That said here’s some fast tips that’ll get you through on super in the time it takes for your nails to dry after a fresh coat of polish – with a little help from FinAdvice Financial Planning‘s Chris Wilsmore.
1.The goal of super: to live long enough to be able to spend your retirement savings which you are most likely collecting and growing in an investment vehicle called superannuation.
Fact: life expectancy is over 80 years plus these days, and so the earlier you wish to retire, the more money you need saved for this. (How’s that coat going?)
2. The Tinder of super: Nearly half of all working Australians are double dating their super funds. It’s time to break up with the duds and find any lost gold.
Fact: There are over 6 million lost super accounts, adding up to $16 billion in unclaimed retirement savings. Check out this link to find any lost money.
3. The outsourcing: It’s nice when you have a mother who makes your bed of a morning, and that’s just what it’s like when you completely outsource the investment decisions of your super fund.
Fact: Most Australians are by default in a balanced fund, which may have various fees and insurances attached. But the problem is, just like having your bed made my mum each day, the situation may no longer be right for you in terms of the level of risk you want to take and indeed how old you are.
4. The future: To reach retirement and have a lot of money in your super fund is going to primarily depend on how much you earn.
Fact: you are able to receive at least 9.5% Superannuation Guarantee Contributions from your employer when you earn over $450 a week in the one role. And, the more money you contribute to your fund in the early years, the more money you have to grow longer term.
Click here for Chris’ full article on super and note, he recommends a nice bottle of Parker Coonawarra Estate Terra Rossa Cabernet Sauvignon 2005.