Is your financial future due for a service?
What did you get up to over the long weekend?
For many it’s a nice chance to have a short mid-year break, catch up with friends and family, and just enjoy one extra day off!
Things like footy, work, family life, plans for the rest of the year, maybe even politics, would have been talked about with those nearest and dearest.
I wonder how much conversation centered on superannuation?
I know most people find super boring. Trust me, I know that from 13 years of advising people on how important it is to take super seriously! However, the reality is that it is most likely going to form the bedrock of what you will have to rely on for your retirement.
If you find super boring and don’t take it seriously then there’s a good chance you’re sleepwalking towards a tough financial future.
Many people who find super boring still understand that it’s a good thing, it just doesn’t excite them. Yet, the idea of being able to stop working does excite them and that’s what superannuation is all about trying to fund!
There are others who genuinely think super is a bad thing. Anyone you ever hear telling you that super is a bad thing is really telling you they like paying more tax! It’s as simple as that. Super is simply a tax structure. We hear in the news about filthy rich people hoarding their wealth in tax havens like the Cayman Islands. They do that for the simple reason of paying less tax. Super is the opportunity for ordinary Australians to pay less tax on their investments – legally.
Think about it this way… there are only really four things you can invest your money in – cash, fixed interest, property and shares. The choice is whether you do that inside super or outside super (or a combination). The investments don’t change, the only difference is whether you are holding investments in a 15% tax environment or paying tax on those investments at your marginal tax rate, which is likely to be twice as high or more.
Yes, there are many rules that apply to super, but with a little help you can take advantage of the rules and create a fortune.
Flip your thinking when it comes to super. When I ask people, “What’s the biggest disadvantage of super?”, I almost always get the same answer, “You can’t touch it”. I immediately ask, “What’s the biggest advantage of super?”, and it’s like a lightbulb moment for many people when they realise that having that money out of reach is the reason why it works! If you can’t touch it, you can’t spend it. If you can’t spend it, that money is working hard to help you reach a position to one day be able to say you can afford to stop working. Without compulsory super, how do think you’d be going towards achieving that?
Yes, super is compulsory. You have to have it, so why not make it work hard for you? After all, it is your money.
Make the most of it by getting some expert independent advice. For a small fee, you can be confident your super is working as hard as possible. Given it will likely be worth more than your home by the time you retire, don’t you think that would be worthwhile? The difference between great management and poor management of your super could be hundreds of thousands of dollars!
We all get our cars serviced and they are worth very little relative to what you could achieve with your super. Is it time you got your super serviced?
If you’d like to find out more about how INDEPENDENT financial advice could help you manage cash flow, pay off the mortgage faster, get the most out of super and invest wisely, then get in touch on 0411 484 464 or head to wealthtrain.com.au.
Daniel McGregor is the man behind Wealth Train and is a member of the Independent Financial Advisers Association of Australia. This advice may not be suitable to you because it contains general advice which does not take into consideration any of your personal circumstances. All strategies and information provided are general advice only.
Daniel McGregor and Wealth Train are authorised representatives of Independent Financial Advisers Australia AFSL 464629