There is no doubt that investing in just about any kind of superfund is better than doing nothing. For some recently retiring baby boomers and the streams to follow them until 2028, there will be a vast number who will fall short of the dollar value required for them to retire comfortably with.
As this system was only introduced by the Keating Government in 1992, you can see how many of the early boomer births would not have created enough of a nest egg before they started retiring in 2011.
There is, however, absolutely no doubt though. If you get into your super early you are bound to make a huge dent in your retirement bill. How does setting the course to true freedom feel? Did you know that there are some real advantages in this system that not enough people are just not taking advantage of?
There are a few ways you can use your employer funded superannuation to your tax benefit.
You can make concessional payments into your spouse’s superannuation after tax is allocated. This may not seem attractive until you see note 2 below. You can salary sacrifice and pay up to $50,000 into your superannuation and only pay 15% tax. What a lovely nest egg. The Government will match your contributions dollar for dollar for any money paid into your account over and above the minimum your employer pays. This is also capped. That is to say, the amount you can contribute is capped. But wait for it, at $150,000! Whilst the Government only contributes a small amount you can see how the incentives stack up when you consider the whole lump sum compound interest that occurs when cash is invested long term.
Fountain Property Group are firm believers in ensuring your superannuation is progressing as well as if not better than CPI does. Visit it often to ensure its growth. It is important to keep that investment moving to gather as much investment momentum as possible. By adding to the fund yourself you add to the momentum to bring more energy to the investment.
Rome Wasn’t Built in a Day This form of investment is called delayed gratification. You sacrifice a little now for big returns at the end. This may seem a lot to some but just an extra $100 per month into your super and your money is doubled straight away!