Super size me

Superannuation is a true long term investment vehicle. Making small contributions over a long time frame will avoid a situation where you are compromising your lifestyle in the last 5 years leading up to retirement to increase your superannuation balance.

Once you are established in your chosen occupation, you should put in place a 5-10 year strategy that will lay a foundation for wealth accumulation in superannuation. The money you contribute now will have the greatest impact on your future lifestyle as a result of the natural effects of time and compounding interest.

Small contributions to superannuation over a long time frame will have a reduced impact on your lifestyle, when compared to saving a lot in a small time frame before retirement. Getting to age 50 and finding that you are inadequately funded for retirement could mean you scrimp and save at a time when other people are beginning to work less and enjoy their planned retirement. Saving into superannuation is rewarded with government incentives that give you a head start.

Rolling over your superannuation to your choice of fund can have its advantages. You need help to make an informed decision that is in your best interest. Your superannuation funds may have benefits and costs that only research can bring to light. Whilst the strategy of consolidating superannuation does make sense, the benefits are found where independent comparisons of your options are made, after accessing good financial advice.

You can get money into superannuation without paying income tax. This is called salary sacrifice. You will be contributing a portion of your pay directly to your superannuation fund. You will pay less tax and therefore save more. In some cases this is achieved without a change in take home pay.

Q Invest can provide advice to meet your financial needs from a service that suits your lifestyle and budget.