When do I start planning for retirement?
Your retirement may seem like a long way off, but the sooner you start planning the more you stand to accumulate. This is largely due to the power of compounding interest, ie. the interest paid on the initial amount invested, plus accumulated interest. Essentially, it’s exponential growth.
However, if you’re a late starter to retirement planning, there’s no need to fold in the towel. We can make calculations and perform other analyses to show you exactly where you are positioned. Knowing your needs in retirement is crucial, and there are many facets to retirement planning you may not have yet considered. We can show you ways to catch up through investment, budgeting and other financial strategies.
Is SMSF better than an industry fund?
When it comes to the maturation of your superannuation, it can be difficult to think that far ahead — especially if today brings enough financial challenges and obstacles as it is. However, before you think SMSFs sound like they belong in the too hard basket (and contributing extra money to your current superannuation fund would be easier), it is important to realise both options have their pros and cons to consider.
Of course, you can make voluntary contributions to your super fund or you can sit back and have your employer pay in the legal amount on top of your paycheck. This can seem like the more straightforward option, but there can be a lot of opportunities missed in going this route. Beyond all this, SMSF allows you control over which funds your super is invested in and many other strategic perks. Therefore, under the guidance of an expert, SMSF can be a very positive option for your retirement.
