Sunday 4 May 2014
OK quiz-fans (hey, we know some of you are closet Tony Delroy junkies) we have a quick quiz for you, starting now … 1: Roughly how much money is in your super fund? And 2: For double points, what type of super fund is your money in? If you can’t answer these questions then it’s time you did something about it.
It’s really easy to forget to factor superannuation into your financial plan, because, let’s face it, it’s pretty boring. But getting your super into shape early on (and it isn’t difficult) could make a massive difference to your lifestyle in later life. Would you rather rely on the pension or live your retirement in style? It’s not a hard question to answer.
It won’t take long—we promise. And there’s no time like the present. So buckle up and get ready for our five point plan.
Moneygirl’s five point super plan
- Work out how much money you have & what sort of fund it’s in
Dust off your last statement or log on to your super fund’s website for the answer. If your super is spread out over lots of accounts think about rolling it over into one account. You can do this by contacting the fund you’d like to keep—just let them know you’d like to roll your other super funds over and they’ll be happy to help you.
- Change your fund type if necessary
If you haven’t specified how you’d like your money to be invested the chances are that your super fund administrator has invested your money in a ‘balanced’ fund, which may not be so good if you’re young and require your money to grow as much as possible over time. Consider having your money invested in a ‘growth’ fund instead and the difference in your final balance could be quite staggering.
- Work out how much you think you’ll need
Try the retirement planner on ASIC’s Money Smart website to work out how much you’re likely to end up with after your current super contributions are taken into account (both your employer and personal contributions). Are you going to have enough income to support the lifestyle you dream of?
- Consider boosting your super
Now’s a good time to think about making a personal contribution to your superannuation, before the end of the financial year (30 June). You might be eligible for the Government co-contribution. Also think about making regular contributions to your super via salary-sacrifice—talk to your HR Manager at work if you think this might be for you.
- Keep on top of it
Around this time every year set aside some time to review your fund’s performance, compared to similar funds … check the Morningstar website for ratings—they’re also listed in the back of every edition of Smart Investor magazine. If you need help, enlist the help of a licensed financial adviser.
leave a response, or trackback from your own site.