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Grow my money in superannuation

Grow my money in superannuation

Here we capture everything around planning for retirement and building your wealth under the tax effective environment of superannuation.

Sort out your super, protect your future

When it comes to preparing for a comfortable future, be sure to understand the basics of retirement. These days retirement can be whatever you want it to be and enjoying independence, health and stability are vital to living the life you want.

Understanding your super

Super is the most tax effective investment structure
in Australia today. Superannuation monies are
tax free after age 60. That’s right, tax free, you
really can’t do better than that! The money comes
from contributions made into your super fund by
your employer and ideally, topped up by your own
money. If you qualify, the government may add to it
through co-contributions and the low-income super
contributions.

If you are an employee, your employer must pay 9.5% of your salary into a super fund.  This is called the Super Guarantee and it’s the law.  The Super Guarantee is to be increased by 0.5% each year from 2021 until it reaches 12% on 1 July 2025.

Types of superannuation funds

There are five main types of super funds available.
It’s important to consider which one best suits your
individual circumstances.

1. Industry funds
2. Corporate funds
3. Government funds
4. Retail funds
5. Self-managed superannuation funds

Identifying a suitable fund for you depends on your
personal goals and what you aim to achieve. Does
it include a quality insurance option, is it a strong
performer or does it have low fee options?

Super questions?

You’re not alone. Its estimated there’s around $12.96 billion dollars in “lost” super in Australia. The best place to start the search for any unclaimed money is the ATO website. For your interest, if the balance is less than $200 you can withdraw this money tax free, regardless of your age.

This is a “how long is a piece of string” type question. The correct answer critically depends on your age, cash flow and lifestyle, existing debt, years to retirement and so it goes on.

For some of us, this can be as early as age 55 (your preservation age) but this will vary depending on your date of birth and whether you have retired.

For starters look at consolidating multiple super accounts. Multiple accounts add up to multiple fees and diminishing economies of scale. Then look at your investment options. Are your choices appropriate for someone of your age? Does it match your attitude to risk? If you are super conservative don’t hold your breath for double digit returns. Ditto if you are a thrill seeker, don’t be shocked if your money goes down when the markets dip. This is complex and needs thought and serious analysis. Choosing your super options is not a case of: if in doubt choose option B or the default fund. Be prepared to call in an expert. Get it right.

What’s next?

A goal without a plan is just a wish