Two complaints about super and retirement planning
Two common complaints we hear from people who come to us for help are, “Super is a bad investment” and “My super always underperforms”. In most cases, the person complaining doesn’t understand where their superannuation is invested. Unfortunately, it’s an attitude that can expose you to the risk of not achieving financial freedom in retirement.
You need to make the effort to understand your investment strategy and how it will help you achieve your specific goals.
Here are some of our top tips:
- Get professional advice. We can’t stress this enough. Super is a complex area, and the rules change constantly. Missing out on tax savings or asset allocation opportunities could make a huge difference to your retirement lifestyle. Your accountant can help with the rules and tax advice. But for guidance on the underlying investments you really need a financial planner who specialises in this area.
- Review your current super strategy to identify the tax savings you’re taking advantage of versus the ones you’re missing out on.
- Review your current super investment strategy to make sure it’s appropriate for your long-term goals. There are so many things to consider—retail super, industry super, self-managed (DIY) super, as well as the hundreds of specific investments available. And there’s no one-size-fits-all option.
- Don’t assume an industry super fund is the best superannuation option for you. Again, get professional advice. You’re much better off investing in personalised financial planning advice than relying on clever (and potentially misleading) marketing.
- Like many Australians, you may have more than one super account. If that’s the case, it’s time to consolidate them and get some advice around what to do with it all.
- If you’re retiring in the next ten years, you should look at the impact of making additional contributions to super. The tax perks are terrific.
If you want some help with all this, check out our FREE ‘Retirement Accelerator’ Strategy Session and if it sounds valuable, just book a time.
