OPTIMISATION
Super is a personal asset. To effectively manage super as a wealth creation strategy, you must determine what you want to achieve for yourself (also known as setting goals and objectives). You must also monitor your progress against your stated expectations and adjust your strategy regularly because the value of your super asset can rise or fall, depending on investment markets.
Optimising your super asset requires making regular, informed, timely decisions aligned with your circumstances and market conditions.
The process involves analysing the potential outcomes, benefits and risks associated with available options to determine what best meets your needs and brings you closer to achieving your goals.
Unfortunately, financial literacy among Australians is varied, and research suggests that many people struggle with more complex financial dealings such as investments and superannuation, putting a high proportion of working Australians at a significant disadvantage.
Super optimisation involves an array of skills such as:
- Analysis of current and future product capability.
- Comprehension of rules around contributions, concessional & non-concessional.
- Knowledge of global economics.
- Construction of investment portfolios suitable for expected market conditions.
- Determination of appropriate insurance requirements.
Individuals who try to acquire such skills to manage and optimise super themselves can find it is a full-time job.
The challenge is not only in skills acquisition but in ensuring the maintenance of knowledge as market conditions evolve.
The SuperWiser client portal intends to meet the needs of everyday working Australians requiring access to affordable advice and service to help them avoid making common super mistakes and optimise financial outcomes for themselves over the long term.
Unlike holistic financial advice that includes all facets of an individual’s financial situation and can cost thousands of dollars, SuperWiser focuses on providing advice limited to super and costs between $0 and $220 (inc GST), depending on requirements.
All individuals with a super account are encouraged to use SuperWiser, even if only to complete a free Super Review.
CHOICE
A common and often costly mistake many individuals make with super is assuming that their existing super product will always be appropriate for them.
Remember, your circumstances are never static and constantly evolve. A super product that was appropriate 5 years ago (for example) may no longer be so now, especially if your circumstances involve a change of employer.
With the introduction of choice, more and more individuals often make the choice to stay with their existing super product rather than move their super into their new employer’s corporate superannuation plan.
Individuals who exercise choice and do not elect to join their employer’s corporate super plan, on review, may find they have mistakenly put themselves at a disadvantage.
Medium to large employers can go to market and gain a discounted fee structure and possibly cheaper insurance premiums to the advantage of their employees.
Individuals who exercise choice must conduct an appropriate analysis comparing their existing super fund against their employer’s corporate superannuation plan if they are to make an informed decision.
POLITICS
The federal government has decided it will use the nation’s pool of super assets to fulfil political goals such as solving the housing crisis and funding changes in power generation to meet climate management targets.
While the government has a voice in doing this, it appears that the owners of the asset (i.e. every individual with a super account) are silent on the issue, or their opinion is unreported, as all political parties have adopted the same policy.
Is super really a national as opposed to a personal asset?
Despite the government’s significant interest in using the nation’s pool of super assets to fund political imperatives, most individuals remain somewhat detached from their super, preferring to look at it once each year at statement time.
Perhaps this is due to a lack of knowledge about how super can be better managed and optimised to exceed expectations as a source of income in retirement.
SUPERWISER
The SuperWiser client portal provides access to affordable, expert advice and service specifically focused on assisting you to manage your super towards an optimal outcome.
SuperWiser can help you make informed decisions and avoid common (and often costly) mistakes.
Complete a free Super Review.
From there, you can obtain initial super optimisation advice (including implementation) for a one-off low cost of $220 (inc GST).
Alternatively, to discuss your options directly with an Adviser, book a time online, call 1800 467 467 or email yoursuper@superwiser.com.au