The Importance of Investing in Your Future

Superannuation is a long term investment

In the course of your life you may have many financial objectives, with a range of timeframes. Saving for a holiday or a used car may take a year or two, whilst saving for a property deposit usually takes longer. Once you actually purchase a property, it may take 30 plus years to pay off.

However, the longest timeframe and perhaps most significant of all your investments, is your superannuation. It will build throughout your working life, potentially becoming your biggest asset.

Consequently, your superannuation deserves to be considered more deeply than any other area of your financial life. It needs to be wisely invested, tax effectively structured and properly maintained, if it is to meet your retirement lifestyle expectations.

The dangers of indifference

Despite its pre-eminent position in most people’s financial future, there is a general tendency to leave superannuation on ‘autopilot’. This approach may put you at a serious disadvantage in terms of your ultimate retirement outcomes. To get the most out of your super and to ensure you have an adequate strategy for retirement, it is important to be engaged with it and to get the right advice about how to maximise your position.

There are a lot of voices in the public domain clamouring to put in their two cents on what is best for the future of superannuation. The unfortunate truth is that many of these are vested interests that have short-term or partisan aims in mind. Political parties of all stripes, trade unions, think tanks, lobbyists and special interest associations seem to all be pushing their own agendas and many of these opinions may not necessarily be in accord with your longterm retirement interests.

Take for instance the issue of retirement ages. The idea of increasing the retirement age up to 70 has been floated in recent times and although public outcry has stifled this move for now, it is inevitable that it will rear its head again. Not a pleasant thought if you are a farmer, tradesperson or work in industries which require manual labour.

The result of this instability and ‘barrow pushing’ is a climate of fear, which may undermine confidence in the superannuation system and deter people from taking a proactive approach to their retirement planning.

The value of Professional Advice

Your super is a major asset that deserves your active engagement. However, the complexity of superannuation regulations and the taxation system, can make this quite a daunting prospect to deal with by yourself. This is where the value of qualified, personalised advice can come into its own.

One of the key foundations of contemporary financial advice is that it must be based on a close understanding of your objectives, lifestyle circumstances and investment personality. As professional advisers, we are able to help you to identify and crystallise these issues, so that a highly individualised strategy can be developed.

Over time, circumstances change, objectives evolve and the investment environment fluctuates. A big part of our role as advisers is to help you take these changes into account. At the same time we have access to market and legislative research and analysis, which allows us to provide the kind of fact-based, objective guidance needed to capitalise on opportunities.

The current state of flux around superannuation makes it more vital than ever to have us as your professional financial planner in your corner, to help you make sense of it all and to help ensure that your financial well-being is championed above all.

Based on an article in Adviser Ratings, December 2016

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Disclaimer:

The articles are of a general nature only and are not to be taken as recommendations as they might be unsuited to your specific circumstances.

The contents herein do not take into account the investment objectives, financial situation or particular needs of any person and should not be used as the basis for making any financial or other decisions.

InterPrac FP directors and advisers may have investments in any of the products discussed or may earn commissions if InterPrac clients invest or utilise services featured.

Your InterPrac FP adviser or other professional advisers should be consulted prior to acting on this information. This disclaimer is intended to exclude any liability for loss as a result of acting on the information or opinions expressed.