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Five ways to optimise your superannuation


Your Super is your ticket to retirement. However, if your super is not set up in a way that stacks up your wealth, you’re letting years go by without increasing its value. Worse, it might be withering away due to excessive fees or poor investment. ​ So how can you make sure that your Super Funds are going to the right investment, and are being managed without losing your sanity over its complexity? ​ Today, we’ll talk how you can optimise your Superannuation Funds and how you will benefit from each step. Let’s look at the list, shall we? ​ 1. Choose the Right Fund​ Choosing the correct super fund spells the difference between your money increasing its value year by year and money sitting somewhere without increasing or even being used by all the fees for an inappropriate fund. ​ But how do you know if you have chosen the right fund? ​ There are many things to consider, but what’s important is you compare your fund against the market and take note of the fees and range of investment options as well as the insurance benefit that comes with each fund. ​ What matters is that it is aligned with your long-term goals. ​ 2. Consolidation is the Key ​ It’s not surprising to see someone having three superannuation funds. This happens whenever they switch jobs without paying attention to where their funds go. ​ The result? Multiple set of fees and no general direction for your money. ​ To prevent this from happening, choose the fund that works for you and brings you closer to your goals, and consolidate all your super funds into that account. ​ Not only will this help increase your money’s potential and keep fees minimal, this can also pave the way for easier superannuation funds management. ​ 3. Sacrifice your Salary ​ Salary Sacrificing may sound scary, but in truth, it is actually a way to maximize your tax savings. ​ Salary Sacrificing means directing part of your pre-tax income to your super, which will then be taxed at 15% instead of your marginal tax rate. ​ So if you can find a way to forgo a portion of your salary and direct it to your super fund, it will help you increase your net income, reduce tax and increase your retirement benefit. ​ But take note, the money you put into your super cannot be taken out without satisfying your condition of release, which for most, won’t happen until they retire. ​ 4. Set up a Self-Managed Superannuation Fund ​ It pays to take responsibility. ​ If you are serious with increasing your retirement fund through your super and want to be proactive in making sure it happens, you have the option of setting up a Self-Managed Superannuation Fund (SMSF). ​ Setting up SMSF will give your control over how your super is invested, and increase your chance of maximizing its returns. And even if it would cost you a bit higher to use SMSF, the long-term benefits – depending on how you invest your super fund – will be worth the extra fee. ​ However, this should be done with extreme caution. While you will have complete control of your investment, you will also take all the responsibility, together with the risks, of managing your account. ​ 5. Seek for Objective Expert Advice ​ Proper Superannuation Fund Management can make or break your dreams of retirement. ​ But while it is complicated, it can be done with sufficient guidance and objective, expert advice. ​ Sadly, this is what most people try to avoid, thinking that the money they will earn will simply offset the amount they will pay for professional service. ​ What they don’t realise is that professional financial advisors can help you reach your financial goals for when you retire, prevent you from making miscalculated risks, and ensure your funds are being directed to the correct investments without paying multiple fees, while maximising the returns. And above all these, manage your funds without losing your sanity. ​ This means that the benefit you will gain will more than offset your upfront investment for financial advice. ​ If comfortable retirement is what you’re after, then this is the way to go. Start preparing for your retirement as early as today! Contact us to look at the current situation of your super funds, and find ways to optimise it for comfortable retirement.

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