Rather than aiming for the airbrushed figure of Miranda Kerr - a resolution that will no doubt end with your fingers in the cookie jar – let’s start 2016 ahead with some quick and easy wins. A gorgeous financial sarong that will cover the bumps and sachet you into the year.
Ok – the sarong is your super.
I know it sounds super boring, but It is the easiest area of your finances to fix and the impact of a change can be huge.
4 simple steps:
1. Get your super reviewed
Small differences in both investment performance and fees and costs can have a substantial impact on your long-term returns. For example, total annual fees of 2% of your fund balance rather than 1% can reduce your final return by up to 20% over a 30-year period.
The very reason that such large differences in fees and performance exist is that so many of us just don't take the time to get our super reviewed.
If you have in excess of $60,000 in your account and you have just gone with your employer plan, it is most likely that you will be able to make substantial improvements.
Of all the strategies mentioned below, reviewing your super is the one that takes the least effort and will have the largest impact.
All it takes is a simple call to someone like myself to get this sorted out – easy as.
2. Increase your own contributions
If you are in positive territory – you are spending less than you earn – salary sacrificing is an excellent way to
- save on your tax and
- spearhead your super
Be aware that the maximum amount of pre-tax contributions for the 2015-2016 financial year is $30,000.
(If you have young kids, or have just started a business, the next two are for you)
3. Get your hub to contribute
If you have an taxable income of less than $13,800 for the financial year, then your spouse can make an after-tax contribution on your behalf and claim a maximum tax offset of up to $540.*
4. Get the government to contribute
Another option to help you ‘catch-up’ on your super savings is to take advantage of the Government co-contribution scheme. If you are working (either full or part time) and earn less than $50,454 for the 2015-2016 tax year, you may be eligible for the Government co-contribution scheme. If you make an after-tax contribution to your super fund, the government will contribute an equal amount – up to $500. *
*eligibility criteria apply
Need more information?
To get your super reviewed or find out further info on the above strategies please get in touch.
t: 0416 538 227