Understanding how your money in Super is invested will help you take control of the type of assets your funds are exposed to and what type of assets are suitable for your own Risk profile. What other contributing factors are benefiting or impacting your Super. We've compiled some main factors below.
What is your Risk Profile?
Your Risk Profile will help us understand your tolerance towards volatility in your portfolio. The differing assets in your fund will provide their own level of volatility and it's best to understand how each asset can perform. From here your fund will offer a range of investment choices for us to consider that aligns with your Risk Profile, but some funds may also be limited in their offering.
What fees are being charged?
All funds charge a fee to run your account. Admin, MER, ICR and more, what does this all mean and are you being charged a competitive fee from your current provider.
What contributions are being made?
If you are an employee, you will receive 9.5% plus based on your Gross income and some employers typically Government will have an increased payment for you. These contributions are just one of many types of contributions that can be made into your fund and there are many limitations and benefits available.
What Insurance is in your super?
Majority of Super funds will come with insurance built into their accounts and will generally provide a level of cover based on your age for Life and Total & Permanent Disability however most of the time these insurances won’t be tailored to your personal needs. Insurance can be tailored for you in and outside of the super environment to best suit your current position, cash flows and Super funds.
How is your Super taxed?
Super contributions can be taxed anywhere between 0-30% depending on the type of contribution made and your gross income, investments and their earnings which are taxed between 0-15% depending on the stage of Super you are in. Additional tax penalties can be charged to your contributions of limits are breach.
What type of fund do you have?
Typically, you will find five different accounts varying from Industry, Retail, Public Sector, Corporate or Self-Managed Super funds. You may find you have one or many funds open currently. Understanding what you want from your Super investment will help us determine the right Super fund to work with your investment preferences.
Knowing the ins and outs of Super can be very complex and rules and regulations are always changing requiring us to adapt and change strategies on an ongoing basis to ensure our clients can take advantage of this tax friendly investment environment for their retirement savings.
Contact us and book a complimentary appointment to discuss how your Super could be working for you.