Potential underperformance of $635,000, a plethora of administration fees, and a multiplicity of insurance premiums that you’ll never use. This was the outcome from the Productivity Commission into the Superannuation system. It’s obvious, they have created a superannuation system to the detriment of your retirement! And while you bang your first on the table in disgust, have a think to yourself about who they are. I hate to be the bearer of bad news, but the problem may be how we are using the system, not the other way around.
When was the last time you really analysed your superannuation? Well, here are three reasons to spring you into action:
- If you’re part of Generation X, then believe it or not, you’re still young! Therefore, you have time on your side! Time is a key ingredient to successful investment growth, all thanks to the wonders of compound interest; exponential growth of interest on interest. If you don’t understand what that means, you need to go see a financial planner. It could transform your retirement.
- When was the last time you claimed on your own life insurance policy? It’s not a trick question: the answer is most likely never. And this is why life insurance seems to have no value. After all, it is easy to criticise the need for life insurance when you are alive. This is the subtly of insurance; you can’t see the need, until it’s too late. The key is to manage an appropriate level insurance. Ask yourself, is it easier to get insured as a young, healthy 25 year old, or as a 40-year-old father of four? (It’s a rhetorical question, no prizes).
- Do your investments follow a consistent, intelligent investment structure? If your superannuation is spread across different funds from here to Timbuktu, it’s time to take action. At Ascent Private Wealth, we can guide you toward a simplistic and intelligent investment structure.
If the commission into the Superannuation system can teach us one thing, it’s that we actually have more control over our retirement than we thought. So what are you waiting for? Book an appointment with Ascent Private Wealth! Get your superannuation sorted and let time do the rest. In this case, time is money and money is time.
Are you interested in a free consultation? Click this link and let us schedule an appointment – http://ascentpw.com.au/contact/
Mark O’Toole CFP™