Have you got enough assets?
Monday September 15, 2008
The amount you need in your superannuation fund will depend on more than just the lifestyle you want to lead. If you do not possess a few of the more basic assets of living, such as a car and a home, you will need much more in your superannuation fund than you might otherwise. Paying for a new car at some point from the money in your superannuation fund after you retire is quite likely. It is better to go into retirement with a car that will last you for a fair amount of time, though. When it comes to a home, if you have not paid off a home by the time you retire, then your superannuation fund will need to take on the stress of home repayments or else the stress of rental payments. You will also need to factor in the costs of moving, as few rentals are forever.
If you intend to do more with your retirement than live at home, you may also need to take other purchases into account before deciding that you have enough in your superannuation fund. For instance, you may need vehicles that are more unique than a car, such as a camper van or a boat. Buying these before you retire can put less stress on your superannuation fund.
If you don't think your superannuation fund is performing well enough for your needs, you may want to consider other types of superannuation funds. An industry superannuation fund can have very low fees, while a self managed superannuation fund can have even lower fees but require you to do more work to run your superannuation fund. As long as you know how a superannuation fund works to earn you retirement funds over time and you have enough in your superannuation fund to safely try investing yourself, a self managed superannuation fund can be a very rewarding option for those who approach it carefully.
Please click on our ESUPERFUND sponsor banner if you would like to learn more about ESUPERFUND can offer to help you start a self managed superannuation fund.
