EP 59 - Growing Your Wealth with Superannuation

In this episode, we provide a comprehensive guide to superannuation in Australia. We explain what superannuation is and how it works, including the different types of contributions, investment options, and tax benefits. We also discuss the factors to consider when choosing a super fund and how to determine the right investment strategy for your superannuation. Plus, we explore the government incentives available to encourage retirement savings and the impact of superannuation on retirement income. Whether you're just starting to save for retirement or you're looking to make the most of your existing superannuation, this episode has everything you need to know.

Chapters

2:20 - Compound interest
6:55 - The purpose of superannuation
9:40 - Withdrawing superannuation during Covid 19
10:45 - Myths about superannuation
18:30 - How superannuation & investments work
23:00 - When you can access superannuation (withdrawing money from superannuation)
26:00 - Using your superannuation in retirement
27:05 - Active income vs passive income
31:25 - Contributing money into superannuation
36:25 - Superannuation is an investment vehicle not an investment
40:20 - Superannuation and insurance

Calculations

Starting investment - $0.00
Yearly investment - $7,000 (assuming salary of $70,000 investing 10% Super Guarantee is currently 10.50%)
Years invested - 40
Annual interest rate - 9%
Calculator | https://moneysmart.gov.au/budgeting/compound-interest-calculator

Disclaimer

A model not a prediction. Results are only estimates, the actual amounts may be higher or lower. We cannot predict things that will affect your decision, such as changing interest rates.

This calculator is not intended to be your sole source of information when making a financial decision.

Assumptions

Initial deposit is made today.
Regular deposits are made at the end of year, month, fortnight, week, or day (according to the deposit frequency you set).
Interest is credited either monthly or annually, in line with standard industry practice.
The delayed start comparison feature will have the same regular deposit frequency.

Ask a question | www.rossmarais.com/askross

Episode Sponsor | This episode is brought to you by More Time Financial, a financial planning company that is on a mission to help young Australians make smarter decisions with money by providing real-life financial advice, coaching and financial education.

Book a free initial 30-minute consultation - moretimefinancial.com.au/get-started/

Disclaimer | In preparing this podcast episode, the contributors have not taken into account any particular person's objectives, financial situation or needs. Before acting on this information, you should consider its relevance to your personal circumstances.