Superannuation Planning and AdviceSecure Your Financial Future with Ethica Private Wealth Sunshine Coast
Despite many changes made by various governments over the years since compulsory superannuation was created in the 1980s, super is still a tax effective savings vehicle.
It acts as an enforced savings plan, as by law employees contribute a fixed percentage of their pre-tax income to a super fund – in this way, you cannot spend that income on something else. The super fund invests this money on your behalf in shares, bonds, property and other vehicles, and then gives you the money back when you reach the statutory age.
For younger people, superannuation puts compounding to work for you, where the interest you earn on your super today is added to the principal amount, earning you more interest tomorrow.
Self Managed Super Funds
But for some people, the compulsory amount they contribute to their super is just the beginning. You can contribute much more than that (up to certain limits imposed by the government) and still enjoy less tax on this retirement contribution than with other forms of investment.
A growing proportion of Australians is going one step further than that – rather than investing in an established retail or industry super fund, they are creating their own self-managed superannuation fund.
Getting the Right Advice
Super funds all have different levels of performance over time, differing fees and charges and different levels of exposure to various investment solutions. It can be very confusing for the average person.
The team of financial planners at Ethica Private Wealth Specialists have extensive experience with all aspects of superannuation and can help you choose the policy that’s most appropriate for your age and financial circumstances.