Until just recently I had no idea about superannuation. I just thought that it was money that came out of your pay and came back as pension after 60. Turns out it doesn't quite work that way. Your super fund uses your money to make investments in the share market. Depending on your fund, you may win or lose. Some super funds invest in high-risk stock. It pays to do some homework on your fund, and to give them a call and find out exactly what it is they are doing with your money. With some super funds, it is possible to manage your own investment. What I mean by this is that some funds allow you to have some flexibility in the shares that your super is invested in. This can be pretty risky, and should not be entered lightly. That being said, it gives you control over your own money, and, if you are entrepreneurial enough, do your research and excercise a little foresight you can do well.
Quite alot of people have super left over from various jobs in separate super accounts. This is bad news, as super accounts charge fees. Small separate funds get charged fees by each superfund, and your money will get eaten fast. One account, one fee. It will save you money in the long run. This is one of the major ways super funds make money. Through people not paying attention. If you are anything like me, you probably don't know where all your super is, with which funds, and how much. One way to find out is the Super Seeker tool offered by the Australian Tax Office. All you need to know is your Tax File Number, and it will do the looking for you. This finds out if you have any money lost in old super accounts you may not have known about. Here's the link.... http://www.ato.gov.au/individuals/content.asp?doc=/content/33301.htm
Your current super fund, or whichever one you choose to be your primary fund, may even be able to do this for you and consolidate all your super into one account for you. This depends on the fund, but it can't hurt to ask.
The bottom line is not to trust your super fund with your retirement money without doing your homework and keeping an eye on it. Be a rich pensioner, get a sweet campervan.
For more info about super and the logistics of how it all works in more detail, start here....
http://www.understandingmoney.gov.au/content/consumer/financialliteracy/superannuation/
(Courtesy of The Australian Gov't).
Spare a thought for those in the floods.
Mayor Michael Simpkins 13 January at 09:57 Report
ReplyDeleteyou know man you can also take your money out of your super accountand invest in property. its a better move alot of people use there super for there fisrt home buyers awards, than there is no risk to the stocfk market. .
Jim Mcmillan Colvill 13 January at 10:14 fuckin oath good call. property goes up. always will. .
Mayor Michael Simpkins 13 January at 10:15 Report
because you can chalk your super up as inested money which is yours. and because it rises you can somehow(dont ask me)use it to get the banks to give you loans. i think it works a little like equity. .
Jim Mcmillan Colvill 13 January at 10:16 Didn't know that. Useful bro nice one.