Strategies to use your superannuation to build personal wealth
For most people, their superannuation is their largest investment outside of their income, yet is often overlooked as a way to increase personal wealth.
With a few simple strategies, you can start building your retirement savings and improve your financial position for the future.
However, using your superannuation to build wealth requires careful consideration.
Here are some of our suggestions.
Consolidate your superannuation accounts
If you have worked for multiple employers over your career, you may have accumulated several superannuation accounts. Consolidating your superannuation accounts into one fund can save you on fees and make it easier to manage your investments.
You can do this by contacting your chosen superannuation fund or the Australian Tax Office.
Review your investment options
It’s crucial that you regularly review your investment options within your superannuation account.
Many superannuation funds offer a range of investment options, such as high growth, balanced and conservative.
Therefore, it’s essential to choose an option that aligns with your risk profile and retirement goals.
Make additional contributions
Making additional contributions to your superannuation can help to boost your retirement savings. If you’re under 67 years old, you can make voluntary contributions up to $27,500 each financial year.
There are also tax benefits associated with making additional contributions, so it’s worth considering.
Use the salary sacrificing option
Salary sacrificing is a tax-effective way to make additional contributions to your superannuation.
It involves arranging with your employer to contribute a portion of your pre-tax salary to your superannuation fund.
By doing this, you can reduce your taxable income and potentially pay less tax.
Consider a self managed super fund
A self managed super fund (SMSF) allows you to take control of your superannuation investments. You can choose where to invest your money, including shares, property and managed funds.
However, it is crucial to note that an SMSF requires a significant amount of time and effort to manage, and there are strict rules and regulations that you should follow.
Seek professional advice
Wealth building and financial management are complex. We understand that there are many decisions to make along the way, and sometimes it can feel overwhelming.
Here at North Advisory, we are committed to helping you secure your financial future. As your trusted partner, we’re with you every step of the way… protecting your wealth and providing a complete range of financial solutions.
If you’d like to find out more about our financial advisor services, contact our team today.
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