What about your superannuation?
13 August 2015
Many of us put superannuation (super) into the “too hard” basket as something we will do at a later date, when you could benefit from taking control now to ensure you are making the most from your super strategy.
Below are a number of key questions to consider about your super:
- Do you have more than one super policy?
- Are you aware of the balance of your super fund(s)?
- Do you know how your super is invested?
- Are you aware of the total fees & costs that your super fund(s) incur?
- Do you know how much you will need in retirement to maintain your desired lifestyle
- Do you understand how salary sacrifice works?
- Are you familiar with the transition to retirement strategy?
Consolidating your super
Throughout our working lives it is more than likely we will have more than one job. More often than not we have a different super fund for each position we hold and the end result of this is that most of us end up having several funds with various companies.
This can be quite confusing and expensive. If you would like to simplify your super to make it easier to keep track of, it’s a good idea to consolidate the investments into one super fund.
The benefits of putting several super funds into one account are:
- You save costs by paying only one set of management fees
- It simplifies and reduces paperwork
- It’s easier to keep track of your super
Before you consolidate your super funds, it is very important to check the following details:
- If you will have to pay any termination fees
- If you will lose any insurance benefits
- That the fund you are consolidating into has all the services and investment options you want
Have you considered a self-managed super fund?
The difference between self-managed super funds (SMSFs) and other types of funds is that the members of an SMSF are usually also the trustees. This means the members of the SMSF run it for their own benefit and are responsible for complying with the super and tax laws. In essence, a SMSF provides you with a lot more control and flexibility as you are able to direct where the money is invested and determine the use of your super.
Depending on the value of your super and the type of investments you wish to hold a SMSF may be more cost effective than the alternatives. Also, a SMSF can be very useful to tie in with your overall tax plan. Contribution planning, small business rollover relief, pension planning and use of franking credits can be used to manage your taxation obligations.
It sounds complicated… but we are here to help
Many people put off consolidating their super as it sounds too complicated and time consuming, but with the right tools it is a very simple and straightforward process.
At Boyce Financial Services (BFS) we can assist you in consolidating your super and choosing the right super investment strategy for you.
This information is of general nature only and is not intended as a personal advice. It does not take into account your particular investment objectives, financial situation and needs. Before making a financial decision you should assess whether the advice is appropriate to your individual investment objectives, financial situation and particular needs. We recommend you consult a professional financial adviser who will assist you. You should also obtain a copy of and consider the Product Disclosure Statement (PDS) for any financial product mentioned before making any decision to acquire a financial product.
Boyce Financial Services Pty Limited is an Authorised Representative of Lonsdale Financial Group Limited ABN 76 006 637 225 AFSL Licence No 246934