Financial planning and superannuation planning is usually not on the radar of people in their twenties and thirties which is exactly the time when they should be setting themselves up for a strong financial future. Super is capable of providing above average investment returns and with some simple superannuation planning, will set you up for life. However younger people tend to overlook the importance of this opportunity to create wealth, usually for a few key reasons:
• They feel there is no need to worry about superannuation planning because they will not be able to access that money for 20 or 30 years.
• They see it as too hard and time consuming to understand it, control it, manage it and make it work.
• Other more immediate priorities demand attention such as getting married, buying a home or starting a family – ironically the very things that require smart financial planning strategies.

Choosing a Superannuation Fund
When choosing a superannuation fund, assessing its historical performance, fees, charges, insurance payouts and other variables is absolutely critical. However superannuation funds will often present variable data making comparison difficult. Some funds highlight their most recent returns while others highlight returns over a longer period. Some funds, after a particularly bad year, even create new investment funds to ‘reset’ their performance. What you can be sure about is that funds will only ever put their best results forward and detailed assessment of their performance is required.

Here’s why. Let us assume that we have two superannuation funds:
• Superannuation fund A has an 8% return average over 10 years.
• Superannuation fund B has an 11% return average over the same time.

Assume that both superannuation funds have $10,000 to start with, no fees and no other contributions; just set and forget for 30 years. The difference at the end of the first year is only $300. The difference at the end of 30 years is a staggering $128,296 Accounting for inflation of approximately 2.5%, the value of that $128,296 in 30 years is $61,164, simply by choosing a better performing fund. Ask yourself:
• How long do you work to make $128,296? Or even $61,164?
• Is this important to my financial planning strategies?
• Is this worth the time and effort to take action now?
• How much will other super contributions amplify the results?

Smart superannuation planning
Super planning can be the difference between a healthy and happy retirement and one living off Government allowances. Your choice. If you want a second opinion about your super or financial planning strategies, please contact us. We are certified financial planners and accountants in Liverpool with over 35 years’ experience meaning we hold deep understanding of the financial planning process integrated with tax effective strategies.

Dimitri Argyros | Director | S&Y Private Wealth

A wise man once said to me: “Do not let a small issue become a big issue; Have faith in small savings, they becomes big savings sooner than you think; Time is your friend when you are young, do not abuse him, he is very vindictive.”