Since the introduction of compulsory superannuation, most of us have employers contribute to for our future retirement. But how can you maximize your returns on superannuation contributions?
We can help you understand the different strategies available. Most importantly, depending on where you are in your working life.
If you’re approaching or older than 55 years of age, (we term it ‘preservation age’) or may have already passed that milestone. With limited to no impact on your available cashflow, we can advise how you can potentially save tens of thousands of dollars in tax.
Superannuation is one of your most important assets – and we’re here to help you get the most out of it.
Still have quite a few years before retirement?
We can advise a number of strategies to increase and enhance your current and long term wealth. Getting to know your investment options and how they can help you achieve your best retirement is essential.
Superannuation – benefits explained
If you want to be even more comfortable in retirement and financially stress free, add more to your superannuation as early as you can. You can top up your super account on top of what your employer already puts in. It can be a great way to boost your balance. Learn more below.
Why should you consider adding to your super?
Living costs are always rising and are likely to be a lot higher by the time you retire. To add to that, there is a very good chance just your employer’s super contributions won’t be enough for a comfortable retirement.
It is becoming clearer that you would be wise to add more to your super fund while working. As a result, enjoy your lifestyle and financial independence in your retirement. You want to have more money at the end of your life than more life at the end of your money.
Adding to your super with your take-home pay now can be as simple as reviewing your discretionary spending. Maybe cutting back on a few little luxuries now, and putting those savings into your super fund instead.
Consider Debt Levels While Contributing to YOUR Superannuation
It is wise to consider your debt levels before adding extra to your super. If your cashflow isn’t in check, and you don’t know your true debt levels, you might find it difficult to pay more into your super on top of your bills. Therefore end up worse of.
We at FMG Wealth Strategists, a holistic financial planning and advice company offer completely independent wealth and investment advice. As well as, cashflow and debt solutions, super advise and consolidation, and formulate cashflow and debt plans, as required, as part of your ‘wealth check’.
Our aim is that you to get a good handle on your current finances. One of the tools we use and recommend allow you to connect and see ALL your money and ALL your accounts in ONE place. ALL your transactions across ALL institutions – including your super, and home loan/s, credit card/s, shares/ investments etc.
Managing your finances can be challenging. It’s always good to keep it simple where you can. For that reason, we do all the hard work for you and show you how you can get a ‘good handle on it .
5 Steps to Your Improved Cashflow
1. Understanding your goals
2. Understand how you are spending your money
3. Build a solution that fits you
4. Provide advice, tips & tools
5. Regular Check in
What’s in a Cashflow and Debt plan?
In our plan, we are going to highlight the choices you make with the money you have available. Make sure your debts are managed correctly to save you time and money to meet the goals YOU want to achieve.
Helping our clients make better choices with the money they have available
Ensure debts are structured in the most efficient manner
And retire debt free – with money left over – on the date you choose.
We map the process with you, track your progress, review regularly as you choose, and confront the issues together.
5 Ways to Help You Save Money While Contributing to YOUR Superannuation
1) Government Contributions
*For those who are on a lower income, and eligible, the Government may add to your super for every dollar you add with their co-contribution.
2) Salary Sacrifice
How does salary sacrificing work?
You make an agreement with your employer to pay it straight into your super account, instead of your bank account. This amount is on top of your employer’s compulsory Superannuation Guarantee payment. Currently 9.5% of your salary. You will “sacrifice” some of your salary to build your super balance more quickly.
3) Pay less tax
Salary in your super account gets taxed at 15% (if you earn less than $250,000 and 30% if you earn more than $250,000). Any salary you take home gets taxed at your usual income rate, which can be as high as 47%.
4) Reduce your taxable income
The more salary you put into your super, the smaller your taxable income may be. And that could mean even more savings at tax time.
5) The benefits of consolidating your super
If you’ve ever changed your job, your name or address, chances are you have more than one super account. And more than one account means more than one set of fees. By consolidating your super, you put all your monies in one place and with one super fund. That means only a single set of fees, plus it means easier account management.
We’ll help you through the complex maze of superannuation to create a strategy tailored to your current financial situation. Talk to one of our experienced financial advisers about your superannuation options.
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Save Money While Contributing to YOUR Superannuation