For most of us, super will probably be the largest and most important long-term investment we’ll ever hold. Unfortunately, many people don’t give it much thought until it’s too late. And with average life expectancies increasing every year, it means your super has to last you even longer. So regardless of how far off retirement is for you, getting some expert advice now will help make sure you can afford to live comfortably throughout your post-working life.
There are small things you can do today to deliver big benefits tomorrow. To get you thinking, we’ve put together some great ideas to motivate you, save you money and boost your super.
Why it pays to start saving now
When it comes to planning for long-term goals, like retirement, unfortunately many people put off doing something now. However, if you’re prepared to start investing early, time can be a powerful ally.
This is because year after year, the money you invest has the potential to earn more money. And if you re-invest earnings, you’ll have even more in the future. This is known as compounding and it’s what Albert Einstein called the eighth wonder of the world.
For example, if you invested $50,000 today, earned 7% per annum and re-invested your earnings, in 20 years you’d have around $200,000 (before tax). But, if you waited ten years before making the same investment, in 20 years from now, you’d only have around $100,000.
That’s an extra $100,000, or double the amount, simply by investing ten years earlier.
Superannuation is purpose-built for compounding, because by its very nature you’re unable to access your investment earnings until later in life. This means any earnings are automatically reinvested year after year.
To maximise the results, you may want to gradually increase your contributions now, to capture the compounding effect over time.
acumen advisers can help you by taking you through other strategies where you can make a small change today, to result in a big difference down the track.
Reduce your super fees
How many different superannuation statements did you receive this year? If you ended up with several envelopes piling up at home you may be paying more than your fair share of fees, eating into your retirement savings.
If this sounds like you, you’re not alone. It’s estimated that one in two Australians aren’t making the most of their hard-earned retirement savings due to holding multiple super accounts.
According to a CHOICE research report1, multiple super accounts are costing Australians $1 billion a year in wasted fees.
This is because depending on the type of fund your super is held in, you may be paying between $30 and $340 in fees per account1.
acumen advisers can help you consolidate your super accounts. We can also help you find your lost super.
To find out other simple tips to make the most of your money, please contact acumen advisers.
Use super to save on insurance
If insurance is low on your shopping list, don’t worry you’re not the only one.
Many people give personal insurance a low priority because we don’t think we need it. However, strangely, we insure our cars or our homes without a second thought!
Well the good news is that personal insurance can be very tax effective.
acumen advisers can make sure you can take care of your loved ones, and make sure that if something does happen to you, their future is secure.
What types of insurance are available through super?
Life and Total and Permanent Disability (TPD) insurance pays a lump sum and goes a long way to looking after those you’d leave behind if you died or were seriously injured. It works by paying out a lump sum in the event of your death or serious injury to help care for your loved ones or pay medical bills.
Income Protection insurance is designed to provide you with a monthly income protection benefit of up to 75% of your earnings in the event you are unable to work due to sickness or injury.
By having your insurance through your super fund, you’re likely to find your premiums cost less as tax concessions apply.
To find out other simple tips to make the most of your money, please contact acumen advisers, Financial Planners in Katoomba on 1300 PH ACUMEN (1300-742-286).
1The Super Secret Report, CHOICE, November 2006.
What our clients say
I found Greg to be a genuine, honest and helpful professional in resolving my future financial needs.
– Marcia, Blackheath.
Greg is extremely knowledgeable about financial planning and is exceptionally skilled at explaining financial concepts to the layperson. I have recommended Acumen Advisers to friends and colleagues.
– Name withheld, Health Professional, Mosman.
We have been clients of Greg’s for almost 20 years after one of us attended a seminar he gave on Taxation and Superannuation.
Greg has consistently prepared very detailed and appropriate financial plans for us. He has assisted us with legal work required due to our relationship and negotiated both sudden changes due to physical failings, and the vagaries of Centrelink (for this we are greatly appreciative). Greg has also given public lectures for our small community group, Friends of Auburn Library Services (FOALS).
However, the best advice Greg gave us was to travel (which we wanted to do) early, rather than wait until later, when we may not be able to physically. This has changed our lives, we have completed 7 cruises and 2 non-cruise holidays based on this advice, and his careful management of our financial situation.
We have no hesitation in recommending Greg as a Financial Adviser and as a friend.
– Hazel Labka, Retired Nurse Manager & Dr. Deborah Neyle, Retired University Lecturer, Auburn.
I have been a client of Acumen Advisers since 1997. Greg has the ability to explain financial concepts with exceptional clarity. I value the understanding he brings to my finances and his desire to ensure that the advice he provides is entirely appropriate to my circumstances.
– N. P-L, Retired Medical Professional, Woolwich.
Before I met with Greg I thought I was “too small” a client and wasn’t really sure whether a Financial Adviser could help me. However, I found him to be very honest and open and good to work with. His advice has suited my circumstances and I recommend him to my family and friends.
– A. Amor, Single Parent, Melbourne.
It was a pleasure to work with Greg Lucas of Acumen Advisers, firstly in a professional capacity through his workshop for members of our community on financial aspects in the transition to retirement, and secondly on my personal financial planning needs and aspirations.
Having heard somewhat negative comments about financial planners in the past, I had never approached anyone before, and I was somewhat nervous. But Greg’s professional approach left me with no concerns. He is not only well qualified and experienced, I also found his approach to be well considered and thoroughly professional. He answered all my questions with no hesitation, and went out of his way to find the best approach to financial and estate planning that fitted for me at this stage in my life. I certainly had no knowledge of some of the options he presented that were available to me.
It is a pleasure to work with Greg, and I am glad that I have his support and expertise to help guide my own transition to life after work (dare I say it – life in my older age).
– Peta Williams, Community Sector Manager, Musician & Composer, Springwood.
For anyone looking to retire or just worried about their future finances, I can highly recommend a chat Greg at Acumen Advisers. With friendly and clear advice they were efficient and so helpful, taking away any stress. Their follow-up gave me also, a great sense of a job well done.
– Jules Francois, Artist, Summer Hill.
I have been working with Greg Lucas for over 10 years. I highly value his advice and make sure to consult him before any major financial decisions. I am always impressed with his insight and perspective. His strategies are sound and give me confidence I am making good decisions. He also often thinks outside the square and suggests alternatives I would not have considered. I have no hesitation in saying that my financial position is significantly better as a result of Greg’s advice.
– K.Sykes, Marketing Consultant, Lane Cove