Backups For Your Backups
First and foremost, it doesn’t matter how stable the economy is when you establish your superannuation fund, there is no guarantee for the future. The most astute financial planners can be undermined by a traffic accident, while the wildest gamblers stumble into fortunes on a regular basis. You can’t depend on the future, you can only make an informed investment choice.
That said, there are many who deal in long-term investments on a regular basis, and understand how to make them in such a way as to protect assets with greater success. When it comes to superannuation, it makes sense not to solely depend on a single superannuation fund, but to additionally round out this retirement plan with additional strategies.
Specific Superannuation Tips
First, let’s focus on superannuation directly. Consider this list of superannuation essentials; according to the site: “Superannuation is a topic of great importance to all Australians working toward retirement, but knowledge of the subject is still relatively limited.” There’s a lot to learn, and you’ve got to be careful to make the best choices you can, as oftentimes their ultimate impact may take years to realize.
Something else you want to ensure you do is pay attention to changes in rules and regulations which involve your superannuation strategy. Tax-deductible superannuation fund deposit was available in excess of 10% of salary income through June of 2018. When such opportunities arrive, if you’ve got a fund, you want to take advantage of them; you can save thousands in taxes. But taking such advantage requires remaining appraised of legal shifts.
In that vein, know that if you’re over 65, you might want to check to see if there are regulations which impact your pay-in. Currently, you’ve got to work at least 40 hours per 30 day period to achieve deduction privilege.
Beyond Superannuation
Sometimes it’s better to facilitate your own superannuation solution via PIG, or Passive Income Generator, as facilitated by an investment in something like property. Basically, you acquire property, get it paid for, and then either sell it and invest in another more stable property (as the property is the least liquid of all assets), or use the one you own free and clear as a PIG.
You might double-down and use the PIG to pay off the mortgage on your primary property investment. In such a way you could build equity using equity, while simultaneously having the ability to put an increased level of tax-deductible salary into your superannuation fund.
Should exceptional fluctuation characterize the market, you’ve got two immediate assets whose value will likely be slightly more stable than currency can be at times. Selling or trading them could ultimately support you.
Between property and superannuation, you may want to consider if there are other avenues of investment worth considering. Stocks, bonds, and mutual funds can all have their place; but it’s integral you work with a financial advisor of some caliber. You need someone you can trust or at the very least a neutral third-party resource you know you can rely on.
Planning For Everything
Lastly, always keep a little bit of money aside for that which is beyond any sort of advice or prediction. This can be easier to say than to do, but there are ways to live very well on a modest budget. What you don’t want to do is put all your eggs in one basket, as the saying goes.
Superannuation funds can be undermined by unexpected economic shifts, though they’re designed to help you avoid such a situation. Property values can fluctuate. Natural disasters arise, and sometimes you’re flat out going to make a mistake. If you invest your superannuation fund in something that ends up losing you money, that would be one.
So what you want to do is “cast your bread on the waters”, as the old saying goes. If you’ve got multiple fishing lines with bait (bread) on them, you increase your chances of catching a fish. If you’ve got multiple investment strategies supporting and surrounding your superannuation fund, you’re more likely to have security in retirement.
