Use this quick check to see if your superannuation is invested correctly and / or not costing too much in fees. Watch the video or read the transcript…
Hi, its Dean Mico for Edge7 Financial Planning and today I wanted to give you a really quick way to check if your superannuation is invested correctly and to check that you aren’t paying too much in fees.
And this quick check is as simple as this:
Your superannuation balance should be a minimum of 10% of the income you have earned throughout your working life to date.
Our employers put 9.5% of our income into super each year. So, for easy numbers and this check we round that to 10% per annum.
To give an example
Let’s say you have worked for 10 years and your average income in that time is $70,000. That means that 10% of your wage, or $7,000 is paid into your superannuation account each year.
So, 10 years of work multiplied by $7,000 should equal $70,000 in super.
Ok, so now you have figured out what your super should be for your circumstances, go and dig out a copy of your most recent superannuation statement or log in online and check your balance.
Is your super balance greater or less than 10% of your life time income?
If your superannuation balance is above 10% of the income you have earned in your life time well congratulations!!!
I will have a second higher level test for you in a future video, but for now there is nothing for you to do. Everything is on track so well done.
If however, your superannuation balance is not 10% of your income earned throughout your life, well this is a sign that your super is not invested correctly and / or costing you too much in fees.
This is then confirmation that you need to do something about it to insure you will have enough income to have a comfortable retirement when the time comes.
YouTube watchers should hit the link at the bottom of this video or if you are on the Edge7 website, fill in your details on the page to have an obligation free appointment.
Your first appointment is free and it could result in you doubling or even tripling your superannuation balance and therefore your doubling or tripling your income in retirement.
Why do I offer a free service?
Because I am a financial planner and I specialise in maximising the retirement income of the people I meet. If you find value in the help I give you, you may want me to implement a plan to maximise your income in retirement.
I may not be able to help everyone but if you want to schedule a financial planning session with me to design a customised plan for you, fill in your details on the page or on the link and we will set up a time to go over it together.
An email will be generated and sent to our office.
We will be in contact with you shortly to set up a time to go over it together.
If you would have any other questions, contact our office on 1300 873 455 or email me directly at [email protected]
The information provided in this article is intended for general use only. The article is intended to provide educational information only. Please be aware that investing involves the risk of capital loss. The information presented does not take into account the investment objectives, financial situation and advisory needs of any particular person nor does the information provided constitute investment advice. Under no circumstances should investments be based solely on the information herein.