a parking vehicle for super.
Choosing your investment strategy
Before you decide on your super investment strategy, you need to determine what your objectives are and when you need to achieve them. When it comes to super, you will undoubtedly be seeking to pay yourself a pension in retirement.
But have you considered what kind of lifestyle you want? And how much money you will need to live on once you retire?
Time horizon
If you are in your 20s, 30s or 40s, you may have many decades before you retire. Generally, the longer you have to invest, the greater risk you can assume, therefore a longer time horizon will allow you to ride out short-term market fluctuations.
If you are closer to retirement, or have already retired, you may choose a more conservative investment approach to protect your assets.
But remember, even when you retire, you may be investing for another 20 or 30 years - a time period that is appropriate for a more growth-oriented investment portfolio such as property and shares, which are likely to provide higher long-term returns and some protection against inflation.
Risk tolerance
When developing your investment strategy it is essential to understand the trade-off between investment performance and risk.
All investments present some level of risk; that is, the potential to deliver negative returns. Generally, the asset classes with the highest risk offer the potential for the greatest return while lower risk asset classes tend to deliver lower returns.
It is important to consider how you feel about risk before setting your strategy.
Diversification
Diversification across and within major asset classes allows you to reduce your risk over the long term. The performance of each asset class generally follows a cycle and it is not uncommon for one asset class to be 'up' in the cycle when another is 'down'.
By spreading your investments across different asset classes, your overall portfolio performance should improve over time.
Choosing your investment options
The investment strategy you choose for your super will have a significant impact on the amount of super you accumulate. One of the most important decisions you can make is how you allocate your money across the various asset classes e.g. shares, property, bonds and cash.
Most superannuation funds offer a choice of investment options. For investors who like more control, many super funds offer sector investment options like Australian and international shares, property and fixed interest. This way you can build your own asset allocation.
Investors who prefer to leave it to the experts, can choose a multisector fund that includes pre-mixed asset allocation strategies of the major sectors. The mix of assets in a diversified option reflects its risk profile - usually this is described as conservative, balanced, growth or high growth.
Investments are divided into growth or income assets. Shares and property are growth assets that primarily provide returns in the form of capital growth.
Over the longer term these assets can provide a good hedge against inflation.
Bonds and cash are income assets that primarily provide returns in the form of income. Income assets tend to provide more stable, albeit lower returns.
The right type of investment for you will depend on your investment objectives, timeframe and tolerance for risk.
Accessing your super
Under the Government's new transition to retirement rules you can now ease yourself into retirement at age 55 without reducing your income. This means you can reduce your working hours and supplement your income with an income stream from your superannuation savings.
To qualify you will need to rollover your super into a noncommutable income stream, which means you won't be able to access it as a lump sum (except in limited circumstances).
People who want to access their superannuation as a lump sum or (commutable) retirement income stream will need to be retired and meet the preservation age requirements before they can access their super.
To be classified as retired, you need to satisfy the following:
- if you have reached your preservation age and are under 60, you must cease an employment arrangement and never intend to be
gainfully employed for more than 10 hours per week; and - if you have reached age 60, you must cease any employment arrangement (or have ceased an employment arrangement since turning 60).
In special circumstances you can access your super early. These include:
- severe financial hardship;
- where you cease being employed by a standard employer sponsor of your fund and your account balance is $200 or less; or
- you suffer permanent incapacity.
There are number of ways you can access your super when you retire.
Leave your benefits in super
If you don't want to access your super immediately, you may be able to leave it in your fund indefinitely. Under the Government's Better Super system, you no longer need to cash in your super when you reach 65. Note that earnings in a super fund will be taxed at 15 per cent if you leave your super accumulating (ie, you don't start a pension).
Take your super as a pension
There are a number of different retirement income stream options available.
Account based pensions (previously known as allocated pensions):
Some super funds and fund managers offer this pension option. Account based pensions provide a regular income where you can often vary the payment amount and frequency, provided you take the minimum amount set by the government. Your pension payments will generally continue until your balance has been exhausted.
Annuities:
Life insurance companies may offer annuities, which pay a regular, guaranteed income over a set period of time or lifetime.
Market linked income stream
Market linked income streams are a type of life expectancy pension or annuity available to retirees. A life expectancy pension takes into account the life expectancy of the recipient, or in some cases the recipients spouse, when working out the term of the pension.
All those receiving pensions and are under 60 may find their pensions taxable at their marginal tax rate less a 15 per cent tax rebate. There is no tax on pension payments for those over 60 who have satisfied a condition of release.
Take your super as a lump sum
There is no tax on lump-sum super benefits paid from a taxed source to people aged 60 and over provided a condition of release has been satisfied. Remember, the longer you leave your benefits in super, the more you may be able to take advantage of its tax effectiveness.
Why indexing is a super choice
Indexing is a way of gaining exposure to an investment market. Most investment markets have indexes that measure their value over time.
For example, a share index measures the change in value of the shares of those companies included in the index. Indexes cover almost every industry sector and asset class, including Australian and international shares, property, bonds and cash.
Unlike active fund managers, index fund managers don't try to outperform the market. Rather, they invest in all or a representative sample of the securities in the index and let markets do their work over the long term.
Like super, indexing is a long-term investment strategy. Low costs, tax-effectiveness and diversification make indexing a natural fit for most super strategies.
Low costs
Indexing's 'buy-and-hold' approach can significantly reduce the costs of investing over time. This combined with low management costs means you can keep more of the returns you earn - an important benefit for any super strategy.
Tax-effectiveness
Super might be tax-effective, but this doesn't mean you can forget about the tax implications of your chosen fund manager's approach.
Indexing uses a 'buy-and-hold' approach rather than active trading, which can minimise the tax impact on the portfolio, whether investing through Vanguard's personal super fund or your own SMSF.
Keeping your retirement benefit in the super system can minimise your tax even further. Under the government's new rules if you roll your super benefit into a pension product after you retire the income you earn isn't taxed, so you won't have to include it in your tax return.
Diversification, diversification, diversification
Index funds are broadly diversified, which means you are less exposed to the performance fluctuations of individual shares or securities.
The overall effect is that you moderate the volatility of your portfolio and smooth out your investment returns over time.
The indexing pioneers
Vanguard pioneered the concept of indexing, introducing the first retail fund in the US in 1976. Vanguard has since become one of the world's most experienced and successful indexing specialists. In fact, the Vanguard Group manages more than $1.4 trillion worldwide.
Vanguard recently celebrated 10 years in Australia, managing more than $65 billion on behalf of our Australian and international clients as at 30 June 2007.
Vanguard® index funds
Whether you're looking to build up wealth within your SMSF or through a personal super fund, Vanguard's index funds are a powerful way to build long-term wealth. Low costs, tax-effectiveness and diversification make indexing a natural fit with super.
- Index funds: a range of single sector and diversified options suitable for individuals, joint investors, SMSF investors, businesses and trusts. Low fees, no upfront fees and scaled management costs are just some of the benefits; and
- Personal super: flexible super plan you can use throughout your working life with low fees, choice of investment options, easy switching facilities and more.
Scaled management fees apply to balances over $50,000 so the more you invest the less you pay. And, there are no upfront fees. Investors with more than $500,000 to invest can access our wholesale range of index funds.
