A great paradox of modern life is that the more complex financial markets become… the more people want simple, easy solutions! For most Australians, their superannuation fund will be one of the most important investments vehicles that they have. Not only is it likely to become their biggest
investment in terms of dollar value, it will also be the investment that they will depend upon most when they are no longer working for a living. Increasing life expectancies mean that our superannuation will have to last us into retirement for some 20 to 30 years.
Therefore how much you have in superannuation will seriously influence your standard of living in retirement. So taking an early interest in your super is important – don’t let the jargon surrounding superannuation and the seemingly complex rules put you off. It really isn’t too difficult to understand.
Decisions about which super fund and what type of investments you put your money into can make a big difference to how much you will have in retirement.
Whilst your superannuation account balance is small you may be comfortable leaving the management and investment decisions to others. However, as it grows in value you may want to involve yourself more in the investment strategy of running your own SMSF Fund.
Answer the following question… “assuming you had a bank account balance of; $10,000, $20,000, $50,000, $100,000, or even $250,000 – would you be relaxed about giving someone the authority to invest this for you or conversely, would you like a say in just how these funds are going to be managed?