12:00a.m. 13th October 2008

| By Alan Lander

Helen Sava, President QLD division Association Independent Retirees. Photo: Cade Mooney / 178825c

You can perhaps ride out the current financial meltdown – if you’ve got the time.

But for Helen Sava and her husband, who are in their 70s, time is not quite on their side.

So they have taken their superannuation out of managed funds – and started their own super fund.

“After seeing what has happened (in the markets), we started the process a few weeks ago,” Ms Sava said.

“It’s fairly simple and we are rolling (our funds) over into a single super fund.”

Ms Sava, who is local secretary of the Association of Independent Retirees, said the initiative would avoid fees and allow them to place their monies into cash and secured term deposits.

She said while the action would not necessarily be advised by financial planners, it was sound – and necessary.

“Maybe if we were in our sixties, we would look at putting it into managed funds,” she said. “And if we were under 65 we could be snapping up some bargains.

“But we are in our seventies – because of our age we haven’t got the years to recoup (losses); that’s why we are doing it.”

The Savas are children of the Depression of the 1930s, and Ms Sava is concerned current indicators are potentially pointing toward similar circumstances.

“We were brought up during that period, and we know what may be round the corner,” she said.

“We have worked hard since the Depression for a reasonable standard of living.

“(Now) we are faced with what was supposed to have been a secure future.”

Starting a self-managed superfund has become increasingly popular, but there are strict rules – and it is not open to anyone under retirement age.

“I believe there are a lot of self-managed funds out there,” Ms Sava said.

“We are not taking it out (of the super system), just rolling it over.”

A maximum of four people can be involved in a self-managed fund.

“And they must all be family members,” Ms Sava said.

“They can drift in and out (of it) if they wish – but there is a very strong line drawn on the rules.”

In short, contributions must remain in the separate names with no opportunity to interchange them.

Ms Sava said given the losses now being reported by even the biggest super fund managers on behalf of their clients, taking charge of one’s own money seemed sensible.

It means removing the money from the hands of those whom she said have contributed to the current crisis.

“I believe many people have been done over by their fund (managers).

“You thought they were safe, but when you look at the enormous sums (taken) – even by the biggest companies with their large number of advisers.”

Ms Sava said when super funds were set up, no guarantees were written in, other than there be enough funds to cover those coming into retirement to draw on.

“I’ve seen people take a 15% or 20% loss on their end-of-year statements.

“It’s almost back to having to put your money in an old sock,” she said. “Younger people I feel have not got any protection at all.”