September 3rd, 2013 by admin
We know what you’re thinking – retirement seems years away, no point sacrificing your lifestyle now right? But imagine your superannuation money was in your pocket now? Would you want to know what it is doing for you?
Well Super is your money. In fact the recent changes to Superannuation Guarantee mean that more money is being contributed to your fund for the future and it’s yours to invest however you like.
Super myth explained
Superannuation is a tax effective vehicle that the government has given you which is in place so people self fund their retirement and do not have to rely on welfare in their old age. Although it maybe a long time before you can spend the money, there are ways you can take control of your investment decisions NOW to make the most of this investment that will support you and what you want to do tomorrow.
Investment decisions? Yes, for example you can invest your money that’s in your superannuation fund in the share market both in Australia and Internationally and share in the profits of some of your favourite brands. You can invest in property including some of the biggest commercial, retail and retirement developments. You can invest in a variety of cash strategies.
How to get involved
How can you make these decisions? Well your existing fund gives you investment choices. Do you know how your money is currently invested? If you do not know how your super is invested, log on to your providers website and check it out.
What you will find is a variety of different options and they will be broken up into blended or diversified options meaning your money will be invested in a mix of asset classes, i.e. in cash, in property and/or in shares.
No matter what the investment option you choose your superannuation provider will tell you their investment strategy (ie what their investment decisions are based on), what they are trying to achieve, the fees that the investment option incurs, and the recommended time frame for that particular investment. The summary may also let you know what to expect in the performance, i.e how many negative years to reasonably expect in any given period outlining the risk involved.
You can also see the performance of the fund, and although the past performance cannot predict the future, it does give you some sort of measure and indication of how the longer the history the more stable the returns will tend to be.
Superannuation is your money and the decisions you make today can make a huge difference to the way you live in the future. Want to be eating baked beans or enjoying nice restaurants, spoiling your grandchildren or reliant on welfare, stuck in a small rented flat or visiting your dream get-away? Get online this week and know your money…
Here’s some good places to start:
- An overview of links, tools and tips
- Super and retirement calculators
- Saving $100,000’s by sorting out your Super NOW
And of course it’s MoneySmart Week – so do a Money HealthCheck!
Future Map is a fun employee financial wellbeing program. If you’d like your workplace to run a financial wellbeing program, introduce the Future Map program to your HR, Wellbeing or Learning & Development team or contact us for further information.